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CASE STUDY/ RETAIL

Omnichannel logistics solution boosts department store chain’s customer service capacity by 70%

Agile Portfolio Evolution

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About the customer

Our client is a renowned department store chain in Latin America that operates a multitude of boutiques, shopping complexes, and eCommerce stores to provide a variety of services and products to its customers.

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100+ stores

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100+ years in the market

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Operates boutiques, shopping complexes, and eCommerce stores

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Business challenges

Our client faced the challenge of strengthening its digital ecosystem to become an omnichannel company while improving the logistics area for deliveries to consumers. It needed a technological solution to monitor logistics and customer delivery information while reducing delivery time, merchandise losses, logistics costs, and improving the quality of logistics service.

1

Digital sales accounted for 26-30% of total sales, but the client wanted to become a fully omnichannel company.

2

Needed a technological solution to improve logistics and delivery experience for customers.

3

Wanted to reduce delivery time and merchandise losses in the business processes, improve logistics service quality, and reduce logistics costs.

4

Gain effective control of client information with fewer losses of information in internal processes.

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How Softtek comes into play

In late 2021, Softtek partnered with the client to develop, implement, and support a solution called Order Management Optimizer, tailored to its unique business needs. Our solution involved the standardization of flows for different types of shipments, optimal inventory management, and analysis and definition of productivity indicators.

Automated back-end logistics monitoring for real-time inventory, personnel allocations, and order picking and packing inside a centralized platform.

Integrated control and monitoring parameters using real-time metrics for the receiving and shipping areas of stores, cloud management, personnel allocations, and order picking and packing.

Processes impacted: Order generation, picking, packing, distribution, and last-mile delivery.

Technologies utilized: Google Cloud platform, Python, Flutter, and Angular.

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Business impact

With a consolidated and transparent logistics back-end, our client was able to optimize its delivery system and customer service, leading to a direct impact on online sales, delivery time, inventory management, and internal traceability of eCommerce order management. Our client’s strong brick-and-mortar operations are now complemented by an equally formidable eCommerce fulfillment operation required to support its total omnichannel experience that flexes with demand across its various channels.

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Increased customer service capacity by up to 70%.

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Reduced delivery costs by 7%.

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Achieved a 2x increase in direct home deliveries.

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Reduced last-mile logistics costs by 30% in the first year.

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Achieved a 91% on time or early delivery rate.

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Reduced customer complaints by 30% within the first six months.

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