Summary
Challenge
- A leading natural electrolyte drink brand was looking to reduce shipping transit times and potentially reduce shipping costs.
Solution
- Ohi enables instant delivery via micro-fulfillment, forward-positioning inventory near customers and enabling delivery in as little as two hours.
Results
- Greater Than now saves 20% and sees a 13% increase to repeat purchases and CLV versus standard ground shipping.
The Challenge
Greater Than is a leading natural electrolyte drink that hydrates, energizes, and delights everyone from lactating mothers to weekend warriors and kids. By combining a proprietary blend of organic coconut water, non-GMO fruit juice and a dash of sea salt, Greater Than is the healthiest performance drink on the market, all without chemicals or added sugars.
As a DTC beverage company, Greater Than was facing the common operational challenge of having to ship heavy items (boxes of drinks) quickly, so that nursing moms and others whose well-being depend on Greater Than, could get their drinks delivered quickly and reliably.
While increasing delivery speed was a key priority for improving the customer experience, Greater Than was also curious to see if they could save on shipping costs with Ohi.
Upon reaching out to Ohi, Greater Than learned that Ohi could save them 20% on fulfillment costs (per Ohi order) versus standard ground shipping. This cost advantage exists because Ohi forward-positions inventory close to end customers, substantially reducing the transit distance to the customer’s doorstep.
The decision to offer a better post-purchase experience for customers while also realizing significant cost savings was obvious, and Greater Than quickly moved to enable Ohi in several of their largest metro markets.
The Solution
Ohi worked with Greater Than to integrate with their website and after a SKU-level demand analysis, we began receiving inventory into Ohi’s microwarehouses.
Now, Ohi shipping options appear for users on Greater Than’s ecommerce website, allowing Greater Than customers to get instant delivery of their favorite performance drinks. Ohi has also enabled Greater Than to extend their brand identity into the post-purchase experience with customizable, branded order updates and real-time tracking.
By analyzing Greater Than’s product demand at the SKU-level, Ohi continuously works with Greater Than’s operations team to forward-position sufficient inventory across Ohi’s nationwide micro-fulfillment network. A dedicated Ohi account manager proactively works with Greater Than to keep things running smoothly while identifying ways to improve efficiency and increase ROI.
Inventory is kept “hyperlocal” to Greater Than’s customers in major metropolitan areas, allowing customers to try or replenish their drinks same-day (and sub two-hour in many cases).
Depending on an order’s size, delivery destination, and delivery urgency, Ohi automatically allocates inventory in the closest micro-fulfillment center, summons the optimal delivery courier, and ensures successful delivery with a live ops team that engages directly with couriers and customers. End customers receive tracking information via email/SMS (customized according to Greater Than’s brand guidelines), allowing them to follow their delivery right to their doorstep.
As order volumes affect inventory levels across the network, Ohi actively works to ensure SKU availability, rebalancing inventory levels and adjusting fulfillment patterns as needed. Ohi technology continuously monitors delivery speed and accuracy within the Ohi network, adjusting courier utilization and other variables to ensure Greater Than’s customers can always get their hands on their favorite electrolyte drinks when the need arises.
The Results
By enabling instant delivery with Ohi, Greater Than provides their customers with a best-in-class post-purchase experience while enabling 20% cost savings versus their traditional fulfillment strategy. Their customer base loves instant delivery, as evidenced by a 13% increase in repeat purchases (Ohi vs standard UPS/FedEx) and 13% increase to customer lifetime value (CLV). The winning combination of improved revenue (through repeat purchases and CLV) and substantial cost savings has Greater Than’s management team excited for Ohi’s continued expansion throughout the country.
When Greater Than first started working with Ohi to enable instant delivery for our all-natural electrolyte drinks, improving time in transit was certainly a priority. However, we were also curious about whether Ohi could save us on shipping costs. As paradoxical as it might seem, we now save 20% providing same-day delivery with Ohi versus shipping 3-5 day ground, resulting in a huge win/win for our customers and for our margins.
Jon Sider, Co-Founder, Greater Than