Case Study: How MotoSport Sped Up Its Shipping Process
Problem: MotoSport, a catalog/multichannel retailer of power sports apparel, parts and accessories to motorcyclists and recreational vehicle owners, needed a faster, more flexible online shipping logistics system.
Solution: Teamed with a software solutions provider to rework shipping rules.
Results: Increased customer loyalty and repeat purchases as a result of customized and personalized shipping offers — with significant gains in sales, average order size and shipping cost reductions expected.
To reduce shipping costs by giving customers more options, MotoSport upgraded its logistics system by deploying new software.
Office Rules software from Haley uses a natural language (i.e., English) determination engine within MotoSport’s Web-based ordering system to find the best option for shipment based on customer
preferences for time of delivery and shipping method (ground vs. air). This allows MotoSport to change its billing rates or logistics options quicker and more effectively.
“We wanted to be able make selective and promotional offers, and alter shipping fees based on their loyalty value and location,” says Faramarz Farhoodi, chief information officer/vice president of e-commerce at the Tualatin, Ore.-based MotoSport.
MotoSport also sought the ability to change shipping offers due to economic changes, in particular the rising cost of fuel. “For all of that,” he says, “you need to have a lot of flexibility as external conditions change. For us, it was important to be able to make those changes within days of making a policy change.”
This speed to market represents a significant upgrade for MotoSport. Previously, the company’s shipping rules were hard-wired to enterprise resource planning applications by rigid rules and algorithms. Any major change to shipping logistics forced computer code to be rewritten by programmers, and that could take three to six months. But with the Office Rules software, the e-commerce platform is controlled by MotoSport employees who understand the needs of their customers. Changes to shipping options or offers that used to take months now are reflected on the Web site within a few days.