Operations & Fulfilment Optimisation - E-Commerce Retailer

Executive Summary: Operations & Fulfilment Optimisation - Online Retail
Client: E-commerce retailer (VIC), direct-to-consumer model
Consulting Team: Hunterstone Australia
Engagement Duration: 10 weeks
Key Outcomes: Fulfilment time reduced 58%, dispatch accuracy improved to 99.1%

PROJECT BACKGROUND & CHALLENGE

The client operated a direct-to-consumer e-commerce business with over 7,500 active SKUs across homewares and lifestyle categories. Order volumes had grown significantly over 18 months but warehouse operations had not scaled accordingly. Pick-and-pack processes remained manual and ad hoc, warehouse layout had not been reviewed since the business launched, and the warehouse management system (WMS) was significantly underutilised.

The result: average order fulfilment time had stretched to 3.8 days, dispatch accuracy had fallen to 94.2%, and customer complaints were increasing. Leadership needed a fast, practical operations fix without significant capital expenditure.

HUNTERSTONE SCOPE & APPROACH

Hunterstone conducted a rapid operational diagnostic covering warehouse layout and product slotting, pick-and-pack process design, WMS configuration and utilisation, and team workflow and shift design. The diagnostic was followed by a structured implementation phase: warehouse re-slotting to bring high-velocity SKUs closer to packing stations; pick-and-pack process redesign including zone picking and batch fulfilment; WMS reconfiguration to enable real-time inventory accuracy and pick-list optimisation; KPI framework and daily performance reporting; and a team upskilling programme.

OUTCOMES & COMMERCIAL IMPACTS

Fulfilment speed: average order fulfilment time reduced from 3.8 days to 1.6 days - a 58% improvement achieved without additional warehouse space or capital investment.

Dispatch accuracy: improved from 94.2% to 99.1% within eight weeks of implementation, materially reducing return rates and customer service overhead.

Volume absorption: through process redesign and improved workflow, the business absorbed a 22% increase in order volume over the following quarter without adding warehouse headcount.

Customer satisfaction: fulfilment-related complaints reduced by 64% in the three months post-implementation.

Cost impact: estimated annualised saving of AUD 185,000 from reduced returns processing, lower customer service overhead and avoided headcount.

WHY THIS ENGAGEMENT SUCCEEDED

Fast, evidence-based diagnostic rather than a lengthy discovery phase. Practical changes to layout, process and systems - no new technology required. Implementation was phased to avoid operational disruption during peak trading. Performance reporting was embedded from day one, enabling rapid identification of any regression.

SUMMARY

Hunterstone delivered a rapid, low-cost operations transformation that cut fulfilment time by 58%, improved dispatch accuracy to 99.1% and absorbed significant volume growth without additional headcount - demonstrating that meaningful operational improvement in e-commerce can be achieved quickly with the right diagnostic and disciplined implementation.