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IBM Software
IBM Sterling Order
Management drop ship
capabilities
Expand product assortment without increasing
inventory costs
Executive summary
Drop shipping is a best practice many companies want to adopt.
As retailers seek ways to expand product assortment without adding
inventory costs, they are looking for ways for manufacturers and
distributors to drop ship directly to their end customers, in support of
initiatives like endless aisle. Manufacturers can also benefit from drop
ship as it helps them to shorten order lead times by having the
merchandise shipped directly from contract manufacturing companies.
National account customers ask for one point of customer service, but
look for local distribution and services that manufacturers typically
don’t provide. In spite of all the benefits, managing a drop ship program
can be a challenge when companies attempt to integrate their business
processes with those of their trading partners and gain visibility into
available inventory and order status.
IBM®
Sterling Order Management helps enable a drop ship order hub
that allows you to effectively implement and manage order fulfillment
directly from your trading partners, orchestrate and automate the order
collaboration process, while managing a network of vendors throughout
the order-to-cash process.
Visibility in real-time
Lack of visibility into your supply chain can create a performance gap,
whether it be visibility into order status or inventory availability
information needed to be able to meet customer delivery expectations.
This results in poor customer service or high inventory levels. Sterling
Order Management drop ship capabilities help enable you to gain
real-time visibility into trading partner inventory availability for
accurate promise dates and on time delivery of the order. It also
provides complete visibility into any part of your order lifecycle from
point-of-sale through delivery, so you can provide timely updates
regarding order status to your customers, thereby increasing customer
satisfaction levels.
Overview
In this solution overview,
you will learn:
How to gain visibility into available•	
inventory and order status information
How to effectively manage exceptions•	
with proactive alerts
How to integrate business processes with•	
all your trading partners
Benefits
Increases revenue by expanding product•	
assortment without increasing inventory
costs
Reduces operational costs and shortens•	
order fulfillment lead time by automating
the order processes
Improves customer satisfaction with on•	
time delivery by leveraging real-time
visibility into available inventory
IBM Software
2
End-to-end order collaboration
Many organizations rely on inefficient manual processes to
collaborate between trading partners and complete transactions.
Handling orders manually increases the order processing time,
creates errors, and results in high per-order fulfillment costs.
Enhanced integration and efficient execution of order processes
delivers significant reduction in costs and time.
Sterling Order Management drop ship capabilities
consolidates orders across multiple channels and automates
the order collaboration process across all your trading
partners, thereby streamlining every phase of your order
process, including fulfillment, customer service, payment,
and returns.
Effective execution with exception
management
Sterling Order Management drop ship capabilities offer
advanced exception management capabilities and the
performance reporting necessary to eliminate fulfillment
errors. You can enforce specific business rules and establish
automated alerts so that you can proactively monitor the
performance of your trading partner community. And when
an order problem arises, the event notification and exception
process within Sterling Order Management can immediately
alert your customer service representatives so that they can
respond properly and take appropriate action to maintain
customer commitments.
:Sterling Order Management drop ship capabilities automate the order process between retailer and trading partner community.
IBM Software
3
Sourcing at its best
As your trading partner network grows, you need an order
management solution with a capable sourcing engine that will
allow you to manage fulfillment outside the four walls as well
as orchestrate the fulfillment of each order line independently.
By leveraging Sterling Order Management’s intelligent order
sourcing engine, you can determine the most efficient and
cost effective location to fulfill an order, while still meeting
the customer’s delivery date on the order. The fulfillment
options can be based on configurable rules that you establish,
such as customer type, geographic region of the ship-to
location or ship-to node, and item classification.
Connect rapidly with trading partners
EDI communications are key for improving efficiencies and
facilitating supply chain integration. You need a sound
platform of collaborative practices in order to streamline the
systems by which you interact with trading partners – big and
small – in your extended network.
IBM®
Sterling B2B Collaboration Network provides a single,
comprehensive integration platform that supports any data
type, any format, or any communication protocol, assuring
delivery while moving, securing, and managing all critical
data. It enables you to connect rapidly with all your trading
partners through direct connectivity. Direct connectivity
means you can exchange data with several trading
partners directly, regardless of the protocols (e.g. FTP,
secure FTP, AS2).
