1. 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

2. 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?

3. 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!

4. 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

5. What do I do?

6. 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 ( offers 3PL Central for their WMS, which has established connections with EDI and retail partners

7. 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.

8. 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!

9. 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

10. Contact Details Gina Fierro Jim Purcell SPS Commerce 612-304-8572
Jim Purcell
TF Fulfillment
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