Client

Peak Design, makes rugged carry gear to help creatives, commuters, and adventurers keep their gear accessible, organized, and protected.  They sell direct-to-consumer (DTC) and through retail with six global distribution centers located across the globe.  Their three-year, year-over-year growth was 55%.

 

Challenge

Third party warehousing and fulfillments costs were rising.  Peak Design wanted to ensure best in class pricing and evaluate alternative, third-party options. They experienced challenges with inventory management, turn time, and order accuracy—all impacting customer experience.  Attempts to resolve issues on their own delivered minimal improvements.

Peak Design had not contractual service level agreements (SLAs) in place and experienced significant growing pains.

 

Solution

Peak Design retained Shipware, an SIB company, for third party warehousing and fulfillment procurement.  

We began with an assessment of Peak Design’s current state.  We reviewed operational issues and determined the root cause, evaluated contract terms and pricing against our industry benchmarks, and reviewed historical, and anticipated growth rates and drivers. We then identified key improvement priorities.  Shipware then developed the optimization strategy. Together, we decided to execute an RFP in parallel with a review of the current third-party warehousing and fulfillment partner.  

In the end, our client decided to negotiate a new MSA with the incumbent third-party warehousing and fulfillment partner.  Key considerations were:  support knowledge, current infrastructure, systems technology, existing integrations, and pricing.

 

Results

$300,000 in savings delivered.

Peak Design moved two of their distribution center locations for better service. This provided a short-term investment that resulted in better customer support and a significant ROI. Peak Design realized freight and tax reductions while they created workflow efficiencies, addressed efficiencies and service issues, and improved the overall customer experience. Shipware established and memorialized SLAs and set terms regarding inventory accuracy, order turn times, and order accuracy.  We established a reporting protocol and implemented a formal SLA review process and put non-conformance contractual penalties in place.

 

“We are very pleased with the end results of the negotiations. I had an opportunity to share the initiative results with the Peak Design Leadership and it was a smashing success.”

Mike Winchell
VP of Finance
Peak Design

 

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