DON’T LET DANGEROUS GOODSHANDLING AND OTHERBARRIERS STAND IN THE WAY OF AN EFFECTIVE OMNICHANNELSHIPPING STRATEGY

42

Bob Liva, Alliances and Partnerships, Pierbridge

Through a series of leadership roles since the inception of computerized parcel shipping with organizations such as ConnectShip/UPS, Pitney Bowes and Pierbridge, Bob has worked with some of the nation's largest shippers including electronics manufacturers, software distributors, and retailers.

SPEAKER

43

How to stay Dangerous Goods (DG) compliant and avoid fines and penalties in a decentralized shipping environment

How to better manage inventory, improve delivery time, and increase delivery convenience

How to pack for success to reduce shipping cost, waste, and unexpected fees

Make the best carrier and service choice with every shipment

I

II

III

IV

WHAT YOU WILL LEARN TODAY

7

44

WHAT IS AN EFFECTIVEOMNICHANNEL SHIPPINGSTRATEGY?

Why Omnichannel?a

b

c

What are the Challenges of Implementing an Omnichannel Shipping Strategy?

What are Benefits of an Omnichannel Shipping Strategy?

45

WHY OMNICHANNEL?

I

II

III

Parcel volumes grew 17 percent in 2017, according to the Pitney Bowes Shipping Index

Global shipping volume to surpass 100 billion parcels in 2020

500,000 companies in the courier & delivery services industry worldwide employing 2.8 million people

IV

V

VI

Meeting customer demands for free and fast shipping

Avoiding inventory outages, customer don’t care where it comes from, just that they get it

Getting closer to the customer

The Traditional Supply Chain Model

1. Easier to control

2. Fewer partners

3. Less touches

46

WHAT ARE THE CHALLENGES OF IMPLEMENTING AN OMNICHANNEL SHIPPING STRATEGY?

I

Manufacturer Distributor Warehouse | Distribution Center Retailer Customers

The Omnichannel Supply Chain Model

1. More untrained hands touch the shipment

2. Decentralized and harder to control processes, rules, and compliance

3. Managing larger carrier networks

47

II

WHAT ARE THE CHALLENGES OF IMPLEMENTING AN OMNICHANNEL SHIPPING STRATEGY?

Warehouse Customer Store CustomerManufacturer Customer

48

Improved customer service

Shorter distances to the customer

Increased speed of delivery

THE BENEFITS OF AN OMNICHANNELSHIPPING STRATEGY

I

II

III

IV Reduced costs

2

49

AUTOMATING DANGEROUS GOODSHANDLING REGARDLESS OF WHO IS SHIPPING

a CHALLENGE

b SOLUTION

c RESULTS

410

CENTRALIZATION VS SHIP FROM ANYWHERE TO ANYWHERE

Traditional Supply Chain Model

1. Centralize in one warehouse. Special team handles Dangerous Goods and knows how to ship them

2. Knowledge and certification are centralized in one or a few people

3. Where does liability start and end?

Omnichannel Supply Chain Model

1. Anyone can ship anything from anywhere

2. Can be lower waged, less skilled, less knowledge

3. Too few experts

III

411

GETTING THE RIGHT RULES TO THE RIGHT PEOPLE AT THE RIGHT TIME

II

III

Alerts shippers when something needs additional handling to be compliant. Won’t let them ship without it

Provides workflows and proper labeling when something is classified as DG

Know your products

Continuous training (higher turnover)

Tools to automate DG handling

I

I

412

COMPLIANT SHIPMENTS EVERY TIME

II

III

Avoid fines and penalties

Reduces frustration from items that won’t be shipped due to incorrect labeling

Allows staff to step-up and handle shipping from non-traditional locations (ship-from-store, etc.)

