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How did EFEX and Kohnan Japan collaborate on Fulfillment to create a perfect double in e-commerce?

Ngoc Lee
How did EFEX and Kohnan Japan collaborate on Fulfillment to create a perfect double in e-commerce?
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1. Overview of the Brand

Kohnan Japan, a renowned Japanese home goods retailer, expanded its global footprint to Vietnam in 2016. With its first two stores in Ho Chi Minh City, the company introduced Vietnamese consumers to a world of premium home products. From state-of-the-art kitchen gadgets to intelligent home appliances, Kohnan Japan offers a diverse range designed to elevate everyday living.

Kohnan Japan Information
Kohnan Japan Information

However, in the face of intensifying competition and rapidly changing consumer behavior, especially with the explosive rise of e-commerce, Kohnan Japan recognizes the necessity of transforming its business model to align with emerging trends.

Kohnan Japan Store in Binh Thuan
Kohnan Japan's Store in Binh Thuan

As a result, Kohnan Japan swiftly expanded its online sales channels across various platforms, including Shopee, Lazada, and TikTok, in 2021. However, as the business model grew, so did the challenges, leaving Kohnan grappling with many issues to address.

Kohnan Japan's Shopee Mall Store
Kohnan Japan's Shopee Mall Store

2. The Dilemma Facing Kohnan Japan

Having established itself as a reputable name in the minds of consumers, Kohnan Japan experienced a significant surge in online orders due to the increasing demand for e-commerce.

However, Kohnan's logistics system needed to be equipped to handle this influx at that time. Its warehouse, operating like a bottleneck, needed help to meet the growing storage and order fulfillment. Inventory management became a complex puzzle, with products piled up and expiration dates looming as a constant concern.

This situation not only impacted service quality but also led to a considerable rise in operational costs, including personnel and warehousing. Particularly for customers in major urban areas, expectations for fast delivery were escalating. Failing to meet these demands meant that Kohnan Japan risked falling behind its competitors and losing its market position.

How can Kohnan Japan tackle the challenges of limited warehouse space, find strategically advantageous locations, and manage inventory effectively? How can it ensure that goods are packed and processed swiftly, especially during peak sales periods with a sudden spike in orders? And how can it shorten delivery times while maintaining reasonable operational costs?

These are the important questions that Kohnan Japan is still facing as it looks for sustainable growth in the fast-changing e-commerce environment.

3. EFEX Partners with Kohnan to Resolve Its Dilemma

Confronted with the pressures of rapid e-commerce growth, Kohnan Japan turned to EFEX for a comprehensive solution. Suddenly, the burden of logistics management eased, allowing Kohnan Japan to alleviate some of the challenges it faced while enhancing the overall customer experience.

EFEX Multi-Channel Fulfillment Solution for Kohnan Japan 
EFEX Multi-Channel Fulfillment Solution for Kohnan Japan 

EFEX has partnered with Kohnan Japan to achieve significant advancements in several areas:

  • Overcoming warehouse space constraints, EFEX provided Kohnan Japan with a spacious warehouse capable of accommodating a diverse range of products.
  • Real-time inventory management, the solution allows for real-time inventory tracking, sending alerts when stock levels are low, enabling effective restocking strategies that align with available resources and customer.
Kohnan's products are categorized and stored in individual compartments, each labeled with a barcode
Kohnan's products are categorized and stored in individual compartments, each labeled with a barcode
  • Kohnan Japan has significantly streamlined its order processing, reducing delivery times from two days to a mere four hours. This expedited service enhances customer satisfaction and fosters loyalty. Moreover, the company has successfully minimized the rate of product returns due to defects, saving costs and bolstering its brand reputation.
  • Strategically located in the heart of Hanoi, Kohnan Japan offers customers the convenience of reduced shipping times and costs.
  • Additionally, the retailer's personalized packaging services contribute to a memorable customer experience, minimizing complaints related to damaged or incorrect orders.
EFEX Value Added Service - Insert Thank You Letter
EFEX Value Added Service - Insert Thank You Letter
  • Kohnan Japan offers a complimentary multi-channel sales management software that enables comprehensive order tracking, from initial receipt to final delivery. This enhances transparency and builds trust with customers.
Order and inventory management software
Order and inventory management software

Conclusion

The strategic alliance between Kohnan Japan and EFEX has yielded a remarkable success story. Leveraging Kohnan Japan's industry expertise and EFEX's technological capabilities, the partnership has forged a seamless and efficient operating system that effectively meets the evolving demands of the e-commerce landscape.

Beyond its role as a service provider, EFEX is honored to serve as a trusted partner to Kohnan Japan, collaboratively crafting exceptional shopping experiences for customers. The company's impressive 20% growth and overwhelmingly positive customer feedback, including accolades for rapid shipping and memorable opening experiences, stand as a testament to the invaluable contributions of this partnership.

We extend our heartfelt gratitude to Kohnan Japan for their trust and confidence in selecting EFEX as their partner on this journey.

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Ngoc LeeNgoc Lee is an Content Creator Manager at EFEX. She wields her long-term expertise in Logistics and Supply Chain, harnessing her top-notch writing and research skills to bring incredibly valuable content. Whether you're a small startup or a well-established enterprise, Ngoc Lee is here to equip you with the essential knowledge of e-commerce, fulfillment, and all things business-related.