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DSA Partner Magazine An Industry Guide to Operational Strategies The opportunities are endless. Find yours! hp://AnnualMeeting.dsa.org May 31 - June 2

DSA Partner Magazine · reasons direct selling companies choose to outsource order fulfillment . Wondering if it’s time to expand your resources? There are five signs that indicate

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Page 1: DSA Partner Magazine · reasons direct selling companies choose to outsource order fulfillment . Wondering if it’s time to expand your resources? There are five signs that indicate

DSA Partner MagazineAn Industry Guide to Operational Strategies

The opportunities are endless.Find yours!

http://AnnualMeeting.dsa.org

May 31 - June 2

Page 2: DSA Partner Magazine · reasons direct selling companies choose to outsource order fulfillment . Wondering if it’s time to expand your resources? There are five signs that indicate

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Table of Contents

Five Signs that it’s Time to Outsource Order Fulfillment . . . . . . 2Outsourcing to Meeting Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Key Considerations for Expanding a Direct Selling Business Internationally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Thinking Through a Digital Marketing Strategy for Your IBOs . . 12Automated Sales Stored – The Future of Product Access Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Find Your Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Operations Partners Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Six Benefits of Attending DSA’s Annual Meeting

DSA’s new Partner Magazines bring expert insights and information from industry suppliers right to your desk on the subjects that matter most to your business:

Health & Beauty Field Support

Consulting ServicesOperational Strategies

This edition is focused on Operational Strategies for your business . Look for the next publication in your mail box soon! Then, make plans to attend this year’s DSA’ Annual Meeting, May 31 – June 2, in San Antonio, Texas to connect with these content contributors, solution providers and your peers .

Meetings, Incentives & RecognitionTechnology

What do you get when you set aside time to participate in professional education? Everything you need to help you and your company succeed, of course! Receive the following benefits when you participate in this year’s Annual Meeting:

1. Expert KnowledgeGo to the experts to gain the information you need . Each workshop you attend will feature presentations by individuals who can provide you with critical information your company needs to stay up-to-date and ahead of the curve, saving your company valuable resources .

2. Birds-Eye ViewThe industry landscape around you won’t stop changing, and your company’s success depends on your ability to be one step ahead of the next challenge . Gain an important perspective on the industry trends that will guide your company .

3. You’ve Got a FriendWho should you call when you need answers to your most pressing questions? Other industry colleagues and suppliers, of course! But you won’t know who can help best if you don’t foster relationships with other members .

Make contact with your peers to get “right now” solutions and watch your bottom line go up .

4. Nothing Beats the Inside ScoopThe direct selling industry is known for its incredible sharing environment, and the best way to gain access is by participating in our executive education events . Mingle with the industry’s top leaders and learn, direct from the source, solutions that have worked for other companies, saving them time and money . Chances are, the solutions will do the same for you, too!

5. “What a Great Idea!”You’ll hear those words frequently at DSA’s Annual Meeting because our presenters always provide cutting-edge information that will improve your company’s operations . Get the inspiration for your next great idea at this year’s meeting .

6. Get That “To Go!”Solutions only help when you can recreate them back at the office, but you need to be where you can get them! Meet the people who can introduce you to your next great resource, short-cute or tip and bring home the solutions that will drive your company’s bottom line .

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Sales are ramping up but volume levels are unpredictable . It is becoming more difficult to get orders out the door . The software designed to manage your sales consultants is not the best fit for your fulfillment needs . Your marketing department wants to change packaging, adding further supply-chain complexity . Sound familiar? These are just some of the reasons direct selling companies choose to outsource order fulfillment .

Wondering if it’s time to expand your resources? There are five signs that indicate you might be ready to seek out a fulfillment provider .

1. The first factor to be mindful of is whether or not your business is growing – and fast!

As sales increase, it can be challenging to keep up with growing order volume – and it might be hard to predict your company’s needs . The ebb and flow of business, new product releases, seasonality, continuity programs and other considerations can be a challenge in terms of staffing and space . Third-party providers provide resources, flexibility and experience to ease the pain – and costs – associated with variable order flow and growth .

Look for a provider who can meet your needs today and tomorrow . Identify a partner with extensive engineering capabilities to design custom solutions, both near- and long-term . The provider must have proven experience in managing hyper-growth and complex, dynamic supply chains .

