Drop shipping-deconstructed
1
What is it? $327B $14.2B DROP SHIPPING DIRECT DISPATCH VIRTUAL INVENTORY Drop Shipping: a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to the manufacturer or wholesaler, who then ships the goods directly to the customer. Growth in drop shipping (also known as direct dispatch) has been fueled by omni-channel retail, resulting in a virtual inventory ecosystem for many retailers… Speed Product Selection Productivity Agility e-Retail Sales by 2016 1 drop-shipped orders from a single e-retailer in 2011 1 DECONSTRUCTED SUCCESS Drop Shipping GROWTH BENEFITS C O M P L E X I TY 13% VS. 100% retailers who hold physical inventory only carry an average of thirteen percent of any manufacturer’s product line +18.33% potential with drop shipping higher profits of manufacturer that drop ships vs. manufacturer who does not 2 Visibility Integration Control Branding CHALLENGES 58% retail respondents who have little or no integration of business processes retail respondents who have little or no integration of technology 3 56% possibilities with drop shipping in omni-channel retail ecosystem 3x parcel volumes 40-90% reduction in order-to-dispatch time 2% .3% drop in customer claims of non-arrival 0 geographic limitations 1/3 total sales delivered via drop shipping 110 365 growth in number of drop shipping suppliers 275 suppliers 7.7 million dispatched items 62,000 active SKUs 6 million parcels delivered ABOUT KEWILL Kewill, a Francisco Partners portfolio company, is a global leader in multimodal transportation management software, providing organizations with a comprehensive end-to-end platform for managing the complexities of transportation, logistics and trade compliance. The Kewill MOVE ® platform helps companies reduce costs, manage volatility and gain greater visibility across the logistics value chain. Trade, Transport, Store, Comply, Manage and Integrate - the Kewill transportation management platform gives you the insight, agility and tools you need to deliver better customer service and streamline global supply chain execution for strategic advantage.The Kewill platform supports supply chain execution activities for over 7,500 companies in more than 100 countries.Visit us at kewill.com. SOLUTION trade transport store comply manage integrate 1 Source: Forrester Research 2012 2 Source: The Journal of the Operational Research Society 2010 3 Source: Aberdeen Omni-Channel Retail Survey 2012 JD Williams
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Transcript of Drop shipping-deconstructed
What is it?
$327B $14.2B
DROP SHIPPINGDIRECT DISPATCH
VIRTUAL INVENTORY
Drop Shipping: a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to the manufacturer or wholesaler, who then ships the goods directly to the customer.
Growth in drop shipping (also known as direct dispatch) has been fueled by omni-channel retail, resulting in a virtual inventory ecosystem for many retailers…
Speed
Product Selection
Productivity
Agility
e-Retail Sales by 20161 drop-shipped orders from a single e-retailer in 20111
DECONSTRUCTED
SUCCESS
Drop Shipping
GROWTH
BENEFITS
COMPLEXITY
13%VS.
100%retailers who hold
physical inventory only carry an average of
thirteen percent of any manufacturer’s
product line
+18.33%
potential with drop shipping
higher profits of manufacturer that drop ships vs. manufacturer who does not2
Visibility
Integration Control
Branding
CHALLENGES
58%
retail respondents who have little or no integration of
business processes
retail respondents who have little or no integration
of technology3
56%
possibilities with drop shipping in omni-channel retail ecosystem
3xparcel volumes
40-90% reduction in
order-to-dispatch time
2% .3% drop in customer
claims of non-arrival
0 geographic limitations1/3
total sales delivered via drop shipping
110 365 growth in number of drop shipping
suppliers
275suppliers
7.7 milliondispatched items
62,000active SKUs
6 millionparcels delivered
ABOUT KEWILLKewill, a Francisco Partners portfolio company, is a global leader in multimodal transportation management software, providing organizations with a comprehensive end-to-end platform for managing the complexities of transportation, logistics and trade compliance.The Kewill MOVE® platform helps companies reduce costs, manage volatility and gain greater visibility across the logistics value chain. Trade, Transport, Store, Comply, Manage and Integrate − the Kewill transportation management platform gives you the insight, agility and tools you need to deliver better customer service and streamline global supply chain execution for strategic advantage.The Kewill platform supports supply chain execution activities for over 7,500 companies in more than 100 countries. Visit us at kewill.com.
SOLUTION
trade transport store comply manage integrate
1Source: Forrester Research 20122Source: The Journal of the Operational Research Society 20103Source: Aberdeen Omni-Channel Retail Survey 2012
JD Williams
