One of the top food retailing companies in the U.S. partnered with Neopost USA after facing a crossroads in its business operations. With more than 800 pharmacies under its brand, this grocery retailer needed to revolutionize its mailing and shipping operations in order to keep up with demand and evolving customer needs.
Revolutionize the Mailing and Shipping Operations
The company had used mail meters in the past but did not have a central system that would allow its stores to collaborate with each other for inventory, fulfillment and delivery. For example, customers who regularly filled their prescriptions with this retailer would effectively cancel their prescription fulfillment when they relocated to a different city and decided against receiving their prescriptions by mail. This situation caused customer retention rates to fall because customers turned to competitors in their new neighborhood. Additionally, the pharmacies could not transfer supplies between locations; if one pharmacy ran out of supplies, it had to complete a costly order directly with the drug manufacturer. This retailer approached Neopost USA to find a solution that would support efficient business operations and boost its customer retention rate.
Simplify the Shipping Process
Neopost USA developed a solution tailored to the customer's unique needs. Neopost USA's experts spent hundreds of hours examining the operations and studying the workflow of the company. The result was a customized implementation of Neopost USA's Enterprise Shipping System (ESS), a cloud-based shipping application that simplifies and expedites shipping while saving unnecessary costs. The implementation of Enterprise Shipping System (ESS) created a process by which the customer's inventory could be transferred quickly between locations, essentially circumventing the time-consuming and costly order process with the drug manufacturer. Enterprise Shipping System (ESS) also allowed our customer to uncover more cost-efficient shipping strategies, including an important change in delivery providers.
Cost Reduction, Sales Increases and Higher Customer Retention Rate
Within two months, Neopost USA successfully launched Enterprise Shipping System (ESS) in all 800 of the company's pharmacies. Our customer saw a sales increase within six to eight months. Further, the company experienced a 10% cost reduction in shipping thanks to the implementation of Enterprise Shipping System (ESS). For company executives, this was more than a satisfactory return on investment. Not only did the company see a reduction in costs, an increase in sales and a higher customer retention rate, but it also made its operations more efficient.