Novità

Tretti.se. Forget the shop front. Use smart, swift logistics

15.04.2011

Tretti.se has been successfully selling white goods & household appliances over the Internet for the last few years. With no physical stores, the company gets ahead by using fast, smart & safe logistics practices – powered by a WMS from Consafe Logistics.

tretti2Tretti.se has built a reputation on fast, efficient deliveries and excellent service. Despite trading for less than seven years, Tretti.se’s sales for 2010 were over 450 MSEK 2010 (over €50 million). The company stocks 8,000 articles and ships anything from 500 to 1,000 order lines per day to Sweden, Denmark and Norway. In most cases, Tretti.se deliver orders the following day.

Best-in-class routines

Tretti employs fifty people, with almost half (20 full-time staff) working in the warehouse in Haninge, south of Stockholm. "One of the keys for us is having a fluid, dynamic workforce that easily handles variations in order flow. Having our warehouse next to a university helps." Says Carl Lumsden, Logistics Manager at Tretti.se. "It’s easy for us to recruit the ten or so extra people we need in November and December, and draft in people on an hourly basis within 40 minutes of giving them a call".

Using a WMS system from Consafe Logistics, Tretti.se can easily manage fluctuations in volumes and customer location. It makes the singling out of picking orders very easy. "We single out articles based on volume, like washing machines that are big, or multiple items on the same order. Everything is easy to pick as small items like coffee machines and large items like dishwashers are in the same warehouse." Says Carl.

Multiple picking for one order

He explains that 2 workers can pick to the same order from different places at one time, which is then consolidated. "That’s a system we worked out together with Consafe Logistics to help us save time in the picking process. Otherwise we use straightforward picking routines". Continues Carl. Orders are dedicated in geographical areas according to customer location for some pickers, while others work with incoming goods. All processes are controlled by the WMS. "It was impossible to have this much control before we implemented a good WMS." Carl adds.

Functional distribution. Adding the extras

One advantage Tretti.se offers is what Carl Lumsden calls "Functional Distribution." For tretti, this means not just fulfilling an order, but helping customers throughout delivery, including installation and removal & disposal of old products. "We find functional distribution to be a major customer advantage" enthuses Carl. "If someone lives on the fifth floor of an apartment block in a big city and doesn’t have a car – or know anyone who can install things like dishwashers and washing machines, it makes life so much easier for them. Delivery costs a bit extra but it’s cheaper for the customer in real terms – and far more convenient".

Carl was rightly proud of being part of one of the few companies who offer customers a service to offset CO2 emissions when transporting goods. Customers can donate 10 SEK (€1 approx) from their order to the Forest Stewardship Council (FSC) to promote healthy forests. Around 10% of Tretti’s customers sponsor the FSC.

Need more? Check your email

The company packs brochures, campaign materials and invoices when fulfilling orders, but prefers to send documentation, special offers and sales catalogues via email. "People prefer receiving information by mail. It’s not only more convenient, people see it as much more environmentally friendly. Things can be stored and deleted easily." Says Carl Lumsden.

Another thing Carl singles out for special attention is returns, where a separate unit takes care of all damaged goods, or goods that people decide they don’t want after ordering. All returns are sent back to central warehouse except goods covered by warranty. Warranty repairs are fixed on site by engineers from companies such as Electrolux or Siemens. "Efficiently handling returns is vital in a competitive world. It helps us retain our customers and enhances our reputation." Says Carl.

Going broader, getting better

Tretti.se have three major goals for their business. The first is to open up new markets. The company entered the Danish and Norwegian market in 2010 and will go into Finland this year.

The second is to evolve their range. From traditionally selling white goods and household appliances, they are diversifying into bathrooms, toilets, outdoor furniture and fitness products.

The third is to be best-in-class in logistics and distribution. Tretti.se cites its functional distribution concept as one way where it really offers a difference, as is having the right partner in logistics.

"Having Consafe Logistics as a partner has benefitted us immensely." Enthuses Carl Lumsden, "They have helped us customize our complete supply chain, by implementing a great WMS and helping us set up routines for different handling scenarios such as goods receiving, picking, shipping, etc. We have a continuous dialogue to see how we can optimize things even more. It’s a win-win situation and we are very satisfied with their processes".

Thinking about e-commerce? Think about this…

When asked about what the company could pass on to companies who were considering e-business, Carl is very specific. He says listening to customers and studying their behaviour are keys to success, but often ignored.

"It sounds obvious, but people need a well-functioning homepage and a secure payment system connected to a smooth logistics setup" Says Carl. "The problem is that people forget to tick some of these basic boxes. Also, if you are new to logistics, then it may be a good idea to look at a 3PL (using a third party logistics company) initially as you don’t have the cost of warehouse and distribution management. Once you reach a volume you can then bring your warehouse and supply chain in-house as you can customize them to your exact needs".

Finally, Tretti.se see the following areas as their own success factors:

• Keeping a large number of articles in stock.
• Employing fast handling and shipping routines.
• Using functional distribution.

"It sounds easy, but it’s not so easy to copy". Concludes Carl. "To stock a large number of articles you need good control, and of course the finances to invest in stock. Fast handling and shipping mean you’ll need a really good WMS, and a partner like Consafe Logistics who can help you. And with Functional distribution it takes a lot of time to build up the right partner network in so many areas. But the combination is a real match winner."