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Vinomofo

Oracle Customer Success

Vinomofo expedites customer delivery with Oracle Cloud SCM

Summary

Vinomofo fulfills wine orders up to 3X faster, increases warehouse operating efficiency, and enhances customer satisfaction with Oracle.

Business challenges

Vinomofo is an online retailer that sells a diverse range of wine products to more than 500,000 members in Australia, New Zealand, and Singapore. Its mission is to share exceptional wines with wine lovers and help great winemakers sustain and grow their businesses.

Previously, Vinomofo outsourced its warehouse facilities to a third-party vendor, based on a fixed-rate, per-case cost, which made it difficult to scale the business. Vinomofo also had no access to the vendor’s system and experienced frequent oversell situations. With the relocation of its warehouse from Adelaide to Melbourne, Vinomofo wanted to improve efficiency and lower costs by modernizing its inventory and warehouse operations with a cloud-based solution.

The company needed to ensure wine stock accuracy and minimize oversell issues by using a robust warehouse management solution to automate cycle count and replenishment management, rather than relying on a supplier to put the stock and order information into spreadsheets.

Also, Vinomofo sought to expedite the fulfillment of customer orders during seasonal peak periods by gaining the ability to easily allocate stock location while supporting constantly changing wine stocks. For example, it needed to track a smaller number of higher-value bottles or higher-volume wines from different winemakers.

Finally, Vinomofo wanted to independently manage and control warehouse operations without high maintenance costs by transforming all essential activities, such as picking, packing, loading, and shipping wine stocks, via a cloud-based solution.

Oracle Warehouse Management Cloud Service is the only solution that enables us to reliably and efficiently manage our wine inventory and warehouse operations. We not only increased pick speed and fulfilled orders faster, but also gained the ability to deliver new services and enhance our member experience.

Krista Diez-Simson

CFO, Vinomofo

Why Vinomofo chose Oracle

Vinomofo conducted a due-diligence process with various vendors and selected Oracle Warehouse Management Cloud Service to modernize its inventory and warehouse operations. It successfully went live with the new platform in three months.

“Oracle is continuously developing Oracle Warehouse Management Cloud Service, so the product is now even better than LogFire. I would recommend this product to other companies—without a doubt,” said Rob Hurn, warehouse manager for Vinomofo.

"We considered other on-premises solutions, such as Manhattan, but only Oracle could offer the best-in-class, cost-effective warehouse management solution and meet our cloud-based requirements. Having local support in Melbourne has also been critical to the success of this project," said Krista Diez-Simson, CFO of Vinomofo.

Results

Vinomofo fulfilled wine orders faster and improved customer satisfaction by introducing Oracle Warehouse Management Cloud Service to track inventory movement, direct packing, and determine shipping routes, which helped the business decrease laytime from the Melbourne warehouse to one to two days rather than up to three days.

The company also increased pick speed and inventory management efficiency by preconfiguring stock locations and mixed cases—premixing wines by style, by vintage, or by saleable lot—and intelligently directing warehouse staff to pick stock in sequence and save travel time.

After migrating to Oracle Cloud, Vinomofo achieved 99.6% pick accuracy by providing an accurate and concise way of managing fulfillments.

With Oracle Warehouse Management Cloud Service, the company improved customer service by providing a "click-and-collect" order option to allow members to pick up their wine orders within a two-hour window.

Vinomofo saw a decreased churn rate and enhanced customer experience by managing inventory and warehouse operations with Oracle Warehouse Management Cloud Service. It also gained greater control to eliminate oversell issues, ensure product quality, and offer personalize service, such as adding tasting notes to wine club cases.

Oracle Cloud delivered improved insight into warehouse operations and helped the company make smarter decisions by analyzing daily workflow and real-time orders via the dashboard, empowering the retailer to take faster action, such as reassigning resources or launching wine promotions.

The business could focus on continuous innovation instead of IT infrastructure with the cost-effective Oracle Warehouse Management Cloud Service. Maintenance costs were lower and the solution required fewer resources than on-premises applications.

Finally, Vinomofo increased business agility by flexibly configuring the back end and rolling out the solution to other locations with minimal interruption.