Connecting the Endless Aisle to           the Virtual Supply ChainTodd	  Rankin	  (VP	  Marke0ng,	  DropShip	  Commerce),	...
Today’s PresentersIntroduction:•  Todd Rankin, VP Marketing, DropShip CommerceMarket Problem:•  Nikki Baird, Managing Part...
What Is RSR?•  Market Intelligence, focused on retail•  Context: the business challenges & opportunities that drive techno...
My Role Today: Context•  The Gold Rush days of digital channels are nearly over•  Retailers are getting down to the hard p...
Retailers Expect Digital Commerceto Continue to Grow                                     Digital Channel Growth           ...
The Opportunities Are StillSignificant                         Cross-Channel Shoppers Are...                               ...
For Every Kind of Retailer                  Number of Unique Online Sites or Brands Operating Today                       ...
But More Difficult to Get                          Cross-Channel Shoppers Are               "Significantly More Profitable t...
Focus Shifts From Brand Promiseto Execution                                     Cross-Channel Opportunities               ...
Retailers Know CustomerExpectations Only Rise                    Top 3 Supply Chain Execution Business Challenges         ...
Supply Chain is Running Out of Runway                                 Top 3 Supply Chain Execution Operational Challenges ...
Inventory & Fulfillment RemainSticking Points                        Cross-Channel Process Consolidation                   ...
Visibility – The Hardest                          Cross-Channel Process Consolidation                                     ...
Retailers Can’t See Very Far                              Inventory Visibility: Value vs. Actual                          ...
Fixing Internal Systems is a LongRoad                                            Top 3 Supply Chain Execution             ...
Why Isn’t Drop Ship on the List?                                           Current Fulfillment Capabilities               ...
Ask Yourself These Questions•  What is my growth strategy for my online channels?   –  More customers?   –  More from exis...
TURNING YOUR MAGENTOSTORE INTO AN ENDLESS AISLE
What do you need?1.  Lots of Products2.  Which means lots of vendors3.  Which turn into a lot of orders4.  Which turn into...
How do you plan on …                         •  Getting Products into your                            Magento store?      ...
You need to be able to do …•    These tasks prior to exchanging data with     your trading partners:      1.    Create the...
Typical Drop Shipping IntegrationChallenges                                                        Consumers           ERP...
Introducing DropShip CommerceDropship Commerce is the scalable online platform for integrating andmanaging drop ship partn...
DropShip Commerce Product
Robust User Interface                        Provides:                        100% Open Standard based                    ...
Drop Shipping Simplified                                                                   Consumers   ERP                 ...
GETTING STARTED
Magento Extension•  Connector Overview•  On Connect Marketplace Today•  Sign Up with Us First
Set Up Process•  Easy to get set up•  Month to Month SaaS subscription•  To get started:  –  sales@dropship.com•  Webinar ...
Thank You          Questions & AnswersFor additional information:todd@dropship.com(801) 765-6869
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Drop ship commerce magento webinar

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Webinar on Connecting the Endless Aisle to the Virtual Supply Chain using DropShip Commerce platform.

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Drop ship commerce magento webinar

  1. 1. Connecting the Endless Aisle to the Virtual Supply ChainTodd  Rankin  (VP  Marke0ng,  DropShip  Commerce),  Eric  Chaffee  (VP  Product,  DropShip  Commerce)  &  Nikki  Baird,  (Managing  Partner,  Retail  Systems  Research)  
  2. 2. Today’s PresentersIntroduction:•  Todd Rankin, VP Marketing, DropShip CommerceMarket Problem:•  Nikki Baird, Managing Partner, Retail Systems ResearchDrop Ship Challenges & Magento:•  Eric Chaffee, VP Product, DropShip Commerce
  3. 3. What Is RSR?•  Market Intelligence, focused on retail•  Context: the business challenges & opportunities that drive technology investments•  Pragmatic insights•  Powered by extensive retail experience•  Fueled by a deep bed of research data•  We help retailers keep their IT strategies aligned with corporate objectives•  We help solution providers align their products and messages with retailers’ needs
  4. 4. My Role Today: Context•  The Gold Rush days of digital channels are nearly over•  Retailers are getting down to the hard parts of execution•  But they’re ignoring a big opportunity related to endless aisle•  Visibility is a solution that solves lots of problems, and its time has come
  5. 5. Retailers Expect Digital Commerceto Continue to Grow Digital Channel Growth Today In 3 Years 72% 49% 29% 15% 14% 8% 8% 5% Less than 10% 10-24% 25-74% Greater than 75%Source: Survey “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012
