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Online shops keep warehousing and freight costs low with Consignor - Firtal
Online shops keep warehousing and freight costs at an absolute minimum with Consignor
Jesper Hvejsel acquires online shops to run them better and with a higher profit than the previous owner. His secret is to keep warehouse and freight costs at a minimum. Therefore, he uses Consignor for his shipments.
Jesper Hvejsel is CEO and owner of the company Firtal, who own and operate nine successful online shops in Denmark, Norway and Sweden from their combined headquarters and operational warehouse in Lystrup, Denmark. In just four years, Jesper Hvejsel increased the number of annual shipments from his online shops 30,000-220,000, and therefore low warehousing and freight costs are a top priority. Jesper Hvejsel is therefore excited about the major savings Firtal achieves when utilizing the Consignor platform:
"We have much faster warehouse processes with Consignor, as we automatically book transport in Consignor when we receive orders from our online shops, and we print labels just by scanning the order IDs. Our customer service and our consumers have easy intuitive access to track & trace information using Consignor. It is also easy for us to set up new carriers because of Consignor’s extensive carrier library. All this helps us to achieve 5-10 seconds efficiency saving when processing each order, converting this equates to 611 hours a year! "
"When you ship 220,000 parcels a year, errors will occur. Errors that can be difficult to detect. However, with Consignor we are able to extract data on all shipments and easily match them with invoices from our carriers, early identification of errors helps us avoid paying for avoidable mistakes thus keeping freight costs to a minimum."
The employees print shipping labels via Consignor Shipment Server at Firtal’s warehouse.
Consignor is available in three different versions: Consignor On-premises, Consignor Ticket and Consignor Shipment Server. Each version has its advantages depending on the type of business you have. Firtal uses Consignor Shipment Server, a web service that Consignor operates and maintains. It easily integrates with ERP systems and web shops. This means that labels are printed from the Internet, and training in new systems is not necessary.
How Firtal’s Consignor solution is set up
Consignor Shipment Server is integrated to Firtal’s self-developed ERP system, Selveo, a system that they plan to sell to other retailers with an online presence. In Selveo they book transport and print labels at the warehouse. In Firtal’s customer service employees log on to Consignor Portal - a cloud-based web service, where they are able to see track & trace information on the shipments. Track & trace data from the Portal is also available to Firtal’s customers via login using order number and email address on the websites of Firtal’s nine different online shops.
"Consignor streamlines our employees’ everyday processes in customer service and warehouse dispatch operations, with up to 4,000 customers a month using track & trace via our websites using event data retrieved from Consignor Portal," says Jesper Hvejsel.
Firtal’s customer service team track parcels in Consignor Portal.
Firtal’s future plans include acquiring even more online shops in several countries - a growth strategy that Consignor supports.
"We acquire online shops according to the 3/30/300 logistics rule. Items in the online shop should: maximum have an average weight of 3 kg, minimum have a coverage ratio of 30%, have a sales price which can be included in an online shopping cart at the average value of 300 kr. In the future, we will first and foremost acquire online shops in Norway and Sweden, then we will look at the Netherlands, Poland and other Eastern European countries. It's quick and easy for us to start up with carriers in new countries, because with Consignor we don’t have to use expensive software engineers and setup carriers ourselves. In this way Consignor gives us freedom to make the right decisions, " Jesper Hvejsel concludes.
- Firtal owns and operates the following online shops: Helsebixen.dk, helsehelse.dk, Iforma.se, Viivaa.dk, Made4men.dk, Made4men.no, Made4men.se, Incover.dk og Incover.no.
- All nine online shops combined ship in the region of 220,000 parcels a year with plans to grow to 300,000 shipments during 2017.
- Firtal uses Bring, PostNord and DAO as carriers.
- Firtal’s nine online shops have 250,000 item numbers at the warehouse in Lystrup.
- Firtal has 30 employees, of which three work in customer service and 12 at the warehouse.
- A warehouse employee at Firtal is capable of picking 330 order lines per hour, where a picking robot only is capable of picking 250-300 per hour.
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