High Octane Coffee Delivery

RESULTS

reduction in freight costs

Reduction of customer complaints

Reduced delivery time

ABOUT

Nespresso selected Jagged Peak to support their retail boutiques and online consumer channels using the EDGE Order Management System (OMS) and FlexNet fulfillment services, which included 15 distribution centers in North America. EDGE optimizes order delivery for Nespresso coffee makers and coffee capsules, leveraging its provider optimization capabilities and least cost routing services. EDGE sources orders to the most optimal warehouse based on inventory availability and customer proximity. Next, EDGE’s fully integrated Transportation Management System (TMS) shops both carrier and carrier service to meet the customer promise date, matching the perfect carrier and service.

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CHALLENGES

Coffee drinkers—especially those with palates adapted to espresso —have one thing in common: when they want a cup of “Joe,” they want it now! Néstle/Nespresso, the maker of the market-leading coffee capsule system, understands this better than most, which is why they turned to Jagged Peak to optimize their supply chain. Nespresso needed one solution provider, with one platform to serve complex B2C and B2B order scenarios. A solution hub that could service both big box retailers, marketplaces and their own specialty boutiques. Determined to create a customer experience service that would exceed customer satisfaction, Nespresso sought a solution that would accelerate delivery time, while reducing shipping costs.

SOLUTIONS

The results have been substantial, decreases in Customer Wait Time (CWT) went from 2.8 days to 1.2 days, coupled with significant freight savings by up to 50%. Since program inception, order volume has increased from 40 million units per year, to 600 million. Another major competitive advantage and differentiator for Nespresso came with the launch of same-day delivery in several major metro markets. This service ensures that orders placed by 4 p.m. are delivered by 7 p.m. that evening. In some cases, customers have received their orders within 40 minutes of hitting “Submit” online.

  • Standardized KPIs, processes, procedures, SLAs and pricing
  • Single-point of contact for management and performance compliance
  • Same-day fulfillment
  • Same-day delivery in major U.S. metros and in Canada
  • Deployed Multiple DC’s for up to 50% reduction in freight costs
  • Double-digit year-over-year growth
  • Reduction of customer complaints .77%
  • Reduction of Customer Wait Time – 2.8 to 1.2 Days