OPTIMIZE PARCEL SHIPPING TO REDUCE COSTS AND IMPROVE CUSTOMER SATISFACTION

413

Traditional Supply Chain Model – Single Warehouse / Distribution Centera

b

c

Omnichannel Supply Chain Model – Many Points of Inventory and Distribution Powered by Local Delivery

Delivers Results that Increase Revenues and Cut Costs

Single warehouse / distributions center

1. All orders are processed from a centralized warehouse

2. Great distances between warehouse and customer – more cost and longer delivery times

3. Single inventory source that can “run-out”

4. Typically uses major carriers

414

II

TRADITIONAL SUPPLY CHAIN MODEL

Ship-from-stores

1. Retailers don’t have a “retail problem,” they had a real estate problem

2. What to do with brick-and-mortar stores when consumers are buying goods online?

3. Turn them into fulfillment centers where

a. Consumers can look at goods and then buy them online

b. Buy them online and pick them up and return them to stores

c. Get them shipped the same day from the store to their home

415

I

OMNICHANNEL SUPPLY CHAIN MODEL – MANY POINTS OF INVENTORY AND DISTRIBUTION POWERED BY LOCAL DELIVERY

416

Ship-from-suppliers / manufacturers

1. Expand your network of drop-ship suppliers and manufacturers

2. Create an “endless aisle” of inventory closest to the consumer

3. Meet the demand for fast (including same-day) and free delivery

4. Never experience a stock-out

II

OMNICHANNEL SUPPLY CHAIN MODEL – MANY POINTS OF INVENTORY AND DISTRIBUTION POWERED BY LOCAL DELIVERY

Specialized carriers: local and white glove

1. Local delivery carriers provide the same services as national and regional carriers

2. Access to the more than 500,000 courier & delivery services companies worldwide

3. Bike messengers, couriers, gig-economy, and LTL deliveries are all in play

4. Enables same or next day, personalized, white-glove, over-the-threshold delivery

III

417

OMNICHANNEL SUPPLY CHAIN MODEL – MANY POINTS OF INVENTORY AND DISTRIBUTION POWERED BY LOCAL DELIVERY

418

DELIVERING RESULTS

Choice enables shippers to save money

and time on deliveries

Customers get their deliveries when they

want, where they want, and how

they wantBoosts customer

satisfaction along with repeat and referral

business

Efficiently utilize retail square footage

as a distribution center

2

419

OPTIMIZE PARCELPACKING

Traditional Shipping Modela

b Optimized Omnichannel Shipping Strategy – Pack for Success

c Results – Pack for Profits

420

I Limited number of carton choices

Charge by weight, not by space

Service demands were not as high as they currently are

Carriers hate shipping air – charge an air tax and increase DIM fees

TRADITIONAL SHIPPING MODEL CHALLENGES

Packaging waste is bad for the environment and adds unnecessary costs

Small orders in big boxes can lead to damage and returns

Shipping cost disadvantage

Customers hate receiving air

II

III

IV

I

II

III

IV

421

Avoid shipping in cartons too large

Avoid shipping too many cartons

Consider alternate carriers and negotiate a better DIM factor

Use cartonization technology

OPTIMIZED OMNICHANNEL SHIPPING STRATEGY –PACK FOR SUCCESS

I

II

III

IV

422

Reduce lost sales and shopping cart abandonment

Reduce shipping and packaging costs

Eliminate packing waste

Improve customer satisfaction

Reduce shipping damage

PACK FOR PROFITS

I

II

III

IV

V

423

OPTIMIZE PARCEL CARRIER SELECTION THROUGH RATING AND ROUTING

Traditional Shipping Modela

b

c

Optimized OmnichannelSupply Chain Model

Results

424

TRADITIONAL SHIPPING MODEL

I

II

III

Shippers relied on a single carrier with their supplied shipping software

Single purpose multi-carrier shipping software

Customers didn’t expect free and fast delivery

Locked into a carrier’s service levels and zone pricing - not all zones and service levels are equal

IV

425

OPTIMIZED OMNICHANNEL SUPPLY CHAIN MODEL

I

II

III

Multi-carrier selection – include regional and non-traditional carriers

Multi-service level selection including a calendar view that shows delivery window

Business rules and wizards to force the most efficient and cost-effective transportation method

RESULTS

Reduces costs Efficient processingReduces shopping cart

abandonment by providing shipping costs early in the

purchase process

26

Pierbridge, Inc.67 Forest St. | Suite 288Marlborough, MA 01752-3199508 - 630 - 1220

427

QUESTIONS?