eCommerce role in reducing Operational Costs

As companies continue to look for more ways to improve their bottom line, we have discovered plenty of opportunities to leverage eCommerce to achieve financial objectives.

For example, a multi-billion dollar Food and Beverage (F&B) company with a global presence and more than 5000 stores in US, relied on manual order entry, employed a team of 50 customer service personnel. Seeking to cut costs, enhance operational efficiency, and boost accuracy, they aimed to integrate eCommerce with their robust ERP system.

With an average expenditure of $100,000 per customer service person, the company was allocating $5 million annually towards manual order entry, accumulating a total expense of $50 million over a decade. By investing a fraction of the cost on a scalable eCommerce platform, the company not only managed to save $5 million per year but also enhanced the customer experience wherein in 5000 stores were able to place orders online, check the status of their orders and many such features. This also resulted in a reduction in human errors and streamlining of business operations with real-time order integration from their eCommerce portal. The considerable improvement in their bottom line was evident with quick ROI (in less than 6 months) and lowest TCO (total cost of ownership).