The Shipping Dilemma – Outbound Shipping Costs are Killing your Bottom Line
It seems strange to think about the upcoming 2018 holiday season when spring is just begun, but if you want to move the cost reduction needle in a BIG way this holiday season, add more to your bottom line, now is the time to prepare. You’re going to spend 8% or more of your net sales on outbound shipping this year. So, to move the profitability needle BIG, start by looking at a detailed assessment of your outbound shipping costs; which are changing and rising at dizzying rates today.
What you ultimately pay is driven by a complex and ever-changing set of rules, and it’s often not something to tackle alone.
Article Written By | Mark Lightbody, Partner
This is the third in a three-part series on Funding Growth: Mining for Gold Behind Your Buy Button. A quick recap on Part I and II: the Newmine team spends hundreds of hours working with retailers and brands each week. Our clients face real challenges and we are here to help our clients based on our knowledge and shared experiences. As discussed, we have developed this blog series with the intent to help our clients look within their own organization to find solutions to unlock substantial funding sources.
In Part I of this blog series we talked about looking inside your Outbound Shipping Costs. In Part II we focused on Order Profiling. In Part III we will take a deep dive into Customer Returns and Returns Management.
Article Written By | Mark Lightbody, Partner
This is the second in a three-part series on Funding Growth: Mining for Gold Behind Your Buy Button. A quick recap on Part I: the Newmine team spends hundreds of hours working with retailers and brands each week. Our clients face real challenges and we are here to help our clients based on our knowledge and shared experiences. As discussed, we have developed this blog series with the intent to help our clients look within their own organization to find solutions to unlock substantial funding sources.
In Part I of this blog series we talked about looking inside your Outbound Shipping Costs. In Part II we will focus on another area that is just as important; Order Profiling – The Foundation of DC Efficiency.
Article Written By | Mark Lightbody, Partner
This is the first in a three-part series on Funding Growth: Mining for Gold Behind Your Buy Button. The Newmine team spends hundreds of hours working with retailers and brands each week. Our clients face real challenges and our team gets results. To capture our knowledge and share our experiences with you, we have developed this blog series on where to look within your own organization to find opportunities for growth, because after all, that is what we do!
Every online or omni-channel retailer, big or small, global or startup, is challenged to find the budget required to fund the initiatives necessary to meet aggressive growth objectives and stay competitive. Newmine consultants have spent their entire careers in retail operations, and we know the retail enterprise of today is far more complicated than it was even two years ago. Moreover, the retail enterprise of tomorrow will be even more complicated.
Las Vegas, NV (ShopTalk) – March 19, 2018 – Newmine, LLC. announces the launch of their revolutionary cloud-based software to reduce customer return rates. Chief Returns Officer™ enables retailers and consumer brands to take omnichannel commerce profitability to the next level.
With ever increasing pressure to grow top-line revenue, returns have traditionally been accepted as a cost of doing business. However, in today’s highly competitive market, customers expect Fast, Free and Easy returns. This has driven customer return rates even higher, placing increasing pressure on the bottom-line. For a typical specialty retailer this means that every $1M in returns will reduce EBITDA by at least $500K.
Chief Returns Officer™ is like adding a world-class returns expert without the burden of adding additional staff. The software leverages data from multiple sources, as well as data science and AI principles to determine the root-cause of returns in near real-time. Actionable recommendations are then supported via a collaborative cross-functional workflow. This approach allows retailers to solve problems during the selling season, which in turn guards against revenue leak.
While returns will never be eliminated, Chief Returns Officer ™ allows retailers to take informed and timely actions to reduce the return rate and add significantly to their bottom line. Chief Returns Officer ™ is currently in place and producing actionable insights for two major retailers.
“We recognize that offering fast, free and easy returns is important to the success of retail brands,” said Navjit Bhasin, founder and CEO of Newmine. “But that doesn’t mean that returns should be left unmanaged and unchecked. Reducing consumer returns can potentially add millions to the bottom line. This can provide funding for growth initiatives, improve company valuation, and even avoid bankruptcy.”
