Disney E-Commerce leveraged business intelligence to improve profitability by establishing a singular database of transportation spend and order data, creating an information link between shipping, accounting, and finance, and analyzing the data to identify cost savings opportunities and KPIs. This enabled cost reductions through initiatives like address verification software and invoice auditing, and deeper analysis of transportation spend.
2. Disney E-Commerce Case Study | Introduction |
• Disney E-Commerce is a division of • A leading logistics and financial
Disney Consumer Products business services company
segment of the Walt Disney Company. – Serves Parcel, LTL, & TL shippers
with complex data needs
• Provides direct to consumer services – Premier provider of shipping
including: data accuracy, visibility and
– Online ordering velocity
– Customer service – Processes 500 Million +
– Warehousing and order transactions
fulfillment for Disneystore.com
• Corporate offices in Glendale CA • Headquartered in Chicago IL
• Fulfillment Facility in Jonesville SC • Reduce freight spend 5% - 20%
transportation business intelligence
3. Disney E-Commerce Case Study | Key Business Challenges |
Complete Data Capture Tools to Convert Raw Data
into Intelligent Output
• Limited link between transportation • Difficulty conducting analysis on
department and finance transportation spend
– Finance conducted manual – Limited tools
accrual – Data missing key elements to
• Timeliness of data perform analysis
– Delays in billing information and • No continued process to convert data
formatting usefulness into useful information tools
• Comprehensive nature of the data
– Limited detail provided
– Accuracy, including the audit,
was in question
transportation business intelligence
4. Disney E-Commerce Case Study | Leveraging Business Intelligence |
• Established a singular database of transportation spend and order information relative
to transportation
• Created an information link between shipping spend and accounting and finance
including a deeper verification of invoice cost accuracy
• Analyzed information to identify KPI’s and opportunities to initiate cost savings
• Implemented beneficial programs for internal financials and their guests
Aggregate Synchronize Integrate Analyze Enable
Aggregates data Synchronize data Integrate Analyze raw data Statistical output that
from manifesting; between Disney transportation costs and transform to Enables Disney
order systems, and E-Commerce back into Accounting critical enterprise E-Commerce
carrier systems transportation; finance; and Financials information performance
and the carriers improvements via KPI
transportation business intelligence
5. Disney E-Commerce Case Study | Aggregate |
Aggregate
transportation business intelligence
6. Disney E-Commerce Case Study |
Aggregate Data from Multiple Sources |
DC Carrier Customer
Manifesting data from distribution systems
Order and Promotional data
including units per order
Transit Data from carrier Systems Creates one
database of all
data relevant to
transportation
spend
Billing data via EDI from Carrier Partners
transportation business intelligence
7. Disney E-Commerce Case Study | Synchronize |
Synchronize
transportation business intelligence
8. Disney E-Commerce Case Study | Synchronize Shipper & Carrier Data|
Verify all rates, performance, delivery of packages
• Multi-Layer Freight Coding •Comprehensive audit of all shipping
Categories transactions
• Inbound, Outbound, Returns, - Non-pay credits with carriers
Vendor Drop Ships •Non-paid items applied back at the
transaction level for accounting
efficiencies
transportation business intelligence
9. Disney E-Commerce Case Study | Integrate |
Integrate
transportation business intelligence
10. Disney E-Commerce Case Study | Integrate Freight Data with Finance|
Monthly accrual report produced
the 1st of each month
Update systems weekly with
All transactions not billed appropriate transportation coding
are accrued at month end
January Fiscal Accrued Billed Not Billed and January Outbound
Year 2008 Freight Submitted Submitted Freight Total
Freight Dollars $ 87,134.62 $ 285,696.84 $ 928,455.03 $ 1,301,286.49
Package Count 10,309 34,490 112,074 156,873
Utilize expected costs as aggregated from the manifest
system Is matched against the invoiced transactions
transportation business intelligence
12. Disney E-Commerce Case Study | Data Visibility for Analysis |
• Monthly KPI (Key Performance Indicator) Reports provide high level tracking of
transportation performance
• Return on Investment tracking of key initiatives
– Address Hygiene software impact on address correction and delivery
performance
– Invoice verification and settlement metrics
– Key lane analysis on cost and performance puts Disney E-commerce in an
improved position to evaluate parcel alternative programs; including hub drop
shipping; consolidator programs
• Expected cost of shipping vs. Actual Billed Cost at a unit number level vs. Shipping and
Handling charged to Guests
– Determined were undercharging for key International lanes and therefore
