Tough Trucks For Kids operates in the e-commerce industry, specializing in durable and engaging toy trucks designed specifically for children. As a bootstrapped brand experiencing rapid growth, the company stands out due to its commitment to delivering high-quality, imaginative play solutions that cater to the developmental needs of young children — with the mission to inspire the next generation of builders who grow up knowing the joy of getting their hands dirty by playing outside and spending less time glued to their iPads.
What makes ToughTrucksForKids.com unique is its focus on robust, kid-friendly products that endure the rigors of active play, combined with an obsession to deliver a world-class customer experience and run an operationally efficient business. This commitment to quality and innovative customer interaction sets them apart in the bustling market of children’s toys. Before partnering with Shipbots for their 3PL needs, Tough Trucks For Kids faced several challenges with their existing 3PL partners, which negatively impacted business operations and customer experience.
1. How was your order fulfillment managed before moving to Shipbots?
Before partnering with Shipbots, our order fulfillment was managed through another third-party logistics (3PL) provider. The process was heavily reliant on manual inputs and traditional processes, which included manually submitting 940 excel sheets with a list of daily orders before a cut-off time for order fulfillment. This old system was not only time-consuming but also prone to errors, leading to delays and inefficiencies in shipping and handling. Our previous 3PL partner had a disorganized setup with legacy processes that often resulted in operational bottlenecks.
2. What were the main challenges you faced?
The main challenges we faced with our previous 3PL partner included:
“Once our old vendor mistakenly shipped 54 orders on an incorrect UPS shipping account and slapped us with a $21K invoice with a single-line item saying UPS shipment. No explanation. Nothing. I immediately saw the error and pointed it out to the account management and warehouse team. But their AR team kept following up regarding the unpaid invoice warning that an interest will be charged on it. Saying that the customer experience was horrible would be an understatement.”
— Ankur Shrestha, Co-Founder and COO, ToughTrucksForKids.com
3. What prompted your decision to switch fulfillment centers?
The decision to switch fulfillment centers was driven by multiple factors:
These factors, combined with Shipbots’ reputation for quick and efficient service (described aptly as “zip-zap done”), and their ability to dramatically reduce costs, made them an ideal choice for our evolving business needs.
1. How did you choose Shipbots?
We chose Shipbots after an impressive initial interaction that highlighted their responsiveness and customer service excellence. Immediately after submitting a demo request form on their website, their team responded, and we had a call scheduled with Payam (the owner) on the very same day. This rapid response was a strong positive indicator of their commitment to client needs.
During our discussions, Shipbots demonstrated a keen understanding of modern logistics technology, with a robust platform that prioritizes operational efficiency, error minimization in the warehouse (we’ve yet to send a wrong package to a customer), and same-day order fulfillment.
They also offered the best price, which combined with their technology and service speed, made them stand out as the optimal choice for enhancing our order fulfillment process.
2. What criteria were most important in your decision-making process?
The most important criteria in our decision-making process were:
3. Did you consider multiple fulfillment centers? If so, how many?
Yes, we conducted a thorough evaluation process in our search for a new fulfillment partner. We considered a total of seven different 3PL providers before finalizing our decision to partner with Shipbots. This extensive comparison allowed us to carefully assess each potential partner's capabilities, technology, customer service, pricing, and overall fit with our operational needs and business goals. Shipbots emerged as the clear leader across all our key criteria, demonstrating their ability to provide superior service and support for our growing business.
1. How long did the transition to Shipbots take?
The transition to Shipbots was remarkably swift and efficient. We got ShipHero up and running and integrated with our Shopify store in an hour — huge thanks to Andres with the help. Once they received our incoming containers, we were ready to ship and fulfill orders on the next day of receiving the containers! This quick turnaround was essential to maintaining continuity in our order fulfillment processes during the transition period.
2. What steps were involved in the transition?
The transition to Shipbots involved several key steps:
1. How has Shipbots impacted your order processing times?
The impact of partnering with Shipbots on our order processing times has been significantly positive. With their automated systems and efficient warehouse operations, we've experienced a substantial reduction in the time it takes to receive an order and ship it out. Previously, order processing could take up to 48 hours, but with Shipbots, we've managed to reduce this time to under 24 hours consistently as we offer same-day and next-day order fulfillment options to our customers. This improvement has been crucial in enhancing customer satisfaction by providing faster delivery times.
2. Have you noticed any changes in order accuracy and error rates?
Yes, there has been a noticeable improvement in order accuracy and a reduction in error rates since we began working with Shipbots. Their modern tech solutions and automation have minimized human errors in the fulfillment process. Previously, error rates due to manual entry and processing were a concern, but with Shipbots' automated scanning and sorting systems, we’ve yet to see a wrong item being delivered to a customer despite the multiple SKUs and color variants. This has not only reduced the costs associated with returns and reshipments but has also improved our overall customer trust and satisfaction.
3. What improvements have you seen in inventory management?
Shipbots has significantly enhanced our inventory management capabilities. Their advanced inventory management system allows for real-time tracking of stock levels, which helps maintain accurate inventory records and reduce overstocking or stockouts. The integration of their system with our e-commerce platform provides automated updates, which ensures that our inventory data is always current and accurate. This integration has enabled us to make better-informed decisions regarding stock replenishment and has improved our overall operational efficiency. Additionally, the organized and systematic approach of Shipbots’ warehousing has made it easier to manage inventory, leading to quicker retrieval times and faster order fulfillment.
1. How has Shipbots affected delivery times for your customers?
Shipbots has had a profound impact on improving delivery times for our customers. With their efficient and streamlined processes, we've been able to reduce the delivery window significantly. Previously, customers would wait several days for their orders, but now, thanks to Shipbots' expedited handling and excellent relationships with shipping carriers, including access to the best FedEx rates, we often see deliveries completed in half the time. This improvement in delivery speed has been a key factor in enhancing the overall customer experience.
