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Amazon logistics for a supplement manufacturer. AAVALABS Case Study

AAVALABS is a Finnish producer of natural dietary supplements and vitamins. Its mission is to bring the Nordic spirit and health to people all over the world. The company started in 2011 as a family business with home recipes and today ships its products internationally.

Source: https://aavalabs.com/

 

AAVALABS’ logistics has changed as the company has grown: moving from self-shipping to partial or complete outsourcing. Ultimately, the manufacturer needed a strategic partner to ship products to Germany and other Western European countries.

 

Focus on business, not logistics

 

AAVALABS specializes in the production of healthy, natural dietary supplements. It's a challenging and competitive industry that requires continuous product testing and development, strategic planning, and strong customer relationships. In order to let them focus entirely on the business side of things, the company needed a logistics operator responsible for the fulfillment process.

 

Daily shipment of dozens of products worldwide, with different batch numbers and expiry dates, is a tremendous logistic challenge that Omnipack gladly took up.

 

Demanding Amazon shipment

 

Amazon is a critical platform for AAVALABS which it uses to sell its products to customers in Spain, Italy, France, Germany and the UK. The company plans to open up to other countries on the platform, and was looking for a partner who could manage this.

 

And found it! At Omnipack, we provide the FbA (Fulfillment by Amazon) service, which imposes many responsibilities on the supplier, such as:

 

  • marking shipments with FNSKU codes (SKU format created by the platform)
  • compliance with weight limits for collective deliveries
  • marking collective packages with unique labels with information about the contents

 

The process must be carried out following the monitory note, and the slightest deviation can result in a declined delivery. Even details such as straight and aesthetic application of FNSKU codes and their good quality are essential. Otherwise, Amazon devices will not scan them. 

 

In addition, to making the FbA process as efficient as possible, we use a dedicated application for managing the platform's logistics. The tool makes it easier for the customer to order shipments and helps us eliminate the risk of human error in the entire logistics process.

 

Brexit? No problem

 

Every eCommerce that operated in the United Kingdom has been hit hard by Brexit. New tax rules have complicated life for many businesses, and AAVALABS was no exception. For example, the company was both the recipient and sender of shipments in the UK. According to the new regulations, the recipient is responsible for paying tax duties, but Amazon doesn't accept such fees in its rules.

 

We contacted the supplier in the UK and managed to transfer the shipping costs to the sender. To solve similar business and logistics challenges, we created a dedicated team, and thanks to Michał, our Transport Manager, we ate all these problems for an (English) breakfast.

 

This is just the beginning 

 

We are delighted that we are contributing to the pro-health AAVALABS mission. The company won’t stop growing, and we won’t stop helping them to do so. So far, we have managed to:

 

  • Open a strategic shipping point for the whole of Europe
  • Handle Amazon shipments and solve logistical problems arising from Brexit
  • Provide express shipping in the next-day delivery model to Germany market

 

Kiitos ja terveisiä, Aavalabs

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