Drop Shipping Made Easy

06/05/2014

Market Trends: Omni-Channel Retail– What is it– Defining characteristics

Drop Ship Order Management Model – Day-in-the-life

vShip Overview Live walk through of vShip Q&A

Today’s Agenda

Market Forces:

Ecommerce

Ecom Quick Facts• $200 Billion+ in U.S. Retail sales• eCom now represents 6+% of total retail in the

U.S. • Ecommerce is out-pacing growth of in-store

retail sales • Investment community applying pressure on

retailers to report online sales• Wal-Mart had over $10 Billion in online sales in

2013• Amazon outsells it’s next 12 competitors

combined

Sources: Internet Retailer, Commerce Department, Wal-Mart SEC Filings

“Showing strong online sales now indicates a pretty good chance retailers can adapt to the changes in how people shop, and will last a long time compared to their competitors”

Omni-Channel

Current State of Retail• Technology has disrupted the traditional retail model• Intense pressure to build consumer loyalty & enrich

consumers experience across multiple demand points• Mobile, web, catalog, in-store, kiosks, etc.

• Retailers have to capture demand from multiple demand points and be able to fulfill from those demand sources

• Other factors:• Razor thin margins, showroom effect, shorter product

lifecycles & volatile demand • Pressure to consistently deliver on shrinking delivery

windows• Continued pressure to cut cost from supply chain • Consumer pressure for sustainable practices & a reduced

carbon footprint

Drop-ship Vendor

Programs

Defining Characteristics of Drop Shipping• New sales channel opportunity that introduces a new set of

compliance requirements for suppliers• Requires management of a new order type & distribution model• Short lead time for filling potentially thousands of orders• Erratic demand patterns / spikes in order volume• Increased order volume however:

• Low line & unit count• Lower margin• Increased PO Processing cost as a % of revenue

• Requires shipping direct to a consumer• Warehouse Ops has to break bulk• Increased parcel shipments• Residential fees & other shipping requirements

• Requires EDI document type (846)• Requires a retailer specific pack slip report

Distribution Workflow in

Review – Drop Ship

OMM

1. Receive Order via:– Integrated vSync EDI solution– Vendor portal such as Amazon Central– EDI web forms solution

2. If not integrated, key orders into GP3. Review order, allocate and create

order acknowledgment 4. Print pick ticket and deliver to

warehouse operations

Order Management

5. Materials handlers review paper picking ticket to determine which inventory to pull in warehouse for a specific order

6. Materials handlers travel to pick inventory and mark items as picked from warehouse

7. Materials handlers move inventory to a shipping station

Pick Order from

Inventory

7. Physically pack order into shippable container8. Process shipment at shipping station (shipping

software or carrier web-site)– Key in ship to address info– Determine ship method to use– Determine which ship options to use– Create cartons and key in / capture weights– Complete shipment and print labels– Write down shipment details on pick ticket

9. Login to web-site (i.e. Vendor Portal / Commerce Hub) to print pack slip report

10. Login to GP to create ASN transaction and print GS1 label

Pack & Ship Order

11. Updates Sales Transaction – Warehouse personnel hands pick ticket back to

front office with notes– Key line item fulfillment details into the Dynamics

GP sales transaction form– Key tracking numbers into the sales transaction

form– Key freight cost into sales transaction form– Update order batch to denote “shipped”

Enter Fulfillment

data into GP

Login to GP and send ASN transaction After order is transferred to an invoice,

login to EDI system and create / export EDI invoice

Submit ASNs & Invoices

vShip: Solution In

Review

vSync EDI for GP & vShip consolidates the Drop-ship discreet steps into a single integrated workflow

Multi-Carrier Packing, Shipping, Fulfillment & Compliance Solution Built exclusively for Dynamics GP Validates orders are packed correctly to eliminate shipping

errors Pre-define business rules for managing packing, carrier

and fulfillment rules Enforces discipline and best practices in your warehouse

operations Creates shipping and compliance documents in line with

the shipping process flow step Automatically fulfills sales orders in Dynamics GP Tightly integrated to vSync EDI

vShip Overview –

Built for Dynamics GP

Additional Features Shipment Rating:

– Small parcel rating support for UPS, FedEx and USPS– LTL rating and report creation (BOLs & Manifests)– Rate shop across carrier options

Address validation Intuitive packing process or auto-pack mode Shipment consolidation International export compliance Compliance and reporting:

– Auto creation of ASNs– Prints GS1 and retailer specific pack slip reports

Freight manipulation rules Support for multi-site & multi-company operations Shipping performance reporting

vShip Overview –

Built for Dynamics GP

Solution Overview –

vShip

Questions

For follow-up questions:

Mike GrossVice President, EDI & Supply Chain Essentials Group

720-282-8502Michael.gross@accellos.com

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