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Connecting the Endless Aisle
    to the Virtual Supply Chain

Todd Rankin (VP Marketing, DropShip Commerce), Eric Chaffee (VP Product,
DropShip Commerce) & Nikki Baird, (Managing Partner, Retail Systems
Research)
Today’s Presenters
Introduction:
•Todd Rankin, VP Marketing, DropShip Commerce

Market Problem:
•Nikki Baird, Managing Partner, Retail Systems
Research

Drop Ship Challenges & Magento:
•Eric Chaffee, VP Product, DropShip Commerce




                   2
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




                          3
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




                 4
Retailers Expect Digital
Commerce to Continue to
Grow




Source: Survey “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012



                                                                                                            5
The Opportunities Are Still
Significant




     Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012


                                                                                        6
For Every Kind of Retailer




Source: “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012


                                                                                                     7
But More Difficult to Get




Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012



                                                                                   8
Focus Shifts From Brand
Promise to Execution




 Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012


                                                                                    9
Retailers Know Customer
Expectations Only Rise




  Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012



                                                                                         10
Supply Chain is Running Out
of Runway




Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012


                                                                                       11
Inventory & Fulfillment
Remain Sticking Points




  Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012


                                                                                     12
Visibility – The Hardest




Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012


                                                                                   13
Retailers Can’t See Very Far




Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012



                                                                                       14
Fixing Internal Systems is a
Long Road




 Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012


                                                                                        15
Why Isn’t Drop Ship on the
List?




 Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012


                                                                                        16
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?
                                                        17
Turning your Magento Store
into an endless aisle
What do you need?

1. Lots of Products
2. Which means lots of vendors
3. Which turn into a lot of orders
4. Which turn into a lot customers



  And do it all with out it costing
   you lots of time and money …
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
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



9/21/12
Typical Drop Shipping
Integration Challenges                                     Consumer
                                                               s
           ERP

                     Consumer
                      Orders




                           Product                         (x 1,000’s)
                            Data

                                 Product
  Vendor    Vendor                Data                 ✖   Multiple Formats for
  Orders    Orders
                                                           Product Data

                                                       ✖   Your ERP needs to create
                                                           vendor orders out of a
                                                           consumer/retailer order

                                                       ✖   Each vendor is a unique
                                                           integration for each
                                           (x 100’s)
                                                           document
Introducing DropShip
Commerce




Dropship Commerce is the scalable online platform for integrating
and managing drop ship partners, inventory, data, and orders. By
handling the exchange 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.



                     23
DropShip Commerce Product




        24
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



         25
Drop Shipping Simplified
                                                                  Consumer
                                                                      s
   ERP

                    Consumer
                     Orders




                                  Product

                                                                  (x 1,000’s)



                                                                      Single integration point to
                                                                       your vendors and Magento
         Vendor   Product      Vendor       Product
         Orders                Orders
                                                                      Ability to split consumer
                                                                       orders into vendor orders

                                                                      Ability to support multiple
                                                                       vendor formats
                                                      (x 100’s)
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 on Magento & QuickBook Extensions
  – March 27th
  – Visit www.dropship.com to sign up




                29
Thank You


          Questions & Answers

For additional information:
todd@dropship.com
(801) 765-6869



              30

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Magento Webinar: Connecting the Endless Aisle to the Virtual Supply Chain

  • 1. Connecting the Endless Aisle to the Virtual Supply Chain Todd Rankin (VP Marketing, DropShip Commerce), Eric Chaffee (VP Product, DropShip Commerce) & Nikki Baird, (Managing Partner, Retail Systems Research)
  • 2. Today’s Presenters Introduction: •Todd Rankin, VP Marketing, DropShip Commerce Market Problem: •Nikki Baird, Managing Partner, Retail Systems Research Drop Ship Challenges & Magento: •Eric Chaffee, VP Product, DropShip Commerce 2
  • 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 3
  • 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 4
  • 5. Retailers Expect Digital Commerce to Continue to Grow Source: Survey “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012 5
  • 6. The Opportunities Are Still Significant Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012 6
  • 7. For Every Kind of Retailer Source: “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012 7
  • 8. But More Difficult to Get Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012 8
  • 9. Focus Shifts From Brand Promise to Execution Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012 9
  • 10. Retailers Know Customer Expectations Only Rise Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012 10
  • 11. Supply Chain is Running Out of Runway Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012 11
  • 12. Inventory & Fulfillment Remain Sticking Points Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012 12
  • 13. Visibility – The Hardest Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012 13
  • 14. Retailers Can’t See Very Far Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012 14
  • 15. Fixing Internal Systems is a Long Road Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012 15
  • 16. Why Isn’t Drop Ship on the List? Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012 16
  • 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? 17
  • 18. Turning your Magento Store into an endless aisle
  • 19. What do you need? 1. Lots of Products 2. Which means lots of vendors 3. Which turn into a lot of orders 4. Which turn into a lot customers And do it all with out it costing you lots of time and money …
  • 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. 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 9/21/12
  • 22. Typical Drop Shipping Integration Challenges Consumer s ERP Consumer Orders Product (x 1,000’s) Data Product Vendor Vendor Data ✖ Multiple Formats for Orders Orders Product Data ✖ Your ERP needs to create vendor orders out of a consumer/retailer order ✖ Each vendor is a unique integration for each (x 100’s) document
  • 23. Introducing DropShip Commerce Dropship Commerce is the scalable online platform for integrating and managing drop ship partners, inventory, data, and orders. By handling the exchange 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. 23
  • 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 25
  • 26. Drop Shipping Simplified Consumer s ERP Consumer Orders Product (x 1,000’s)  Single integration point to your vendors and Magento Vendor Product Vendor Product Orders Orders  Ability to split consumer orders into vendor orders  Ability to support multiple vendor formats (x 100’s)
  • 28. Magento Extension • Connector Overview • On Connect Marketplace Today • Sign Up with Us First
  • 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 29
  • 30. Thank You Questions & Answers For additional information: todd@dropship.com (801) 765-6869 30