2. Power Series: Fulfillment Strategies Dan Kremers 4 Walls Solutions

3. Presented by: Dan Kremers 4 Walls Solutions Fulfillment Strategies

4. Oops

5.  Strategic Planning  In-House Fulfillment  Out-Sourced Fulfillment  Fulfillment Tips Agenda

6. Avoiding Crisis in Your Business

7. So What’s Your Plan? Start Planning Now, Not After your Crisis Hits!

8. Warehouse and Fulfillment Strategy Companies hire 3PL firms to: Outsource part or all of their supply chain, including inventory management, warehousing, transporting goods, importing and exporting from other countries, and order fulfillment. In-HouseOutsourced 3PL (Third Party Logistics): Refers to companies that provide an outsourcing option for many parts of the supply chain by offering consolidated transportation alternatives, and managing the movement of goods and information for their clients.

9. In-House Fulfillment Close to Operation Provides Visibility Customer Service Level Support based on your objectives Control Process Systems and Labor Cost Reduction As Volume Increases Organizational Knowledge Team Culture and Business Values Consultant Expectations Advantages of In-House

10. In-House Fulfillment Bring in experts They do this every day Invest in Intelligence Reduces hardware and labor costs Prepare to move…………….Often Office vs. Warehouse Do you have the right staff? Fulfillment strategy - Central vs. Regional Items to Consider

11. Outsourcing Fulfillment Focus on Growing Your Business Leverage your Core Competencies Someone else can do it Better Experience and Infrastructure Economies of Scale Flexible Labor and Shipping Costs Variable Cost vs. Fixed Cost Cost per Order and Storage Fees Quick to Market Advantages of Outsourcing

12. Outsourcing Fulfillment Minimum Commitment Typically 2-3 Years Flexibility to Accommodate Sales Spikes and Growth Labor and Facilities Reduce Initial Implementation Costs Building, Software, Hardware Facility Locations Regional Network Advantages of Outsourcing

13. Outsourcing Fulfillment Capability Broken Case vs. Full Case or Pallet Flexibility Changes in business strategies Ability to support growth Geographical locations Automation or Manual Processes Customer service process FIT YOUR CULTURE? Selecting a 3PL

14. Outsourcing Fulfillment Provide accurate specifications Drives processes and costs Pricing strategies Cost Plus Transactional Receiving Storage Selection (Orders, Lines, Units) Shipping Value Added Materials Selecting a 3PL

15. Incentives Commission Payouts Obsolete Inventory Promotions Starter and Bonus Kits Auto Ship Program Balance Monthly Sales Tip #1 “Managing Orders” Balance Monthly Sales Tip #1 “Managing Orders”

16. Barcode Products Tip #2 “Managing Inventory” Barcode Products Tip #2 “Managing Inventory” 1 Dimensional 2 Dimensional UV 2 Dimensional “Barcoding provides opportunity to increase productivity and accuracy”

17. Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Both UPS and FedEx announced it will apply dimensional-weight pricing to all shipments starting Jan. 1, 2015. Dim Weight factor has been drastically reduced from 5184 to 166 Now a 6” x 6” x 6” size box, qualifies for dim weight pricing

18. Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Examples on Shipping Cost Impact

19. Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Avoid Excess Shipping Costs Tip #3 “Managing Shipping” What Can You Do? Avoid Excess Product Packaging

20. Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Avoid Excess Shipping Costs Tip #3 “Managing Shipping” What Can You Do? Pack Efficiently

21. Avoid Excess Shipping Costs Tip #3 “Managing Shipping” Avoid Excess Shipping Costs Tip #3 “Managing Shipping” What Can You Do? USPS Flat Rate Shipping

22. Shipping Frustrations What do you get if FedEx and UPS Merge?

23. Shipping Frustrations

24. Dan Kremers www.4walls-solutions.com dkremers@4walls-solutions.com 866-598-0304 x102 616-443-7964 cell