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Why It Makes Sense To Use A 3PL
February 14th, 2020
Happy Valentines Day!
Our Vision, Mission and Customer Journey
Our Founding Vision
To Be the industry's leading partner, pioneering solutions to
advance wine commerce while ensuring a meaningful
contribution to our community.
Our Guiding Mission
To Simplify access to wine.
Our Shared Journey
For an effective Partnership, we are committed to be an
extension of your team.
We need seamless and ongoing communication, trust and
transparency between Executive Team, Account Management
and Customer Service.
2
Agenda
 In house shipping assumptions
 Why outsourcing is critical
 Reasons to make the change
 Researching the cost of in-house versus fulfillment
 Include specialty consumer experiences
 We need a seat at your table
 Ongoing Improvement
 Summary & Next Steps
3
Assumptions
 We can do it cheaper
 We have more control/ don’t want to lose control
 Special needs that can’t be addressed by an outside provider
 Job for family member or friend/ relationships
4
Why Outsourcing is Critical
 Focus is diverted away from sales & marketing- Core Business
 30 hours?
 Managing Up front deliverables and consumer expectations
 Inventory Movement, CC Processing for Clubs, Collateral, Packaging
 WISMO, Address Changes, Re-route, Intercept, Returns
 Shipping Deadlines- Daily, Club, Holiday Schedules, Carriers
 Increased need for specialists
 Compliance/ Regulatory, Routing Guide, Accuracy, Summer Programs
 Scalability
5
Reasons to Make a Change- Part 1
 In house fulfillment is a distraction due to rising demands
 In-house fulfillment costs are rising
 Direct labor
 Opportunity cost lost due to volumes spikes and others chipping in
 Overpaying for shipping and packaging (You may not know)
 Brand damage due to incorrect orders (especially 1st time buyers)
 Storage and space is vanishing
6
Reasons to Make a Change- Part 2
 Managing sku and inventory is a challenge
 Challenging shipping times and delays
 Rural area wineries are challenged with pickup times
 Environmentally friendly and more efficient for carriers to make a single stop
 Spending time to develop in house fulfillment solutions
 Sales and marketing your brand is your #1
 Faster Delivery to Market
 We’re all chasing the eCommerce experience
 Single location shipping is more costly than bifurcation strategy
7
Multi - DC Fulfillment Warehouses - Fastest service to market
Reasons to Make a Change- Part 3
8
Do the Diligence and Research the Cost
 Apples to apples comparison
 Actual tracked Labor for all involved
 Daily, Club, Flash, Holiday, Specialty consumer experiences
 Space
 Freight- ASR, Resi, Fuel- Carriers provide unbundling-can raise cost
 Supplies- Packaging, purchasing in volume raises storage costs
 IT Time- Integrations
 Compare and Contrast to fulfillment services rate card
 Shipping, Returns, Storage, Will-calls, etc.
 Account for upgraded consumer delivery experiences
 Summer- Heat Holds, OND peak periods, Unboxing experiences
9
Customized Consumer Experiences- More Time and
Money
 Specialty Gift Packaging – Custom gift boxes, tissue wrapping, ice pack
shipping, Korvue shippers and more all add costs
 Merchandise Fulfillment – Glassware, food products and apparel
 Holiday & Corporate Gifting – Wine, non-wine & combined projects
 Specialty Messaging – Gift cards, packing slip messages, print on demand
 Marketing Collateral – Specialty top pads, logo’d merch. & tasting card
 Kitting Services – Wine club pickup party, holiday & corporate gifts
10
A Seat at the Table
A dedicated team, that is deeply engaged, is critical to your DTC
success. As a Wineshipping Partner we are committed to:
 Strategic Partnership – Meeting cadence with account manager & key
executives for monthly & quarterly reviews
 Customer Service – Dedicated consumer centric communication assistance
 Operations – Strategic planning for volume forecasts/timing, customization &
warehousing
 Technology - A partnership to help accelerate the industry’s digital strategy &
create new sources of innovation
 Marketing - A seat at the table with you for collaboration on annual planning and
executing new promotions/programs
11
Summary
 Your decision to outsource is Critical Your 3PL must be qualified,
capable and excited to provide your consumers with an elevated
and improved DTC experience… ‘we are an extension of your
team’
 You are not giving up control, you are gaining acquisition and
retention time
 We are the industry’s leading DTC partner geared to help wineries
increase revenue, and provide your customers with greater access
to wine
 As your trusted partner we have the right people, services, on-
boarding support, technology and locations to propel your
business into the future
12

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Dave Dobrow, Wine Shipping - Fulfillment tips and How Utilizing your Shipping Data can Increase DTC Efficiency & Sales

  • 1. Why It Makes Sense To Use A 3PL February 14th, 2020 Happy Valentines Day!
