Slashing Special Order Costs

The Challenge

Special orders are necessary to satisfy customers however the cost and effort to fulfill them makes them a losing proposition. In some instances special order costs are more than the product cost. A special order requires the consumer to go into a store, place the order with an employee who forwards it to their buyer who sends it to the distributor who, if they have in stock will fulfill the order, and otherwise continues to process the order to the manufacturer. The manufacturer then fulfills the special order, sends it to the distributors’ warehouse to receive and catalog then ships it to the dealers’ receiving dock who contacts customer service to arrange for customer pick up or delivery. SKUs that would otherwise never be entered in retailer inventory and point of sale systems have to be added. Invoicing must follow this track both ways to ensure everyone is paid accordingly. Although the apparent cost to a small retailer may seem small, the man hours and effort is large. Large retailers have quantified the cost at around $76!

The Solution

Streamlined special ordering is one feature of Reshare’s Distribution Relationship Management® (DRM) software that can save time, effort and eliminate trailing invoices. DRM enables special orders to be placed, and paid for, by the consumer at home or in-store with an employee. The order is processed direct from the brand and fulfilled per the brands’ predetermined programmed directives (business rules). The item can be shipped direct to the customer, shipped to the store for customer pick up or have delivery arranged by the store – depending on the item and the brands’ rules.

The order requires less handling and possibly less shipping costs, is received by the customer quickly, and most important, no trailing invoice….for anyone.

Advantages for the Brand

  • Ease of special ordering
  • Eliminate order entry costs and errors associated with fax, phone and multiple human touch points
  • Eliminate costly single order invoices
  • Mitigate brand defection that occurs when retailers switch consumers to competitive brands they have in stock to get the sale

Advantages for the Channel

  • Enable special orders without the hassle
  • Ensure fulfillment to customer demand
    Reduce supply chain costs
  • Advantages for the Customer
  • Faster special order processing
  • Access to a brands’ entire product line
  • Ease and convenience

Patented Software

Reshare offers the only patented (US #6594641 and foreign countries) software that enables you to:

  • Deliver products to customers in the most expeditious manner
  • Sell directly to customers while sharing profits with channel partners
  • Credibly demonstrate fairness to channel partners
  • Allow new customers to locate and select an appropriate partner
  • Gain access to valuable customer information

The Internet is the Future

The internet is an increasingly popular shipping destination. Online shopping is currently experiencing the fastest growth of any retail channel. Forrester Research predicts that across all industries online sales will increase at an average growth rate of 14% compounded through 2011 when online sales will account for 15% of total retail sales.

You must meet the consumer where they want to shop and DRM allows you to do this through the most visited location, the brand website. This leads to more profitability and enhanced relationships with your channel and their customers.