Sole-ution to High Costs: Paragon's Regional Utilization Success

Brand: Paragon Footwear 

Platform/s: Digital Marketplaces 

Problem:

• Paragon, a leading footwear brand with a production base in South India, partnered with Tenovia to optimize its supply chain and reduce shipping costs. 
• With 58% of demand coming from North India, the brand faced high shipping expenses and long delivery times for national orders.
•  Additionally, regional utilization was only 42%, leading to operational inefficiencies that needed to be addressed to enhance customer satisfaction and efficiency.

Solution:

• Onboarded local warehouses operated by marketplaces using the Fulfilled by Marketplace (FBM) model.
• Implemented a regional utilization plan to ensure better distribution across locations.
• Negotiated lower charges for pick and pack services to reduce operational costs.

Impact:

• 47% cost reduction.
• Shortened delivery times by 50% for regional orders from 7-10 days to 3-5 days.
• Improved regional utilization, leading to more efficient operations and better customer experience.