IMI Supply Chain Solutions

Twistshake Doubled the Efficiency at Half the Cost

Twistshake is a Swedish e-retailer that manufactures innovative baby products. Since its inception, the company has focused on expansion and making its products available worldwide.

Twistshake

Global e-Retailer Increases 80% in Warehouse Efficiency with IMI GO!

In order to meet all the logistics challenges that modern e-retailer faces, a support system that is both advanced and flexible are required. It must be able to handle several different sales channels, order types, warehouse locations and carriers. In addition, it must be possible to gradually automate functions.

For a player like Twistshake, which has traditionally developed its own solutions, it was invaluable to find a system supplier that not only understands the entire supply chain but could also help the company develop its processes. Since autumn 2021, Twistshake has been using IMI GO!, a product from IMI Supply Chain Solutions, and the results have been overwhelmingly positive. Based on the new warehouse and delivery management system, Twistshake can focus on making expansion and profitability go hand in hand.

Background

Early Focus on Expansion

When Twistshake started its journey, they wanted to spend as little money as possible on various ancillary services. Therefore, the company developed its own OMS, and the entire inventory management was handled in Excel.

Difficult to find the right order fulfillment system

Over the years, Twistshake has added several different sales channels, such as:

  • e-commerce directly to the end customer
  • B2B sales to department stores and retail chains
  • sales via local distributors around the world
  • sales on major e-commerce sites such as Amazon, Zalando and eDiscount

This has meant that the logistics chain has become increasingly complex. Especially as goods from over 20 different suppliers are consolidated in their warehouse in China, before being shipped to the warehouse in Västerås. In some cases, goods can also be sent directly to different distributors from China.

Martin-Åström
"When we were going to procure our WMS, we had as a requirement to be able to handle several order types, order flows and so on, because there is a very big difference in different types of orders,"
Martin Åström
COO Logistic at Twistshake

The Challenges

As Twistshake distributes via many different carriers, high demands are placed on the system to identify the recipients’ addresses and find the smoothest shipping solution, regardless of country.

They considered a 3PL solution, in order to outsource the logistics function, but found that it would be very costly. Instead, they chose to handle the entire logistics themselves. The challenge was to find a system that could handle their complex ecosystem such as:

  • several sales channels with different requirements for IT systems
  • distributed warehousing with both internal and external shipping
  • need for cost-effective carrier solutions worldwide
  • the desire to manage stock and logistics themselves

IMI GO! the most automated & cost-effective out of the box order fulfillment solution on the Nordic market

The solution – a Partner who Understands the Whole Picture

After evaluating various systems, the choice fell on IMI GO! from IMI Supply Chain Solutions. During the procurement, Twistshake also received input on how they could further develop their warehouse management processes and gain increased efficiency at a lower cost.

IMI were open to developing solutions that were not part of the standard product. Another influencing factor was that the system has a modern appearance and user interface, unlike many other WMS systems on the market,” says Martin Åström.

Black Week tested the limits

In November 2020, just two months after implementation, it was time for the biggest shopping event of the year – Black Week. The previous year, about 50 people worked picking orders during the campaign period and each operator picked one order at a time. With IMI GO!, each operator could pick 24 orders at the same time, which increased efficiency by nearly 80% compared to 2020. Twistshake was thus able to reduce the workforce to 20-30 operators while maintaining efficiency.

With the new system, they also got better processes, which reduced the number of incorrect orders to almost zero. For this year’s Black Week, they expect to be able to reduce the workforce further. A maximum of 15 people will be able to handle the sales pressure, which is also expected to increase, compared to 2020.

In addition to reducing personnel costs, Twistshake was also able to lower its IT costs, as they reduced the number of systems. They can simply do more things in the same system with less friction. In addition, today there is increased flexibility in distribution as IMI GO! Also quickly books the right carrier for each order.

Our goal is to become a one-stop baby shop. We want to reach out to more customers so that they can take part in our selection. In the past year, profitability has fallen into place, so now it’s just a matter of gearing up the growth and reaching out to more markets,” concludes Martin Åström.

The result exceeded all expectations

In order to get a holistic view of its entire warehouse and logistics function, it was required that almost all systems be replaced. The result has exceeded expectations, with both reduced IT costs and reduced staffing requirements, while simultaneously increasing efficiency and profitability. This is what an exceptionally good IT project should look like, note both Twistshake and IMI.

The Benefits

  • Reduced need for personnel by approximately 70% during promotional periods
  • Doubled picking efficiency and reduced picking errors to close to zero
  • Reduced costs for IT systems through integrated overall solutions
  • Automatic booking of the optimal carrier for each order

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