OZ Medical

The Problem:

Coping with the ‘blissful agony’ of a surge in demand

  Leaving money on the table with imprecise order routing

  Tedious manual rate shopping and label generation

 Cost-restrictive 2-day delivery service

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.

The Solution:

A pandemic proof scalable fulfillment

  Seamless and precise collaboration across warehouses

  Hours saved every day with automated rate shopping and label generation

 Enabling nationwide 2-day delivery and reaching Northeast customers

Initially, OZ Medical started working with Cahoot to expand their 2-day delivery to the Northeast for many of his bulky top sellers. They were able to sell to more regions using the Amazon Seller Fulfilled Prime program due to Cahoot’s integration with Amazon Buy Shipping. Moreover, OZ Medical achieved this expansion at minimal cost because of peer-to-peer fulfillment, meaning they also shipped for others in the Cahoot network. Seeing how easy it is for him to print labels and ship for others in the Cahoot network, Ismail was convinced that Cahoot’s Shipping Software would be perfect for operations. He saw how fast it is to prepare labels using Cahoot while Shipping easy requires so much manual work. OZ Medical then began using Cahoot as their shipping software; it changed their operations in two ways. The first is order-routing. OZ Medical now collaborates between their warehouses and Cahoot fulfillment with ease. Cahoot automatically compares every fulfillment location and shipping service for each order, so OZ Medical will always ship their orders from the most optimal location available. The second is automated label generation. With all his rate shopping and label generation done automatically, all of OZ Medical’s orders will have shipping labels ready for printing even before Ismail starts his day. This saves hours of work in the morning, and the warehouse team can immediately print labels and start packing.