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CASE STUDY

JMFA reduces European order fulfilment costs by 80% and improves delivery speeds by 46% with MCF

grey mens shoes on a grey background with different color shoelaces laid around the shoes
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Highlights
  • JMFA Ltd. enlisted the help of MCF to support their fulfillment of 100,000 monthly orders across 14 countries and 6 sales channels.
  • MCF delivers their orders in 1.4 days on average with a 99% delivery estimate accuracy.
  • JMFA Ltd. continues to expand onto new online channels without having to manage additional stock pools.

THE CHALLENGE
Managing worldwide operations for a growing business

Ecommerce is rapidly growing in Europe with the number of online European online shoppers projected to increase from 523 million in 2022 to 540 million in 2023. This presents a great opportunity for ecommerce businesses, but there are added complexities to consider as well, with Europeans tending to shop cross-border and through multiple online sales channels. One company, JMFA Ltd., is up for the challenge. This retailer recognises the importance of online selling, and aims to have a presence wherever their customers are making purchases.

Established in 2015 by Michal Aleksandrowicz, JMFA Ltd. quickly became the go-to resource for people of all ages who have a passion for innovative footwear. With a range of products all manufactured in Europe, like shoe accessories, toys, and sporting equipment, Aleksandrowicz focuses on working with small local businesses. He sources all of his exclusive products from friends and family whom are private label owners. For example, their most popular brand, Kaps, is manufactured by Kaps Company, which was started by Aleksandrowicz’s father 20 years ago.

What began as a pastime with his online Amazon store quickly became a full-time business for Aleksandrowicz, now General Manager at JMFA Ltd. The company started off as a one-man operation that used the Merchant Fulfilled Network (MFN) – meaning that Aleksandrowicz handled storage, shipping, and customer service for his Amazon orders himself. Now, he manages a team of ten employees across Europe and the Philippines.

black shoestrings and other tools laid on a wood background

As his business grew, Aleksandrowicz started using Pan-European Fulfilment by Amazon (FBA) to fulfill Amazon orders across Europe. Then he became interested in scaling JMFA further and experimenting with new off-Amazon sales channels, but with 100,000 monthly orders and a catalogue of 3,000 different products, he needed to enlist a third-party logistics (3PL) provider to help him expand his business.

The 3PLs Aleksandrowicz initially worked with were not meeting his needs, with their services being too slow and expensive. He knew he needed to switch 3PL providers and started looking for a 3PL that could offer:

  • Optimised inventory management: JMFA Ltd. had big plans to expand into other channels, so they needed to prioritise streamlined inventory management to get the right products to the right places at the right times and avoid stockouts across their sales channels.
  • A worldwide network: With customers spread out across the globe, JMFA Ltd. needed a 3PL with a vast fulfilment network to support their large customer base.
  • Operational expertise: Aleksandrowicz knew he wanted to grow his business, but did not want to sacrifice efficiency. He wanted to engage a 3PL that would have technology, people, processes in place to optimise his operations.
  • Cost-effective solutions: Since JMFA Ltd. sells low-cost products, with an average order amount of $10 and razor-thin margins, it was critical to find a cost-effective 3PL solution.

“As my business grew, I started looking for a 3PL that could manage my operations effectively and use their existing systems to identify opportunities to improve value within our supply chain. Since we sell on a number of different channels and across a number of different countries, it’s important that we have a 3PL provider that can handle our order fulfilment at a low cost,” explained Aleksandrowicz.

Stay up to date with new Amazon Multi-Channel Fulfilment features, best practices, and more.

THE SOLUTION
Enabling fast, reliable fulfilment for any channel

Michal Aleksandrowicz headshot
MCF is a leader in the third-party logistics space. With their extensive fulfilment network and my previous experience working with Amazon as a seller, it was easy for me to envision utilizing them as our 3PL provider.
Michal Aleksandrowicz General Manager

Once Aleksandrowicz discovered Amazon Multi-Channel Fulfilment (MCF) solution, he knew it would be a great fit for his business because MCF provides:

  • World-class delivery services: With deliveries as fast as 1-day and MCF’s 99.98% undamaged package delivery rate, ecommerce businesses can maintain a first-class customer experience, no matter which channel they sell on.
  • A global footprint: Working with MCF means gaining access to the world’s largest fulfilment network, with 77 fulfilment centres across the UK and EU and over 200 globally.
  • One fulfilment solution for any sales channel: MCF delivers orders on time, every time, through any channel, so that businesses can eliminate the need to engage multiple 3PLs to handle their order fulfilment operations.
  • Automatic fulfilment using integrations: MCF offers over 100 integrations and apps or businesses can create their own custom API integrations to connect MCF to all their sales channels and automate their fulfilment process.

“MCF is a leader in the third-party logistics space. With their extensive fulfilment network and my previous experience working with Amazon as a seller, it was easy for me to envision utilizing them as our 3PL provider,” said Aleksandrowicz.

JMFA Ltd. connects their ecommerce channels with MCF using Listing Mirror to automate their fulfilment. Listing Mirror helps JMFA Ltd. effortlessly manage product listings and automatically sends orders from their various online sales channels to Amazon for fulfilment.

Aleksandrowicz said, “Using Listing Mirror’s reliable and robust software for the past five years has helped our business tremendously. With their excellent solution support, getting started and connected to MCF was easy. Even with thousands of products, the integration saves time and makes catalogue management simple.”


THE RESULTS
Optimising fulfilment operations with a global 3PL

JMFA Ltd. has been working with MCF since 2018. This fast-growing online retailer now sells in 14 countries across six sales channels, including eBay, Zalando, Kaufland, Cdiscount, Shopify, and Amazon. By partnering with Amazon Supply Chain and utilizing MCF, JMFA Ltd. has realized many business benefits, including:

  • Fast order fulfilment: Through MCF, JMFA Ltd. delights customers by delivering orders in 1.4 days on average, representing a 46% improvement in delivery speed. JMFA Ltd. also enjoys 99% delivery estimate accuracy.
  • Consolidated inventory: JMFA Ltd. uses their existing Pan-European FBA inventory to fulfill MCF orders. They streamlined their operations to a single inventory pool that is spread across Amazon’s European Fulfilment Network (EFN), removing the headache of managing logistics providers in each European country.
  • Minimised operating costs: JMFA Ltd.’s stock is strategically positioned in fulfilment centres across Europe, ensuring their products are as close as possible to their customer base. The company can now avoid cross-border shipping cost markups, leading to an 80% reduction in fulfilment costs.
  • New market expansion: Since MCF supports order fulfilment for any channel, JMFA Ltd. can launch their business on new online channels without worrying about the operational costs and complexity involved in maintaining another pool of inventory.

Moving forward, Aleksandrowicz plans on building more brands, entering new marketplaces, and continuing to grow JMFA Ltd. with the assistance of MCF.

“I recommend MCF to any business undergoing rapid growth and managing orders across the EU. It would have been impossible for us to grow stock pools in all of the geographies where we are experiencing demand. MCF has truly opened the door for us to test new sales channels without large startup costs, making our ecommerce strategy a success.”


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