riding the cloud leveraging your carrier software to streamline pick/pack/ship

Oz Development, Inc. www.ozdevelopment.com 508.366.1969

Riding the Cloud: Leveraging Your Carrier Software

to Streamline Pick/Pack/Ship


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


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

http://www.progearwarehouse.com/

http://www.ableplanet.com/


Opportunities in Pick/Pack/Ship


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%


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


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%


Applying the Cloud to Pick Pack Ship

• Integrate• Automate• Extend


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


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


Carrier Technology Use Cases

WarehouseeCommerce Shipping

• Integrate• Automate• Extend


Connect Cloud eCommerce intoOrder Management

eCommerce

OrderManagement

ERP

Warehouse/Shipping

• Synchronize orders, and inventory• Real time order status• Update pricing and item data


Options for Integrating eCommerce

13

Channel Centric Order Centric

ERP


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


Integrating Groupon and UPS WorldShip

UPSWorldShip

Commerce Interface

Batch file of orders


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


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


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


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


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.


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


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


Q & A

riding the cloud leveraging your carrier software to streamline pick/pack/ship

Business

ecommerce

ownership

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