When Danish retail chain JYSK decided to launch their online shop back in 2010, they realized they needed a system that could print shipment labels and connect to multiple carriers.
Their previous shipping process when sending goods to their stores involved using the same carrier once a week, where entire pallets and truckloads were headed for the same destination labelled with one single internal pallet label for each pallet to each store.
However, it became clear that this was unsuitable for e-commerce, as JYSK would be using a range of different carriers for various types of shipments from mattresses and furniture to interior décor, meaning each parcel would require an individual label which would slow down picking and delivery procedures.
They required a multi carrier shipping platform that could print labels, automate the booking process and manage carrier integrations in one place. After searching the market for suitable solutions, Consignor was chosen.
Since JYSK opened its’ first store in Denmark in 1979, the retailer has been on a constant journey of expanding the business, with more than 100 new JYSK stores opening around the world each year.
JYSK is present in more than 50 countries across the world with more than 3000 stores. Their mission is to provide a great Scandinavian offer within sleeping and living.
Shift to ecommerce
Back in 2010, JYSK embarked on their online journey by launching their ecommerce website. Already familiar with shipping as truckloads of goods were shipped from distribution centers to stores throughout Europe every week, it soon became clear that ecommerce required a different approach.
“Shipments for our stores were a “business as usual” process. However, with ecommerce you have all these different parcels, that need to have their own individual label, as they will be sent with different carriers depending on the size of parcel and the end destination,” said Ole Rønnest Nielsen, Head of Logistics IT at JYSK.
“With that kind of unpredictable and complex shipping, we realized that we needed a system that could automate the shipping process, print labels and connect to multiple carriers all in one place,” he added.
The beginning of a strategic business partnership
In order to efficiently handle ecommerce orders at the warehouse, JYSK required a multi carrier shipping platform. After searching the market for suitable solutions, Consignor was chosen.
It was crucial that the system was flexible in order to support the rapid expansion that JYSK was planning as part of their business strategy.
“During the first meeting we had with Consignor back in 2010, we highlighted our expansion plans into Central and Eastern Europe that would require the development of multiple carriers, that were not present in Consignor’s carrier library at that time.
“Consignor accepted the challenge and as a result have become a key strategic partner since day 1 in our online journey, by allowing us to quickly onboard new carriers and expand into new markets. Today we are using Consignor in 22 countries and utilize delivery services from over 40 carriers,” Ole said.
Shipment data for tracking and reporting
Besides using Consignor for printing labels, transmitting EDI and booking carriers. JYSK utilize the vast amount of structured shipment data available in Consignor to make more informed business decisions.
“We get track & trace data from carriers via EDI from Consignor. This is integrated to our CRM system, where customer service can troubleshoot and track parcels fast and easy with one click access,” Ole said.
“Also, Consignor is integrated to our SAP system, which allows us to see if shipments are delivered in time in order for us to fulfil our delivery promise to our customers. We are also looking to use invoice verification through Consignor so we can spot any deviations between our rates and the carriers’ pricing,” he added.
A smooth returns process
Even though JYSK has a very low return rate, a smooth returns process is still a priority. That’s why they use the return management feature in Consignor.
“Our customers can easily return their online orders in one of our stores or by contacting customer service, who then e-mails a Consignor return label to the customer. Returns are sent to our stores instead of our DC’s, as this gives us a more efficient flow. When the return shipment arrives at the store, the employee will in the future simply scan the return label, and the store stock is updated immediately.”
40% more efficient picking process
Not only has Consignor been a key part of creating a streamlined delivery management process at JYSK, by integrating Consignor to their WMS system, they have been able to optimize their picking processes at the warehouse significantly.
“With Consignor as part of the picking process, we are able to make a “shipping label” integrated picking process – instead of a 2-step pick and pack process; all based upon a batch picking concept. This has made the picking process 40% more efficient,” Ole said.
A stable and flexible delivery management platform
Having Consignor in place from the very beginning of their online journey has given JYSK peace of mind that they have a stable and flexible delivery management platform which frees up time allowing JYSK to focus on developing other areas of their business.
“Our online sales grow significantly every year and Consignor is able to support this growth. It is a reliable and stable system eliminating any concerns in terms of delivery management. In short, Consignor is a key part of our business strategy then, now and in the future,” Ole concludes.
"Consignor has been a key strategic partner since day 1 in our online journey, by allowing us to quickly onboard new carriers and expand into new markets. Today we are using Consignor in 22 countries and utilize delivery services from over 40 carriers."
Ole Rønnest Nielsen, Head of Logistics IT at JYSK
