Case Study - Guiney's

 

Case Study 

Implementation of ShipTown in the Irish Retail Chain

 

www.guineys.ie

1. Background and Context

1.1. About Guiney’s

• Industry: Retail (Bedding, Curtains, Home Furnishings, Homeware, Menswear, Ladieswear, Baby & Nursery)
• Location: Ireland (12 physical stores, central warehouse and an e-commerce platform)
• Number of Employees: 250+
• Annual Turnover: €20 million
• Number of Products Managed: Over 15,000 different products in both the e-commerce catalog and physical stores

 

1.2. Challenges Before Implementing ShipTown

• Low Efficiency in Shipping Processes: The average order fulfillment time was 3 business days, which did not meet customer expectations.
• Inventory Management: Managing a large number of products (over 15,000) made it difficult to maintain accurate stock levels, leading to frequent stock errors.
• Scalability: Difficulty in adjusting logistics to seasonal sales increases, especially during promotions and holidays.
• Order Fulfillment with In-Store Pickup: Lack of a tool enabling online order fulfillment with in-store pickup within 2 hours of order placement.
• Integration with Couriers: Need to integrate the system with existing courier service providers – An Post and DPD.
• Equipment Handling: Necessity to manage existing label printers and Zebra barcode scanners.
• Point Of Sale System: Requirement to replace the existing, inefficient POS system with a comprehensive solution offered by ShipTown, which supports all physical stores.

 

2. Implementation Results

 

2.1. Increasing Process Efficiency

• • €33,655 annual savings thanks to a 28% reduction in the time needed to pack an order. Previously, packing 1,000 orders required 190 hours. After implementing ShipTown, this was reduced to just 137 hours. Based on an annual volume of 50,000 orders and a minimum hourly wage of €12.70, the time savings translate directly into significant cost reductions.
  • Shortened Order Fulfillment Time: The average time from order placement to shipment decreased from 3 to 1 business days.
  • Process Automation: Reduction of manual operations by 44%, allowing better utilization of human resources.
  • Order Fulfillment with In-Store Pickup: Ability to fulfill online orders with in-store pickup within 2 hours of order placement, increasing customer satisfaction and foot traffic in physical stores.
  • 22% increase in online sales within 12 weeks of implementation as a result of shortening order fulfillment times.
  • €6,705 in monthly savings thanks to reduction of the time needed to complete existing tasks by an average of 66 minutes per day per employee through process automation.
    With around 20 employees directly using the system, this translates to 528 working hours saved each month—the equivalent of 6 full workdays—resulting in significant labor cost reductions at the current minimum wage of €12.70 per hour.

2.2. Improving Inventory Management

• • Elimination of Stock Errors: Reduction of inventory management errors by over 98%, ensuring accurate product quantity monitoring.
  • Optimization of Product Transfers: Streamlined processes for transferring products between the main warehouse and stores, as well as between stores, reducing transfer times by 36%.
  • Managing a Large Number of Products: Effective monitoring and maintenance of accurate product quantities in the system thanks to ShipTown's advanced tool, managing over 15,000 products.

2.3. Order Fulfillment with In-Store Pickup

• • Rapid Pickup Fulfillment: Ability to fulfill online orders with in-store pickup within 2 hours of order placement, enhancing customer satisfaction.
  • Increased Sales: A 19% increase in the number of orders with in-store pickup after 6 weeks of implementation, leading to higher foot traffic in physical stores.

2.4. Scalability of Operations

• • Readiness for Seasonal Increases: Thanks to ShipTown's flexible solutions, Guiney’s was able to handle up to a 46% increase in orders during promotional seasons without the need to hire additional staff.
  • Service Flexibility: Ability to quickly adjust the number of shipments to meet current business needs.

 

3. Opinions and Recommendations

 

Gretta Guiney, CEO of Guiney’s:

“Working with ShipTown has been an amazing for us. The implementation process went smoothly, and the ShipTown team demonstrated professionalism and commitment at every stage. Thanks to their comprehensive solutions, our logistics have become more efficient, and our customers are more satisfied with the fast and reliable service. We are very pleased with the results and look forward to continuing working together in the future.”

 

Guiney’s is one of the most recognizable retail chains in Ireland, specializing in the sale of Bedding, Curtains, Home Furnishings, Homeware, Menswear, Ladieswear, and Baby & Nursery. Founded in 1971, the company is dynamically growing, currently operating 12 physical stores and an e-commerce platform. With a workforce of 250+ employees Guineys achieves an annual turnover of €20 million. Both online and in-store catalogs offer over 15,000 different products adapting to the latest market trends.