Case Study

Build.com

Build.com Utilizes Convey to Reduce Freight Spend by 20%

About Build.com

Build.com is the second largest online home improvement retailer, with a 1M+ product portfolio across nearly 400 suppliers. Most goods are drop shipped to customers with a heavy freight to parcel ratio.

Build.com has established a culture of innovation, which led them to Convey’s Initiate product to automate and optimize the transportation relationship with their suppliers. Supplier management was only the beginning. Build.com also benefits from the platform reporting that provides real-time predictive insights by the centralization of all shipment data.

Their Business Challenge

The rise of eCommerce has resulted in a massive SKU proliferation, which has retailers struggling to manage growing supplier networks. The standard format for directing carrier selection is a static routing guide, now rendered obsolete by an increasingly dynamic freight world. This growth and complexity is wreaking havoc on in-transit shipment visibility, customer experience, inventory predictability and supplier compliance. Most importantly, it’s causing runaway freight spend.

Previously, Build.com’s static routing guide included only a few national freight carriers. In reality, true optimization of freight cost, quality and delivery performance required not only improving supplier compliance, but also adding more national and regional carriers.

The Convey Solution

To date, each stage of the Build.com rollout has seen 100% adoption of the targeted suppliers and the compliance improvements have far exceeded senior management’s most optimistic expectations. The program was up and running within days. Initiate is cloud-based, leverages API connectivity to carriers and provides frictionless supplier onboarding. It yielded immediate results in compliance, visibility and freight spend reduction.

The secure Initiate platform connects to Build.com’s carrier network and purchase order data in real time, enabling a fully automated shipment request. Suppliers simply approve shipments in batch and the platform decisions the carrier and schedules the pickup (including BOL and label generation). No more routing guides, no more carrier phone calls and now all in-transit data is centralized.

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The Result

Operational efficiency, cost, and time savings:

10%

immediate freight spend reduction

10%

savings with carrier optimization

100%

supplier compliance

Other tangible benefits:

Enabled Proactive Customer Service

Predictive delivery exceptions helped reduce churn & increase satisfaction

Shipper & Customer of Choice

Carrier/Supplier scorecarding provides valuable feedback to build positive relationships

Stock Out Reductions

Currently a pilot program giving visibility into everything in-transit

  • Convey made a dramatic impact on our supplier drop ship program, immediately.

    Kevin Scott

    Logistics Manager, Build.com

Learn more about Convey's solution for dropship management.