Drop-Ship

Drop-Ship2019-09-26T01:19:27-06:00

Drop shipping is an extremely effective tool for retailers to extend their assortment to a broader SKU range while capitalizing on minimal carrying cost and inventory-related issues.

The Drop-Ship Process

The Benefits

Retailers who implement drop-shipping / supplier direct fulfillment see:

  • Little to no inventory carrying cost for drop-ship SKUs
  • In some cases, increased speed to customer
  • Increased online conversion for web-orders
  • Increased in-store orders (via endless aisle)
0%
of all online stores are drop-ship only sites
0%
more profit for manufacturers that are drop-ship suppliers
0%
of Amazon sales in 2011 were drop-shipped

The Preparation

Each of the four sections below are preparation areas to consider before starting your project. Hover over each line item to get more details and validating questions.

Research & Requirements

  • Understandign Impact to Margin/Financials
  • Picking the right Suppliers to Pilot with

System Design & Implementation

  • Data Flow across enterprise systems

Project Planning

  • Duration of pilot prior to launching
  • Size of pilot group

Change Management Considerations

  • Implications to Merchandising Organization
  • Impact to e-Commerce & Omnichannel Operations

The Challenges

Supplier Relationship & Onboarding

Challenges

  • Differing capabilities across suppliers regarding technical capability and operational processes
  • Suppliers adherence to compliance policies
  • Timely upload of inventory to drop-ship / OMS platform
  • Suppliers shipping on-time, in-full and damage free

Considerations

  • Creating a standard compliance manual regardless of supplier
  • Not managing by exception / by supplier against compliance
  • Chargebacks or penalties for non-compliance (inventory)
  • Real-time tracking of orders / fulfillment for high volume suppliers

Returns Management

Challenges

  • Cross channel returns leave drop-ship SKUs in stores where there’s no planorgram for them, so potential discount scenario
  • Increased liklihood of returns if quality of products shipped from supplier is poor (which retailer doesn’t hear about until after fulfillment vs. prior to shipping if ‘owned’ inventory.
  • Integration issues between ERP, POS and OMS systems due to SKU identified by both supplier-side and internal SKU numbers (if not tracked via UPC) which means no tracking of returned inventory if brought back to store.

Considerations

  • End to end integration between systems
  • Dispositioning of inventory brought back to store
  • Return policy for over-sized or low-value items shipped from supplier, but returned to store
  • Returns tracking in drop-ship or BI/BW to understand trends in returns, proactively

Explore your potential.

The Drop-Ship Insights

1105, 2017

Store Inventory: Selling a Possibility

By |May 11th, 2017|

Omnichannel initiatives over the last five years have seen a dramatic uptick in the number of store fulfillment projects to fuel cross-channel commerce. This was apparent at Aptos' annual user conference in Florida during

How It Works

Here is our methodology to ensure the success of your omni-channel business solution.

Business Case & Roadmap

Key Services Delivered:

  • Define Current Capabilities
  • Define the Future State
  • GAP Analysis
  • Solution Alternatives
  • ROI Analysis
  • Business Solution Roadmap

Requirements & System Selection

Key Services Delivered:

  • Solution Requirements
  • Key Business Scenarios
  • RFI/RFP Demos
  • References
  • Contract Negotiation
  • System Selection

Project Roadmap Creation

Key Services Delivered:

  • Budgeting
  • RACI Resource Planning
  • Phasing
  • Change Mgmt Planning
  • Risk Assessment
  • Contingency Planning
  • Project Governance

Solution Implementation

Key Services Delivered:

  • Project Management
  • Change Management
  • Design
  • Integration
  • Environment Build/Configuration
  • Application Testing
  • Integrated Testing
  • Operations Testing
  • Training
  • Conversion
  • Support

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