How This Filipino Startup Helped a Big Brand Deliver 4x Faster With E-Commerce
The world of commerce is transforming, and many formerly traditional brands that once sold products in brick-and-mortar stores are now experiencing more sales online. Such is the story of Havaianas, a flip-flop brand that has become popular with Filipino consumers. Now the company’s biggest sales channel is online—and this was made possible with a local startup that increased the speed of customer delivery by 4x.
Co-founded by CEO Constantin Robertz, a leader in the Philippine startup ecosystem, LOCAD is a fully-managed fulfillment startup that utilizes technology, warehouses, and logistics partners to meet supply chain demands in e-commerce and omnichannel distribution. In partnering with LOCAD, Havaianas was finally able to address the many pain points its customers had been complaining about.
In 2021, when Havaianas e-commerce Lead Christine Brunermer focused on the company’s e-commerce sales, the brand saw the potential to make e-commerce its main sales channel. However, the team wasn’t fully equipped to handle the entire scope of end-to-end fulfillment on its own. The task of picking, packaging, and delivering orders stretched the team too thin and led to the delivery period extending to 15 to 30 days. As expected, customers grew impatient, canceled their orders, and made their disappointment known. Customers also noted how inconsistent products were from their e-commerce store to the actual delivered product. And if that wasn’t enough, the use of separate systems—one for the online store, one for warehouse inventory, etc.—led to discrepancies, out-of-stock orders, and growing order return rates. Not to mention, this all happened during the pandemic when travel restrictions were still in effect.
Something had to be done, which is when LOCAD entered the picture. After LOCAD became their fulfillment partner just in time for the 8.8 sale in 2021, Havaianas was able to dispatch orders within 24 hours, or four times faster than usual.
“It has made the cost we put in very efficient,” said Brunermer, pointing to the high productivity and efficiency rate of LOCAD. “From paying for our own real estate, managing that real estate, hiring people to cover x square meters of that real estate—all of that has been lifted from us and now we are only looking at the cost per unit.”
The integration LOCAD’s Control Tower has also allowed the brand to save time and effort as the system allows them to view the data they’re looking for. What was once manual is now automated, designed for maximum efficiency and convenience.
“LOCAD’s system is super thoughtful and it’s so connected to what operations really need to see,” she said. “The beauty of the integration and the way that things are run by LOCAD is that [it’s] very data-driven—it’s so seamless and very, very in tune with how we do things.”
But most importantly, since partnering with this Filipino startup, customer satisfaction has spiked.
“Since LOCAD, customer happiness has really gone up,” said Brunermer, which is a far cry from the canceled and returned order rates of 2021.
By saving their clients time and money, LOCAD has also allowed them to upskill to keep up with the ever-evolving landscape of e-commerce and the demands of the market. E-commerce has grown far beyond what any of us expended, and it will only continue growing. The e-commerce industry is expected to grow by a whopping $11 trillion from 2021 to 2025 alone, and local startups like LOCAD are here to support Filipino companies in this new era of commerce.