Case Studies > Aterian's Digital Transformation of Consumer Packaged Goods with Convoy

Aterian's Digital Transformation of Consumer Packaged Goods with Convoy

Technology Category

Functional Applications - Product Data Management Systems
Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Consumer Goods
E-Commerce

Applicable Functions

Logistics & Transportation
Sales & Marketing

Use Cases

Last Mile Delivery
Supply Chain Visibility

Services

Hardware Design & Engineering Services
Testing & Certification

About The Customer

Aterian, formerly known as Mohawk Group Holdings, Inc., is a tech-enabled CPG platform that was founded in 2014 in New York City. The company is focused on building brands and products specifically tailored to the e-commerce shopping experience. Aterian's business model involves incorporating technology and insights from large amounts of data at every part of the product life cycle, including market research, design, quality control, logistics, and marketing. The company aims to deliver high-quality products that consumers desire most for the least amount of money. Aterian sells approximately 240 SKUs across numerous brands, including Home, Vremi, xtava, and RIF6.

The Challenge

Aterian, a tech-enabled Consumer Packaged Goods (CPG) platform, was faced with the challenge of optimizing its supply chain to deliver the most valuable product at the best possible price. The company's business model relies heavily on the flexibility and responsiveness of its supply chain to keep up with customer demand. The rise of e-commerce and the shift from brick-and-mortar retail models posed a significant challenge for Aterian. Traditional CPG companies often lack insight into consumer behavior and decision-making processes, which are crucial in the e-commerce landscape. Furthermore, Aterian needed to adapt its product design to align with the e-commerce distribution model, as most of its product lines were legacy products not designed with e-commerce insights.

The Solution

Aterian partnered with Convoy, a provider of an intuitive and self-serving web platform, to streamline its supply chain. Convoy's disruptive business model, APIs, self-service model, and data-centric company culture were key factors in Aterian's decision to partner with them. Aterian's international supply chain was restructured to streamline the complex movement of finished CPG from overseas factories directly to customers' homes. This involved using both traditional and cutting-edge supply chain solutions to simplify the movement of goods from factories, including intermediate destinations such as departure ports, destination ports, and fulfillment warehouses. Aterian also began investigating Convoy's APIs to apply the same level of automation it has for product design, marketing, and sales to its supply chain, with the aim of bringing all these models together.

Operational Impact

The partnership with Convoy has allowed Aterian to instantly book loads to keep up with customer demand, significantly reducing labor and paperwork. This has resulted in a more efficient and responsive supply chain, enabling Aterian to deliver products to customers in 1-2 days consistently. The use of Convoy's technology has also led to a reduction in complications that previously resulted in more labor, time, paperwork, and ultimately reduced profit margins. Although the partnership is only a few months old, Aterian's leadership team is already considering ways to further optimize its supply chain using Convoy's APIs.