Bill Stankiewicz Copy Scope 2010 Disney.Com

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Scope conference 2010 in Florida, Bill Stankiewicz attended.
www.shipperswarehouse.com

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Bill Stankiewicz Copy Scope 2010 Disney.Com

  1. 1. Disney E-Commerce Leverages Business Intelligence to improve Profitability & Carlton Farr Jonathan Shaver
  2. 2. Disney E-Commerce Case Study | Introduction | • Disney E-Commerce is a division of • A leading logistics and financial Disney Consumer Products business services company segment of the Walt Disney Company. – Serves Parcel, LTL, & TL shippers with complex data needs • Provides direct to consumer services – Premier provider of shipping including: data accuracy, visibility and – Online ordering velocity – Customer service – Processes 500 Million + – Warehousing and order transactions fulfillment for Disneystore.com • Corporate offices in Glendale CA • Headquartered in Chicago IL • Fulfillment Facility in Jonesville SC • Reduce freight spend 5% - 20% transportation business intelligence
  3. 3. Disney E-Commerce Case Study | Key Business Challenges | Complete Data Capture Tools to Convert Raw Data into Intelligent Output • Limited link between transportation • Difficulty conducting analysis on department and finance transportation spend – Finance conducted manual – Limited tools accrual – Data missing key elements to • Timeliness of data perform analysis – Delays in billing information and • No continued process to convert data formatting usefulness into useful information tools • Comprehensive nature of the data – Limited detail provided – Accuracy, including the audit, was in question transportation business intelligence
  4. 4. Disney E-Commerce Case Study | Leveraging Business Intelligence | • Established a singular database of transportation spend and order information relative to transportation • Created an information link between shipping spend and accounting and finance including a deeper verification of invoice cost accuracy • Analyzed information to identify KPI’s and opportunities to initiate cost savings • Implemented beneficial programs for internal financials and their guests Aggregate Synchronize Integrate Analyze Enable Aggregates data Synchronize data Integrate Analyze raw data Statistical output that from manifesting; between Disney transportation costs and transform to Enables Disney order systems, and E-Commerce back into Accounting critical enterprise E-Commerce carrier systems transportation; finance; and Financials information performance and the carriers improvements via KPI transportation business intelligence
  5. 5. Disney E-Commerce Case Study | Aggregate | Aggregate transportation business intelligence
  6. 6. Disney E-Commerce Case Study | Aggregate Data from Multiple Sources | DC Carrier Customer Manifesting data from distribution systems Order and Promotional data including units per order Transit Data from carrier Systems Creates one database of all data relevant to transportation spend Billing data via EDI from Carrier Partners transportation business intelligence
  7. 7. Disney E-Commerce Case Study | Synchronize | Synchronize transportation business intelligence
  8. 8. Disney E-Commerce Case Study | Synchronize Shipper & Carrier Data| Verify all rates, performance, delivery of packages • Multi-Layer Freight Coding •Comprehensive audit of all shipping Categories transactions • Inbound, Outbound, Returns, - Non-pay credits with carriers Vendor Drop Ships •Non-paid items applied back at the transaction level for accounting efficiencies transportation business intelligence
  9. 9. Disney E-Commerce Case Study | Integrate | Integrate transportation business intelligence
  10. 10. Disney E-Commerce Case Study | Integrate Freight Data with Finance| Monthly accrual report produced the 1st of each month Update systems weekly with All transactions not billed appropriate transportation coding are accrued at month end January Fiscal Accrued Billed Not Billed and January Outbound Year 2008 Freight Submitted Submitted Freight Total Freight Dollars $ 87,134.62 $ 285,696.84 $ 928,455.03 $ 1,301,286.49 Package Count 10,309 34,490 112,074 156,873 Utilize expected costs as aggregated from the manifest system  Is matched against the invoiced transactions transportation business intelligence
  11. 11. Disney E-Commerce Case Study | Analyze | Analyze transportation business intelligence
  12. 12. Disney E-Commerce Case Study | Data Visibility for Analysis | • Monthly KPI (Key Performance Indicator) Reports provide high level tracking of transportation performance • Return on Investment tracking of key initiatives – Address Hygiene software impact on address correction and delivery performance – Invoice verification and settlement metrics – Key lane analysis on cost and performance puts Disney E-commerce in an improved position to evaluate parcel alternative programs; including hub drop shipping; consolidator programs • Expected cost of shipping vs. Actual Billed Cost at a unit number level vs. Shipping and Handling charged to Guests – Determined were undercharging for key International lanes and therefore producing unprofitable customer orders transportation business intelligence
