The Pain of Drop Shipping – Why Suffer?
The rapidly expanding number of Manufacturers and Suppliers adopting OPAL all come with common business problems that they are trying to solve:
- They are drop shipping a large number of orders daily.
- EDI vendor cost and order processing labor is seriously impacting the profitability of these orders.
- Their order processing capacity is limited by their number of staff available.
- They need to add more staff to keep up.
- Someone needs to perform manual steps to process each order. This often includes things like downloading orders from a retailer portal, loading them into their ERP, going to the portal again to send Acknowledgments, Ship Notices, Invoices and Inventory Updates, creating Packing Slips, using a 3rd party application for Shipping Labels, etc.
Then there’s the profitability issue. With an average cost of $7 – $11 including warehouse handling and order processing labor for a drop ship order it’s really difficult to squeeze out any profit at all on some items, and it certainly impacts the profitability of ALL items.
They also really needed to be able to execute “perfect orders”. Essentially, everything stopped when an order went wrong, forcing them to spend an enormous amount of time and effort researching and correcting the problem and, very often, incurring the expense of a call tag to retrieve the incorrect item and expedited shipping of the product that didn’t arrive when or where it was supposed to. Then, to top it all off, their Vendor Score Card suffered and they were a disappointment to the consumer.
OPAL became their solution of choice for several reasons: It enabled them to process a drop ship order in less than 8 seconds without an order processing intervention, to automatically receive orders from retailers, e-tailers, shopping carts and / or B2B partners, manage all of their EDI transactions, process and invoice orders through their ERP and accounting system, create packing slips and custom branded 3rd party shipping labels and get them to the warehouse for pick, pack and ship – 24 hours per day, seven days per week – even when there’s no one in the office.
It even enabled them to do all of that WITHOUT ANY EDI DOCUMENT COST from a 3rd party EDI vendor.
Overall, it dramatically increased their profitability, increased the quality of their service, was configured to meet their internal business processes, eliminated the need for 3rd party shipping applications, was easy to implement and paid for itself VERY quickly. Does this sound worthwhile to you?