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Case Study:

Redcat Racing

Overview

Redcat Racing is the premier name for gas, nitro, and electric-powered remote-controlled (RC) cars. All of their products come fully assembled and ready to run right out of the box.

Benefits and Key Outcomes

%

Increased order accuracy to near 100%

2X order throughput over the previous process

Removed manual touchpoints throughout the operation

Improved brand perception & customer satisfaction

User interface that’s easy to learn and responds quickly

Responsive and friendly support and implementation teams

Industry

Consumer Goods/RC Racing Vehicles

ERP

NetSuite

Website

www.redcatracing.com

“[With our previous system] it was a big problem. When you’re shipping the wrong items to customers it makes you look really cheap."

Mike Friery,
Director of Operations at Redcat Racing

Challenge

What started as a two-person shop in 2005, Redcat Racing has grown and transitioned from a business-to-business operation that sold a small number of large orders to a direct-to-consumer eCommerce company that now sells a large number of small orders. As a result, the team at Redcat knew it needed to make a change in its pick, pack, and ship strategy.

While its WMS was in place, without an advanced fulfillment solution to round out the process, shipping errors would continue to plague the operation. Previously, the Picker would also pack the order, check that the correct products were there, write down the box size and weight on a piece of paper, and then send the box down to the employee printing out packing slips. This manual process often resulted in the customer receiving the wrong item or missing something altogether. “It was a big problem,” said Mike Friery, Director of Operations at Redcat Racing. “When you’re shipping the wrong items to customers it makes you look really cheap.” On top of that, when customers would reach out about the incorrect orders, Redcat wouldn’t always receive the mis-shipped items back, meaning they were losing out on more than just the customer’s trust.

Order processing times also suffered. First, Redcat tried using a shipping software that wasn’t directly integrated with NetSuite, and as a result, they’d end up waiting around for shipping labels to load in NetSuite. When that failed, they tried using their WMS for packing, which was painfully slow. “The user interface lagged, it wasn’t robust and it didn’t offer any kinds of suggestions on packing,” said Friery.

Solution

Since changing gears with ShipHawk, the mis-shipments of the past are no longer a problem. Redcat now has complete confidence that every shipment is packed with the correct item, is in the best box, and is going where it’s supposed to go. “By adding ShipHawk to our operation, we can now easily verify the contents of each package before orders go out the door which helped us increase our fulfillment accuracy to nearly 100%,” said Friery. Brand recognition and consumer trust go hand-in-hand – for the good or the bad. Today, Redcat’s customers can expect fast and error-free shipping.

Order processing speed has increased as well. With its former shipping software, the team was having to wait around approximately 10 seconds per shipment for the tracking number to get from the software to NetSuite. While that time wouldn’t normally seem slow, when processing 6000 orders a month, that wasted time added up quickly. With ShipHawk, that isn’t an issue anymore. “As soon as the tracking number is created in ShipHawk, our team can move to the next shipment because we know that ShipHawk is automatically sending those details back to NetSuite,” said Friery.

Another benefit Redcat found with ShipHawk was not having to pay for numerous individual NetSuite licenses to use the system, and as a result, is not limited in the number of pack stations. “With ShipHawk, we upped our pack stations to four even though we normally only need three. That way, if anything goes wrong, we’re prepared and can start using a different pack station immediately,” said Friery.

"Moving to ShipHawk gave us a huge upgrade in speed. Our shipping processes are at least two times faster than they used to be when we were using our WMS for packing."

Mike Friery

"We knew we needed some kind of packing solution when we first started looking, but we just didn’t know exactly what it should look like."

Mike Friery