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1 EDI Made Easy: Leveraging your Magento site for drop ship success

2 EDI Made Easy: Leveraging your Magento site for drop ship success Today s Agenda i. The ecommerce Ecosystem ii. Drop Ship Goals and Objectives iii. The Drop Ship Workflow Defined iv. EDI (Electronic Data Interchange) v. Integration with Magento

3 Our Expertise Business Process Automation Business Intelligence & Reporting Web Development & ecommerce ERP & CRM System Integration Electronic Data Exchange (EDI) Workflow Design & Automation Project Management Drop Ship Deployment Supply Chain Optimization Database Design & Administration Custom Application Development Omni-Channel Architecture Logic Technology is located in Shelton, CT and was founded in

4 EDI Made Easy: Leveraging your Magento site for drop ship success Takeaways: 1. What is EDI and what can it do for my business? 2. How to incorporate drop ship with my Magento site? 3. How can automation reduce time and errors in my order entry process? Today s Webinar is moderated by: George Heudorfer, Dir., Sales Logicbroker

5 ecommerce ecosystem Marketplaces Online markets for merchants and retailers to sell their products Trading Partners Companies that send or receive order related transactions Order Management Systems (OMS) Back office systems used by a call center within a supplier s or a retailer s organization Enterprise Resource Planning (ERP) Backbone of any retailer s or supplier s operation to manage inventory, financials, and orders Shopping Cart Web platform offering a complete online shopping experience

6 Growing U.S. ecommerce Market Market drivers Impact Needs Increase in purchasing frequency of online shoppers Proliferation of mobile devices and tablets Affordable ecommerce solutions enable startup e-tailers to grow quickly Growing pains for small and medium size businesses (SMB marketplace) Companies must compete and innovate to deliver better ecommerce experiences Fragmented systems with duplicate tasks Efficiency in back office operation Streamlined systems integration Scalability for growth

7 Retailers and suppliers need a modernized supply chain with better business processes to control or reduce inventory and warehousing costs. Magento makes it simple and affordable for companies to eliminate traditional manual processes while optimizing their supply chain for success.

8 We are able to process over 40,000 orders a day at our peak time and effectively manage our over 300,000 products online through automations built by the people at Logicbroker. - Bill R., Tech Depot

9 Drop Ship Objectives Eliminate out-of-stock and lost sales when inventory is indeed available Reduce costs and headaches associated with carrying your own inventory Minimize data entry and manual processes through automation

10 Process and fulfill more orders without adding headcount

11 Through rapid growth, the backend is often neglected Manual order fulfillment through phone calls, fax, s, and spreadsheets Backend financial and warehouse management systems with no integration Need automation and integration to: Increase productivity Eliminate errors Increase customer satisfaction

12 A typical order lifecycle within the ecommerce ecosystem 1 Fax/Mail Setup product items (price, inventory, images, brand, attributes) to sell online Order details keyed in or uploaded manually to internal system like an ERP or OMS Warehouse or supplier fulfill the order and send tracking info via or spreadsheet Product is shipped to customer Spreadsheet EDI Customer places order through online shopping cart Send order to warehouse, or /fax purchase order to drop-ship supplier for fulfillment Order information for shipment tracking, invoicing, return, backorder are keyed into various systems based on /spreadsheet from warehouse/supplier

13 What is EDI? Electronic Data Interchange (EDI), is the structured transmission of data between organizations by electronic means.

14 Reduce paperwork & Automate manual processes

15 Common EDI Documents Name Description 204 Motor Carrier Load Tender 210 Freight Invoice 214 Transportation Carrier (TC) Shipment Status 810 Invoice. Invoice sent from the vendor to the merchant 820 ACH Payment (Automated Clearing House Payment) 832 Product Catalog Price File 846 Product Inventory 850 Purchase Order. Ship to address, items to ship Purchase Order Acknowledgement. Got your PO (850), can ship all items, some items or no items. Advance Shipment Notice. Tracking information for the items shipped on the PO (850) 940 Warehouse Order similar to 850 except goes to 3PL WH 945 Warehouse Shipping 997 Functional Acknowledgement (FuncAck)

16 Paper or PO EDI PO (850) EDI requires a mapping of data fields to ensure information flows from one system to another while keeping data integrity in tact.

17 Introducing, a cloud-based integration hub enabling the automated exchange of inventory, catalog, and order information by connecting your website, internal systems, trading partners, and marketplaces Automatic setup of product items to sell online with complete price and inventory synchronization A purchase order is automatically created and sent to drop-ship supplier for processing Flexible communication and integration includes the latest in XML and EDI technology Product is shipped to customer and tracking is synced automatically across systems Once customer places order online, order details are automatically sent to an internal system like an ERP or OMS The supplier acknowledges order and prepares the shipment All necessary procurement documents are generated by logicbroker (invoice, shipment, bar code, reports)

18 Get paid faster by speeding up your order to cash process

19 Automated product import Automated sales order export Automated order fulfillment Extract orders to ERP or external vendors Select the right fulfillment source based on preconfigured rules Update shipment information and trigger Integration with Magento customer updates through

20 Connect Suppliers

21 Free up resources by eliminating manual tasks

22 Magento s Core API provides the ability to manage your web store by providing calls for working with resources such as customers, categories, products, sales orders, shopping carts, and inventory Connect to Magento s Core API via SOAP or XML-RPC protocol $client = new SoapClient( ) $client = new Zend_XmlRpc_Client( )

23 Access to the API can be easily provided via Magento s admin panel

24 Magento s Core API calls Customer API create, retrieve, update, and delete customers and customer addresses Category API manage categories and how products are assigned to categories Product API create, retrieve, update, and delete products Sales API manage sales orders, invoices, shipments, and credit memos Inventory API retrieve and update stock attributes, such as status and quantity Checkout API manage shopping carts and the checkout process

25 Document Transaction Processor Ways To Connect Through Communication Layer EDI Flat Files XML FTP AS/2 VAN Web Service External System Connectors Central Data Hub Web Portal Client Administration Product Data Broker Multi-Tenant Clustered Database logicbroker.net Supplier/Retailer Relationship Management Business Intelligence Business Activity Monitoring Trading Order Broker Standard document definitions for procurement enables ease of integration with new systems

26 Over 500 Trading & Strategic Partners

27 Drop Ship Success Automated integration with retailers Doubled revenue with the same headcount Before we partnered with Logicbroker, we were sending drop ship orders to partners via and keying orders manually. This was adding to ship times as well as our cost per order. We are now integrated via EDI with our partners, and processing drop ship orders without even touching them. -Marty G, Lenmar

28 Drop Ship Demo 1. Retailer, GTO, receives inventory and cost update from Suppliers, UIT that will update Magento automatically 2. Orders are placed on Magento and transmitted automatically via EDI to the supplier to drop ship on retailers behalf An online retailer using Magento 3. Supplier, UIT, pick/pack/ship the orders with retailer, GTO branding 4. Supplier, UIT, sends invoices and tracking information automatically via EDI to retailer, GTO 5. Tracking info is sent to the end-users automatically through Magento template Universal Ink & Toner A Supplier Example and orders are marked completed

29 EDI Made Easy: Leveraging your Magento site for drop ship success For more information: Call (203) Click

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