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Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

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Page 1: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Backend Fulfillment / Logistics

March 5, 2003

What is backend fulfillment vs. logistics?

Why outsource logistics?

Client, campaign, & program examples

Page 2: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Webster’s Definition of Fulfillment

fulfill-ment n. 2a: to put into effect b: to bring to an end 3a: to convert into reality

Industry Definition of Fulfillment

To pick, pack and ultimately ship or mail materials or products for a customer to an end recipient

The Basis

Page 3: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

The eVolution

Webster’s Definition of Logistics

lo-gis-tics n. 1: the aspect of military science dealing with the procurement, maintenance and transportation of military materials 2: the handling of the details of an operation

A Logistician's Definition of Integrated Direct Marketing Logistics

Facilitating and managing one or more in-house or third-party operational inputs to ultimately process, manage, facility, and report multiple outputs.

Translation: Take away a headache, be invisible to the end recipient and make our customer look good

Page 4: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Types of Services Most Integrated Logistics Facility will Support:

Webstore Development, Merchant Services & Hosting

Order Processing Systems & Online Reporting

Lead & Database Management

Procurement: CD, CDR & DVD Replication/Duplication PrintingShipping Materials

Product Manufacturing, Kitting & Hand-Assembly

Distribution & Shipping

Warehouse Services & Inventory Management

Fulfillment: Literature & Marketing MaterialsE-Commerce, Employee Stores & Product

Project, Promotions, & LaunchesDirect MailRebates & SPIFF

Page 5: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource?

Variable Costs vs. Fix Cost

Reduced Cost by Shared Volume

Control

Extended Resources

Doesn’t want to develop Expertise

Presentation

Startup Cost

Page 6: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource? Variable Costs vs. Fix Cost

Outside Sales

Call Center

Web

Oracle Database

FTP 11 Batch-Files a Day

Inventory Management

CD Replication

Material Procurement

Project Management

Online Reporting Co-Op’s Operating System

Product FulfillmentSales Collateral

Bill of Material Management

Product Assembly

Page 7: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource?

eCommerce Site

Real time operationsWarehousing & Inventory

Management

Customer Service

Product Reorders

Merchant Management

Online Reporting

Co-Op’s Operating System

Product Fulfillment

Reduced Cost by Shared Volume

$ Merchant Account Processing

RMA

Presentation

Page 8: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource? Control

Outside Sales

Inside Sales

IntranetWarehousing & Inventory

Management

Online Reporting

Usage Report

Co-Op’s Operating System

Trade show Fulfillment

Personalize Letters

Kitting of Sale Materials

Password/UserID controls the what the user sees, the amount they can order and how much they are charges

Sales Collateral

Other Distributors

Page 9: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource?

Warehousing & Inventory Management

Online ReportingCo-Op’s Operating System

Product Fulfillment

Palletize Product

International Documentation

Extended Resources

Request entered directly into operation system through Co-Operations Extranet

Kitting of Large Materials

Page 10: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Why outsource?

Outside Sales

Call Center

Web

Oracle Database

Based on UserID visitor transactions are reported and tracked to ultimate sale

Inventory Management

CD Replication

Material Procurement

Project Management

Online Reporting Co-Op’s Operating System

Product FulfillmentSales Collateral

Bill of Material Management

Product Assembly

Doesn’t want to develop Expertise

Startup Cost

CRM Data Management & Reporting

Page 11: Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

Lora Durst

Director of Marketing & Sales

Co-Operations, Inc.

16698 SW 72nd Avenue

Portland, OR 97224

503.620.7967 x312

[email protected]