$12M GMV · 32K orders/mo · Case studies

Outdoor gear brand: $84K/year recovered from warehouse routing drift

A $12M outdoor brand had been routing 31% of orders to a warehouse 2.4× more expensive than the alternative. Halia surfaced it in 6 days; the brand rerouted in two weeks.

$84,000
annualised labor recovered
6 days
time to detection
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The leak

31% of orders → 2.4× cost.

32,000 monthly orders, two 3PL warehouses, one cost-per-pick that was 2.4× higher than the other. The routing rules never caught up with the inventory mix — for three years.

Cost

Cost-per-pick by warehouse

60-day average across both 3PL invoices.

Cost-per-pick by warehouseEast Coast warehouse $3.20 per pick. West Coast warehouse $7.80 per pick, 2.4 times higher.$8$6$4$2$0$3.20East Coast$7.80West Coast2.4× higher
Volume

West Coast share: 31% → 14%

Two weeks of rebalance — rules rewritten to optimise for cost-per-order.

West Coast volume share: before and afterBefore: 31% to West. After 14 days: 14% to West. Net reduction of 17 points.Before31%to WestREBALANCE14 daysAfter14%to West
The math: a store doing 32K orders/mo with a 2.4× cost gap typically leaks $84K–$120K/year hiding in plain sight. Connect Shopify or any of 7 platforms, see your number in 5 minutes.
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What happened

How this brand found their $84,000.

Four stages, 30 days. From flat-margin mystery to recovered cash and a drift detector watching for the next imbalance.

1

Setup

A $12M outdoor DTC brand running 32,000 orders/mo across two 3PL warehouses. Three years of steady growth, stable margin, customer reviews strong. The CFO’s P&L showed no surprises.

2

Discovery

Within 6 days of connecting Shopify, ShipStation, and ShipBob, Halia surfaced that 31% of orders were routing to a warehouse 2.4× more expensive per pick ($3.20 vs $7.80). Routing rules predated the current inventory mix — nobody noticed when SKUs shifted.

3

Fix

Two weeks of operational changes:

  • Rebalanced SKU placement so high-velocity items lived in the cheaper warehouse
  • Rewrote routing rules to optimise for warehouse cost-per-order, not regional proximity
  • Set up a Halia drift detector to flag the imbalance if it returned
4

Result

$84,000/year in pick-pack labor recovered, plus $12K in reduced packaging overhead. West Coast volume share dropped 31% → 14%. Three months later, the drift detector caught a similar imbalance returning — before the cost re-accumulated.

Days, not quarters

From data connection to $84K confirmed in 30 days.

Halia surfaced the imbalance within a week of being connected and the drift detector keeps watching for repeats after the fix.

Detection-to-recovery timelineDay 1 connect; Day 6 detect; Day 14 act; Day 30 confirm $84K; Day 90+ drift detector watching.DAY 1ConnectShopify, ShipStation,ShipBobDAY 6Halia detectsRouting imbalancesurfaced with $DAY 14ActionSKU rebalanced,rules rewrittenDAY 30Confirmed$84K annualisedsavingsDAY 90+OngoingDrift detectorwatches for repeats
The brand had been operating profitably without seeing this leak for three years. It only surfaced once Halia joined warehouse cost data with order routing decisions.— From the operator engagement notes
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Applies to your store

You probably have a version of this leak if…

The same pattern shows up in roughly 70% of mid-market DTC operators we look at. Four signals to check first.

Signal 1

2 or more 3PL warehouses

You route by geography rather than cost-per-order.

Signal 2

Flat cost-per-order line

CPO hasn’t moved for six months, but inventory mix or carrier zones have.

Signal 3

Aging routing rules

They predate your last major SKU expansion or 3PL renegotiation.

Signal 4

Stable but flat margin

P&L looks fine but you can’t point to a single line that’s actually growing.

Frequently asked

Questions operators ask about warehouse routing drift

What is warehouse routing drift?+

Routing drift happens when the order-routing rules in your OMS or 3PL platform stop matching the real cost-to-serve picture. The rules were written for one inventory mix or fee structure; over time SKUs move, accessorial fees change, or one warehouse gets cheaper pick rates, and the rules quietly route a growing share of orders to the more expensive warehouse without anyone noticing.

How is true cost-per-order calculated?+

Real CPO joins three datasets most ops dashboards keep separate: the 3PL invoice (pick, pack, accessorial, dim-weight, fuel surcharges), the order data from Shopify or your OMS (SKUs, weight, destination zone), and the carrier billing file. Most native dashboards under-report CPO by 30–50% because they show carrier rate-card cost only, excluding the 3PL warehouse line items.

How long does the rebalance take?+

In this scenario, two weeks: one to rebalance SKU placement (move high-velocity items to the cheaper warehouse) and one to rewrite the routing rules to optimise for cost-per-order instead of regional proximity. Detection itself was 6 days from data connection.