Paazl & Lensonline
“The number of phone calls at our customer support department have dropped by 60% to 70%.”
– Shea Smedts, Logistics Manager Lensonline
A customer constantly needs them, the average order value is high, and still they weigh close to nothing. Are contact lenses the perfect product to sell online? Judging by the success of Lensonline, one will quickly believe they are.
Closing in on 7 million euros in revenue, a 30% year-on-year growth and over 100.000 customers the company is the largest seller of contact lenses in Belgium. And with new online stores launched in The Netherlands, Italy and Spain, Lensonline is now on its way to European market leadership.
Growth is powered by good logistics
As is often the case, growth in e-commerce comes with growing pains. Especially in logistics.
Initially Lensonline used as many as five different software tools to ship parcels with different carriers. As logistics manager Shea Smedts explains: ““Each carrier used its own software tool. GLS used Label-Lite, PostNL used Parcelware, and UPS has Shipping Manager. FedEx even had separate tools for every single shipping option. For every parcel we wanted to ship, all data had to be entered manually.” The result is unsurprising: “printing shipping labels soon took two to hours of our day.” Add to this the huge number of errors, and you understand why Smedts needed a solution: “before Paazl about 5% of all addresses on shipping labels contained errors. A house number 24 where it should have been 42 for example.”
Single-point-of-view from SAP® Business One
The growing inefficiency of using multiple software tools raised the need for a direct connection between Lensonline’s SAP® Business One ERP-system and the 5 carriers they were using at that moment. Moreover, logistics manager Smedts saw a chance of helping the European expansion by connecting to new carriers in Spain, France and Italy. However, connecting SAP® to carriers one-by-one would imply a serious up-front investment of “ten-, sometimes fifteen- thousand euros per carrier” according to Smedts. For a moment it seemed as if logistics were holding back the growth of Lensonline.
Turning minutes into seconds
Fortunately, somewhere in the summer of 2013 SAP® integration partner suggested integrating with Paazl. It took little to convince Smedts: “for me the benefits of using Paazl were evident from the start. I am usually hesitant to integrate new software, but I immediately knew this was our solution.”
It would soon turn out Smedts was right. Not only did Lensonline save over €75.000 in costs for connecting carriers, shipping orders is now “a matter of seconds, instead of minutes” adding up to hours in time saved each day. Furthermore the number of shipments containing errors dropped significantly. Where before 5% of addresses contained errors, this is now just 0,15%.
Less questions, more satisfaction
Adding to the results is the full automation of tracking notification to customers. “Before we used a different system to send out tracking notifications. That was a disaster. Some 20 people would call daily to ask for their parcel. Today it is two people at most. Also, we get much fewer complaints.”
By combining all parcel statuses in a single dashboard Paazl even helps quickly answering the few questions that remain.
Altogether these tools not only result in clear bottom-line savings, they also helped Smedts improve the job satisfaction of his warehouse employees: “Paazl is extremely easy to use. Truly everything is automated. I notice the impact this has on my people; the atmosphere on the warehouse floor has greatly improved.”
Looking at the future, Smedts is confident. For now European expansion is feasible with Lensonline’s existing carrier partners, but Smedts is quick to add: “you cannot predict the future. Suppose a new carrier with lower prices knocks at my door….” Moreover Paazl has offered Smedts insights in carrier performance, meaning decisions can now be made based on more than price alone: “We can now monitor if carriers deliver on their promises, and ask them ‘why has this shipment taken so long?’. A great tool.” All in all Smedts’ conclusion is clear: “If you’d ask me, Paazl might just be one of the best solutions we have ever implemented. Perhaps even the single best.”
- From 5% down to 0,15% errors on shipping labels
- 60-70% less ‘where-is-my-parcel’ questions at customer support
- Over 60 seconds saved per shipment
- Savings of €75.000 on connections between five carriers and SAP® Business One
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