In the fast-paced electronics market, customers expect timely deliveries and impeccable service as standard. HITACHI, a globally renowned electronics brand, recognized this clearly as they expanded rapidly into Vietnam's booming omnichannel retail space. Leveraging platforms like Shopee, Lazada, and TikTok Shop, HITACHI aimed to reach customers quickly and effectively, yet soon found themselves grappling with significant fulfillment costs and operational inefficiencies.

Initial Challenges: High Costs and Inefficient Operations

Initially, HITACHI relied on Shopee Express for their fulfillment operations, expecting convenience and scalability. However, as the order volume grew, several substantial challenges emerged:

• Escalating Fulfillment Costs: Outsourcing fulfillment to Shopee Express initially seemed cost-effective, but expenses quickly escalated as order volumes increased. These rising costs severely impacted HITACHI’s profit margins and reduced overall business profitability.
• Inadequate SLA Compliance (70%): HITACHI experienced considerable difficulty consistently meeting Shopee, Lazada, and TikTok Shop's strict delivery timelines, achieving only 70% SLA compliance. Late deliveries resulted in negative platform ratings, customer dissatisfaction, and increased penalties from marketplaces.
• High Error Rates and Packaging Issues: The fulfillment process often lacked consistency, resulting in frequent packaging errors, incorrect items shipped, and damaged goods. These issues led to increased returns and replacements, significantly inflating operational costs and diminishing customer trust.
• Inventory Management Challenges: Inaccurate inventory tracking and management created further disruptions, leading to stockouts and missed sales opportunities, negatively impacting customer experience and brand reliability.

Collectively, these operational inefficiencies created severe financial strain and hindered HITACHI’s ability to compete effectively in the rapidly evolving eCommerce landscape.

Strategic Partnership with UpBase

Determined to optimize their fulfillment operations, HITACHI turned to UpBase, an expert in comprehensive eCommerce fulfillment solutions. UpBase immediately addressed these challenges by implementing a streamlined, technology-driven fulfillment process tailored specifically to HITACHI’s high-volume electronics business:

• Cost Optimization: HITACHI achieved an impressive 70% reduction in fulfillment-related costs compared to their previous arrangements with Shopee Express.
• Operational Excellence: UpBase provided the capability to process and manage 100% of daily orders promptly, significantly enhancing operational throughput.
• Enhanced SLA Compliance: HITACHI’s SLA adherence improved dramatically, achieving a perfect 100% compliance rate, thus meeting platform standards and boosting customer satisfaction.
• Inventory and Packaging Accuracy: UpBase elevated inventory accuracy to 100%, and completely eliminated packaging errors, effectively reducing returns and associated costs.

Outstanding Results

The collaboration with UpBase yielded transformative outcomes for HITACHI:

• 100% daily order processing capacity
• 100% SLA compliance, an improvement from 70% previously
• 0% packaging errors
• 100% inventory accuracy
• 70% reduction in fulfillment costs

Thanks to UpBase’s fulfillment expertise, HITACHI not only optimized their operations but also strengthened their competitive edge, significantly enhancing customer experience and satisfaction.

Expert Insights from UpBase

“HITACHI's journey underscores the importance of precision and cost-efficiency in fulfillment operations, particularly within the electronics sector where customer expectations are exceptionally high. At UpBase, we emphasize that efficient fulfillment directly translates into customer satisfaction and market competitiveness. The dramatic improvements HITACHI achieved prove that investing in smart logistics solutions is critical to long-term success.”— UpBase Fulfillment Expert

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