Case Studies Customer Driven Evolution in eCommerce

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	Customer Driven Evolution in eCommerce

Customer Driven Evolution in eCommerce

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP) Functional Applications - Remote Monitoring & Control Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	E-Commerce Retail
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Fleet Management Inventory Management Predictive Maintenance Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Wehkamp faced several challenges in its eCommerce operations. Firstly, the expanding fulfillment requirements due to multiple brands and a wide variety of products, including appliances, small electronics, furniture, and clothing, required a flexible fulfillment process. Small items needed high volume pick/pack/ship processes, while larger items like furniture required consolidation, inspection, and advanced pallet builds. Additionally, the 'endless aisle' of products made suppliers' direct shipping critical for on-time delivery. Secondly, Wehkamp had limited visibility with its suppliers, leading to missed opportunities to reduce inventory across the network and limited ability to take action on customer orders in danger of missing delivery windows. Lastly, customers demanded faster delivery, including same-day delivery and white-glove services, which required Wehkamp to cut lead times across the supply chain, not just in transportation. Read More
About Customer	Wehkamp is the largest e-retailer in the Netherlands, headquartered in Zwolle. The company serves over 1.7 million customers and ships over 7 million packages annually across more than 180,000 products, most within 24 hours. Wehkamp has embraced quick delivery and easy returns as a competitive advantage. To support this, the company invested in the world's largest automated eCommerce distribution center and strengthened its IT infrastructure with a new Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system. Additionally, Wehkamp implemented MPO's Supply Chain Orchestration solution to ensure consistent fulfillment of customer orders within shorter cycle times by integrating and extending their systems, eCommerce webshops, suppliers, and carriers. Read More
Solution	Wehkamp implemented MPO's Supply Chain Orchestration solution to address its challenges. The solution seamlessly integrated with Wehkamp's existing ERP, WMS, and world-class distribution center within planned deadlines. It provided full end-to-end visibility and orchestrated real-time execution for all internal, external, and return order flows across their supply chain network and existing systems. MPO's platform connected various eCommerce webshops with WMS, suppliers, and transportation partners to create the most optimized and cost-effective plan for each order. This included dynamically sourcing inventory from across the network and determining the best method of shipment based on SLA cost and speed information. The control tower enabled flexible replanning of any order to ensure on-time and in-full delivery. Additionally, MPO provided complete supplier inventory visibility and collaboration, allowing Wehkamp to have full control of their inventory across the supply chain network. This included detailed fulfillment steps, in-transit status, and proof of delivery. Integration with each supplier and existing facilities enabled Wehkamp to get a complete view of supplier network performance and quickly identify problems and optimize inventory. Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Functional Applications - Remote Monitoring & Control Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

E-Commerce

Retail

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Fleet Management

Inventory Management

Predictive Maintenance

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Wehkamp faced several challenges in its eCommerce operations. Firstly, the expanding fulfillment requirements due to multiple brands and a wide variety of products, including appliances, small electronics, furniture, and clothing, required a flexible fulfillment process. Small items needed high volume pick/pack/ship processes, while larger items like furniture required consolidation, inspection, and advanced pallet builds. Additionally, the 'endless aisle' of products made suppliers' direct shipping critical for on-time delivery. Secondly, Wehkamp had limited visibility with its suppliers, leading to missed opportunities to reduce inventory across the network and limited ability to take action on customer orders in danger of missing delivery windows. Lastly, customers demanded faster delivery, including same-day delivery and white-glove services, which required Wehkamp to cut lead times across the supply chain, not just in transportation.

About Customer

Wehkamp is the largest e-retailer in the Netherlands, headquartered in Zwolle. The company serves over 1.7 million customers and ships over 7 million packages annually across more than 180,000 products, most within 24 hours. Wehkamp has embraced quick delivery and easy returns as a competitive advantage. To support this, the company invested in the world's largest automated eCommerce distribution center and strengthened its IT infrastructure with a new Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system. Additionally, Wehkamp implemented MPO's Supply Chain Orchestration solution to ensure consistent fulfillment of customer orders within shorter cycle times by integrating and extending their systems, eCommerce webshops, suppliers, and carriers.

Solution

Wehkamp implemented MPO's Supply Chain Orchestration solution to address its challenges. The solution seamlessly integrated with Wehkamp's existing ERP, WMS, and world-class distribution center within planned deadlines. It provided full end-to-end visibility and orchestrated real-time execution for all internal, external, and return order flows across their supply chain network and existing systems. MPO's platform connected various eCommerce webshops with WMS, suppliers, and transportation partners to create the most optimized and cost-effective plan for each order. This included dynamically sourcing inventory from across the network and determining the best method of shipment based on SLA cost and speed information. The control tower enabled flexible replanning of any order to ensure on-time and in-full delivery. Additionally, MPO provided complete supplier inventory visibility and collaboration, allowing Wehkamp to have full control of their inventory across the supply chain network. This included detailed fulfillment steps, in-transit status, and proof of delivery. Integration with each supplier and existing facilities enabled Wehkamp to get a complete view of supplier network performance and quickly identify problems and optimize inventory.

Impact #1	With real-time exception management, Wehkamp achieved flexible order fulfillment and dynamic use of inventory across their supplier network.
Impact #2	Supply chain orchestration provided Wehkamp with the agility and flexibility to create a better, more consistent experience for all customers.
Impact #3	The solution resulted in a greater percentage of on-time in-full orders delivered quicker and at less cost.

Impact #1

With real-time exception management, Wehkamp achieved flexible order fulfillment and dynamic use of inventory across their supplier network.

Impact #2

Supply chain orchestration provided Wehkamp with the agility and flexibility to create a better, more consistent experience for all customers.

Impact #3

The solution resulted in a greater percentage of on-time in-full orders delivered quicker and at less cost.

Benefit #1	95% near-term goal for customer orders to be delivered within 24 hours of each customer.
Benefit #2	30 minutes that product items are needed to be ready for dispatch to a customer.
Benefit #3	700+ suppliers in the supply chain network that they collaborate with in real-time with MPO.

Benefit #1

95% near-term goal for customer orders to be delivered within 24 hours of each customer.

Benefit #2

30 minutes that product items are needed to be ready for dispatch to a customer.

Benefit #3

700+ suppliers in the supply chain network that they collaborate with in real-time with MPO.

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Overview

Customer Driven Evolution in eCommerce

Operational Impact

Quantitative Benefit