producing unprofitable customer orders
transportation business intelligence
13. Disney E-Commerce Case Study | Key Performance Indicator Reports|
Key Performance Indicators make key tracking data transparent and
enables them to adjust accordingly
transportation business intelligence
14. Disney E-Commerce Case Study | Order Cycle Time Management |
69% Decrease in Cycle Time
Sample Data
2007 2008
Carrier Name Avg Cycle Time Avg Days In Transit Avg Cycle Time Avg Days In Transit
XXX 5.68 3.66 4.69 4.05
XXX 4.36 3.21 3.80 3.34
XXX 4.81 3.08 1.50 4.50
XXX 3.57 1.94 6.11 2.56
XXX 5.01 3.54 4.99 3.90
XXX 1.71 1.04 2.67 1.14
XXX 5.78 3.06 3.31 3.03
XXX 4.93 2.52 2.79 1.85
Grand Total 5.76 3.06 3.31 3.03
43% Decrease in Cycle Time
26% Decrease in Transit Time
transportation business intelligence
15. Disney E-Commerce Case Study | Return on Investment |
Address Hygiene
Address Hygiene impacts Total Dollars Address Fee Dollars
(new)
Address Fee Ratio
(new)
Address Fee Ratio
(old)
Savings
delivery performance $8,135,053.18 $13,040.00 0.30% 0.34% $ 2,102.80
Savings YTD
XXX Shipping Credits $ 143,519.57
XXX Void Credits $ 1,474.51
Total $ 144,994.08
Audit verification to payment
IntraVex Cost $ (33,545.33)
NET SAVINGS $ 111,448.75
Aging Invoice Tracking
Bills September October November December
100% EDI billing Processed 202,308 235,412 218,873 490,995
EDI 202,308 235,412 218,854 490,995
Paper 0 0 2 0
On Hold 0 0 0 0
Submitted to DSI 202,308 235,412 218,873 490,995
transportation business intelligence
17. Disney E-Commerce Case Study | Customized Data Reports |
Transportation Analysis – from high level to package detail
Sample Data
Year to Date Summary
Packages 2,242,742
Weight 50,536,671
Gross Freight $ 29,008,389.47
Discount $ $ (10,456,472.99)
Discount % 36%
Net Freight $ 18,551,916.48
Total Net Charge $ 23,982,465.82
Sample Data
Average Total Discount
36.05%
Average Shipment Total Net Charge
$10.82
Average Weight per Package
$22.80
Average Days In Transit
2.97
transportation business intelligence
19. Disney E-Commerce Case Study | Enable Cost Savings |
• Key savings areas
– Advanced audit and verification findings
– Key returns for address corrections
– Analysis on USPS residential / commercial verification vs.
carrier billed
– Person hours associated with accuracy of information,
accrual report preparation, and transportation analysis
• Access to key cost-drivers identifying opportunities to
reduce accessorial fee and adjustments
• Cost vs. Delivery analysis to make correct decisions for
Guests
• Information to modify contracts and programs for rate
analysis as needed
• Information to plan, budget, and make the right
transportation decisions
transportation business intelligence
20. Disney E-Commerce Case Study | Non-Disney E-Commerce Analysis |
Non-Disney
E-Commerce
Analysis
transportation business intelligence
21. Disney E-Commerce Case Study | Enabling Deeper Analysis |
Sample Data
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Freight Pct of Sales 2.94% 5.06% 2.29% 1.39% 2.92% 2.33% 6.64% 1.63% 1.71%
Sales Order Amt $ 856,952 $ 860,626 $ 8,468,933 $ 70,400,862 $ 7,885,091 $ 2,328,878 $ 437,610 $ 1,254,639 $ 92,493,591
Total Net Charge $ 25,278 $ 43,577 $ 194,114 $ 984,663 $ 230,361 $ 54,378 $ 29,086 $ 20,566 $ 1,582,023
Shipments 2,212 2,626 28,660 115,908 33,929 5,499 3,375 1 192,210
Packages 2,953 3,961 29,628 126,229 35,656 6,678 3,996 1 209,101
Weight 25,662 80,073 339,256 1,462,514 151,220 82,651 31,854 3 2,173,232
Avg Weight 12.18 32.02 12.43 13.25 4.68 15.78 9.91 3.15 11.87188826
Freight Charge Per Pound $ 0.88 $ 0.50 $ 0.55 $ 0.58 $ 1.35 $ 0.59 $ 0.83 $ 6,636.07 $ 0.64
Rebate Amt $ (1,707) $ (2,820) $ (18,744) $ (85,254) $ (27,361) $ (5,014) $ (3,358) $ (0) $ (144,258.50)
transportation business intelligence
22. Disney E-Commerce Case Study | Rebate Calculations & Accrual |
Calculate parcel carrier revenue tiers and rebate amounts
Sample Data
• Provides information to verify rebate Accounting Period January
checks and tier calculations Monthly Gross Revenue
Tier 2,567,283.71
Amount Used to Calculate
Incentive Check 2,375,150.41
• Rebate checks can be accrued Incentive % 5%
monthly, but applied quarterly / Incentive Check $ 118,757.52
annually as submitted by the carrier
Sample Data
Accrued Billed Not Billed and Expected Rebate January Outbound
January Fiscal Year 2008 Freight Submitted Submitted Check Amount Freight Total
Freight Dollars $ 87,134.62 $ 285,696.84 $ 928,455.03 $ 118,757.52 $ 1,182,528.97
Package Count 10,309 34,490 112,074 - 156,873
transportation business intelligence
23. Disney E-Commerce Case Study | Key Take Away |
Complete data capture Tools to convert raw data into
intelligent output
• Link transportation and finance • Leverage data to structure contracts
departments via data and programs to mitigate cost
increases
• Create a database that houses key
performance data as it relates to
transportation
• Understand expected vs. actual costs
vs. customer shipping and handling
• Delivery performance to customers
transportation business intelligence
