Streamline Global Parcel Operations for Efficiency and Cost Savings

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Covetrus and e2open collaborate for parcel shipment optimization, execution, end-to-end visibility and analytics

Covetrus is a leading global provider of animal health technology and services, with a mission to transform and redefine the veterinary medicine industry to enhance animal health. The company offers a wide range of products and solutions, including e-commerce, prescription management, inventory management, specialty pharmacy, and practice management software. Covetrus operates in 19 countries and employs about 5,500 professionals, serving over 100,000 veterinary professionals

The situation

Covetrus operates in a highly competitive and fragmented market where the demand for animal health products and services constantly increases. The online business of the Prescription Management division of the company faces challenges managing inventory across multiple channels and locations, optimizing shipping costs and delivery times, and enhancing customer loyalty and satisfaction. To address these challenges, the company was looking for a flexible and scalable parcel solution that can adjust to changing customer preferences, comply with regulatory requirements, and accommodate future growth.

The challenge

The logistics team at Covetrus faced several challenges around their parcel shipping operations. Managing parcel shipments across different carriers and geographies was complex and time-consuming due to a lack of visibility. Inefficient carrier selection and manual shipping processes led to higher costs. Delays and inaccuracies in parcel deliveries negatively impacted customer satisfaction. The inability to track and measure key performance indicators (KPIs), such as on-time delivery, cost per shipment, and carrier performance, was equally challenging.

The solution

Covetrus teamed up with e2open to overcome these challenges and streamline its logistics operation by implementing e2open Global Parcel. This solution is a cloud-based platform that offers end-to-end visibility, optimization, execution, and business intelligence insights for parcel shipments across the globe. This enabled Covetrus to:

Connect with over 200 carriers worldwide via a single interface
Automate parcel execution processes, including carrier routing/ rate shopping, compliant label generation, shipment visibility tracking, customs compliance automation, and business intelligence reporting
Optimize shipping costs and service levels based on business rules and customer preferences
Monitor and manage parcel performance across the entire shipment lifecycle
Proactively identify issues and trends, manage exception handling, and support strategic decision-making by leveraging the business intelligence suite

The implementation and rollout of the parcel solution were collaborative efforts between Covetrus and e2open, involving multiple stakeholders from both organizations.

Application:
E2open Global Parcel

The outcome

The second phase of the project involved enabling the e2open business intelligence platform. The platform gave the company greater visibility and control over its parcel shipping operations by enabling it to monitor and manage exceptions, track shipments in real-time, generate reports, and provide analytics to support proactive decision-making. Thanks to the implementation of e2open’s solution, Covetrus gained a host of benefits:

Cost Savings

Achieved significant cost savings by optimizing and standardizing business rules across all locations for automated carrier selection and aligning the execution of company-wide transportation strategy within the e2open platform.

Customer Experience

Enhanced customer satisfaction through the reliable and timely delivery of parcels.

Efficiency

Streamlined processes that allowed Covetrus to focus on core business activities.

Global Reach

Supported Covetrus’s expansion into new markets.

Results

With improved shipping processes, Covetrus reported a savings of 3,000 labor hours during the first year of implementation and a measurable year-over-year (YOY) parcel spending reduction.

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