If time is of the essence, ask about the provider’s start-up process . Can they get your operation up and running quickly and efficiently without disrupting your service levels? If your requirements change, do they have the flexibility to accommodate them easily? What is their contingency plan?

2. Your consultants – and their customers – do not have time to wait.

Getting your products into the hands of consultants and customers efficiently, accurately and cost-effectively is a top priority . Look for a provider with processes and automation

capabilities to ensure faster fill rates, and quality . Motorized conveyors, pick-to-light technology and automated labeling are just a few examples of mechanized warehouse solutions that can increase your speed to market .

The location of your distribution center(s) can also impact order delivery times and fulfillment costs . Utilizing multiple fulfillment centers can significantly improve service and reduce costs . Look for a provider with facilities in strategic geographic locations, so you can optimize your distribution network relative to where your customers are located .

3. Be aware that technology limitations are cramping your style.

Many direct selling companies try to manage order fulfillment using systems or software designed for other purposes, such as managing sales consultants . However, as your operations become more sophisticated and complex, flexible and appropriate systems are critical for operational success .

In addition, you will inevitably require automated solutions – such as those previously mentioned – to increase efficiency and throughput while maintaining order accuracy as sales volume increases . Hand-picking 100 orders each day is one thing; hand-picking 10,000 daily orders is an entirely different ballgame .

Outsourcing to a third-party provider provides access to advanced technology without the associated overhead investment . Look for a provider with an order and warehouse management system that can seamlessly integrate with your accounting, enterprise resource planning (ERP) or web-based commerce systems . Access to real-time data and automated reporting is critical for up-to-the-minute information about your operations . Confirm that your provider of choice is committed to keeping abreast of the latest developments and upgrades to technology regularly .

4. Remember that you cannot be a Jack-of-All-Trades.

As your business grows, you need to focus on your core competency – what made customers love your product

Five Signs That It’s Time to Outsource Order FulfillmentBy Jeff Jones Vice President, Business Development, Saddle Creek Logistics Services

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Operational Strategies | 3

in the first place . But, there are many details to distract you . Modifying products to meet customer preferences, assembling welcome kits for new distributors, monitoring inventory levels, sizing packages for lowest possible dimensional weight, negotiating transportation rates… the list is never-ending .

You need expert assistance . Look for an experienced provider in the direct selling space who can apply creative processes and best practices – preferably with proven experience handling your type of product or special requirements, such as large-sized or high-value items, customization needs, shipping to consultants or direct to customers and so forth . They will help you anticipate needs and recommend changes so you can be more responsive to your customers .

A fulfillment provider that offers a variety of integrated services, such as warehousing, packaging and transportation, can be a valuable resource, delivering a single-source solution to streamline your business .

5. Recognize the value of your brand.Order fulfillment is a critical business function and a key component of your customers’ brand experience . Consistency, accuracy and professionalism are essential .

Your fulfillment provider must recognize that they are an extension of your brand and demonstrate their commitment to helping you keep your brand promise .

Attention to detail is a must . If you have a high-end product, for example, you do not want it to arrive on the customer’s doorstep in a battered box or – worse yet – damaged due to poor packaging . If you deliver to consultants, is there a detailed packing slip that helps them to deliver their customers’ orders efficiently?

When researching potential providers, ask about their quality assurance processes . What protocols do they have in place? Do they routinely seek out opportunities for continuous improvement? How do they handle problems when they arise? This is also a good time to learn how they communicate with customers and discuss your preferences .

Many direct selling companies recognize that they can better control costs, accommodate business growth and ensure service excellence by outsourcing some or all of their fulfillment needs .

Jeff Jones is Vice President, Business Development, Saddle Creek Logistics Services

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For decades, U .S . companies have adopted the practice of outsourcing various aspects of operations to cut costs and improve operational efficiency .

In corporate America, this practice often means cutting in-country job opportunities in search of cheaper labor abroad . But, for direct selling companies, “outsourcing” production and fulfillment operations quite often means a very different practice – one in which the structure of the home office remains fully intact while company leaders devote their time and energy to their core strengths .

“[Outsourcing] provides the ability for a company to focus on the core competencies of the business, such as marketing and product development,” said Brick Bergeson, Chief Operating Officer for Jamberry Nails . “Businesses can scale and leverage economies of scale from using outsourced partners who are experts, have invested in systems and so forth . Ultimately, the customers and distributors will receive higher levels of service . By outsourcing, the company can also remain nimble by not having to build a complex internal operational infrastructure .”

