The global smart home industry is expanding at a rapid clip, and is expected to grow
at a compound annual growth rate (CAGR) of 21.1% from 2022 to 2028 to reach US$380.5 billion.
There is thus an immense opportunity for smart home device retailers to capitalize on this growth – if they can handle the complexity in this fiercely competitive, high-volume, low-margin industry and operate with the utmost efficiency.
One smart home retailer that is always striving to improve its operational efficiency is Wyze
, a US-based enterprise that was founded in 2017 with the mission of producing state-of-the-art smart home technologies at an affordable price – making them accessible to a wide range of consumers.
Wyze’s flagship product – the Wyze Cam, which was launched in 2017 and retailed for only US$20 – sold over one million units in its first year on the market, and has sold more than 15 million units since then. The company also manufactures and retails an array of other devices for all areas of the smart home ecosystem, including smart locks, doorbells, robot vacuums, light bulbs, switches, and thermostats.“In order to provide the highest quality products and the lowest possible price for our customers around the world, we must be able to continually optimize our operations,”
said Rob Johnson, Principal Ecommerce Technical Program Leader at Wyze, “And, when the company first started, one area where we saw that we could boost our efficiency was our ecommerce order fulfillment process.”
To effectively manage its ecommerce fulfillment operations, Wyze must be able to:
To help achieve these objectives, Wyze began outsourcing its order fulfillment to several different third-party logistics (3PL)
However, as Wyze’s business expanded over the years, the scale and complexity of its fulfillment operations grew. And so the smart home retailer started looking for new 3PL partners to handle the company’s increased order volume and new technologies to integrate and automate its order fulfillment process.