How SKU Distribution doubled their throughput in one week

Client overview

SKU Distribution is a third-party logistics (3PL) provider operating across three Arizona locations, totaling 400,000 square feet of warehouse space. Their diverse clientele includes direct-to-consumer e-commerce brands, manufacturers, and renewable energy companies. 

SKU also offers a unique advantage by running foreign trade zone (FTZ)–approved facilities, enabling clients to defer or reduce duties and tariffs when importing and exporting inventory.

Challenges

Before adopting ShipWise, SKU Distribution faced significant logistical bottlenecks due to an outdated transportation management system (TMS). 

Their previous system lacked the automation and flexibility needed to support their growing customer base and complex fulfillment requirements. Key challenges they faced included:

• Excessive Latency
  Batch processing speed was limited by technology constraints. 
• Rigid Configuration
  Adapting new carrier services or business rules required months of development.
• Manual Workflows
  Managing cross-border paperwork introduced bottlenecks.
• Minimal Support
  Requests for changes or fixes often went unanswered.

The Solution

ShipWise provided SKU Distribution with an agile and scalable shipping solution tailored specifically to their 3PL environment. The implementation process was seamless, with ShipWise’s team providing hands-on support. 

Within one week, SKU Distribution had fully transitioned off their old TMS, achieving 95% operational readiness in just five days. 

Highlights

• ODBC integration with WMS
• Multi-client order routing logic
• Dynamic rate shopping across multiple carriers
• Batch label print and apply automation
• Automation for international customs forms
• Real-time carrier analytics and notifications
• Partnership-level customer support

Multi-client versatility

• Configured unique shipping profiles for each of SKU Distribution’s clients to meet unique service level agreements and carrier preferences.
• Automated complex decision-making at scale.
• Empowered SKU to offer clients real-time shipping rates at checkout for their Shopify stores.
• Positioned SKU to quickly adapt to changing business needs through native integrations and automation rules.

Workflow optimization

• Eliminated manual touchpoints through systematic automation.
• Implemented scan-based workflows that removed decision-making burden from employees.
• Reduced latency in shipping processes across all order types:
  
  • International shipment batches of 150 orders reduced from 2.5 hours to 7 minutes.
  • Enhanced processing for both individual and batch shipments.
• Streamlined handling of 55,000-60,000 monthly direct-to-consumer shipments.

Data analytics and reporting

• Automated weekly variance reporting for billing accuracy.
• Implemented proactive weekly billing to eliminate 60-day accounts receivable cycles.
• Provided real-time visibility into carrier performance metrics.
• Enabled zone-level analysis of shipping patterns and costs.
• Generated detailed delivery performance reports by carrier and region.
• Supported data-driven carrier negotiations with comprehensive shipping metrics.

Results

2X Daily Shipment Volume
SKU has more than doubled its daily outbound volume by eliminating the latency and bottlenecks in label generation and customs documentation.

Happier Employees
Staff members “smiled when the new system started running,” thanks to simpler workflows and far less manual re-entry and validation.

Immediate Payoff for Clients
SKU can now confidently promise quick onboarding, rapid carrier updates, and custom business rules to handle everything from free shipping tiers to specialized returns processes.

Future-Proofing & Growth
SKU is set up for the next wave of automation (baggers, applicators, real-time rate shopping, etc.) without having to bolt on extra software or hire additional developers.

“ShipWise transformed our operations in just one week. The flexibility, automation, and customer support exceeded all expectations. My team is happier, more efficient, and we now have the support we need to continue growing.”