shipping best practices by jacob "coby" erez
DESCRIPTION
MivaCon 2014 Breakout Session: Shipping Best Practices Presented by Jacob "Coby" ErezTRANSCRIPT
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Shipping Best PracticesJacob "Coby" Erez, 4Psite
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Shipping - Best Practices
Jacob “Coby” ErezChief Technology Officer
4Psite, LLC
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Shipping – The Real Deal• Shipping options when placing the order • Actual product shipping• Packaging • Branding • Shipping notification• Post shipping and returns
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Shipping - Best Practices• Micro/macro observation• Fulfillment options• Shipping as profit/loss center• Shipping cost reduction• Quality of shipping• Reduce employee mistakes• Revenue assurance and potential fraud• Shipping, CRM and inventory• Handling returns• Employee performance
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Fulfillment options
• Self shipping• Drop shipping• 3rd party fulfillment centers• Fulfilled By Amazon (FBA)
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How to better manage your 3rd party fulfillment?
(Split) Orders
Shipping info
Inventory
Invoices
Drop/ShippersFulfillment center
• Two-way transmission – orders, inventory, shipping, invoices
• Avoid transmission of fraudulent orders• Use real time integration with major fulfillment centers like Amazon• Use the pulled shipping information to close the fulfillment loop
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Carrier Landscape• Single carrier – USPS, UPS, FedEx, DHL• Hybrid solutions• Wholesalers and consolidators• Regional carriers
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Shipping as a profit/loss center
• Shipping cost analysis– Cost vs. revenue by order, carrier, shipper
• Track freight out cost by store/channel
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Direct cost saving factors• Address validation• Residential or Commercials• Combine orders• Real time rates• Negotiated rates, commercial plus, Cubic• Alternative insurance providers• Handling voided labels
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Quality of shipping• Master pull sheet• Product images on the pick-ticket• Scan before you ship• Scale integration• Integration with your CRM system, e.g. - instructions
to shippers from customer service pop up on the shipping screen
• Consider using integrated labels
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Reduce employee mistakes
• Barcodes on products and packing slips• Rule based shipping
– Triggered by weight, destination, SKUs, value, etc– Auto select carrier, shipping class, insurance,
package type, etc– Auto add weight– Use 3rd party shipping accounts
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Rule based shipping - samples
• Domestic, weight under 13 oz– USPS, Parcel, First class
• Domestic, weight > 1lb and weight < 2.4 lb– Express1, Priority, Flat rate envelop
• Domestic, list of states, 4 < weight < 20– UPS, Priority 1 lb or greater
• Domestic, order total > $100– FedEx, Signature confirmation, Insurance
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Revenue assurance and potential fraud
• Auto capture funds upon shipping• Identify and block potentially fraudulent
orders from shipping• Track activities to reduce theft• Log cancelled shipments• Scan labels to identify “double” shipments
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Shipping, CRM and Inventory
• Shipping instructions• Self service portal• Changes on available inventory• Pull shipping information when not shipped
in-house
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Strive for inventory accuracy throughout all channels
Returns
Order received(multi-channel)
Order modifications
OrderCancelation
(fraud/payment)
Order shipped
InventorydatabasePO
received
Manualadjustments
Drop/shipperInventory feed
Fulfillment centerInventory feed
Special cases: options to SKU conversion & kits/bundles
Real TimeInventory Feed
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Handling returns
• Accept return requests via the self service portal
• Create and email return shipping labels
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Employee Performance
• Shipper performance – shipments per day/shipper, returns by shipper
• Single/batch shipping• Ability to quickly add more stations• Consistency, ease of training
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Homework
• Check your shipping rates and alternatives• Place an incognito order on your web site• Improve real time inventory accuracy• Close the order-to-ship-to-get paid loop
• Due date >>> NOW !