Extensiv Warehouse Finder: Optimizing Fulfillment Networks Through Machine Learning

About Extensiv

Extensiv specializes in streamlining fulfillment operations through a modern platform that integrates software solutions with enhanced partnerships between brands and third-party logistics (3PL) providers. The company's platform empowers businesses to gain full visibility and control over their orders, enabling them to focus on scaling their operations while ensuring customer satisfaction. As a leader in the logistics technology space, Extensiv bridges the gap between brands and 3PL providers, fostering operational efficiency and supporting mutual growth across the fulfillment ecosystem.

The Challenge

Extensiv approached Commerce Architects with a complex challenge: they needed a sophisticated solution to help their customers optimize fulfillment network locations. The existing approach to warehouse network planning lacked data-driven decision-making capabilities, leading to suboptimal location choices and increased shipping costs. Specific challenges included:

• Processing and analyzing millions of historical shipping records to identify optimal warehouse locations

• Managing complex geographical and cost data across multiple shipping zones

• Evaluating shipping costs and delivery times across various carriers and service levels

• Handling data scale issues with shipping records that exceeded standard processing capabilities

• Supporting analysis of both existing warehouse locations and potential new locations

• Delivering insights in a format accessible to non-technical decision-makers

​The Solution

We developed a comprehensive warehouse optimization system combining advanced machine learning with robust cloud architecture:

Technical Implementation

The Commerce Architects team:

• Built an extensible end-to-end data processing pipeline transforming unstructured data into actionable business insights

• Integrated with existing order data ingestion systems

• Enhanced model prediction performance using geographical distance formulas

• Implemented Terraform Infrastructure as Code (IAC) for robust deployment and simple replication

• Created an intuitive data visualization platform for non-technical users

Cloud Infrastructure

Our system leverages several AWS services for optimal performance:

• Amazon Redshift for data warehousing

• AWS Lambda for distributed processing

• AWS Step Functions for workflow orchestration

• Amazon QuickSight for data visualization

• Amazon EventBridge for scheduled execution

Machine Learning Innovation

The Commerce Architects team developed:

• An XGBoost model for accurate shipping cost prediction

• A custom clustering solution capable of:

  • Accounting for fixed existing warehouse locations

  • Optimizing additional warehouse placements

  • Extending analysis to consider shipping time in location recommendations

The Results

The Warehouse Finder solution delivered across all key metrics:

Performance

• Processed millions of orders from hundreds of brands

• Completed analysis in under 15 minutes

• Achieved high cost prediction accuracy

Technical Excellence

Successfully handled:

• Multiple carriers and service levels

• Various package dimensions

• Complex geographical relationships

• Imperfect input data

• AWS Lambda processing constraints

Business Impact

Provided customers with:

• Data-driven network expansion decisions

• Clear current performance visualization

• Potential cost savings evaluation

• Multiple optimization scenarios

The Takeaway

The success of this project exemplifies Commerce Architects' ability to deliver sophisticated technical solutions that address real-world business challenges, while maintaining a focus on user experience and practical implementation. Through this collaboration, Extensiv has not only enhanced its product offerings but has also reinforced its commitment to providing cutting-edge technology solutions to its customers in the logistics space.