  13. 13. Disney E-Commerce Case Study | Key Performance Indicator Reports| Key Performance Indicators make key tracking data transparent and enables them to adjust accordingly transportation business intelligence
  14. 14. Disney E-Commerce Case Study | Order Cycle Time Management | 69% Decrease in Cycle Time Sample Data 2007 2008 Carrier Name Avg Cycle Time Avg Days In Transit Avg Cycle Time Avg Days In Transit XXX 5.68 3.66 4.69 4.05 XXX 4.36 3.21 3.80 3.34 XXX 4.81 3.08 1.50 4.50 XXX 3.57 1.94 6.11 2.56 XXX 5.01 3.54 4.99 3.90 XXX 1.71 1.04 2.67 1.14 XXX 5.78 3.06 3.31 3.03 XXX 4.93 2.52 2.79 1.85 Grand Total 5.76 3.06 3.31 3.03 43% Decrease in Cycle Time 26% Decrease in Transit Time transportation business intelligence
  15. 15. Disney E-Commerce Case Study | Return on Investment | Address Hygiene Address Hygiene impacts Total Dollars Address Fee Dollars (new) Address Fee Ratio (new) Address Fee Ratio (old) Savings delivery performance $8,135,053.18 $13,040.00 0.30% 0.34% $ 2,102.80 Savings YTD XXX Shipping Credits $ 143,519.57 XXX Void Credits $ 1,474.51 Total $ 144,994.08 Audit verification to payment IntraVex Cost $ (33,545.33) NET SAVINGS $ 111,448.75 Aging Invoice Tracking Bills September October November December 100% EDI billing Processed 202,308 235,412 218,873 490,995 EDI 202,308 235,412 218,854 490,995 Paper 0 0 2 0 On Hold 0 0 0 0 Submitted to DSI 202,308 235,412 218,873 490,995 transportation business intelligence
  16. 16. Disney E-Commerce Case Study | Budget Tracking | transportation business intelligence
  17. 17. Disney E-Commerce Case Study | Customized Data Reports | Transportation Analysis – from high level to package detail Sample Data Year to Date Summary Packages 2,242,742 Weight 50,536,671 Gross Freight $ 29,008,389.47 Discount $ $ (10,456,472.99) Discount % 36% Net Freight $ 18,551,916.48 Total Net Charge $ 23,982,465.82 Sample Data Average Total Discount 36.05% Average Shipment Total Net Charge $10.82 Average Weight per Package $22.80 Average Days In Transit 2.97 transportation business intelligence
  18. 18. Disney E-Commerce Case Study | Enable | Enable transportation business intelligence
  19. 19. Disney E-Commerce Case Study | Enable Cost Savings | • Key savings areas – Advanced audit and verification findings – Key returns for address corrections – Analysis on USPS residential / commercial verification vs. carrier billed – Person hours associated with accuracy of information, accrual report preparation, and transportation analysis • Access to key cost-drivers identifying opportunities to reduce accessorial fee and adjustments • Cost vs. Delivery analysis to make correct decisions for Guests • Information to modify contracts and programs for rate analysis as needed • Information to plan, budget, and make the right transportation decisions transportation business intelligence
  20. 20. Disney E-Commerce Case Study | Non-Disney E-Commerce Analysis | Non-Disney E-Commerce Analysis transportation business intelligence
  21. 21. Disney E-Commerce Case Study | Enabling Deeper Analysis | Sample Data n al io t 1 2 3 4 5 6 8 To is n n n n n n n iv io io io io io io io nd D is is is is is is is ra iv iv iv iv iv iv iv t. In G D D D D D D D Freight Pct of Sales 2.94% 5.06% 2.29% 1.39% 2.92% 2.33% 6.64% 1.63% 1.71% Sales Order Amt $ 856,952 $ 860,626 $ 8,468,933 $ 70,400,862 $ 7,885,091 $ 2,328,878 $ 437,610 $ 1,254,639 $ 92,493,591 Total Net Charge $ 25,278 $ 43,577 $ 194,114 $ 984,663 $ 230,361 $ 54,378 $ 29,086 $ 20,566 $ 1,582,023 Shipments 2,212 2,626 28,660 115,908 33,929 5,499 3,375 1 192,210 Packages 2,953 3,961 29,628 126,229 35,656 6,678 3,996 1 209,101 Weight 25,662 80,073 339,256 1,462,514 151,220 82,651 31,854 3 2,173,232 Avg Weight 12.18 32.02 12.43 13.25 4.68 15.78 9.91 3.15 11.87188826 Freight Charge Per Pound $ 0.88 $ 0.50 $ 0.55 $ 0.58 $ 1.35 $ 0.59 $ 0.83 $ 6,636.07 $ 0.64 Rebate Amt $ (1,707) $ (2,820) $ (18,744) $ (85,254) $ (27,361) $ (5,014) $ (3,358) $ (0) $ (144,258.50) transportation business intelligence
  22. 22. Disney E-Commerce Case Study | Rebate Calculations & Accrual | Calculate parcel carrier revenue tiers and rebate amounts Sample Data • Provides information to verify rebate Accounting Period January checks and tier calculations Monthly Gross Revenue Tier 2,567,283.71 Amount Used to Calculate Incentive Check 2,375,150.41 • Rebate checks can be accrued Incentive % 5% monthly, but applied quarterly / Incentive Check $ 118,757.52 annually as submitted by the carrier Sample Data Accrued Billed Not Billed and Expected Rebate January Outbound January Fiscal Year 2008 Freight Submitted Submitted Check Amount Freight Total Freight Dollars $ 87,134.62 $ 285,696.84 $ 928,455.03 $ 118,757.52 $ 1,182,528.97 Package Count 10,309 34,490 112,074 - 156,873 transportation business intelligence
  23. 23. Disney E-Commerce Case Study | Key Take Away | Complete data capture Tools to convert raw data into intelligent output • Link transportation and finance • Leverage data to structure contracts departments via data and programs to mitigate cost increases • Create a database that houses key performance data as it relates to transportation • Understand expected vs. actual costs vs. customer shipping and handling • Delivery performance to customers transportation business intelligence

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