Riding the Cloud Leveraging your Carrier Software to Streamline Pick/Pack/Ship

Oz Development, Inc. www.ozdevelopment.com 508.366.1969
Riding the Cloud:
Leveraging Your Carrier Software
to Streamline Pick/Pack/Ship

Agenda
• Introduction & Welcome
• Where are the opportunities for improvement
• Role of the cloud
– Appeal of the Cloud
– Carrier software & web services
• Cloud integration applied to pick/pack/ship
– eCommerce
– Warehouse
– Shipping
• Customer Examples
• Q & A

Today’s Speaker
Brian Hodgson
VP Sales/Marketing
• Founded 2002
• Privately held
• Over 10,000 customers
• Integrating and automating order
management
• Cloud platform to develop and manage
application integration and extensions

Opportunities in Pick/Pack/Ship

The Appeal of Cloud
25%
27%
29%
36%
37%
39%
42%
46%
48%
52%
0% 10% 20% 30% 40% 50% 60%
Perceived as lower risk
Ease of bringing up new remote sites
Leave security and other IT issues to…
Ease of remote access for distributed…
Ability to treat as opex versus capex
More leading-edge thru more frequent…
We have limited IT resources
Lower start-up costs
Reduces the cost and effort of upgrades
Lower total cost of ownership

Challenges Driving Shipping Complexity
• Growth brands via
Internet/eCommerce
• Omni channel
(eBay, Amazon, multiple
brands)
eCommerce
Business
Opportunity
• Better visibility
• More stringent
documentation/delivery
requirements
• Delivery date options
Demands from
Customers
• Rapid ROI
• Minimal IT resources
required in house
• Focus on business
problem not IT
Cloud Solution
Payback

Finis Case Study
Profile
Solutions
Benefits
• Manufacturer and seller of swim
training products
• Warehouses in US & Europe
• Fulfill eCommerce, wholesale, &
large retail customers
• eCommerce through warehouse
• OzLINK mobile and shipping
• Order picking
• Integrated ASN, pack validation
• Automated fulfillment saving $120K
• Reduced fulfillment errors 85%
• Lowered retailer chargeback 70%

Applying the Cloud to Pick Pack Ship
• Integrate
• Automate
• Extend

Pros & Cons of Carrier Technology
Pros Cons
Cloud
Services
On premise
Shipping
Software
• Ability to integrate with
eCommerce
• Pre-packed in many
commercial applications
• Access anywhere
• Service limitations
• Performance implications
• Multi-carrier options
• Limited batch capability
• Maximum performance
• Complex business rules
• Ability to extend in agile way
• Easy user training
• Harder to integrate
• Local access only

Five Requirements for
Pick/Pack/Ship Integration
• Integration across cloud and on premise
• Rapid time to value
• Automation and custom business rules
• Extensions to underlying applications
• Cloud architecture to lower cost of
ownership

Carrier Technology Use Cases
WarehouseeCommerce Shipping
• Integrate
• Automate
• Extend

Connect Cloud eCommerce into
Order Management
eCommerce
Order
Management
ERP
Warehouse/Shipping
• Synchronize orders, and inventory
• Real time order status
• Update pricing and item data

Options for Integrating eCommerce
1
Channel Centric Order Centric
ERP

Magento, QuickBooks, & UPS WorldShip
“Royal Oak Peanuts produces a lot of volume through the
holidays and, with our growth, OzLINK was critical in
helping us keep up the pace.”
Orders Orders
Costs &
Tracking
Tracking

Integrating Groupon and UPS WorldShip
UPS
WorldShip
Commerce Interface
Batch file
of orders

Pre-Ship Address Validation
• Review pending orders
• Approval
• Fulfillment
• Screens periodically &
highlights ambiguous
orders
• Correct and update
Ready To
Fulfill
Order
Entry
Address correction fees
Are $10 per error
ERP

Print & Apply Bar Code Labels At
Receiving Time
Label and Information
• Auto-generate 1 to “n” item labels
• Item number
• Lot number
•Serial numbers
•Case quantity

Create Branded Pack Slips
and Branded e-mails Notifications
Branded e-mails
to improve customer service
and repeat business
Branded packing slips
For drop ship customers
or different brands

Time In Transit Optimization
1
Cost Savings Service Upgrade
• Origin & Ship-To
• 2 Day Delivery
Real time time in
transit check
UPS
Ground
2nd Day Air
• Origin & Ship-To
• Required Delivery Date
Real time time in
transit check
UPS
Ground
2nd Day Air
Can Save $100s per day Avoid customer penalties & chargebacks

Automate Business Rules
• Residential
• Urban area
• PO Box
• International
• Loyalty programs
• Drop ship
• Preferred service
• Weight, dims
• Value
• Commodity
• Delivery date
Shipment
Details
Consignee
Origin/Dest
Address
Automate Business Rules
Carrier & Service
• Ground
• Next Day Air
• Mail Innovations
• Freight
• etc
Shipping Options
• Return Service
• Saturday Delivery
• Int’l Commodity
• etc
Package Options
• Delivery confirmation
• Flexible parcel ins.
• Declared value
• etc.

Shipping
Challenge:
• Up to 250 shipments per day
• Front office produced shipping documents
• No MAS 200 & WorldShip integration
• Extra data entry, duplicate address books
Products: Snack Foods
Segment: Food processing
Functional Area: Logistics
Solution:
• Bidirectional integration
• Eliminated 100% shipping data entry
• Improve customer service
Fulfillment
Solution:
• Pack validation, with serial number
• Savings $24K per year
• Improved customer service
Challenge:
• 200-300 shipments per month
• Domestic and international
• Serialized equipment
• 2-3 errors per month
• $600-$1000 cost per error
Products: Machinery & tools
Segment: Wholesale distribution
Functional Area: Fulfillment
Real Customers With Real ROI

Challenge:
• 200-300 shipments per day
• Multiple documents for pick/pack/ship
• Legacy system performance was slow
• Costly pick/ship errors ($36 per error)
Products: Gourmet Food
Segment: eCommerce
Functional Area: Fulfillment
Challenge:
• 10-15 returns per day
• 2 hours processing per day
• Complex charge-back rules
• Too much clerical paperwork
• Minimal time for customers
Products: Home lighting
Segment: eCommerce
Functional Area: Shipping/returns
Solution:
• Integrated pack slip/UPS label
• Increased fulfillment productivity by 50%
• Reduced shipping errors
Solution:
• Integrate RMA & UPS
• Savings $17.5K per year
• Reduced clerical tasks 96%
Real Customers With Real ROI
Shipping Returns

Q & A

Riding the Cloud Leveraging your Carrier Software to Streamline Pick/Pack/Ship

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