Entering a new market in 1 month

UK-based online fashion retailer Thread expanded into the USA at the end of 2019. After adopting the 7bridges AI-powered logistics platform it took just one month to set up and integrate US distribution with the UK, and only one week to bring operations on-stream from a new US warehouse.

Background

A company’s first move into a new regional market typically puts huge demands on time and resources. For a lean online B2C retailer like Thread, it could have been a very stressful operation.

But in fact, Thread was able to spin up its new North American market within weeks, and with very little extra load on resources. They did it by plugging into the 7bridges intelligent logistics platform for an instant-on distribution network that handles both outbound and return traffic.

From October 2019 Thread began deliveries to US customers from its UK warehouses, and in December a first US-based warehouse was added. Deliveries to customers, returns and transatlantic traffic are all managed with the 7bridges platform, which automates the selection of the best value/performance carrier for each shipment, together with consolidation, customs paperwork, tracking and notifications and performance audit.

"7bridges got us up and operating in the US market within a month.

That’s fast, and we’re saving 50% to 60% on the total logistics cost of serving this new market."

Ben Laird Operations Manager, Thread

Solution

☑️ New distribution network: set up for Thread in minutes, using carriers already linked through the 7bridges platform – no new contract negotiation required.

☑️ Easy scalability: the platform is designed for multi-warehouse, multi-site shipping, so growing into the US was a simple step for Thread.

☑️ Volume discount: Thread gets lower shipment rates via the aggregated volume of traffic on the 7bridges platform.

☑️ Best courier every time: using 7bridges’ intelligent booking automation, Thread’s consignments are always sent by best value and best-performance shipper for each route.

☑️ Automated operations & process control: the inbuilt process automation and control provided by the 7bridges platform means operations can be securely and quickly replicated with little staff training.

50% saving on transport costs

30 days to integrate and launch UK-US distribution

7 days to bring new US warehouse on-stream

Conclusion

The speed of launch into a major new market, combined with serious cost benefits, and a scalable, easy-to-manage operation with simple processes gave Thread a powerful advantage.

The 7bridges platform makes it easy to benefit from multi-carrier operation, to optimise multi-site distribution, and efficiently manage returns. Thread achieved a rapid entry into North American market, with easy scalability for further growth: as the number of distribution points increases, the platform automatically adapts to optimise traffic between them, keeping costs down and service levels high.

Looking to enter new markets and reduce logistics spend?

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