The Sterling B2B Collaboration Network hub provides the
ability to outsource some or all of your trading partner
onboarding services, ongoing connectivity, and community
management, enabling you to better monitor and manage
your business.
Empower your trading partner network
Implementation and management of a drop ship program
directly impacts your bottom line and the customer
experience. It is important when making decisions to stay
focused on the primary objectives: effective management of
the trading partner network and providing high-quality
service to your customers.
Sterling Order Management drop ship capabilities help you
reduce the overall cost of managing your network of drop ship
vendors, provides complete order visibility, and orchestrates a
previously difficult to manage order-to-cash process with
trading partners.
Realize the benefits of a drop ship hub
now
Increase revenue and improve customer satisfaction without
increasing operating costs by enhancing collaboration with
trading partners and automating the drop ship order process.
Sterling Order Management drop ship capabilities:
Enables inventory visibility and ordering of drop ship items•	
across channels
Optimizes sourcing via a rules-based engine•	
Executes and manages the drop ship order fulfillment process•	
Provides process visibility, monitoring and exception•	
management
IBM Software
4
Did you know
IBM B2B and Commerce solutions provide secure
integration, process automation, and cross-channel
management to more than 30,000 customers.
Our secure connectivity, integration, and process automation•	
solutions are used by leading companies in the retail supply
chain including more than: 1,200 retailers (including all 25 of
the top 25 retailers), 2,800 distributors, 11,000 suppliers, and
9,000 carriers
Our hosted integration solutions connect more than 280,000•	
trading partners and securely connect to the customer bases
of more than 90 additional networks
The most innovative retailers in the world use our cross-•	
channel selling and fulfillment applications to redefine the
customer experience, create unique competitive advantages,
and drive operational efficiency
Only IBM offers end-to-end, cross-channel selling and•	
fulfillment applications; secure connectivity, integration, and
process automation solutions; and the power of community
to instantly access a global network of tens of thousands of
integrated, automated companies
Sterling Order Management Drop Ship
Collaborative order management Aggregates inventory information, sources drop ship orders, and sends purchase orders to trading
partners for fulfillment.
Order sourcing configurability Selects fulfillment options based on configurable rules and criteria (customer type, geographic region of
the ship-to location or ship-to node, item classification, etc).
Real-time order status Provides visibility of order shipment status in real-time starting from placement to delivery.
Available-to-promise inventory
visibility
Offers an accurate view of available-to-promise inventory including on-order, on-hand, and in-transit
inventory across all trading partners.
Direct connectivity Enables trading partners that are compliant with EDI or XML to receive and send transactions directly from
the seller through a single, secure connection.
Non-EDI access When a portion of the supplier base does not have the technical capability to receive electronic orders and
create the appropriate parcel labels and packing slips, a 3rd party vendor-supplied portal can be used to
bridge that technological gap.
Exception management Proactively monitors the trading partner community for problem orders to take appropriate action and
maintain customer commitments.
Performance reporting Provides complete visibility into the performance of the trading partner community with community-based
reporting capabilities.
Brand continuity Enables trading partners to comply with seller-branded labels and ship through preferred parcel carriers.
ZZS03070-USEN-00
Please Recycle
© Copyright IBM Corporation 2011
IBM Corporation
Software Group
Route 100
Somers, NY 10589
USA
Produced in the United States of America
February 2012
IBM, the IBM logo, ibm.com and Sterling Commerce are trademarks or registered
trademarks of International Business Machines Corporation in the United States,
other countries, or both. If these and other IBM trademarked terms are marked on
their first occurrence in this information with a trademark symbol (® or ™), these
symbols indicate U.S. registered or common law trademarks owned by IBM at the
time this information was published. Such trademarks may also be registered or
common law trademarks in other countries. A current list of IBM trademarks is
available on the web at “Copyright and trademark information” at www.ibm.com/
legal/copytrade.shtml.
