EDI Made Easy:

Leveraging your Magento site for drop ship success

www.logicbroker.com

Today’s Agenda i. The eCommerce Ecosystem ii. Drop Ship Goals and Objectives iii. The Drop Ship Workflow Defined iv. EDI (Electronic Data Interchange) v. Integration with Magento

EDI Made Easy: Leveraging your Magento site for drop ship success

Business Process Automation

Web Development & eCommerce

Electronic Data Exchange (EDI)

Project Management

Supply Chain Optimization

Custom Application Development

Business Intelligence & Reporting

ERP & CRM System Integration

Workflow Design & Automation

Drop Ship Deployment

Database Design & Administration

Omni-Channel Architecture

Our Expertise

www.logicbroker.com

Logic Technology is located in Shelton, CT and was founded in 1998

Today’s Webinar is moderated by:

George Heudorfer, Dir., Sales Logicbroker

Takeaways: 1. What is EDI and what can it do for my business? 2. How to incorporate drop ship with my Magento site? 3. How can automation reduce time and errors in my order entry process?

EDI Made Easy: Leveraging your Magento site for drop ship success

Marketplaces

Online markets for merchants and

retailers to sell their products

eCommerce ecosystem

Trading Partners

Companies that send or receive

order related transactions

Order Management Systems (OMS)

Back office systems used by a call center

within a supplier’s or a retailer’s organization

Enterprise Resource Planning (ERP)

Backbone of any retailer’s or supplier’s operation

to manage inventory, financials, and orders

Shopping Cart

Web platform offering a complete

online shopping experience

Growing U.S. eCommerce Market

• Market drivers

Increase in purchasing frequency of online shoppers

Proliferation of mobile devices and tablets

Affordable eCommerce solutions enable startup e-tailers to grow quickly

• Impact

Growing pains for small and medium size businesses (SMB marketplace)

Companies must compete and innovate to deliver better eCommerce experiences

Fragmented systems with duplicate tasks

• Needs

Efficiency in back office operation

Streamlined systems integration

Scalability for growth

Retailers and suppliers need a modernized

supply chain with better business processes to

control or reduce inventory and warehousing

costs.

Magento makes it simple and affordable for

companies to eliminate traditional manual

processes while optimizing their supply chain for

success.

“We are able to process over 40,000 orders a day at our peak time and effectively manage our over 300,000 products online through automations built by the people at Logicbroker.”

- Bill R., Tech Depot

Eliminate out-of-stock and lost sales when inventory is

indeed available

Reduce costs and headaches associated with carrying your

own inventory

Minimize data entry and manual processes through

automation

Drop Ship Objectives

Process and fulfill more orders without

adding headcount

Through rapid growth, the backend is often neglected

Manual order fulfillment through phone calls, fax, emails, and

spreadsheets

Backend financial and warehouse management systems with no

integration

Need automation and integration to:

Increase productivity

Eliminate errors

Increase customer satisfaction

Customer places order

through online

shopping cart

Order information for shipment

tracking, invoicing, return,

backorder are keyed into

various systems based on

email/spreadsheet from

warehouse/supplier

A typical order lifecycle within the eCommerce ecosystem

Send order to warehouse, or

email/fax purchase order to

drop-ship supplier for

fulfillment

Fax/Mail

Spreadsheet

EDI

1

Order details keyed in or

uploaded manually to

internal system like an

ERP or OMS

Warehouse or supplier

fulfill the order and send

tracking info via email or

spreadsheet

Product is

shipped to

customer

Setup product items (price,

inventory, images, brand,

attributes) to sell online

What is EDI?

• Electronic Data Interchange (EDI), is the structured transmission of data between organizations by electronic means.

