This case study was originally published by Deliverr, which is now part of the Flexport brand. Its contents were edited to fit the voice and tone of the Flexport brand. With Deliverr’s services (DTC fulfillment, B2B distribution, and Last Mile delivery) now an integral part of Flexport’s end-to-end supply chain and technology capabilities, we’re able to arm merchants with logistics superpowers as a single entity of supply chain experts.

One of the first of its kind, Ritual Zero Proof is shaking up the spirits category with a unique spin on non-alcoholic spirits.

Whether you’re training for a marathon, participating in ‘Dry January,’ or want to drink traditional liquor one night and a mocktail the next, Ritual was crafted to be the liquor replacement that enables you to make your favorite cocktails without the booze. Because balance gives you more of everything.

Creating New Rituals

After more than a year’s work and hundreds of iterations to perfect its craft, Ritual launched on Shopify and Amazon in 2020 – fulfilling DTC orders from its centralized warehouse in Chicago.

Orders started pouring in, but Ritual struggled to keep pace with customer demand for two reasons: The first being that Amazon’s restock timelines for new-to-market companies like Ritual were often deprioritized over more established brands. The second being that Ritual was having a hard time managing fulfillment operations on its own with only one warehouse, resulting in slow shipping speeds. These realities were less than ideal for a company thirsty for growth.

This is the story of how Ritual Zero Proof grew from entrepreneur to enterprise with Flexport’s configurable logistics to:

• Cut the average lead time on wholesale shipments in half
• Increase on-time delivery of packages from 98% to 99.5%
• Reduce storage and logistics costs by 2% (compared to the previous year) while also fighting heavy inflation pressures
• Lower prep costs by 32% (compared to the previous year)

The Search for a Strategic Partner With All the Right Ingredients

Since Ritual wanted an all-in-one logistics partner, Chief Operating Officer Dave DiLoreto put out requests for proposals (RFPs) with several 3PLs to find the perfect match.

After carefully weighing the options, he chose Flexport for its turn-key capabilities, affordable pricing, exceptional customer service, and easy connection to Ritual’s Shopify store. These crucial logistics capabilities, which were hard to find with other 3PLs, would undoubtedly enable Ritual to run more efficiently and grow the business.

“My plan was to find a more optimized fulfillment network for Ritual before the end of 2021. We needed a partner that could guarantee fast delivery of our products and keep up with our growth. Flexport offered that and so much more. From competitive pricing to network optimization to a seamless digital integration, it was a no-brainer that this was the right partner for Ritual. Flexport was the total logistics package we were searching for.” - Dave DiLoreto, COO, Ritual Zero Proof

DiLoreto kicked off the relationship by inbounding a handful of SKUs in a test-and-learn trial run to ensure Flexport’s network could efficiently fulfill orders. In just a few months, Ritual’s on-time delivery rate went from 98% to 99.5% by transitioning from a centralized network to a multi-network distribution model with Flexport.

Carefully Crafting Fulfillment Operations With Configurable Logistics

A year had passed since the partnership with Flexport began and while the initial fulfillment headache was cured, Ritual was still struggling with the distribution aspect of the business. From an expensive prep service to multiple inconsistent freight brokers to a desire to branch out into wholesale - DiLoreto couldn’t handle it all on his own. So he turned to Flexport.

DiLoreto had recently heard of configurable logistics services being added to Flexport’s offering that could enable Ritual to bring all of its operations under one roof. After an initial kickoff call to dive deeper into these new offerings, DiLoreto realized that ‘strategic partner’ was about to take on a whole new meaning with Flexport with access to:

• An optimized, multi-distribution fulfillment network that strategically places inventory closest to demand.
• Fast, affordable, and hassle-free trucking services.
• Kitting prep services for sales-ready inventory.
• Replenishment services that keeps inventory in stock.
• B2B fulfillment capabilities to distribute wholesale shipments to big-box stores and grocers like Total Wine and Binny’s.

By mid-2022, Ritual had implemented the entire depth of Flexport’s configurable logistics services to get goods from port to porch more quickly, seamlessly, and compliantly:

• DTC fulfillment enabled Ritual to meet customer demand and secure a 99.5% on-time delivery rate by strategically placing inventory throughout multiple warehouses across the U.S.
• Trucking services allowed Ritual to optimize truck space and get products from the port and onto warehouse shelves faster. And Flexport’s cross-dock made inbounding seamless by sending inventory to one location to be disbursed to the appropriate warehouses.
• Replenishment services helped Ritual avoid stockouts by sending reserved inventory downstream to wholesalers, Amazon FBA, and the fulfillment network. This service, combined with Freight, reduced Ritual’s logistics costs by 2% compared to the previous year (while also fighting heavy inflation pressures).
• Prep kitting services ensured Ritual’s fragile glass bottles were properly packaged to avoid damage and non-compliance, and reduced prep costs by 32% compared to the previous year.
• B2B fulfillment made it possible for Ritual to expand into wholesale partnerships and unlock a whole new area of revenue. It also cut Ritual’s average lead time on wholesale shipments in half.

Incorporating configurable logistics enabled Ritual to go from entrepreneur to enterprise and helped create a level playing field.

What the Future Holds for Ritual Zero Proof

Now that DiLoreto and the rest of the team at Ritual have more free time to focus on growing the business, 2023 is going to be the year of launching new ways to sip and remixing old favorites.

Flexport is excited to raise a toast to Ritual’s future and help them continue to grow to new heights this year.