NOVICAIndustry: Merchandise for artisans worldwide — home décor, jewelry, apparel, paintings and gift items.

Web site: novica.com

Customers:Online shoppers.

NOVICAFedEx® Transborder Distribution, a FedEx® International DirectDistribution Surface Solution

A FedEx® International DirectDistribution Success Story

“ Today, we need to communicate only with FedEx, as opposed to three or four companies. Costs are predictable and consistent, giving us more control of our business, and sales are increasing by 20 percent annually, driven in part by very satisfied repeat customers. We have two advantages over the competition — our unique handcrafted products and the logistics solution developed by FedEx.”

Andy Milk Chief Operating Officer, NOVICA

NOVICA provides a platform for artisans across the globe to sell their high-quality, handcrafted works to customers around the world — making remarkable art available, and ensuring that the creators receive a fair price for their work. NOVICA sought an end-to-end solution to meet all of its needs, while preserving the unique sales model that defines the company’s culture and its customer appeal.

A customized cross-border solution for a handcrafted company

The Challenges Using novica.com, customers can select products, view profiles of the artists who created them, and learn where and how the artisans work. Purchases are made directly from the artisan. Most novica.com orders for Mexican handcrafts originate in the U.S., making cross-border shipping from Mexico to the U.S. a major piece of NOVICA’s business.

For NOVICA, the direct customer-artisan relationship is a central business benefit; however, having a different vendor for every order posed a significant supply-chain challenge. The company needed to preserve its sales model, while establishing a centralized platform for end-to-end control of customer orders.

Many of NOVICA’s vendors did not have automated tracking tools, resulting in a complete loss of visibility and accountability for shipments. Customs clearance was inefficient, costs were unnecessarily high, billing was overly complex, transit times were unpredictable and support requests were difficult to handle.

The SolutionsFedEx® Transborder Distribution was the right fit for seamless shipping from Mexico to the U.S.

In Mexico, FedEx Express Nacional gathers crafts from across the country at NOVICA’s Tonala, Jalisco, facility. From there, the products are carefully transported to the Mexican border, using FedEx Transborder Distribution, a FedEx International DirectDistribution Surface Solution.

FedEx manages the transportation, handles customs clearance, and provides air or surface delivery options to meet customers’ shipment, cost and delivery needs. Because all shipments are coordinated by FedEx, there is visibility from the point of origin, reducing operating and inventory costs.

The same platform also allows NOVICA to ship goods domestically within Mexico with the service quality that FedEx offers internationally, translating into reliability and security for users.

The ResultsWith FedEx, NOVICA found the solution it needed to grow its business. Sales have increased almost 20 percent year-over-year since NOVICA began working with FedEx, driven in part by satisfied repeat customers. The company estimates that it has reduced shipping time by 50 percent, while electronic shipping solutions have increased internal efficiencies. All of these improvements have helped bolster customer satisfaction. At the same time, NOVICA has found a better way to achieve its mission — using FedEx to create an e-commerce solution that connects 310 Mexican artisans with customers across the world.

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