In most cases – although cutting costs may be the initial motivator in the decision to outsource – direct selling companies often find that third-party support opens opportunities for new projects and initiatives .

“If done properly, the end consumer will see the benefit of outsourcing in the price of the product,” said Jim Brown, Chief Operating Officer for USANA . “Outsourcing has its place when volume levels are driving the business . One example of positive outsourcing would be adding a product line . It’s much more cost-efficient to utilize a third-party vendor to produce a product before it becomes profitable than obtaining the equipment, service and manpower required to manufacture a small amount . As volume grows, the company can determine the right time to manufacture the product in-house to save money .

And, for companies experiencing rapid growth, the benefits of outsourcing quite often become all the more apparent right away .

“The benefit of outsourcing comes into play especially when companies can no longer meet demand with their present distribution model,” said Randall White, President of Usborne Books and More . “If the outsourcing is visible to the end consumer, it could be perceived as better and quicker service as the outsourcing could be done in multiple locations .”

For young companies fortunate enough to experience rapid growth out of the gate, third-party support often fills a critical role as company leaders chart plans for continued success .

“As a small and rapidly growing business, we view outsourcing as necessary and beneficial for efficiency,” said Damien Douchet, Chief Operating Officer for H2O at Home . “Partnering creates relationships that hone our own organizational functioning and improves both our processes and our collaborators’ processes .”

From the outset, H2O at Home has outsourced activities such as packing and shipping, Douchet said .

“Working with a vendor who performs functions for us forces us to focus on scaling operations, standardizing our processes and clearly communicating changes,” he said .

Whether a company is brand-new or a decades-long veteran of the direct sales channel, it is important that its leaders prepare for the potential benefits and challenges that come with rapid – and unprecedented – growth .

“Companies that experience fast growth should model

Outsourcing to Meet DemandDirect selling companies discuss why timing means everything in the decision to outsource.By Alyssa WoliceFreelance Writer

“ Partnering creates relationships that hone our own organizational functioning and improves both our processes and our collaborators’ processes.” Damien Douchet

COO at H2O at Home

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their business practices for various scenarios — good or bad — so they are prepared for any issues that may crop up,” Brown said . “However, this type of preparation is difficult for start-up companies because history, resources and experience aren’t available to calculate problems along the way . Regardless, all companies should reevaluate their operations on an ongoing basis . Worst-case scenarios should always be planned for, such as operations and supply chain issues, rapid growth or spikes in sales . Companies should also have an operations team dedicated to finding better or low-cost methods of doing business . As a company grows, opportunities may be lost if the organization is managed with a ‘small business’ mentality .”

As such, companies must confront the sometimes-grueling task of forecasting, Bergeson noted .

“One of the biggest challenges companies face is planning ahead and estimating demand in order to coordinate with vendor suppliers to stay ahead,” he said . “Depending on lead times, certain products could be particularly challenging to keep in stock .”

Additionally, companies must manage vendors in a manner that reduces risk and ensures vendors have the capacity to keep up, Bergeson said .

“Companies must also maintain appropriate service levels, such as by providing customers with the visibility expected for shipments, tracking, delivery times, and so forth,” he said . “Ultimately, that initial impression plays a huge role in long-term retention and helping to sustain momentum .”

Before making the decision to look outside for operations support, direct selling companies should consider a number of factors – not the least of which is budget .

“I believe finance is the biggest factor when considering outsourcing distribution operations,” Brown said . “To me, the question is, ‘When will the company begin saving money by bringing operations in-house?’ Usually, start-ups don’t have the financing or capacity to handle all operations internally, so outsourcing is a good option in the beginning . But once a company grows and experiences larger volume levels, the organization should consider handling its operations internally .”

Once a company determines it is time to outsource, what factors should its leaders consider when choosing a third-party logistics partner?

To start, direct selling organizations should consider whether or not their potential partner is familiar with the industry, Bergeson noted .

“Companies should also ask, ‘Are service level agreements such that quality of service – accuracy and timeliness – meet expectations?’” he said . He added that companies should also consider whether their potential distribution partner is in a position to scale down the road and is it familiar with the potential growth that could occur given the nature of the direct sales channel .