  • 2. Our Vision, Mission and Customer Journey Our Founding Vision To Be the industry's leading partner, pioneering solutions to advance wine commerce while ensuring a meaningful contribution to our community. Our Guiding Mission To Simplify access to wine. Our Shared Journey For an effective Partnership, we are committed to be an extension of your team. We need seamless and ongoing communication, trust and transparency between Executive Team, Account Management and Customer Service. 2
  • 3. Agenda  In house shipping assumptions  Why outsourcing is critical  Reasons to make the change  Researching the cost of in-house versus fulfillment  Include specialty consumer experiences  We need a seat at your table  Ongoing Improvement  Summary & Next Steps 3
  • 4. Assumptions  We can do it cheaper  We have more control/ don’t want to lose control  Special needs that can’t be addressed by an outside provider  Job for family member or friend/ relationships 4
  • 5. Why Outsourcing is Critical  Focus is diverted away from sales & marketing- Core Business  30 hours?  Managing Up front deliverables and consumer expectations  Inventory Movement, CC Processing for Clubs, Collateral, Packaging  WISMO, Address Changes, Re-route, Intercept, Returns  Shipping Deadlines- Daily, Club, Holiday Schedules, Carriers  Increased need for specialists  Compliance/ Regulatory, Routing Guide, Accuracy, Summer Programs  Scalability 5
  • 6. Reasons to Make a Change- Part 1  In house fulfillment is a distraction due to rising demands  In-house fulfillment costs are rising  Direct labor  Opportunity cost lost due to volumes spikes and others chipping in  Overpaying for shipping and packaging (You may not know)  Brand damage due to incorrect orders (especially 1st time buyers)  Storage and space is vanishing 6
  • 7. Reasons to Make a Change- Part 2  Managing sku and inventory is a challenge  Challenging shipping times and delays  Rural area wineries are challenged with pickup times  Environmentally friendly and more efficient for carriers to make a single stop  Spending time to develop in house fulfillment solutions  Sales and marketing your brand is your #1  Faster Delivery to Market  We’re all chasing the eCommerce experience  Single location shipping is more costly than bifurcation strategy 7
  • 8. Multi - DC Fulfillment Warehouses - Fastest service to market Reasons to Make a Change- Part 3 8
  • 9. Do the Diligence and Research the Cost  Apples to apples comparison  Actual tracked Labor for all involved  Daily, Club, Flash, Holiday, Specialty consumer experiences  Space  Freight- ASR, Resi, Fuel- Carriers provide unbundling-can raise cost  Supplies- Packaging, purchasing in volume raises storage costs  IT Time- Integrations  Compare and Contrast to fulfillment services rate card  Shipping, Returns, Storage, Will-calls, etc.  Account for upgraded consumer delivery experiences  Summer- Heat Holds, OND peak periods, Unboxing experiences 9
  • 10. Customized Consumer Experiences- More Time and Money  Specialty Gift Packaging – Custom gift boxes, tissue wrapping, ice pack shipping, Korvue shippers and more all add costs  Merchandise Fulfillment – Glassware, food products and apparel  Holiday & Corporate Gifting – Wine, non-wine & combined projects  Specialty Messaging – Gift cards, packing slip messages, print on demand  Marketing Collateral – Specialty top pads, logo’d merch. & tasting card  Kitting Services – Wine club pickup party, holiday & corporate gifts 10
  • 11. A Seat at the Table A dedicated team, that is deeply engaged, is critical to your DTC success. As a Wineshipping Partner we are committed to:  Strategic Partnership – Meeting cadence with account manager & key executives for monthly & quarterly reviews  Customer Service – Dedicated consumer centric communication assistance  Operations – Strategic planning for volume forecasts/timing, customization & warehousing  Technology - A partnership to help accelerate the industry’s digital strategy & create new sources of innovation  Marketing - A seat at the table with you for collaboration on annual planning and executing new promotions/programs 11
  • 12. Summary  Your decision to outsource is Critical Your 3PL must be qualified, capable and excited to provide your consumers with an elevated and improved DTC experience… ‘we are an extension of your team’  You are not giving up control, you are gaining acquisition and retention time  We are the industry’s leading DTC partner geared to help wineries increase revenue, and provide your customers with greater access to wine  As your trusted partner we have the right people, services, on- boarding support, technology and locations to propel your business into the future 12