Newmine was established in 2011 as a highly focused retail consulting firm. Our team is comprised of former retail and supply chain executives with hands-on experience in retail strategy, operations and technology. Newmine’s expertise extends across the entire retail enterprise: “From the first click to the last mile”. The result is a team that thinks strategically, executes flawlessly, and applies our extensive experience to navigate the twists and turns that inevitably pop up in any project.
In January, 2014 Accenture and Hybris, an SAP company commissioned Forrester Research to prepare a Thought Leadership Paper titled “Customer Desires VS. Retailer Capabilities: Minding the Omni-Channel Gap”. This study was based on in-depth interviews with 256 US and European retail decision makers involved with digital commerce initiatives and 1,503 multi-channel shoppers.
The Paper highlights four key findings:
- Technology investment is critical to enabling exemplary omni-channel customer experience
- Omni-channel customer experience is now a brand differentiator
- Many retailers have reached a false state of Omni-channel comfort
- New titles alone won’t cut it-retailers must abolish siloed channel strategies altogether
I sat down with Jerry Socol, veteran retail executive, founder of The Socol Group, and member of the Newmine Advisory Board to discuss the Forrester Thought Leadership Paper, with a particular focus on the organizational challenges presented within the last point.
At CommercialWare, my first company, we pioneered what was then called, multi-channel retail. With roots in catalog mail-order and with the advent of readily available internet access, we innovated and smoothed the edges of our software solutions creating, cross-channel; a more seamless integration of catalog, web and store. By today’s standards, given the rapid evolution of software and hardware options since then, those solutions seem primitive. In terms of commerce, we have evolved from the catalog, to the web via PC and browser, to the smartphone, to the tablet via the browser and apps.
June 2, 2016 – Adapty, an Omni-Channel technology solutions provider, and Newmine, an Omni-Channel retail strategy and execution company, today announced the creation of a strategic partnership. Newmine’s team brings exceptional experience and expertise in the execution of Omni-Channel business initiatives, Adapty provides comprehensive Omni-Channel solutions and technology expertise, as well as strong offshore development capability. The Adapty and Newmine partnership will combine their complementary talents to help retailers execute transformational business and technology solutions in North America and Asia. The partnership will include the joint development of products and services that will substantially improve efficiency and productivity.
“Adapty and Newmine have combined to deliver effective solutions that encompass the entire customer transaction cycle. From the “first click to the last mile,” we can offer an integrated team approach to implement and optimize the Omni-Channel experience” says Navjit Bhasin, Founder and CEO, Newmine.
“We are pleased to be a strategic technology partner with Newmine and look forward to integrating our solution expertise with their deep strategy experience, thus delivering end-to-end value to retailers across the globe.” said Abbas Bhinderwala, CEO, Adapty. “We share the same vision of providing our customers with best options to achieve their business objectives.”
Adapty is a niche consulting company specializing in implementation and support for digital eCommerce platforms. Our experts have provided Omni-Channel solutions for Retail, Luxury Goods, Financial Services, Media, Publishing, Telecom and Subscription Model based businesses.
Collaboration, transparency, plus proven software development and delivery processes allow us to maximize project success. We are specialists in Oracle Commerce, Demandware and Magento Commerce platforms with a proven record of successful delivery. We also provide services in mobile app development, UI/UX development along with manual & automation testing services which complement our core eCommerce services.
Adapty is headquartered in New Jersey, USA with delivery centers in Mumbai, India. For more information visit http://www.adapty.com.
Newmine is a focused consultancy with practices that support the full retail business cycle. Services include systems and operations strategic planning, evaluation and optimization, due diligence for merger and acquisition events, change management and business integration. Newmine provides these services to retailers, consumer brands and private equity firms with investments in the retail sector.