Reduce paperwork & Automate manual processes

Name Description

204 Motor Carrier Load Tender

210 Freight Invoice

214 Transportation Carrier (TC) Shipment Status

810 Invoice. Invoice sent from the vendor to the merchant

820 ACH Payment (Automated Clearing House Payment)

832 Product Catalog Price File

846 Product Inventory

850 Purchase Order. Ship to address, items to ship

855 Purchase Order Acknowledgement. Got your PO (850), can ship all items, some items or no items.

856 Advance Shipment Notice. Tracking information for the items shipped on the PO (850)

940 Warehouse Order – similar to 850 except goes to 3PL WH

945 Warehouse Shipping

997 Functional Acknowledgement (FuncAck)

Com

mo

n E

DI D

ocum

ents

Paper or Email PO EDI PO (850)

EDI requires a mapping of data fields to ensure information flows

from one system to another while keeping data integrity in tact.

A purchase order is automatically

created and sent to drop-ship

supplier for processing

Flexible communication

and integration includes

the latest in XML and EDI

technology

Product is shipped to customer and

tracking is synced automatically

across systems

Automatic setup of product

items to sell online with

complete price and inventory

synchronization

Once customer places

order online, order

details are automatically

sent to an internal

system like an ERP or

OMS

All necessary procurement

documents are generated by

logicbroker (invoice, shipment,

bar code, reports)

The supplier acknowledges

order and prepares the

shipment

Introducing , a cloud-based integration hub enabling the automated

exchange of inventory, catalog, and order information by connecting your website,

internal systems, trading partners, and marketplaces

Get paid faster by speeding up your order to cash process

Automated product import

Automated sales order export

Automated order fulfillment

Extract orders to ERP or external vendors

Select the right fulfillment source based on

preconfigured rules

Update shipment information and trigger

customer updates through email

Integration

with Magento

Connect Suppliers

Free up resources by eliminating manual tasks

Magento’s Core API provides the ability to manage your web store by providing

calls for working with resources such as customers, categories, products, sales

orders, shopping carts, and inventory

Connect to Magento’s Core API via SOAP or XML-RPC protocol

$client = new SoapClient(‘http://magentostore/api/v2_soap/index/?wsdl’)

$client = new Zend_XmlRpc_Client(‘http://magentostore/api/v2_soap/index/?wsdl’)

Access to the API can be easily provided via Magento’s admin panel

Magento’s Core API calls

Customer API – create, retrieve, update, and delete customers and customer

addresses

Category API – manage categories and how products are assigned to categories

Product API – create, retrieve, update, and delete products

Sales API – manage sales orders, invoices, shipments, and credit memos

Inventory API – retrieve and update stock attributes, such as status and

quantity

Checkout API – manage shopping carts and the checkout process

logicbroker.net

Ways To Connect Through

Flat Files

EDI FTP

VAN

AS/2

Web Service

Web Portal

Client

Administration

Supplier/Retailer Relationship Management

Business Intelligence

Business Activity Monitoring

Do

cum

ent

Tran

sact

ion

Pro

cess

or

Central Data Hub

Product Data

Broker

Trading Order Broker

Multi-Tenant Clustered Database

Communication Layer

Standard document definitions for procurement

enables ease of integration with new systems

External System Connectors

XML

Over 500 Trading & Strategic Partners

Drop Ship Success

Automated integration with retailers

Doubled revenue with the same headcount

“Before we partnered with Logicbroker, we were

sending drop ship orders to partners via email

and keying orders manually. This was adding to

ship times as well as our cost per order. We are

now integrated via EDI with our partners, and

processing drop ship orders without even

touching them.”

-Marty G, Lenmar

Drop Ship Demo

Universal Ink & Toner A Supplier Example

An online retailer using Magento

1. Retailer, GTO, receives inventory and cost

update from Suppliers, UIT that will update

Magento automatically

2. Orders are placed on Magento and

transmitted automatically via EDI to the

supplier to drop ship on retailers behalf

3. Supplier, UIT, pick/pack/ship the orders

with retailer, GTO branding

4. Supplier, UIT, sends invoices and tracking

information automatically via EDI to

retailer, GTO

5. Tracking info is sent to the end-users

automatically through Magento template

and orders are marked completed

EDI Made Easy:

Leveraging your Magento site for drop ship success

For more information:

• Call (203)-929-7633

• Email gheudorfer@logicbroker.com

• Click

www.logicbroker.com