Case Study – OZ Medical

OZ Medical
99.9%
Orders shipped on time
optimal packaging and labels for each shipment
10,000+
Labels printed per month
Pandemic-proof scalable order fulfillment solution
Customer Profile
Products : Medical Supplies & Equipment
Based in : CA & AL
Platforms

Founded in 2016, OZ medical is a family-owned and operated medical supply and equipment distributor. They serve all healthcare industry segments, including hospitals, clinics, nursing homes, long-term care facilities, private practices, and more. OZ Medical is a one-stop-shop for quality home medical supplies such as wound care supplies, home mobility aids, and bulk paper products. We sat down with Ismail Ozokur, the Owner of OZ Medical, to hear how he leveraged Cahoot to ease the collaboration between his warehouses and expand his 2-day delivery service nationwide.

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.
Cahoot is the only solution in the market which can scale up your coverage nationwide while lowering your fulfillment costs. They go above and beyond to understand your unique needs and apply solutions in very short time frames. We have been on the Cahoot platform around a year and cannot imagine a day without them anymore.”

Ismail Ozokur
Owner of OZ Medical

Ismail achieved 3x more productivity of his warehouses with Cahoot’s automation. Not only that, but he also saves every penny from each order compared to a zip-code-based system. With Cahoot, he now has a COVID-ready fulfillment and can take on this year’s holiday confidently.

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