  6. 6. The Opportunities Are StillSignificant Cross-Channel Shoppers Are... Winners Others Significantly more profitable than single 48% channel customers 30%Slightly more profitable than single channel 19% customers 27% 10% Equally profitable 7% Less profitable than single channel 14% customers 10% 10% Dont know/Cant tell 27% Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
  7. 7. For Every Kind of Retailer Number of Unique Online Sites or Brands Operating Today 37% 29% 22% 13% None One Two to Four More than 4Source: “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012
  8. 8. But More Difficult to Get Cross-Channel Shoppers Are "Significantly More Profitable than Single Channel Shoppers" 50% 39% 38% 31% 28% 18% 2007 2008 2009 2010 2011 2012Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
  9. 9. Focus Shifts From Brand Promiseto Execution Cross-Channel Opportunities Very Important Some Importance Little or No Importance Allow the customer to purchase, take delivery, or 79% 19% 2% return a product through the channels of their Create a single brand identity across channels 79% 21% Improve operational execution across all channels 75% 23% 2% Leverage customer knowledge and information 73% 22% 4% assets across channelsAllow inventory allocated for one channel to be used 67% 24% 9% for another channels fulfillment Leverage product knowledge and information assets 66% 30% 4% across channels Use the digital channels to provide rich content 64% 32% 4% about our products and services Use the digital channels to drive traffic to stores 54% 35% 11% Use the digital channels to build a sense of 52% 43% 4% “community” around our Brand Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
  10. 10. Retailers Know CustomerExpectations Only Rise Top 3 Supply Chain Execution Business Challenges Winners Others Consumers expect retailers to provide a more 64% seamless omni-channel experience 60% Consumer demand is erratic, making it difficult to 50% predict 40% Digital channel growth outpaces store growth, 50% putting new pressures on supply chain 40% Competitive pressures drive us to create shorter 46% customer order-to-delivery cycles 60% Capital constraints make investments in inventory 32% more challenging 36%Variable supply chain costs (fuel, weather, etc.) have 32%exposed weaknesses/risk-points in our supply chain 20%Contract compliance with suppliers causes quantity, 18% quality, and timeliness issues 20% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
  11. 11. Supply Chain is Running Out of Runway Top 3 Supply Chain Execution Operational Challenges Winners OthersOur supply chain is not designed for the current/projected volume of 57% direct-to-consumer shipments 36% Difficulty managing the right level of labor or warehouse capacity 43% against order volumes 16% We dont have the flexibility to respond to unexpected supply chain 38% exceptions like late shipments or short shipments 28% Store demand is erratic and difficult to predict 33% 48% We havent figured out how to align incentives for sales credit for 29% cross-channel sales. 52% Too many store-store and store-DC transfers 24% 20% We don’t know how to forecast demand for non-traditional selling 24% channels yet 40% Our warehouses cant move fast enough to deliver on customer 19% expectations 32% Short buying “outside of the system” by operations to replenish 14% unexpectedly fast movers throws off forecasts 16% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
  12. 12. Inventory & Fulfillment RemainSticking Points Cross-Channel Process Consolidation Importance vs. Progress Very Important Synchronization Done or In ProgressCustomer shopping experience 32% 100% Loyalty management 35% 70% Inventory visibility 37% 61% Fulfillment 30% 59% Customer segmentation 50%57% Store Operations 27% 54% Digital marketing 40% 54% Social media marketing 43% 53% Demand Forecasting 33% 46% Pricing strategies 46% 48% Mobile marketing 30% 39% Procurement/Assortment 39% 36% Customer call center 25% 35% Traditional advertising 22% 32% Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
  13. 13. Visibility – The Hardest Cross-Channel Process Consolidation "No Plans" Winners Others Inventory visibility 29% 35% Store Operations 24% 26% Demand Forecasting 24% 23% Traditional advertising 24% 22% Customer call center 18% 32% Pricing strategies 12% 22% Mobile marketing 12% 17% Fulfillment 9% 12% Customer segmentation 6% 26% Procurement/Assortment 5%6% Loyalty management 0% 26%Customer shopping experience 0% 13% Social media marketing 0% 9% Digital marketing 0% 0%Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
  14. 14. Retailers Can’t See Very Far Inventory Visibility: Value vs. Actual A lot of value A lot of visibility System-wide inventory visibility 88% 44% DC available inventory 78% 60% Store inventory levels 78% 48%Online/Direct channel inventory availability 69% 41% Inbound to DC inventory or orders 62% 39% Store on-shelf inventory levels 55% 20% Inbound to store inventory or orders 52% 27% Visibility into drop-ship vendor inventory 39% 6% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