2. Have you received any feedback from customers regarding the new fulfillment process?
Yes, the feedback from customers regarding the new fulfillment process has been overwhelmingly positive. Many have noticed and appreciated the quicker delivery times and the enhanced packaging that ensures products arrive in perfect condition. Customers have also commented on the seamless communication process, where they are kept informed of their order status from the moment of purchase to delivery. This transparency has helped increase trust and satisfaction with our brand.
3. Are there any notable changes in customer satisfaction ratings or reviews?
Since transitioning to Shipbots, we've observed a notable improvement in customer satisfaction ratings and reviews. Our overall rating has increased, with specific mentions of faster delivery times and the professionalism of the fulfillment process. Customers seem to appreciate the reliability and efficiency that Shipbots has brought to our operations. Additionally, the reduction in errors and the quick resolution of any issues that do arise have contributed to an increase in positive customer testimonials and repeat business. This enhancement in customer satisfaction is a testament to the effectiveness of Shipbots' fulfillment services and their impact on our business operations.
1. How do the costs of using Shipbots compare to your previous in-house fulfillment costs?
The costs of using Shipbots have proven to be significantly more economical compared to our previous in-house fulfillment operations. By switching to Shipbots, we've seen a reduction in various logistical expenses such as labor, warehousing, and packaging. Specifically, their ability to provide reduced rates for FedEx shipping and a 67% reduction in UPS shipping costs from another vendor has directly impacted our bottom line in a positive way. Additionally, the streamlined processes and automation offered by Shipbots have reduced the need for extensive manual labor, further cutting costs.
2. What savings or additional expenses have you encountered?
Since partnering with Shipbots, the most significant savings have been in shipping costs and operational efficiencies. The automation of the order fulfillment process has also reduced the costs associated with errors and returns, which were more frequent with manual processes.
We've encountered minimal additional expenses, as any initial setup costs or investment in integrating systems with Shipbots have been quickly offset by the overall savings. Moreover, the reduction in warehouse product receiving, storage, and fulfillment costs by over 40% compared to our last 3PL partner has been a substantial financial benefit.
3. How has Shipbots affected your overall profitability?
Shipbots has had a very positive effect on our overall profitability. By lowering fulfillment costs and reducing the frequency of errors, we've been able to improve our profit margins. Faster delivery times have also enhanced customer satisfaction, leading to repeat purchases and increased customer loyalty, which contributes to long-term revenue growth. The cost-efficiency and operational improvements brought by Shipbots have allowed us to allocate resources more effectively, investing in other areas of the business such as product development and marketing, further driving profitability. Overall, the partnership with Shipbots supports our financial health and strategic business goals.
1. How long do you estimate it will take to see a return on investment (ROI) from the transition?
Based on the immediate reductions in shipping costs from using their FedEx account and improvements in efficiency we've observed since transitioning to Shipbots, we realized significant savings on shipping costs and operational efficiencies and saw a positive ROI by our 6th week of fulfilling orders. This timeframe is accelerated by the reduction in manual labor, decreased error rates, and improved customer satisfaction which directly translates to increased sales and repeat business.
2. What key financial metrics are you using to measure the success of this change?
To effectively measure the success of our transition to Shipbots, we are focusing on several key financial metrics:
1. How has Shipbots affected your ability to scale your business?
Shipbots has had a profoundly positive impact on our ability to scale ToughTrucksForKids.com. Since partnering with them, we’ve ordered, stocked and fulfilled 3x the inventory levels compared to our old vendor which has helped with our hypergrowth.
Their automated and efficient fulfillment solutions have removed many of the logistical barriers that previously limited our growth. With their robust handling of increased order volumes and streamlined processes, we can now focus more on marketing and sales rather than the intricacies of order fulfillment. The reduced operational load and improved efficiencies have enabled us to scale operations without the need for proportional increases in overhead or resources, making business growth smoother and more manageable.
2. Have you been able to expand your product range or enter new markets as a result?
Yes, the partnership with Shipbots has directly contributed to our ability to expand our product range and enter new markets. We now also serve customers in Canada while maintaining our profit margins.
With the savings from reduced fulfillment costs and the confidence in reliable logistics, we have been able to invest in developing new products. In fact, we recently went live with 3 new brands (Amped Rides, Girl Powered Rides, Luxury Rides For Kids) and chose Shipbots as our 3PL partner from day 0.
1. How has the transition impacted your internal resources and team focus?
The transition to Shipbots has had a significant positive impact on our internal resources and team focus. By automating and outsourcing the logistics and fulfillment processes, our team is no longer bogged down by the day-to-day operational tasks associated with order fulfillment. This shift has allowed our team to redirect their energies and skills towards more strategic tasks that contribute directly to business growth and improvement. It has also reduced the stress and workload on our staff, leading to better job satisfaction and productivity.
2. Are you able to allocate more time and resources to other areas of your business (e.g., marketing, product development)?
Absolutely, the efficiency and reliability provided by Shipbots have enabled us to allocate significantly more time and resources to other critical areas of our business such as marketing and product development. With the logistics side well-managed, our marketing team has been able to focus on expanding our reach and enhancing customer engagement strategies. Meanwhile, our product development team has had the opportunity to innovate and expand our product offerings, using the insights and feedback facilitated by the improved processes at Shipbots. This holistic improvement across departments is driving our business forward in a more integrated and strategic manner.
1. What advice would you give to other e-commerce businesses considering a similar transition?
Get on the phone with Payam and his team (Andres, Angelo) and share your existing 3PL costs and operational processes. You might be able to realize +20% cost-savings just by switching to Shipbots’ FedEx account and their customer-friendly 3PL pricing.