why freight estimating and quoting are critical to customer service and profitability at xse group n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group PowerPoint Presentation
Download Presentation
Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group

Loading in 2 Seconds...

play fullscreen
1 / 26

Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group. Hosted by: Craig Baratta, Director of Operations & Information Technology Diego Fernandez, Senior Manager, Premier Group.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group' - helmut


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
why freight estimating and quoting are critical to customer service and profitability at xse group

Why Freight Estimating and Quoting are Critical to Customer Service and Profitability at XSE Group

Hosted by:

Craig Baratta, Director of Operations & Information Technology

Diego Fernandez, Senior Manager, Premier Group

slide2
Leading wholesaler of imaging products, with a selection of OEM and compatible printer, fax, copier and data media products. Also offer print management solutions that integrate the sales, service and supplies of printing

In business for over 20 years.

Revenue growth of 40% over the last 4 years

Three distribution center model – CT, TN, CA

Operate under three “brands” – ImageStar (wholesale), Aztec (leasing and service), and Tonerworld.com (direct to consumer)

Two of three warehouses opened within 18months

Overview of XSE Group

jd edwards usage
JD Edwards usage
  • Started running JD Edwards in 2000
  • Currently have 86 users on the system
  • Run Financials, Distribution, integration with custom WebSphere app for web based orders
  • Currently at release level Xe SP24
  • Final stages of 9.1 upgrade underway
infrastructure 2004
Infrastructure 2004

Pennsylvania

Middletown

infrastructure 2005
Infrastructure 2005

Buffalo

Pennsylvania

Middletown

infrastructure 2009
Infrastructure 2009

Buffalo

Pennsylvania

San Clemente

Middletown

New York City

Tarrytown

Miami

infrastructure 2010
Infrastructure 2010

Buffalo

Worcester

Springfield

Pennsylvania

Providence

San Clemente

Middletown

New York City

Tarrytown

Miami

infrastructure 2013
Infrastructure 2013

Buffalo

Chicago

Worcester

Springfield

Fresno

Pennsylvania

Providence

San Clemente

Middletown

New York City

Memphis

Tarrytown

Miami

slide9

A couple of “beauty shots” of part of our warehouse …

Upper level, with conveyor to lower level …

Lower level, packing and filling area …

Warehouse is about 35,000 Square feet

slide10
1995-2012: Next day delivery nationwide at UPS Ground rates

One warehouse in Middletown, CT

Aggressive rates and fuel surcharge cap with DHL

New UPS rates, while discounted, see significant increase over DHL

Overall freight subsidy projected at $3MM if no action taken

Begin a shift to 2day model for all customers

2012-Present: Two additional warehouses

Increase 1-2day coverage with ground service to 80+% of zip codes

Next/Second day subsidy decreasing from 78% of total shipments to 25%

Wholesale Business Model

slide12

Business Challenges - 2012

  • XSE was subsidizing $3MMin freight each year
    • Goal was to reduce subsidy by $1MM
    • Increase billable freight from 40% to 65%
    • Reduce freight cost as a % of total sales from 6% to 3%
    • At the time 78% of all orders Shipped Next day and 22% were ground
slide13

Research

  • Worked with UPS and Fedex to determine placement to increase 2 day ground reach
  • Analyzed our competition for freight programs
    • Found most had standard 2 day ground programs
    • All charged a $2.50 or higher handling fee separate from Freight
    • All charged small order fees for orders under Specific $ amount
    • Competition was determining freight rates based on UPS published rates and often charged full load or above
    • All were charging more than UPS published saver rates for NEXT DAY Service
slide14

Business Challenges - How do we get there?

  • Open 2 more warehouses
  • Temporarily subsidize shipments during transition phase
  • Default all of our customers to ground shipping as our standard
  • Develop standard minimum freight deals for reps to offer based on MOT
  • Create multiple freight options in JDE for each warehouse and each MOT so that we could offer customized freight by MOT and location
  • Pick up regional freight carriers that would add strategic benefit for 1 day ground transportation
  • Create ground programs for all customers that were previously given a next day freight program that would be better cost savings than their current program
slide15
Manage Multiple Carriers and Modes of Transportation

Maintain rates by weight, by warehouse for each carrier/mot

Must be able to compute and upload in bulk

Mechanism to assess handling fees and insurance

Ability to provide price breaks and free freight at certain dollar breaks as well as small order fees

Business Challenges - JDE

slide16

Business Challenges – 2013 – Where do we stand?

  • XSE was subsidizing 3mil in freight each year
    • Goal was to reduce subsidy by 1 mil
    • Increase billable freight from 40% to 65% - We are currently hovering around 60%
    • Reduce freight cost as a % of total sales from 6% to 3% - we are currently at 3.14%
    • At the time 78% of all orders Shipped Next day and 22% were ground- Now 75% of packages ship ground, 15% ship next day and 10% ship 2nd day air.
slide18
Default freight programs by Carrier/MOT/Company

Each Business Unit needs different options for delivery with their own company defaults

All companies offer variants by Bill-To and Ship-To

eCommerce applications must be able to use identical calculations

Business Challenges - JDE

slide22
Inventory Branch Allocation by Destination Zip

Inventory Branch(SDMCU) represents physical warehouse location

Must be selected based on time in transit and UPS zone to allocate each order to the closest warehouse to the destination

Destinations overridden at point of sale, not from address book records

Business Challenges - JDE

how to reach us
How to reach us…

www.xsegroup.com

baratta@xsegroup.com

888-272-8340

slide26

April 7-11, 2014

The Venetian and Sands Expo Center

Las Vegas, Nevada

QuestDirect.org/COLLABORATE

Attend COLLABORATE 14 to hear high-level,

strategic education for the JD Edwards audience. Register through Quest to receive exclusive JD Edwards updates, materials and networking events.

Registration OPEN! Early Bird rates end February 12, 2014.