EXPANSION Scott Bolduc Director of Supply Chain Strategy 4/29/2014 - - PowerPoint PPT Presentation

MANAGING E-COMMERCE EXPANSION

4/29/2014 Scott Bolduc Director of Supply Chain Strategy

• Introductions
• SPS Commerce Overview
• B2C process
• B2C electronic trading
• Implementing partnerships

AGENDA

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INTRODUCTIONS

• Over 25 years of experience with supply chain systems (WMS, ERP,

Forecasting, Procurement, Accounting) and EDI

• Our Own Hardware (hardware Industry Cooperative/Wholesale/Distributor)

300 suppliers to trade PO, Invoices, Freight Bills

• Nash Finch (Grocery Distributor) 200 suppliers to trade Grocery PO and

Invoice

• Fingerhut /Bluestem Brands(Catalog/Online Retailer) 700 suppliers to trade

Warehouse and Direct to Consumer PO, POC, Ship Notices, Invoice, Carrier Shipment Statuses, International Consolidator

• Currently the Director of Supply Chain Strategy at SPS Commerce. I have

been in this role for over 12 year where I have worked with hundreds of retailers, suppliers, distributors, carriers and Third Party Logistics (3PL) companies to gain new efficiencies in their supply chain

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SPS COMMERCE (NASDAQ: SPSC)

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• Founded in Minneapolis – 1998
• Global Footprint
• 54 Consecutive Quarters of Growth
• 52% of the Market - Market Leader
• 800 + employees
• 100% Software as a Service (SaaS)

Model

• 2,700+ Pre-built Integrations
• NASDAQ – SPSC

2014 = ARE YOU A RETAILER, A SUPPLIER, OR BOTH?

• 2013 - we saw a continuation of the

multichannel transformation as more suppliers are becoming retailers and retailers are becoming suppliers. What

• nce was very defined is now

becoming ONE continuum.

• 2014 - Organizations that are nimble

and have equally nimble supply chains are capable of creating whole new categories.

RETAIL INDUSTRY TRANSFORMATION

E-Commerce Impact Cloud Computing Adoption New Distribution Challenges M-Commerce Empowerment

• Ship-to-Consumer
• Ship-to-DC
• Ship-to-Store
• Cross-Dock
• Import
• VMI

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• Determining e-commerce requirements
• Managing items and reporting inventory

position

• Managing e-commerce orders and order

changes

• Streamlining drop shipping and

transportation

• Simplifying, managing or automating

returns, order tracking and vendor scorecarding

KEYS TO E-COMMERCE FULFILLMENT SUCCESS

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• E-Commerce can improve

inventory management

• E-Commerce can grow sales without

capital expense

• E-Commerce can increase

customer loyalty

• The “threat” . . .

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E-COMMERCE DRIVERS AND TRENDS

• Item setup
• Inventory visibility
• Order visibility and managing orders
• Managing logistics spend
• Branding
• Finding e-commerce capable vendors

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TOP E-COMMERCE CHALLENGES/REQUIREMENTS

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• Item management
• Inventory management
• Order processing
• Order confirmation and correction
• Change/cancellation
• Order tracking
• Billing and payment

management

• Return management

ROADMAP TO WORLD-CLASS DROP SHIPPING

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• Importance of item information
• Attributes
• Adds/changes/updates/discontinues
• Item master cleansing
• Images/digital assets

ITEM MANAGEMENT

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• Electronic Data Feed
• EDI/XML
• Clearinghouse
• Attributes
• Supplier information
• Product information
• Inventory information

INVENTORY MANAGEMENT

Consumer DC/Warehouse Vendors Orders

E-COMMERCE – DC/STORE

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Retail Store

Flow

Consumer DC/Warehouse Vendors Orders

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E-COMMERCE – SHIP TO CONSUMER

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• Many smaller orders
• Multiple Ship To addresses
• Customization
• Personalization
• Shipping and handling fees

