Maybe Add a Welcome Slide? Hello. Fort Wayne

Transcription

1 Maybe Add a Welcome Slide? Hello Fort Wayne

2 Setting up your operations and

3 Making ecommerce a successful business logistics partnerships

4 Agenda Creating ecommerce operations without inventory Fitz- In person services business Dresr Mobile app Creating ecommerce operations with inventory What to consider Key Takeaways Questions

5 The ecommerce setup of two companies 2 Dresr 1 In Home Styling / NYC A service that sends professional stylists to your home to help you organize your closet, determine what to resell, recommend new purchases, and style what you own. Closet App / Nationwide A consumer facing app that puts your closet on your phone and recommends what to wear and what to buy. Users can create and share outfits, and receive curated purchase recommendations from a variety of retailers - all in a seamless purchase experience 5

6 Step 1: Choose your focus There are so many considerations when setting up your business you have to choose what your #1 objective is. What do you want to be known for? What is your brand? What do you want to be known for? 6

7 Step 1: Choose your focus Hiring and training a team who would be trusted in clients homes to organize their closets and make recommendations for resale, donation and new purchase. What do you want to be known for? 7

8 Step 1: Choose your focus Dresr #1 objective was to sell clothes. To do that, we built a consumer app to help consumers choose what to wear and what to buy via unprecedented Artificial Intelligence recommendation technology. What do you want to be known for? 8

9 Step 2: Infrastructure of ecommerce SITE CREATION We used Squarespace for our blog and affiliate link page. We built our own order management system and site for Fitz from scratch due to our plans for scale with Dresr. We chose to only build an app to launch Dresr no web. 9

10 Step 2: Infrastructure of ecommerce PAYMENTS & GATEWAYS Offline and online PCI compliance 10

11 Step 2: Infrastructure of ecommerce DATAFEEDS (especially for fashion) Affiliate Networks Retailer APIs

12 Step 3: Hiring & training Sourcing Leverage your network. Send a paragraph family and friends can , post to social/linkedin. Interviewing Be sure to get at your #1 focus. Will this person embody it every day? Leverage the network effect of your first hires. Who do they know that also have a similar skill set? Dresr We set up a messy closet in our office that stylists organized as part of the interview process We hired the best AI talent in the world. 12

13 Step 3: Hiring & training We conducted a full day of in-depth initial training on organization, partner information, the Fitz brand, and updates from Brooke Jaffe on trends 13

14 Step 3: Hiring & training Dresr We needed to train the AI engines via humans, and created a very cost efficient infrastructure by category of garment. 14

15 Step 4: What can you outsource / create partnerships? What can you outsource via partnership in order to focus on your #1 priority? We outsourced donation, services partnerships 15

16 Step 4: What can you outsource / create partnerships? We partnered with retailers for in store and online sales Personal shopping at Saks Stylists and clients browse on ipads during the appointment via affiliate links Stylists send personalized recommendations via affiliate links 16

17 Outsourcing and partnerships Marketplace vs. merchant of record vs. reseller Tradeoffs include customer information, remarketing ease, and shipping/logistics What is the evolution plan for your business? How will you transact? We wanted easy conversion via an in-app cart. Chose to outsource at first, build later. Build vs. partner Mobile payments Promotion via retailer partnerships We sourced unprecedented deals with co-promotion from retailers Focused on our hardest challenge getting the app into the hands of millions of consumers 17

18 Step 4: What can you outsource / create partnerships? Quality control to be sure your partners have the same standards you do We immediately address complaints on partners and often take a hit to our margin to be sure the customer has a great experience overall 18

19 Step 5: Measure results and retain/remarket NPS, others Scale of 1-10, with 7 and 8 being passive, counting 0 Fitz had an NPS average of 71 for 2017, world class Referral program Saks gift card Dresr viral outfit sharing Test and learn constantly Dresr: We released apps under different names to test different features Fitz and Dresr: Held focus groups weekly to test different ideas list Listen to what consumers don t say and pre-empt/address those concerns We learned that people were scared to reveal the actual condition of their closet to an outsider. Inquiries vs. bookings. People are attached to their holy sweaters and don t want to be forced to get rid of them. I m not sure your app is real. 19

20 Setting up your ecommerce logistics operations 4 STEP APPROACH Set your go to market strategy, what is your order to delivery window Your delivery window to your customers will determine how many facilities will be needed Technology to support the enterprise Insource, outsource, combination Determine your delivery partners UPS, FedEx, USPS, DHL, other, or combination 20

21 Supply chain is the driver of industrial real estate 91.2% Logistics costs typically account for 90% of the operating costs. Real estate typically accounts for less than 6%. Source: Tim Feemster Foremost Quality Logistics & CSCMP 21

22 OmniChannel distribution- Macy s/walmart Mega Import DCs/ Manufacturer Regional DCs Retail Stores Retailer Website Customers Product Flow Information Flow Source: Tim Feemster, Foremost Quality Logistics 22

23 ecommerce facility makeup/features Tremendous Amount of AI and Automation (i.e. Conveyors, pick to light, & Sortation Systems) Mezzanines: Require Ceilings Multiple Levels Abundance of Car Parking Heavy Power with Dual Redundancy Located in 24/7 Zone Life Systems & HVAC Requirements Increased Source: Scott Belfer, CBRE 23

24 Amazon Baltimore facility / Opened 2015 Source: Tim Feemster Foremost Quality Logistics 24

25 Warehouse Management System- Cloud Based WMS Source: Tim Feemster Foremost Quality Logistics 25

26 UPS Ground - ecommerce transit days Ft Wayne One day covers Milwaukee Chicago & half of IL All of Indiana Southern MI NW & Cleveland OH Louisville Three day covers 60+% of the population Source: 26

27 UPS Ground - ecommerce transit days Indianapolis One day covers Chicago & most of IL St Louis All of Indiana None of MI All of OH Most of KY Three day covers 60+% of the population Source: 27

28 UPS Ground - ecommerce transit days Columbus One day covers Chicago None of MO All Indiana Half of MI All of OH Pittsburgh Western WV Most of KY Three day covers <60% of the population Source: 28

29 Key Takeaways 1. Choose your focus 2. Chose your infrastructure 3. Hire and train 4. Outsource/Partner 5. Measure and make changes 6. Know your go to market strategy - this drives the supply chain 7. Technology to support the enterprise- all elements 8. Insource, outsource, or combination- know what you are good at 9. Determine your DC network configuration 10.Pick your delivery partner(s) 11.The Devil is in the details 29

30 Always know where you are going, what lies ahead Dresr Melissa Feemster C mfeemster383@gmail.com Tim Feemster O C tim@feemsters.com 30

31 THANK Q&A YOU! 31

32 Additional Video Reference Material Voodoo Robotics video/website: Amazon Keva robotics: CBRE Industrial report Q4 2017: 32