Nucleus Research is the leading independent supply chain research firm specializing in ROI analyses. Clients turn to Nucleus to square the value of solutions in the supply chain technology industry.
Recently, Nucleus had an influx of interest in Shipium due to the buzz across the industry of our impact on outcomes, but did not have prior experience with us in order to give clients a perspective.
We agreed to start an independent objective study by Nucleus to identify the the key value drivers of Shipium and actual ROI metrics companies can expect if they switch to Shipium.
You can download the report here:
10% parcel spend reduction
We believe we provide incredible outcomes related to spend reduction. Cost structures are changed so much so as to power a new operating model for most customers.
Internally, we know this to be fact based on the evaluations and reports we do jointly with customers during our QBRs (quarterly business reviews). The average we have seen across QBRs is 12%. Amazing!
Most companies have a hard time believing how high that reduction can be, and we appreciate that perspective. Shipium's platform is a new approach to an old industry where these types of outcomes are rare. Proving it to the public is difficult because most companies are uncomfortable speaking to financial metrics publicly, whether they are a private or public company.
The Nucleus ROI interest was a helpful fit, as their specialty is interviewing customers to get objective measurements that can be shared privately to produce an aggregate ROI analysis. We provided Nucleus with anonymized aggregate data across the platform to justify our parcel spend reduction numbers of between 10%-12%, where the variability typically came from how many carriers customers were using pre-Shipium. Nucleus then interviewed several customers to confirm their measurements individually.
The result was a verified 10%.
Soft costs are higher than you think — eliminate them with Shipium
There are a lot of other goodies in the report, but the other big one to call out is how soft costs can really add up.
We see this with customers all the time. $10,000 here to add a new carrier, $20,000 there to make a feature change, and so on.
This is on top of the internal time required of engineers and analysts to manage daily jobs that frankly shouldn't be a part of their jobs. Once these personnel are freed up to do higher value tasks, the ROI really starts to compound.
Nucleus dove in on this topic and came away with compelling results. Check it out.
More to come
Not covered are additional cost savings or efficiencies gained with newer products like Simulation and Fulfillment Engine. We are eager to dive into these efforts with an independent analyst like Nucleus in the future.
More importantly, the impact Delivery Promise can have on top-line growth. We have seen customers average around 4% conversion improvement. That's really big! We are eager to help prove this with future reports as well.
Kris Gösser
CMO
Diagonal thinker who enjoys hard problems of any variety. Currently employee #5 and the first business hire at Shipium, a Seattle startup founded by Amazon and Zulily vets to help ecommerce companies modernize their supply chains. Previously was CMO at Datica where I helped healthcare developers use the cloud. Prior to that I came up through product and engineering roles. In total, 18 years of experience leading marketing, product, sales, design, operations, and engineering initiatives within cloud-based technology companies.
