Case Study – OZ Medical

Oz Medical operates two warehouses for storage and fulfillment, one in California and another in Alabama. Despite being a power seller with 2 fulfillment locations, OZ Medical was missing out on sales from the Northeast. Their current configuration of warehouses leaves most Northeast US outside of their 2-day ground coverage, and expediting his top sellers (heavy items such as cases of food thickener powder) was very cost-prohibitive.

In addition, routing orders to the cheapest warehouse every time is not an easy feat. Ismail used a zip-code-based system to quickly divide orders among his CA and AL locations, which helped with clear cut orders. For example, if it’s on the West Coast, then it would be shipped from CA.

But things become uncertain for orders that come somewhere between the two warehouses. For example, an order from Nevada can be cheaper from CA for some specific weights and sizes only. With more than 500 orders per day, there was not enough time for Ismail to compare both locations’ shipping rates for every order. OZ Medical could have been leaving thousands of dollars on the table all this time, not shipping from the cheapest location.

As a medical supplies merchant, OZ Medical was blessed with a surge in demand during the COVID era. It aggressively improved their revenue, but it also became a burden on the fulfillment side. Their team and their manual shipping software were overwhelmed by the onslaught of orders.

OZ Medical was using Shipping Easy to compare rates and generate shipping labels. With the old software, Ismail had to compare rates and generate shipping labels for their orders manually. Even if an order only takes 5 seconds to process, he would have spent close to an hour every day just processing shipping labels. That’s at least an hour lost that his team could be picking and packing orders.

With customer orders starting to slip and missing out on customers in the Northeast, Ismail realized something must be done to protect OZ Medical’s reputation.