“It is hugely important for the third-party logistics (3PL) company to have a firm understanding of the direct sales business and why it is different from other forms of business,” Brown said . “In fact, when seeking a 3PL, it’s most beneficial to work with one that already has a partnership with a direct sales company in order to speed up the auditing process . However, if that’s not possible, it’s best to select the top 3PL from a delivery perspective and manage the direct selling expectations as the company expands .”

But, despite all the benefits 3PL companies can provide, there are certain aspects of operation direct selling companies should strive to handle themselves, he added .

“A direct selling company should never outsource its quality systems,” Brown said . “Even if the company outsources 100 percent of its products, the end quality system should be managed internally . In addition, the direct selling company should never outsource a product or service pertinent to the company’s overall mission . For example, if the safety and quality of products are the company’s main focus, then the company should produce the majority of products in-house . Or, if a specific ingredient is key to the company’s focus, then the company should be involved with producing every aspect of the ingredient .”

Alyssa Wolice is a freelance writer for the Direct Selling Association.

It is hugely important for the third-party logistics (3PL) company to have a firm understanding of the direct sales business and why it is different from other forms of business.

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2015 is already proving to be an exciting year in the manufacturing world, with reported increases in new orders and production and jobs returning from overseas . The industry is experiencing steady growth and momentum as a result of sustained economic activity, while innovations and new technologies are laying the groundwork for more efficient and intelligent industrial operations .

According to the Institute for Supply Management’s most recent Report on Business, economic activity in the manufacturing sector expanded in February for the 26th consecutive month, and the overall economy grew for the 69th consecutive month . Manufacturers today have the opportunity to build off of the success that the industry experienced over the last few years .

However, with increasingly stringent OSHA regulations, warehouse safety remains a top priority for manufacturers as the economy grows and productivity demands increase . Even minor violations can result in financial penalties up to $7,000, and can rise to $70,000 for repeat offenders . Furthermore, the fatal injury rate for the warehousing industry is higher than the national average for all industries .How can supply chain leaders improve warehouse safety and avoid the financial and human costs associated with an unsafe workplace? Here are three areas to take into consideration this year .

AutomationWhile not a new concept in the manufacturing industry, workplace automation can ease up human resource needs and provide benefits that directly translate to increased safety for workers . With the forklift-free movement on the rise, this year we will see advances in automation (such as 3D machine vision) and robotic solutions (like Amazon’s Kiva robots) to maintain quality and manage labor costs while improving safety .

ReshoringOne of the biggest manufacturing trends in the U .S . today is reshoring . As companies continue to bring outsourced processes back home, they also face the inherent challenges of storing and handling additional volume . Many have

had to revamp storage and labor requirements, material handling and, in some cases, their entire manufacturing process . Safety training and risk assessments of the work environment will need to be a top priority for reshoring companies .

Technology and InnovationThis year, implementing the Internet of Things (IOT) will be a focus for manufacturing companies . While still in its infancy, wearables such as Google Glass contribute to improved efficiency as well as increased material handling . Additionally, as e-commerce spending continues to rise, companies will need to draw on better supply chain and dispensing technologies in order to keep up with the growing pace of the industry .

Manufacturers across all industries face exciting changes ahead . These changes, however, will place an increased responsibility on organizations to prioritize safety in the workplace . Reach out to an expert who can help you adapt to the coming years of fast growth and transformation while considering safety for the future .

Mike Christensen is Director, Key Accounts, IntegraCore

Supply Chain Management By Mike ChristensenDirector, Key Accounts, IntegraCore

“ The future looks promising due to technological advancements, improvements in warehouse operations and jobs returning from overseas.”

Mike Christensen, IntegraCore

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Operational Strategies | 7

[email protected]

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Each year, millions of people around the world find success with direct selling, whether they do so for some extra pocket change or to earn full-time income . In 2014, global direct sales totaled $167 billion, more than 80 percent of which came from outside the U .S .

The Internet has fundamentally changed the way companies do business globally by making it much easier to send and receive products and services across borders . Therefore, it is important for direct selling companies to have an international business strategy . In order to expand into new overseas markets, direct selling companies must complete extensive market research, evaluate the potential customer base, identify potential distributor “leaders,” evaluate costs and conduct market tests .

Still, some of the biggest hurdles direct selling companies face with international expansion include regulatory and compliance challenges .

