The situation

Within a decade however, KG Group (formerly KG Electronics) had become one of Australia’s biggest B2B marketplaces, supplying the country’s leading retailers – not to mention 3 million online customers – with over 60,000 product SKUs, shipped from all over the world.

“We identified a market opportunity for providing high-quality electronics and household appliances at competitive prices,” says Ganon. “Our aim was to create a direct-to-consumer eCommerce business that could offer a wide range of products with exceptional customer service.

“Over time, the business grew and we expanded our range and product offerings, quickly establishing strong relationships with Australia’s leading brand suppliers.”

This rapid expansion came with a bunch of challenges, and when Ganon and Kushlin decided to separate their ERP’s shipping and warehouse management functionality from listing and orders, they ran into a roadblock.  

The challenge

At the time, KG Group were operating from a 9,000m² warehouse in Melbourne, with 60 full-time staff split between warehouse and office roles. The company’s supply network had grown enormously, and the time had come to streamline operations and improve the warehouse’s efficiency – hence the organisational split.

“The separation of shipping from listings was crucial to aggressively grow and scale and business,” Ganon says. “Failing this separation meant we would have had to rebuild the entire ERP system, stalling our ambitious growth targets and market momentum.”

Ganon and Kushlin started shopping around for solutions. They needed something flexible that would synch with their existing ERP (NETO) and quickly untangle multiple ERP sites, inventory control, shipping, warehouse management and order management components.

“After sifting through dozens of solutions, and getting nowhere, we were told to investigate Thomax,” Ganon says.

The solution

KG Group chose Thomax’s best-in-class warehouse management system .wms to address their critical operational needs. The choice came down to a few factors: seamless integration with multiple NETO sites, .wms’s cloud-first architecture, and the solution’s flexible approach and precise synchronisation, all of which ensured smooth data flow and a hassle-free integration.

“Thomax’s .wms provided a robust solution, creating a well-coordinated environment where all aspects of warehouse operations and order management could work in harmony,” Ganon says.

Thomax oversaw the entire implementation process, building tailored solutions to address KG Group’s unique requirements for synchronised shipping, warehouse management, SOH and order processing. They also facilitated the smooth integration of the client’s proprietary software, ChannelWiz, which was a critical piece of the puzzle.

The results

With .wms fully integrated into the business and firing on all cylinders, KG Group started to see an immediate return on investment. Thomax’s transparent workflows helped reduce errors in rapid order processing and inventory management. By shifting from (relatively sluggish) pick-to-print processing to a rapid single-to-single picking process, the business was able to optimise its pick rate from XXX to XXX.

The new systems also streamlined operations and enhanced productivity in both the warehouse and the office, resulting in faster and more reliable service all-round. Average order delivery times have shrunk from XX to XX in the last 12 months.

“Thomax’s features were critical in driving our evolution and helping us re-shape our business model,” Ganon says. “They helped us unlock efficiency gains and, importantly, position us ready for significant and sustainable growth and scaling opportunities.

“Thomax’s cloud-first architecture and flexible approach dovetailed nicely with our need for real-time information and a quick return on investment.”

Final thoughts

Re-shaping an international logistics and shipping network is never easy, but with the right platform, and a flexible approach to integration, you can minimise disruption for the client. This was the case for KG Group.

Working closely with the warehouse team, Thomax was able to offer continuous, ongoing support, nipping any emergent issues in the bud. The result? A smooth integration, minimum headaches, and a tech stack ready to scale.

“I think we’re known affectionately within Thomax’s senior leadership team for ‘pushing the envelope’, robustly and regularly,” Ganon laughs. “You become convinced that you have a strong and valuable partner when their mission aligns with yours.”

KG Group’s turnover is now growing at a steady rate of 5%-10% per annum, with plans for international expansion in the pipeline.

“Thomax’s professional, efficient, and bespoke support continues to be the cornerstone of our operational strategy. Their assistance in integrating ChannelWiz positions us strongly for future growth, whilst ensuring that we remain at the forefront of the market with cutting-edge technology and robust operational processes.”