  15. 15. Fixing Internal Systems is a LongRoad Top 3 Supply Chain Execution Organizational Inhibitors Winners OthersInventory and order management systems are not integrated 60% across channels 41% Our systems and processes are too channel specific 60% 50% Our supply chain is not designed to support omni-channel 50% fulfillment 59%We dont have the right metrics or incentives to drive supply 40% chain efficiencies 36% The dominant channel fears cannibalization 20% 14% Lack of confidence in inventory accuracy 20% 18% Lack of active top-level support for a cross-channel strategy 15% 41% Facilities costs in stores are too high, posing a barrier to in- 10% store fulfillment or shipment 18% Lack of active top-level support for supply chain issues 5% 23% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
  16. 16. Why Isn’t Drop Ship on the List? Current Fulfillment Capabilities Implemented/Rolling Out Budgeted/Evaluating Planned/Desired No Plans Direct to consumer fulfillment from our DC 55% 15% 12% 18% Drop ship from vendor direct to store 45% 5% 16% 34% In-store purchase of online inventory for shipment direct to 41% 13% 38% 8% consumer Ship from store direct to consumer 38% 18% 23% 21% Online visibility into in-store inventory 37% 24% 29% 11% In-store inventory pick for consumer in-store pick-up 37% 18% 24% 21% Store-to-Store transfer for pick-up in-store 34% 16% 34% 16%Ship to store from "Direct" DC for consumer in-store pick-up 34% 16% 39% 11% In-store reservation of inventory for consumer in-store 29% 16% 32% 24% purchase Drop ship from vendor direct to consumer 28% 8% 21% 44% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
  17. 17. Ask Yourself These Questions•  What is my growth strategy for my online channels? –  More customers? –  More from existing customers? –  More assortment?•  What visibility does my company have today?•  When was the last time my company explored virtual inventory?•  How many of my suppliers have “gone direct”?•  What percent of my suppliers’ inventory do I carry on my site?
  18. 18. TURNING YOUR MAGENTOSTORE INTO AN ENDLESS AISLE
  19. 19. What do you need?1.  Lots of Products2.  Which means lots of vendors3.  Which turn into a lot of orders4.  Which turn into a lot customersAnd do it all with out it costing you lots of time and money …
  20. 20. How do you plan on … •  Getting Products into your Magento store? –  What file types will you accept –  What data do you want –  Do you want to put everything on or just some things •  Getting orders to your vendors? –  Can you take a Magento order from multiple vendors and break them up into individual vendor orders? –  Can you get up to date status on those orders for your $   $   $   customers
  21. 21. You need to be able to do …•  These tasks prior to exchanging data with your trading partners: 1.  Create the requirements and business processes you want your vendor community to follow 2.  Publish your Trading Partner Specifications with required and optional fields 3.  Determine the vendor setup process•  These tasks concurrently with the vendor on-boarding process 1.  Determine which systems need data for drop shipping 2.  Develop the Integration points between Magento, your ERP and your vendors 3.  Automate the integrations
  22. 22. Typical Drop Shipping IntegrationChallenges Consumers ERP Consumer Orders Product (x 1,000’s) Data Product Vendor Vendor Data ✖  Multiple Formats for Product Orders Orders Data ✖  Your ERP needs to create vendor orders out of a consumer/retailer order ✖  Each vendor is a unique integration for each document (x 100’s)
  23. 23. Introducing DropShip CommerceDropship Commerce is the scalable online platform for integrating andmanaging drop ship partners, inventory, data, and orders. By handling theexchange of data through a single connection and integration point,Dropship Commerce helps trading partners streamline operations,generate more sales, and fulfill more orders using the virtual supply chain.
  24. 24. DropShip Commerce Product
  25. 25. Robust User Interface Provides: 100% Open Standard based SaaS - No Hardware or Software required A single place to aggregate, normalize and filter vendor product information. Visibility to the entire drop ship order lifecycle Get up to the minute view of your inventory-less supply chain
  26. 26. Drop Shipping Simplified Consumers ERP Consumer Orders Product (x 1,000’s) ü  Single integration point to your vendors and Magento Vendor Product Vendor Product Orders Orders ü  Ability to split consumer orders into vendor orders ü  Ability to support multiple vendor formats (x 100’s)
  27. 27. GETTING STARTED
  28. 28. Magento Extension•  Connector Overview•  On Connect Marketplace Today•  Sign Up with Us First
  29. 29. Set Up Process•  Easy to get set up•  Month to Month SaaS subscription•  To get started: –  sales@dropship.com•  Webinar on Magento & QuickBook Extensions –  March 27th –  Visit www.dropship.com to sign up
  30. 30. Thank You Questions & AnswersFor additional information:todd@dropship.com(801) 765-6869

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