ER2

Client since: 2020
Uses: Descartes Sellercloud, Shipbridge, Skustack
Industry: Electronics
Founded: 2012
Headquarters: Mesa, Arizona
Company size: ~120+ employees
Types of items sold: Enterprise IT hardware including laptops, desktops, monitors and networking equipment collected from Fortune 100 companies. ER2 refurbishes, redeploys, resells and donates equipment and also provides warehousing and 3PL fulfillment services.

er2.com 

“In our journey from chaos to order, Sellercloud and Descartes team have been a huge partner for us.”

Ben Peters, Director of Innovation and Client Solutions, ER2

Before Descartes

ER2 began in 2012 supporting clients with IT asset disposition, secure data destruction and responsible handling of retired IT hardware. The company collects large volumes of enterprise equipment, refurbishes it, and then sells through ecommerce marketplaces, B2B channels and client fulfillment services.

ER2 operates eight warehouses around the country and a major refurbishing center in Mesa, Arizona. As the company grew, ER2 relied on three different systems for multichannel listings, inventory and shipping.

“We were using ChannelAdvisor, we were using Skuvault, and we were using ShipStation. Three separate modules trying to accomplish the same multichannel posting, inventory, data management, as well as physical inventory management and our shipping solution. It was really troublesome.”

The Challenge

As ER2 expanded into eight warehouses and multiple service lines, its previous tech stack made operations increasingly difficult. Managing listings, inventory and shipping across three separate systems created delays, manual work and limited visibility.

Inventory accuracy was another challenge. With thousands of refurbished items moving through the operation each day, ER2 needed reliable binlevel tracking. “Bin controlled inventory locations is probably the most important thing a company can move to.” 

The picking processes were also time consuming, as staff often revisited the same locations. Routing and shipping lacked structure as well. Orders were not always fulfilled from the most efficient warehouse, which increased costs and slowed delivery times.

Finally, ER2 needed a partner who aligned with its continuous improvement mindset. “It’s important for us as a company with a core value of continuous improvement to find partners who are like minded.”

The Solution

ER2 resolved its operational challenges by consolidating systems with Descartes Sellercloud. All warehouse, inventory and ecommerce workflows now run through a single platform. As Ben explained, “When we went and found Sellercloud, they said, we have a solution that has everything in one package.”

With Descartes Sellercloud, ER2 manages its multichannel listings, SKU data and warehouse operations in one place. This unified environment eliminated the inefficiencies caused by switching between different systems.

The combined tools also strengthened their warehouse accuracy. Bin controlled inventory and enforced barcode validation now ensure that items are picked and shipped correctly. “By validating that throughout your picking process and shipping, you know that you’re not going to cross ship something. The system will stop you from cross shipping something if you scan the wrong barcode,” said Ben.

ER2 also benefited from improved picking workflows. Guided scanning and structured bin management allowed teams to move quickly through the warehouse. Ben highlighted the impact of this improvement: “It makes order picking extremely efficient. We easily had a 75 percent time savings in order picking by moving to this process.”

Routing capabilities were another important advantage for ER2. The Descartes team worked with them to build logic that assigns orders to the most efficient warehouse. Ben noted, “The Descartes team was able to help us put together a logical and intelligent order routing such that it accommodates fulfilling a product from the warehouse that has the stock but even that is closest to its destination zip code.” This contributed to faster deliveries and lower shipping costs.

Marketplace management also became more reliable. Descartes Sellercloud keeps ER2 aligned with marketplace requirements and attribute changes. Ben shared, “They are ahead of the game, in all those regards. So that your listings are always live.” This ensured that sales channels remained uninterrupted.

After Implementing Descartes Sellercloud

Implementing Descartes Sellercloud enabled ER2 to strengthen accuracy, efficiency and overall operational control across every warehouse location. The improvements were clear in both day-to-day workflows and broader business outcomes.

The accuracy gains from bin-controlled inventory and barcode validation eliminated the errors that had previously disrupted operations. “There are no cross shipments. We’ve been doing it for eight months now, and there have been zero occurrences.”

Shipping costs were also significantly reduced through strategic warehouse placement and improved routing logic. “We found that 40 percent of our shipments are actually heading east. So by warehousing out of our Memphis, Tennessee location strategic SKUs that we found are the most purchased into those areas, we’ve significantly reduced the shipping cost on about 40 percent of our shipments,” said Ben.

Customers also benefited from faster delivery times. With orders routed through the closest warehouse, many shipments arrived earlier than expected, in only one or two days.

The improvements in picking workflows also continued to pay off. This reduction in labor time helped ER2 manage growing order volumes without adding unnecessary headcount.

Crucially, ER2 found a long-term partner who supported their continuous improvement culture. “The Descartes team is behind us all the way. You need a partner who knows what they’re doing, and you can’t solve all your operational problems alone.”

ER2 continues to expand its ecommerce, B2B and 3PL services with the foundation provided by the Descartes Sellercloud solution, which supports both their operational needs and their commitment to improvement.

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