Key Considerations for Expanding a Direct Selling Business Internationally By Nicole Kikoski Maio Vice President of Business Development, Payoneer

“ Direct sellers must therefore make sure to have a full grasp on the potential specific regulatory risks associated with a given region and product offering.”

Nicole Kikoski Maio Vice President of Business Development Payoneer

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Depending on the country or region, regulators might need to sign off in order for a company to sell goods in that location . Regulations differ by country and the specific types of products a company is trying to sell . Some APAC countries, for example, have very stringent regulations for food and drug sales, and a very limited number of direct selling organizations are able to secure government licenses for in-country operations . Direct sellers must therefore make sure to have a full grasp on the potential specific regulatory risks associated with a given region and product offering .

Direct sellers must also think of compliance on several levels . U .S . companies must know the people and entities with which they do business . For example, all U .S . companies and their foreign entities must be compliant with the Office of Foreign Assets Control (OFAC) and Foreign Corrupt Practices Act (FCPA) . One way to ensure this is through a “Know Your Customer” (KYC) verification program to screen all distributors, ensuring they are legitimate people, who are not on any watch lists .

Direct selling companies can leverage the robust compliance infrastructure of a cross-border payments platform, putting the company in a good position to comply with OFAC, FCPA and other regulations . To maximize success, KYC screening must be friendly, discrete and easy for the distributor to complete, such as via an online form with multilingual support representatives to field any questions .

When considering compliance, it is also important to ensure that the payments platform company leaders select originates from a regulated financial services business . A licensed and regulated financial services business provides direct selling companies with transparency of funds flows and peace of mind that the funds are always secure . Furthermore, it protects direct selling from the need to set up additional bank accounts or acquire licenses to hold distributor funds .

In addition to compliance, benefits of selecting a cross-border payments platform as part of an international growth strategy include operational efficiency, treasury management, risk management and transaction monitoring, payment flexibility and trophy value .

The global banking infrastructure is complex and expensive, and payments go through several intermediary banks with different processes, transfer times and fees . A payments platform addresses these concerns by enabling direct selling

executives to receive cross-border payments quickly and inexpensively and in their local currency . If a distributor has faith in the payments vendor it builds credibility and good faith for the company in a new market .

As a business expands into more countries, the need for a treasury department to manage multiple banking relationships – and internal overhead – increases . A cross-border payments platform manages these complex relationships on a company’s behalf so the company’s leaders can focus on growing the business .

Risk management technology monitors suspicious transactions for direct selling companies, including such red flags as unusual purchase transactions, card load activity, potential identity theft, suspicious new account openings and other risks .

Direct sellers want ultimate flexibility to choose their preferred payment method and control over how they get paid . As such, companies must make sure their payments vendor provides a diverse portfolio of options such as local currency bank transfers, prepaid cards, wires, local currency checks and e-wallets so their distributors feel they are in the driver’s seat with their commissions .

Direct sellers are proud to carry a MasterCard or Visa with their company’s branding . Many distributors use their cards as a marketing tool to engage people they meet every day – from the waitress at a restaurant to the cashier at the grocery store – about the products they distribute or the career opportunity from which they benefit . Furthermore, in emerging economies where card products are not widespread, direct sellers perceive branded MasterCards or Visas as a strong value add to support retention .

Expanding a direct selling business internationally opens the door for increased revenue and an extensive customer base, but it is no easy task . Prior to expanding to any new country or region, it is important to fully understand potential regulatory and compliance challenges . In doing so, you can set your business up for continued success and growth worldwide .

Nicole Kikoski Maio is the vice president of business development at Payoneer Inc., a company that’s empowering global commerce by connecting businesses, professionals, countries and currencies through its cross-border payments platform.

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Operational Strategies | 11

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Operational Strategies | 12

To win new customers and retain existing clients in today’s highly connected world, your IBOs need a digital marketing strategy . If your IBOs are not leveraging the Internet and a digital marketing strategy to build their businesses, they are missing out on the following opportunities:

• Recruiting online With a digital marketing presence, your IBOs can have

access to 2 .4 billion Internet users worldwide – 70% using the internet everyday . That’s 37 .3% of the world’s population .

