Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Riding the Cloud: Leveraging Your Carrier Software
to Streamline Pick/Pack/Ship
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Agenda
• Introduction & Welcome
• Where are the opportunities for improvement
• Role of the cloud– Appeal of the Cloud– Carrier software & web services
• Cloud integration applied to pick/pack/ship– eCommerce– Warehouse– Shipping
• Customer Examples
• Q & A
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Today’s Speaker
Brian HodgsonVP Sales/Marketing
• Founded 2002
• Privately held
• Over 10,000 customers
• Integrating and automating order management
• Cloud platform to develop and manage application integration and extensions
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Opportunities in Pick/Pack/Ship
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
The Appeal of Cloud
Perceived as lower risk
Ease of bringing up new remote sites
Leave security and other IT issues to experts
Ease of remote access for distributed workforce
Ability to treat as opex versus capex
More leading-edge thru more frequent updates
We have limited IT resources
Lower start-up costs
Reduces the cost and effort of upgrades
Lower total cost of ownership
0% 10% 20% 30% 40% 50% 60%
25%
27%
29%
36%
37%
39%
42%
46%
48%
52%
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Challenges Driving Shipping Complexity
• Growth brands via Internet/eCommerce
• Omni channel (eBay, Amazon, multiple brands)
eCommerceBusiness
Opportunity
• Better visibility• More stringent
documentation/delivery requirements
• Delivery date options
Demands fromCustomers
• Rapid ROI• Minimal IT resources
required in house• Focus on business
problem not IT
Cloud Solution Payback
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Finis Case Study
Profile
Solutions
Benefits
• Manufacturer and seller of swim training products• Warehouses in US & Europe• Fulfill eCommerce, wholesale, & large retail customers
• eCommerce through warehouse• OzLINK mobile and shipping• Order picking• Integrated ASN, pack validation
• Automated fulfillment saving $120K• Reduced fulfillment errors 85%• Lowered retailer chargeback 70%
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Applying the Cloud to Pick Pack Ship
• Integrate• Automate• Extend
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Pros & Cons of Carrier Technology
Pros Cons
CloudServices
On premiseShippingSoftware
• Ability to integrate witheCommerce
• Pre-packed in manycommercial applications
• Access anywhere
• Service limitations• Performance implications• Multi-carrier options• Limited batch capability
• Maximum performance• Complex business rules• Ability to extend in agile way• Easy user training
• Harder to integrate• Local access only
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Five Requirements for Pick/Pack/Ship Integration
• Integration across cloud and on premise• Rapid time to value• Automation and custom business rules• Extensions to underlying applications• Cloud architecture to lower cost of
ownership
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Carrier Technology Use Cases
WarehouseeCommerce Shipping
• Integrate• Automate• Extend
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Connect Cloud eCommerce intoOrder Management
eCommerce
OrderManagement
ERP
Warehouse/Shipping
• Synchronize orders, and inventory• Real time order status• Update pricing and item data
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Options for Integrating eCommerce
13
Channel Centric Order Centric
ERP
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Magento, QuickBooks, & UPS WorldShip
“Royal Oak Peanuts produces a lot of volume through the holidays and, with our growth, OzLINK was critical in helping us keep up the pace.”
Orders Orders
Costs & Tracking
Tracking
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Integrating Groupon and UPS WorldShip
UPSWorldShip
Commerce Interface
Batch file of orders
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Pre-Ship Address Validation
• Review pending orders• Approval• Fulfillment• Screens periodically &
highlights ambiguous orders
• Correct and update
Ready ToFulfill
OrderEntry
Address correction feesAre $10 per error
ERP
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Print & Apply Bar Code Labels At Receiving Time
Label and Information• Auto-generate 1 to “n” item labels
• Item number• Lot number• Serial numbers• Case quantity
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Create Branded Pack Slips and Branded e-mails Notifications
Branded e-mailsto improve customer service
and repeat business
Branded packing slipsFor drop ship customers
or different brands
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Time In Transit Optimization
19
Cost Savings Service Upgrade
• Origin & Ship-To• 2 Day Delivery
Real time time in transit check
UPSGround
2nd Day Air
• Origin & Ship-To• Required Delivery Date
Real time time in transit check
UPSGround
2nd Day Air
Can Save $100s per day Avoid customer penalties & chargebacks
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Automate Business Rules
• Residential• Urban area• PO Box• International
• Loyalty programs• Drop ship• Preferred service
• Weight, dims• Value• Commodity• Delivery date
ShipmentDetails
ConsigneeOrigin/Dest
Address
Automate Business Rules
Carrier & Service• Ground• Next Day Air• Mail Innovations• Freight• etc
Shipping Options• Return Service• Saturday Delivery• Int’l Commodity• etc
Package Options• Delivery confirmation• Flexible parcel ins.• Declared value• etc.
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Shipping
Challenge:• Up to 250 shipments per day• Front office produced shipping documents• No MAS 200 & WorldShip integration • Extra data entry, duplicate address books
Products: Snack FoodsSegment: Food processingFunctional Area: Logistics
Solution:• Bidirectional integration• Eliminated 100% shipping data entry• Improve customer service
Fulfillment
Solution:• Pack validation, with serial number• Savings $24K per year• Improved customer service
Challenge:• 200-300 shipments per month• Domestic and international• Serialized equipment• 2-3 errors per month• $600-$1000 cost per error
Products: Machinery & toolsSegment: Wholesale distributionFunctional Area: Fulfillment
Real Customers With Real ROI
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Challenge:• 200-300 shipments per day• Multiple documents for pick/pack/ship• Legacy system performance was slow• Costly pick/ship errors ($36 per error)
Products: Gourmet FoodSegment: eCommerceFunctional Area: Fulfillment
Challenge:• 10-15 returns per day• 2 hours processing per day• Complex charge-back rules• Too much clerical paperwork• Minimal time for customers
Products: Home lightingSegment: eCommerceFunctional Area: Shipping/returns
Solution:• Integrated pack slip/UPS label• Increased fulfillment productivity by 50%• Reduced shipping errors
Solution:• Integrate RMA & UPS• Savings $17.5K per year• Reduced clerical tasks 96%
Real Customers With Real ROI
Shipping Returns
Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Q & A