What your company needs to know to grow with E-Commerce Drop-Shipping Basics What your company needs to know to grow with E-Commerce

Agenda Why is drop-shipping so important? What are the selection criteria for a fulfillment company? What is the EDI process & why is it so important?

Why is drop-shipping so important? eCommerce is the fastest growing division in retail today Retailers do not want to take possession of your inventory Inefficient to ship, store, and handle Their warehouses are not set up to pick / pack & ship in “eaches” To grow in retail – you must be able to drop-ship!

Drop-shipping – What is the problem? Suppliers are not set up to drop-ship in eaches Retailers need suppliers to ship in eaches Hence – a problem & an opportunity for the suppliers that figure this out, quickly

What do I do?

Criteria for a fulfillment company They need to have a proven ability to drop-ship Location is critical! Shipping direct to consumer from the Midwest will greatly reduce your shipping costs and delivery times Must have a state of the art Warehouse Management System (WMS) Item setup and establishing inventory in the WMS is easy The integration with EDI & retail partners is seamless TF Fulfillment, Indianapolis, IN (www.tffulfillment.com) offers 3PL Central for their WMS, which has established connections with EDI and retail partners

The EDI Process Customer buys on-line The order is sent via EDI to supplier, integrating with the accounting system. The pick ticket is sent via EDI simultaneously to the fulfillment house The order is picked, packed, and shipped Confirmation of shipment is sent via EDI back to the retailer and to the supplier.

Why is EDI so important? Once the information is set up, … Processes occur seamlessly & without human intervention Orders are sent Pick tickets are sent Confirmations are delivered Product is delivered quickly That’s is why EDI is critical and is why retailers love it!

SUMMARY The growth in retail is being driven by eCommerce and these retailers require suppliers to drop-ship orders Suppliers need to develop a relationship with a world class EDI supplier like SPS Commerce Partnering with a fulfillment company like TF Fulfillment with a proven history in drop- shipping orders will be critical to your long term success

Contact Details Gina Fierro Jim Purcell SPS Commerce 612-304-8572 gmfierro@spscommerce.com Jim Purcell TF Fulfillment 317-290-1333 x22 317-496-8567 Mobile jpurcell@tfpublishing.com