Summary
Challenge
- One of the nation's most popular kombucha brands was looking for a faster and better alternative to traditional 3PLs in its major metro areas, in part to reduce dependence on wasteful and expensive cold packs (needed to maintain probiotic qualities) and protective packaging (for their glass bottles).
Solution
- Ohi integrates seamlessly with Health-Ade's Shopify Plus website, providing instant delivery without the need for wasteful cold packs and outer packaging materials, along with an on-brand post-purchase experience.
Results
- By allowing their customers to get kombuchas delivered sustainably fast, cold, and at peak freshness, Health-Ade has seen a 49% increase in customer lifetime value (CLV) for customers who choose delivery by Ohi.
The Challenge
Health-Ade is the nation’s leading maker of delicious, pro-biotic kombuchas that help people #followtheirgut. Founded in 2012, Health-Ade has quickly attracted a nationwide customer base that loves its kombuchas for their great taste, exciting variety of flavors, and numerous health benefits.
As a drink that should be refrigerated to maintain peak freshness and retain its pro-biotic qualities, kombucha has unique handling/transport needs. As Health-Ade considered its e-commerce fulfillment options, they realized that delivering glass bottles over long distances via UPS/FedEx using a traditional 3PL wouldn’t be viable, both in terms of exorbitant costs (due to shipping weight and the need for extra packaging materials) and the incidence of breakage. What’s more, the need to keep the kombuchas cold to preserve pro-biotic qualities over long distances typically requires expensive cold packs. Health-Ade needed a better way to handle e-commerce fulfillment in its most critical metro areas.
That’s when Health-Ade came across Ohi.
Once Health-Ade learned how Ohi could position their kombuchas hyperlocal to their customers, keeping transportation costs low and allowing customers to enjoy their kombucha at peak freshness, the decision to partner with Ohi was obvious. By providing an instant commerce experience that complements their brand experience, Health-Ade is now realizing excellent ROI on the Ohi platform.
The Solution
Ohi worked with Health-Ade to integrate with Health-Ade’s website (Shopify Plus) and after a SKU-level demand analysis, we began receiving inventory into Ohi’s microwarehouses. Health-Ade promoted their new instant delivery capabilities to their customer base the week of deployment, and it was off to the races.
Now, Ohi shipping options appear for users on Health-Ade’s ecommerce website, allowing Health-Ade customers to get instant delivery for the kombuchas they love. Ohi has also enabled Health-Ade to extend their iconic brand beyond checkout, to ensure the post-purchase experience is every bit as on-brand as the initial shopping experience.
By analyzing Health-Ade’s product demand at the SKU-level, Ohi continuously works with Health-Ade’s operations team to forward-position sufficient inventory across Ohi’s nationwide micro-fulfillment network. A dedicated Ohi account manager proactively works with Health-Ade to keep things running smoothly while identifying ways to improve efficiency and increase ROI.
Inventory is kept “hyperlocal” to Health-Ade’s customers in major metropolitan areas, allowing Health-Ade’s customers to get instant delivery of the kombuchas they love and depend on.
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. End customers receive tracking information via email/SMS (customized according to Health-Ade’s brand guidelines), allowing them to follow their orders 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 Health-Ade’s customers can always get their favorite kombuchas delivered on time at peak freshness.
What's more, Ohi's micro-fulfillment based approach allows Health-Ade to forego the use of wasteful and expensive cold packs and exterior packaging, while dramatically reducing the need for fuel-based transport, providing a sustainable e-commerce experience.
The Results
After partnering with Ohi, Health-Ade has seen its customer lifetime value (CLV) increase by 49% (for customers whose orders shipped with Ohi versus standard FedEx/UPS), showing just how valuable the instant commerce experience is to Health-Ade customers.
Health-Ade customers rate Ohi an average of 4.6/5 stars for service excellence, and the Health-Ade team is excited to be delivering upon many of their most critical customer experience needs. The ability to provide sustainable instant delivery of their kombuchas has created excitement among Health-Ade’s marketing and e-commerce teams in particular, as they continue implementing new strategies to leverage instant delivery for e-commerce growth.
The ability to provide a ‘try it today’ and ‘instant gratification’-based e-commerce experience has been game-changing for our marketing and e-commerce teams, as well as for our customers. We’ve seen a lot of excitement around the ability to get Health-Ade kombuchas delivered same-day and at peak freshness.
Kevin Land, Director of E-commerce Operations, Health-Ade