The company specializes in helping businesses develop and bring to market a coherent Omni-Channel retail strategy, assess and optimize operations and systems for revenue growth, cost reduction and risk mitigation. Newmine’s experienced, hands-on team offers a high-value alternative to large, traditional consulting firms.
Newmine’s consultants have worked with internationally known retailers like Barneys, Eddie Bauer, Express, and Staples, Brooks Brothers, Coach, Coldwater Creek, and Orchard Brands, as well as top private equity companies like Golden Gate Capital and Sycamore Partners. Newmine is a business partner with Demandware and Oracle.
For more information about Newmine visit www.newmine.com
August 18, 2015 – Newmine, an Omni-Channel Retail Consulting firm, today announced that it has achieved Gold Partner status in Oracle PartnerNetwork (OPN). By attaining Gold Level membership, Oracle has recognized Newmine for its commitment to establish Oracle related knowledge and for uniquely addressing the challenges of joint customers. This knowledge includes systems and operations planning, evaluation and optimization, due diligence for merger and acquisition events, change management as well as business integration.
“We’re delighted to be named as a Gold level member of Oracle PartnerNetwork,” said Navjit Bhasin, Newmine CEO. “Our experience with helping retailers improve their businesses across process and technology is a perfect fit with the value Oracle brings to the retail world.”
With its Gold status, Newmine receives the benefit of being able to start developing specializations that will allow them to grow their business, increase their expertise, reach higher levels of customer retention, and create differentiation in the marketplace. Gold members also become eligible to resell all Oracle Technology products and can apply to resell Oracle Applications and Industry Solutions. In addition, they receive access to Oracle account representatives and My Oracle Support updates for all products, discounts on training, limited free assessment/exam vouchers, reduced rates on the purchase of Oracle licenses for internal use, discounts on advances customer services and more. For more information about the benefits of becoming an OPN Gold level partner, please visit: http://www.oracle.com/us/partnerships/index.htm
Newmine is a focused consultancy with practices that support the full retail business cycle. Services include systems and operations strategic planning, evaluation and optimization, due diligence for merger and acquisition events, change management and business integration. We provide these services to retailers, consumer brands and private equity firms with investments in the retail sector.
The company specializes in helping businesses develop and bring to market a coherent Omni-Channel retail strategy, assess and optimize operations and systems for revenue growth, cost reduction and risk mitigation. Newmine also enables new infrastructure projects with existing IT and operational staffing. Newmine’s experienced, hands-on team offers a high-value alternative to large, traditional consulting firms.
The team has worked with mid-market and multi-billion dollar retailers like Eddie Bauer, Express, Macy’s, Nordstrom and Staples, internationally known brands such as Brooks Brothers, Coach, Coldwater Creek, Orchard Brands and Patagonia and top private equity companies like Golden Gate Capital and Sycamore Partners. Our experts have kept them competitive, profitable and have helped to enhance the value of their brands. For more information about how Newmine can drive positive change for your business, contact firstname.lastname@example.org or www.newmine.com
About Oracle PartnerNetwork
Oracle PartnerNetwork (OPN) Specialized is the latest version of Oracle’s partner program that provides partners with tools to better develop, sell and implement Oracle solutions. OPN Specialized offers resources to train and support specialized knowledge of Oracle products and solutions and has evolved to recognize Oracle’s growing product portfolio, partner base and business opportunity. Key to the latest enhancements to OPN is the ability for partners to differentiate through Specializations. Specializations are achieved through competency development, business results, expertise and proven success. To find out more visit http://www.oracle.com/partners.
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Newmine is a trademark of Newmine, llc.
As Supply chains are reeling under increasing pressure from competition, omni-channel consumer expectations and the likes of Amazon (employing disruptive technologies), companies are trying to re-align and focus on the immediate challenges. One of the prime forces that all Retailers have talked about at the 2014 NRF is the planning of the omni channel strategy and its successful execution. This Blog digs deeper into the omni channel fulfillment aspect of that strategy.