Riding the Cloud Leveraging your Carrier Software to Streamline Pick/Pack/Ship

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Riding the Cloud Leveraging your Carrier Software to Streamline Pick/Pack/Ship

  1. 1. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Riding the Cloud: Leveraging Your Carrier Software to Streamline Pick/Pack/Ship
  2. 2. 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
  3. 3. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Today’s Speaker Brian Hodgson VP 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
  4. 4. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Opportunities in Pick/Pack/Ship
  5. 5. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 The Appeal of Cloud 25% 27% 29% 36% 37% 39% 42% 46% 48% 52% 0% 10% 20% 30% 40% 50% 60% Perceived as lower risk Ease of bringing up new remote sites Leave security and other IT issues to… Ease of remote access for distributed… Ability to treat as opex versus capex More leading-edge thru more frequent… We have limited IT resources Lower start-up costs Reduces the cost and effort of upgrades Lower total cost of ownership
  6. 6. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Challenges Driving Shipping Complexity • Growth brands via Internet/eCommerce • Omni channel (eBay, Amazon, multiple brands) eCommerce Business Opportunity • Better visibility • More stringent documentation/delivery requirements • Delivery date options Demands from Customers • Rapid ROI • Minimal IT resources required in house • Focus on business problem not IT Cloud Solution Payback
  7. 7. 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%
  8. 8. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Applying the Cloud to Pick Pack Ship • Integrate • Automate • Extend
  9. 9. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Pros & Cons of Carrier Technology Pros Cons Cloud Services On premise Shipping Software • Ability to integrate with eCommerce • Pre-packed in many commercial 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
  10. 10. 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
  11. 11. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Carrier Technology Use Cases WarehouseeCommerce Shipping • Integrate • Automate • Extend
  12. 12. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Connect Cloud eCommerce into Order Management eCommerce Order Management ERP Warehouse/Shipping • Synchronize orders, and inventory • Real time order status • Update pricing and item data
  13. 13. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Options for Integrating eCommerce 1 Channel Centric Order Centric ERP
  14. 14. 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
  15. 15. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Integrating Groupon and UPS WorldShip UPS WorldShip Commerce Interface Batch file of orders
  16. 16. 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 To Fulfill Order Entry Address correction fees Are $10 per error ERP
  17. 17. 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
  18. 18. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Create Branded Pack Slips and Branded e-mails Notifications Branded e-mails to improve customer service and repeat business Branded packing slips For drop ship customers or different brands
  19. 19. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Time In Transit Optimization 1 Cost Savings Service Upgrade • Origin & Ship-To • 2 Day Delivery Real time time in transit check UPS Ground 2nd Day Air • Origin & Ship-To • Required Delivery Date Real time time in transit check UPS Ground 2nd Day Air Can Save $100s per day Avoid customer penalties & chargebacks
  20. 20. 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 Shipment Details Consignee Origin/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.
  21. 21. 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 Foods Segment: Food processing Functional 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 & tools Segment: Wholesale distribution Functional Area: Fulfillment Real Customers With Real ROI
  22. 22. 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 Food Segment: eCommerce Functional 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 lighting Segment: eCommerce Functional 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
  23. 23. Oz Development, Inc. www.ozdevelopment.com 508.366.1969 Q & A

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