Bentley Cuts Shipping Costs by Shipping Online Orders from Its Stores
March 15, 2022 | by Jodi Abrams
Bentley, Canada's largest retailer of everyday and travel essentials, turned its stores into regional distribution centres for online orders. CONTAX built a custom SAP ABAP Ship From Store solution that routes each order to a nearby store, cutting cross-country freight and saving Bentley hundreds of thousands of dollars a year in shipping costs.
At a Glance
The Customer
Bentley is the largest retailer of everyday and travel essentials in Canada, with more than 160 stores covering each of the Canadian provinces. Its stores stock the same products that it sells online.
The Challenge
As online shopping grew during the COVID-19 pandemic, Bentley had to move quickly to keep up with changing demand. With e-commerce orders up and freight costs rising, it wanted a more cost-effective, regional way to fulfill online orders. The plan was to use its stores, and store employees, as regional distribution centres that process and ship local orders.
That needed a systematic way to run the new process. Bentley needed a decision engine to choose which store ships which order while keeping a short fulfillment window. Allocating an order was not enough: the engine also had to check stock, and pass the order to a different store if it was not picked up within a waiting period, so customers always got their products quickly.
Store employees also needed a simple, integrated screen to process each order. Bentley already used an SAP Back Office system, so an extra screen there was the logical choice, as long as it had few options and was not cumbersome to use.
The Solution
CONTAX developed a custom SAP ABAP Ship From Store solution. A set of custom tables drives the logic that decides which store gets which order, taking into account the location of the end customer and store hours.
Regions by postal code
Using the forward sortation area, the first 3 characters of a postal code, each store is responsible for a geographical region. Most regions also have a second and third store close by.
Allocation by stock and location
Each order goes to a store based on availability and location. If no store can fulfill it, the order goes to one of Bentley's distribution centres that has stock.
Simple store screen
Store associates pull up their orders on screen, pick and pack the item, and print a label on the store's label printer.
Carrier-ready labels
Labels are integrated with the carriers and include all the tracking information needed.
Automatic hand-off
If a store can't fulfill an order, it moves to the next closest store to the end customer, and monitoring makes sure no order is neglected.
The Results
- A localized distribution network built on Bentley's existing stores, with no more expensive cross-country freight
- Savings of hundreds of thousands of dollars a year in shipping costs
- Faster delivery to online customers
- Bentley's existing store workforce handles the growth in e-commerce orders
- Store employees print a label and update the system in only a few clicks
"With the implementation of the Ship From Store Solution from CONTAX, Bentley was not only able to reduce shipping costs but also shipping time to online customers. What sets CONTAX apart is their understanding of their clients' needs and the support they provide during the entire process."
About CONTAX ABAP Development
CONTAX designs and builds custom SAP solutions that fit the way each business works, from decision logic and custom tables to simple screens for front-line staff. Learn more about ABAP Development and SAP Services.
About the Author
Jodi Abrams
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