The information contained in this publication is provided for informational purposes
only. While efforts were made to verify the completeness and accuracy of the
information contained in this publication, it is provided AS IS without warranty of
any kind, express or implied. In addition, this information is based on IBM’s current
product plans and strategy, which are subject to change by IBM without notice.
IBM shall not be responsible for any damages arising out of the use of, or otherwise
related to, this publication or any other materials. Nothing contained in this
publication is intended to, nor shall have the effect of, creating any warranties or
representations from IBM or its suppliers or licensors, or altering the terms and
conditions of the applicable license agreement governing the use of IBM software.
References in this publication to IBM products, programs, or services do not imply
that they will be available in all countries in which IBM operates. Product release
dates and/or capabilities referenced in this presentation may change at any time at
IBM’s sole discretion based on market opportunities or other factors, and are not
intended to be a commitment to future product or feature availability in any way.
Nothing contained in these materials is intended to, nor shall have the effect of,
stating or implying that any activities undertaken by you will result in any specific
sales, revenue growth, savings or other results.

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IBM Sterling Order Management Drop Ship Capabilities

  • 1. IBM Software IBM Sterling Order Management drop ship capabilities Expand product assortment without increasing inventory costs Executive summary Drop shipping is a best practice many companies want to adopt. As retailers seek ways to expand product assortment without adding inventory costs, they are looking for ways for manufacturers and distributors to drop ship directly to their end customers, in support of initiatives like endless aisle. Manufacturers can also benefit from drop ship as it helps them to shorten order lead times by having the merchandise shipped directly from contract manufacturing companies. National account customers ask for one point of customer service, but look for local distribution and services that manufacturers typically don’t provide. In spite of all the benefits, managing a drop ship program can be a challenge when companies attempt to integrate their business processes with those of their trading partners and gain visibility into available inventory and order status. IBM® Sterling Order Management helps enable a drop ship order hub that allows you to effectively implement and manage order fulfillment directly from your trading partners, orchestrate and automate the order collaboration process, while managing a network of vendors throughout the order-to-cash process. Visibility in real-time Lack of visibility into your supply chain can create a performance gap, whether it be visibility into order status or inventory availability information needed to be able to meet customer delivery expectations. This results in poor customer service or high inventory levels. Sterling Order Management drop ship capabilities help enable you to gain real-time visibility into trading partner inventory availability for accurate promise dates and on time delivery of the order. It also provides complete visibility into any part of your order lifecycle from point-of-sale through delivery, so you can provide timely updates regarding order status to your customers, thereby increasing customer satisfaction levels. Overview In this solution overview, you will learn: How to gain visibility into available• inventory and order status information How to effectively manage exceptions• with proactive alerts How to integrate business processes with• all your trading partners Benefits Increases revenue by expanding product• assortment without increasing inventory costs Reduces operational costs and shortens• order fulfillment lead time by automating the order processes Improves customer satisfaction with on• time delivery by leveraging real-time visibility into available inventory
  • 2. IBM Software 2 End-to-end order collaboration Many organizations rely on inefficient manual processes to collaborate between trading partners and complete transactions. Handling orders manually increases the order processing time, creates errors, and results in high per-order fulfillment costs. Enhanced integration and efficient execution of order processes delivers significant reduction in costs and time. Sterling Order Management drop ship capabilities consolidates orders across multiple channels and automates the order collaboration process across all your trading partners, thereby streamlining every phase of your order process, including fulfillment, customer service, payment, and returns. Effective execution with exception management Sterling Order Management drop ship capabilities offer advanced exception management capabilities and the performance reporting necessary to eliminate fulfillment errors. You can enforce specific business rules and establish automated alerts so that you can proactively monitor the performance of your trading partner community. And when an order problem arises, the event notification and exception process within Sterling Order Management can immediately alert your customer service representatives so that they can respond properly and take appropriate action to maintain customer commitments. :Sterling Order Management drop ship capabilities automate the order process between retailer and trading partner community.
