Shipping Best PracticesJacob "Coby" Erez, 4Psite

Shipping - Best Practices

Jacob “Coby” ErezChief Technology Officer

4Psite, LLC

Shipping – The Real Deal• Shipping options when placing the order • Actual product shipping• Packaging • Branding • Shipping notification• Post shipping and returns

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

Fulfillment options

• Self shipping• Drop shipping• 3rd party fulfillment centers• Fulfilled By Amazon (FBA)

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

Carrier Landscape• Single carrier – USPS, UPS, FedEx, DHL• Hybrid solutions• Wholesalers and consolidators• Regional carriers

Shipping as a profit/loss center

• Shipping cost analysis– Cost vs. revenue by order, carrier, shipper

• Track freight out cost by store/channel

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

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

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

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

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

Shipping, CRM and Inventory

• Shipping instructions• Self service portal• Changes on available inventory• Pull shipping information when not shipped

in-house

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

Handling returns

• Accept return requests via the self service portal

• Create and email return shipping labels

Employee Performance

• Shipper performance – shipments per day/shipper, returns by shipper

• Single/batch shipping• Ability to quickly add more stations• Consistency, ease of training

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 !

Questions ?Thank you !

Coby Erezcoby@4psite.com

858.433.0403