drop shipping made easy
TRANSCRIPT
Drop Shipping Made Easy
06/05/2014
Market Trends: Omni-Channel Retail– What is it– Defining characteristics
Drop Ship Order Management Model – Day-in-the-life
vShip Overview Live walk through of vShip Q&A
Today’s Agenda
Market Forces:
Ecommerce
Ecom Quick Facts• $200 Billion+ in U.S. Retail sales• eCom now represents 6+% of total retail in the
U.S. • Ecommerce is out-pacing growth of in-store
retail sales • Investment community applying pressure on
retailers to report online sales• Wal-Mart had over $10 Billion in online sales in
2013• Amazon outsells it’s next 12 competitors
combined
Sources: Internet Retailer, Commerce Department, Wal-Mart SEC Filings
“Showing strong online sales now indicates a pretty good chance retailers can adapt to the changes in how people shop, and will last a long time compared to their competitors”
Omni-Channel
Current State of Retail• Technology has disrupted the traditional retail model• Intense pressure to build consumer loyalty & enrich
consumers experience across multiple demand points• Mobile, web, catalog, in-store, kiosks, etc.
• Retailers have to capture demand from multiple demand points and be able to fulfill from those demand sources
• Other factors:• Razor thin margins, showroom effect, shorter product
lifecycles & volatile demand • Pressure to consistently deliver on shrinking delivery
windows• Continued pressure to cut cost from supply chain • Consumer pressure for sustainable practices & a reduced
carbon footprint
Drop-ship Vendor
Programs
Defining Characteristics of Drop Shipping• New sales channel opportunity that introduces a new set of
compliance requirements for suppliers• Requires management of a new order type & distribution model• Short lead time for filling potentially thousands of orders• Erratic demand patterns / spikes in order volume• Increased order volume however:
• Low line & unit count• Lower margin• Increased PO Processing cost as a % of revenue
• Requires shipping direct to a consumer• Warehouse Ops has to break bulk• Increased parcel shipments• Residential fees & other shipping requirements
• Requires EDI document type (846)• Requires a retailer specific pack slip report
Distribution Workflow in
Review – Drop Ship
OMM
1. Receive Order via:– Integrated vSync EDI solution– Vendor portal such as Amazon Central– EDI web forms solution
2. If not integrated, key orders into GP3. Review order, allocate and create
order acknowledgment 4. Print pick ticket and deliver to
warehouse operations
Order Management
5. Materials handlers review paper picking ticket to determine which inventory to pull in warehouse for a specific order
6. Materials handlers travel to pick inventory and mark items as picked from warehouse
7. Materials handlers move inventory to a shipping station
Pick Order from
Inventory
7. Physically pack order into shippable container8. Process shipment at shipping station (shipping
software or carrier web-site)– Key in ship to address info– Determine ship method to use– Determine which ship options to use– Create cartons and key in / capture weights– Complete shipment and print labels– Write down shipment details on pick ticket
9. Login to web-site (i.e. Vendor Portal / Commerce Hub) to print pack slip report
10. Login to GP to create ASN transaction and print GS1 label
Pack & Ship Order
11. Updates Sales Transaction – Warehouse personnel hands pick ticket back to
front office with notes– Key line item fulfillment details into the Dynamics
GP sales transaction form– Key tracking numbers into the sales transaction
form– Key freight cost into sales transaction form– Update order batch to denote “shipped”
Enter Fulfillment
data into GP
Login to GP and send ASN transaction After order is transferred to an invoice,
login to EDI system and create / export EDI invoice
Submit ASNs & Invoices
vShip: Solution In
Review
vSync EDI for GP & vShip consolidates the Drop-ship discreet steps into a single integrated workflow
Multi-Carrier Packing, Shipping, Fulfillment & Compliance Solution Built exclusively for Dynamics GP Validates orders are packed correctly to eliminate shipping
errors Pre-define business rules for managing packing, carrier
and fulfillment rules Enforces discipline and best practices in your warehouse
operations Creates shipping and compliance documents in line with
the shipping process flow step Automatically fulfills sales orders in Dynamics GP Tightly integrated to vSync EDI
vShip Overview –
Built for Dynamics GP
Additional Features Shipment Rating:
– Small parcel rating support for UPS, FedEx and USPS– LTL rating and report creation (BOLs & Manifests)– Rate shop across carrier options
Address validation Intuitive packing process or auto-pack mode Shipment consolidation International export compliance Compliance and reporting:
– Auto creation of ASNs– Prints GS1 and retailer specific pack slip reports
Freight manipulation rules Support for multi-site & multi-company operations Shipping performance reporting
vShip Overview –
Built for Dynamics GP
Solution Overview –
vShip
Questions
For follow-up questions:
Mike GrossVice President, EDI & Supply Chain Essentials Group
Thank you for Attending
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