  • 3. IBM Software 3 Sourcing at its best As your trading partner network grows, you need an order management solution with a capable sourcing engine that will allow you to manage fulfillment outside the four walls as well as orchestrate the fulfillment of each order line independently. By leveraging Sterling Order Management’s intelligent order sourcing engine, you can determine the most efficient and cost effective location to fulfill an order, while still meeting the customer’s delivery date on the order. The fulfillment options can be based on configurable rules that you establish, such as customer type, geographic region of the ship-to location or ship-to node, and item classification. Connect rapidly with trading partners EDI communications are key for improving efficiencies and facilitating supply chain integration. You need a sound platform of collaborative practices in order to streamline the systems by which you interact with trading partners – big and small – in your extended network. IBM® Sterling B2B Collaboration Network provides a single, comprehensive integration platform that supports any data type, any format, or any communication protocol, assuring delivery while moving, securing, and managing all critical data. It enables you to connect rapidly with all your trading partners through direct connectivity. Direct connectivity means you can exchange data with several trading partners directly, regardless of the protocols (e.g. FTP, secure FTP, AS2). The Sterling B2B Collaboration Network hub provides the ability to outsource some or all of your trading partner onboarding services, ongoing connectivity, and community management, enabling you to better monitor and manage your business. Empower your trading partner network Implementation and management of a drop ship program directly impacts your bottom line and the customer experience. It is important when making decisions to stay focused on the primary objectives: effective management of the trading partner network and providing high-quality service to your customers. Sterling Order Management drop ship capabilities help you reduce the overall cost of managing your network of drop ship vendors, provides complete order visibility, and orchestrates a previously difficult to manage order-to-cash process with trading partners. Realize the benefits of a drop ship hub now Increase revenue and improve customer satisfaction without increasing operating costs by enhancing collaboration with trading partners and automating the drop ship order process. Sterling Order Management drop ship capabilities: Enables inventory visibility and ordering of drop ship items• across channels Optimizes sourcing via a rules-based engine• Executes and manages the drop ship order fulfillment process• Provides process visibility, monitoring and exception• management
  • 4. IBM Software 4 Did you know IBM B2B and Commerce solutions provide secure integration, process automation, and cross-channel management to more than 30,000 customers. Our secure connectivity, integration, and process automation• solutions are used by leading companies in the retail supply chain including more than: 1,200 retailers (including all 25 of the top 25 retailers), 2,800 distributors, 11,000 suppliers, and 9,000 carriers Our hosted integration solutions connect more than 280,000• trading partners and securely connect to the customer bases of more than 90 additional networks The most innovative retailers in the world use our cross-• channel selling and fulfillment applications to redefine the customer experience, create unique competitive advantages, and drive operational efficiency Only IBM offers end-to-end, cross-channel selling and• fulfillment applications; secure connectivity, integration, and process automation solutions; and the power of community to instantly access a global network of tens of thousands of integrated, automated companies Sterling Order Management Drop Ship Collaborative order management Aggregates inventory information, sources drop ship orders, and sends purchase orders to trading partners for fulfillment. Order sourcing configurability Selects fulfillment options based on configurable rules and criteria (customer type, geographic region of the ship-to location or ship-to node, item classification, etc). Real-time order status Provides visibility of order shipment status in real-time starting from placement to delivery. Available-to-promise inventory visibility Offers an accurate view of available-to-promise inventory including on-order, on-hand, and in-transit inventory across all trading partners. Direct connectivity Enables trading partners that are compliant with EDI or XML to receive and send transactions directly from the seller through a single, secure connection. Non-EDI access When a portion of the supplier base does not have the technical capability to receive electronic orders and create the appropriate parcel labels and packing slips, a 3rd party vendor-supplied portal can be used to bridge that technological gap. Exception management Proactively monitors the trading partner community for problem orders to take appropriate action and maintain customer commitments. Performance reporting Provides complete visibility into the performance of the trading partner community with community-based reporting capabilities. Brand continuity Enables trading partners to comply with seller-branded labels and ship through preferred parcel carriers.
  • 5. ZZS03070-USEN-00 Please Recycle © Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 USA Produced in the United States of America February 2012 IBM, the IBM logo, ibm.com and Sterling Commerce are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at www.ibm.com/ legal/copytrade.shtml. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this publication to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth, savings or other results.