Operations · Q2 2026
Quarterly Operations Report
Summary
Fulfillment throughput grew 22% QoQ while unit cost fell 9%. The two remaining drags are return-processing latency (still 4.1 days on average) and the manual exceptions queue, which consumed 310 staff-hours this quarter.
Key metrics
| Metric | Q1 | Q2 | Δ |
|---|---|---|---|
| Orders fulfilled | 128,400 | 156,700 | +22% |
| Unit fulfillment cost | $3.42 | $3.11 | −9% |
| On-time rate | 94.1% | 96.3% | +2.2pt |
| Return processing time | 3.8 d | 4.1 d | +0.3 d |
| Exceptions handled manually | 4,900 | 6,200 | +27% |
Where the exceptions come from
■ Address issues 46% · ■ Damaged items 27% · ■ Payment mismatches 17% · ■ Other 10%
Address validation at checkout would remove roughly half of the queue on its own; the proposed triage automation covers the rest by routing damaged-item claims straight to the carrier workflow.
Next quarter
Q3 priorities, in order: ship exceptions triage automation (pending the decision above), pilot address validation in the two highest-volume regions, and renegotiate the returns carrier contract before peak-season rates lock in September.