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Case Study

Free Shipping on B2B Orders? How RagLady Makes It Work

Key Benefits and Outcomes

Flexibility to ship parcel and LTL from a single screen

Successfully offer free shipping

Flexible, configurable shipping workflows for B2C and B2B fulfillment

The Challenge

RagLady first engaged ShipJunction while implementing NetSuite, at a time when the company sold almost exclusively to smaller commercial customers with some B2C residential. In addition to requiring a multi-carrier shipping solution that integrated tightly with NetSuite, RagLady saw this as an opportunity to improve the efficiency of its shipping operations and potentially cut shipping costs.

RagLady has always offered free shipping. Its commercial and consumer orders were typically smaller and could fit in a single package. RagLady packed its rags into flexible polybags, which presented a particularly frustrating challenge because it was a struggle to get accurate dimensional weights to rate orders. This resulted in rate and invoice corrections.

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“

All of our shipping is free to the customer, so finding the least expensive route and using as few boxes as possible is extremely important. ShipJunction helps us continually optimize that process as our shipping needs change.

”
Kent Krueger CTO at RagLady
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The Solution

With ShipJunction, RagLady found a configurable multi-carrier shipping solution that connects seamlessly with NetSuite and has adapted as its business has evolved. RagLady initially chose ShipJunction because of the integration with NetSuite and the system’s ability to handle shipping for residential customer order profiles with a focus on small parcel, to validate residential addresses, and to reduce shipping costs and invoice corrections.

“The rags came in bags that could be squished and packed,” explains Kent Krueger, the CTO at RagLady. “ShipJunction was able to calculate how many bags of rags would fit into each polybag so we could ship as economically as possible.”

Those early requirements included automatically comparing available options and selecting the lowest-cost shipping method. ShipJunction’s cartonization capabilities also helped RagLady minimize the number of boxes used, which was critical to controlling the cost of offering free shipping to every customer.

Because ShipJunction is a Built for NetSuite SuiteApp, RagLady has a shipping solution that enhances and extends its NetSuite investment. It provides real-time sync with NetSuite on everything from custom records to shipment tracking and costs. Any data point in NetSuite can be used to inform business and shipping rules in ShipJunction.

The Transition to Shipping Large B2B Orders

A few years after implementing ShipJunction, RagLady shifted its business model from selling primarily B2C to focusing on B2B. Its shipping operation had to adapt to a fundamentally different order and customer profile: “When we switched from residential customers to businesses, the entire packing problem changed,” explains Kent. “We moved from putting flexible bags into boxes to shipping full cases and, eventually, pallets.”

The new complexity required different workflows for larger B2B orders. RagLady now needed a way to figure out cost-effective pack-out strategies, compare small-parcel and LTL shipping methods, build pallets, and determine whether customers could receive freight deliveries without incurring a liftgate accessorial.

For orders that can be shipped via LTL or small parcel, RagLady uses ShipJunction to compare the cost of shipping multiple parcel packages against palletized LTL services. The team can now also account for whether a customer can receive freight without a liftgate.

“It allows us to have the shipping solution that works for our operations,” says Kent. “Instead of RagLady having to fit into the ShipJunction world, ShipJunction looks at it as, ‘Let’s create the best process that works in your world.’ That’s what won us over.”

The Result

RagLady has streamlined a complex mix of packaging rules, parcel-versus-freight decisions, and customer delivery requirements into an efficient shipping operation. As order profiles and fulfillment requirements change, the team can update its business rules without reengineering its fulfillment processes.

That operational control helps RagLady sustain its free-shipping model and maintain its high customer satisfaction standards. “We’re extremely efficient in our shipping, and ShipJunction reduces problems. It doesn’t add to them. The ability to change things, to tweak and modify within ShipJunction, allows us to get a system that works the best for us,” Kent says.

How ShipJunction Compares to the Alternatives

As part of RagLady’s commitment to continuous improvement, Kent keeps an eye on other NetSuite-integrated shipping solutions to ensure he is using the best NetSuite shipping platform for the business. He has consistently found that other systems are less intuitive and add complexity because they force rigid workflows rather than letting him tailor workflows to different processes.

“That’s where I think ShipJunction is so much stronger than other companies,” says Kent. “ShipJunction is more flexible, and we are able to make it fit within our business instead of the business being forced to change how we operate.”

With ShipJunction, RagLady is confident it has the right shipping platform for its B2B operations today and for its future growth.

Founded in 1984 and based in Stevensville, Maryland, RagLady is a B2B supplier specializing in industrial wiping cloths, shop towels, and cleaning rags. The company serves manufacturers, the energy sector, facilities services providers, and other businesses that depend on consistent, reliable wiping supplies.

Website: www.raglady.com

Industry: Industrial Cleaning Supplies

Headquarters: Stevensville, Maryland