Turning Empty Shelves into Smooth Sailing

Short Introduction:

A baby goods brand had strong demand and a real problem: they kept running out of stock because Australia’s fulfillment options didn’t fit how they actually needed to operate. AMZOS found a 3PL provider that would do exactly one thing well, store inventory and forward it to Amazon, solving a stockout problem that generic fulfillment services couldn’t fix.

Client Background:

A prominent brand in the baby goods industry faced persistent challenges with inventory management, frequently experiencing stockouts and struggling to meet sales projections. Despite strong demand for their products, the brand’s inability to maintain adequate inventory levels hindered their ability to capitalize on market opportunities and satisfy customer demand.

The Challenge:

The brand encountered significant challenges with inventory management, including frequent stockouts and an inability to keep up with sales projections. Traditional fulfillment options were insufficient, and finding a suitable 3PL provider in Australia proved challenging due to the preference for fulfillment services over storage-only solutions.

Our Strategy:

The obvious move would have been to force-fit a standard 3PL contract. Instead, AMZOS looked for a provider willing to do less, storage only, and no bundled fulfillment because that’s what actually matched how the brand needed to operate. Finding a partner willing to work that way took real negotiation, as most 3PLs are built around fulfillment as the core offering.

Services Provided:

• Amazon supply chain and inventory management consulting
• 3PL sourcing and vetting in the Australian market
• Inventory flow coordination between 3PL and Amazon warehouses
• Ongoing logistics management

Execution Process:

1. Research
   AMZOS evaluated 3PL providers across Australia, specifically looking for storage-only flexibility, not standard fulfillment packages.
2. Negotiation
   A partnership was negotiated with a provider willing to act purely as a storage and forwarding point, tailored to the brand’s actual need.
3. Logistics Setup
   AMZOS coordinated the physical transport of inventory into the new 3PL facility.
4. Ongoing Inventory Flow Management
   AMZOS managed the ongoing flow of inventory between the 3PL and Amazon warehouses, keeping stock levels aligned with demand.

Results:

The implementation of the new supply chain solution led to significant improvements for the brand across multiple areas:

• Improved Inventory Management: The brand was able to maintain optimal inventory levels and minimize stockouts, ensuring they could meet customer demand and capitalize on sales opportunities.
• Enhanced Flexibility: By partnering with a flexible 3PL provider, the brand gained greater control over their inventory and fulfillment processes, allowing them to adapt to changing market conditions and customer needs more effectively.
• Cost Savings: The streamlined supply chain solution resulted in cost savings for the brand, as they no longer had to rely on expensive expedited shipping methods to replenish inventory at Amazon warehouses.

Key Takeaways:

• Sometimes the right 3PL provider isn’t the one offering the most services, it’s the one willing to do exactly what you need and nothing else.
• International fulfillment gaps (in this case, Australia) often need a custom solution, not a standard package.
• Fixing the root cause of stockouts costs less long-term than repeatedly paying for expedited shipping to cover for it.