PURCHASE ORDERS

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• Receipt of orders
• Validation of inventory available
• Corrections/error notification
• Customer notification

ORDER CONFIRMATION AND CORRECTION

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• Purchase Order correction
• Purchase Order cancellation
• Cancellation confirmation
• Customer notification

PO CHANGE/CANCELLATION

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• Shipment Confirmation
• Many small packages
• Branding
• Customer notification
• Transportation
• Shipment status
• Customer notification

PURCHASE ORDER TRACKING

Marketing Private Labels, Packing Slips, Holiday Messages, Gift Cards, Related Products Literature (enforces branded customer experience)

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THE BRANDED EXPERIENCE

• Invoice
• Many small invoices
• Remittance
• Many small invoices/documents reported on the

voucher

• Debit/Credit
• Adjustments
• Rebates

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BILLING AND PAYMENT

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Return instructions Return verbiage Return address

COMMUNICATION OF RETURN METHODS

• Physical Returns
• Customer Returns
• Supplier
• Retailer
• 3rd Party Return Center
• Returns from Retailer/3rd Party Return Center to Supplier
• Electronic Data Exchange
• Request for a return
• Return Authorization
• Credit for returns

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RETURN PROCESS

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• Order performance
• Designed to measure KPIs over time – (on-time

delivery, order changes, fill-rates, EDI data quality, etc.)

• Across dimensions (product, vendor)
• Across levels (SKU, product, category)
• Supplier scorecarding
• Timely shipments
• On-time shipments
• Fill rate performance
• Supplier scorecard

SUPPLIER COLLABORATION

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• 832 Item/Catalog
• 846 Inventory Availability
• 850 Purchase Order
• 855 Purchase Order Acknowledgment
• 860 Purchase Order Change
• 865 Purchase Order Change Acknowledgement
• 856 ASN – Shipment Confirmation
• 214 Shipment Status Message
• 810 Invoice
• 812 Debit/Credit
• 180 Return Request and Authorization
• 820 Remittance

TYPES OF EDI TRANSACTIONS

PO Change Acknowledgement (865) Shipment Confirmation (856) PO Acknowledgement (855) Invoice (810)

Vendors

Remittance/Advice (820)

Retailer

PO (850) / PO Change (860) Inventory (846) Item Catalog (832) Shipment Status (214) Debit/Credit (812) Return (180)

Carriers

Shipment Status (214)

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TRANSACTION FLOW

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• B2C capable partners
• Implementing electronic trading
• Alternatives to limited electronic

trading capabilities

• On-going management of

electronic trading success

IMPLEMENTING PARTNERSHIPS

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• Who’s capable of fulfilling orders?
• Are they electronically capable?
• What are their capabilities?
• How do you get these answers?
• One-on-one meetings between partners
• Conferences
• Business social networks

B2C CAPABLE PARTNERS

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The “legwork” of implementing technology with hundreds of individual companies on an initiative that will cost them time and money

Big EDI XML SME Mail Vendors DSD Distributors Carriers Int’l 10,000’s Items 1000 Items 50 Items Domestic Ship to DC Ship to Local Spread Sheet

100’s of Vendors 27

EDI EDI EDI EDI

IMPLEMENTING ELECTRONIC TRADING

The real integration challenge….

• Implementing your partners
• Steps
• Setup
• Testing
• One – one
• Service providers

Implementing Electronic Trading Partners

IMPLEMENTING ELECTRONIC TRADING PARTNERS

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• What happens if they can’t do it (or all of it)
• Eliminate the partnership
• Create a portal
• Exemptions
• SaaS providers

LIMITED TECHNOLOGY

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• How to manage and monitor data success
• Management by fire
• In-house systems
• SaaS providers
• Visibility reporting
• Order performance reporting

ON-GOING DATA MANAGEMENT

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ON-TIME SHIPMENTS ORDERS NOT SHIP

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QUESTIONS