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Convoy > Case Studies > Dropps Leverages IoT for a Sustainable and Efficient Supply Chain

Dropps Leverages IoT for a Sustainable and Efficient Supply Chain

Technology Category

Analytics & Modeling - Machine Learning
Infrastructure as a Service (IaaS) - Private Cloud

Applicable Industries

Packaging
Retail

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Intelligent Packaging
Supply Chain Visibility

The Challenge

Dropps, a company known for its innovative detergent pods, was facing a significant challenge in aligning its supply chain with its sustainability goals. The company had a complex network of distributors and a third-party fulfillment center that shipped inventory to big-box stores. This model was neither efficient nor cost-effective. Moreover, Dropps was competing for shopper attention and shelf space with other brands in brick-and-mortar retail stores. The company wanted to reduce its carbon footprint and make its supply chain as light and efficient as its detergent pods. To achieve this, Dropps needed a new freight partner that could help optimize routes and control carbon emissions.

About The Customer

Dropps is a company that revolutionized the detergent industry with its invention of the detergent pod. The company was founded by Jonathan Propper, who initially created a low-suds detergent that was effective against dirt but didn't damage fabric. This formula was marketed as Cot’n Wash in the 1980s. Later, Jonathan secured the formula and started Dropps, introducing a simple, dissolvable pod that eliminated the mess, waste, and packaging associated with traditional detergents. Dropps initially had a brick-and-mortar retail strategy but later shifted to a direct-to-consumer model to reduce carbon emissions and align with its sustainability goals.

The Solution

Dropps decided to shift to a direct-to-consumer (DTC) model, which allowed the company to have more control over its supply chain and reduce its carbon emissions. The company established its own warehouse and fulfillment center in the Chicago area, which is centrally located in its supplier network. Dropps partnered with Convoy to manage its full truckload freight network due to their shared vision around supply chain sustainability. Convoy's solutions included pooling truckload capacity, providing shipment insights, and enabling easy tracking and control of carbon emissions. Convoy's batching capabilities allowed carriers to book multiple jobs at the same time, ensuring maximum asset utilization and minimal empty miles. Convoy also pooled its customers’ private fleet capacity, creating a shipper network that could be optimized on a larger scale.

Operational Impact

The shift to a direct-to-consumer model and the partnership with Convoy has enabled Dropps to make significant strides towards its sustainability goals. The company has been able to reduce single-use plastic from its packaging by offering a compostable and recyclable cardboard package. It is also transitioning to printing labeling directly on its cardboard boxes to further reduce packaging. Dropps is now well-positioned to build a supply chain with a footprint as light and efficient as its detergent pods. The company plans to conduct an audit of all its fulfillment center’s internal processes and develop a “pull” model to further enhance its supply chain efficiency.

Quantitative Benefit

Reduced carbon emissions by shifting to a direct-to-consumer model and optimizing routes
Minimized empty miles in the trucking industry by utilizing Convoy's batching capabilities
Maximized asset utilization by pooling truckload capacity and private fleet capacity