• Identifying new prospects and nurturing them into clients online

These statistics should be of interest to direct selling firms and their IBOs: 62% of Internet users use the Internet for research (think your product), 58% for shopping (think selling your product), 62 .2% for information about health (think selling your product), 45 .5% to look for jobs (think a source for new IBOs) . With a digital marketing presence, your IBOs can nurture their prospects, over time, with automated digital communications and shorten the buying cycle .

So, what are the direct marketing trends that direct selling organizations should be analyzing to allow their IBOs to capitalize on the Internet?

According to Smart Insights in collaboration with JBH Marketing, the following graph presents the most commercially important digital marketing trends for 2015:

The Challenge

For most direct selling organizations, it can be very difficult to provide an end-to-end digital marketing strategy for their IBOs .

First, two of the biggest hurdles your organization faces are duplicating success and compliance . You need to duplicate your winning lead-generation strategies, sales messages and

digital communications with every new salesperson you bring on board – at the same time, you have to control “the message .”

Second, the majority of your IBOs are not skilled digital sales marketers . They don’t have the expertise or financial resources to utilize cutting-edge CRM and marketing automation tools . They cannot effectively leverage social media to generate and nurture new leads into clients .

Third, most organizations are unable to provide the required enterprise tools to their IBOs because the cost is too high, the set-up is too difficult, and the long-term commitment required to put them on every IBOs desktop is just too challenging and expensive .

Thinking Through A Solution

The following steps will help you to think through the various components and factors when developing a digital marketing strategy for your IBOs .

Step 1: What Are Your Goals? With any program, revenue generation is No . 1 . Think about other goals like traffic increases, lead generation, engagement, client retention, etc .

Thinking Through a Digital Marketing Strategy for Your IBOsBy D . Bruce JohnstonCEO, Co-Founder MyDigitalClients

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Step 2: What Are Your Concerns? Write down all of the hurdles you think your organization will face in providing a program . Think through compliance, costs, training and implementation .

Step 3: What Does Your Sales Process Look Like? Research shows that IBOs who have a sales process in place consistently outperform those who don’t . Need help formulating your sales process? Step 4: What Technology Do You Need? Who will be using the technology? Are the individuals in your organization tech savvy? How important are ease-of-use and implementation for both marketing and sales? What are their core needs? What features are “must haves” and which are “nice to haves?” What can your IBOs afford?

The digital marketing landscape is continuously evolving, and more direct selling companies and their IBOs are

embracing digital channels . In order to differentiate your company and IBOs from the competition, data should be at the heart of your digital marketing decisions . Your customers and your IBOs want and are demanding transparency, personalization and relevant messaging .

Today’s IBOs and their customers are tech-savvy and driven by information . Let your Digital Marketing Strategy help you establish and ramp up your digital presence .

Please join us at booth #128 for our Express Learning Session, “Learn How to Develop and Duplicate a Digital Marketing Strategy for Your Direct Selling Teams,” at the 2015 DSA Annual Meeting.

Bruce Johnston is CEO and Co-Founder of MyDigitalClients

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Operational Strategies | 16

The Internet of Things is bringing intelligence to devices across the globe at an alarming rate and intelligent vending is quickly taking root in the retail landscape .

In fact, IHL Group, a global research and advisory firm for the retail and hospitality industries, predicts that the automated retail industry will grow to more than $1 .1 trillion by 2015 .

It is the consumers who now define the new rules of retail . Long gone are the days when shopping was constrained by shop opening hours; today, the global market is 24/7 . Unfortunately for retailers, however, goods cannot be delivered via fiber optics .

As a multitude of interactive options and technologies have emerged, so too have consumer expectations for a flexible, seamless shopping experience . Personalized, consistent service across all touch points of a business is no longer a mere differentiator of choice, but a must-have . While online retail – driven by adoption of smartphones and tablets – has taken a firm hold across the retail industry, more customer-centric, omnichannel strategies are at the heart of retailers’ business plans .

More and more retailers are enabling customers to choose how, when and where they interact and make purchases by offering a combination of websites, mobile applications, catalogues, call centers, physical stores and kiosks . Click-and-collect fulfilment services and in-store Internet-based

Automated Sales Stores – the Future of Product Access PointBy Marios IacovouCEO, Filuet Group

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ordering terminals are increasingly used to converge sales channels and avoid queueing . To satisfy the higher demands of today’s savvy consumers, retailers implement appropriate supply-chain management and analytical tools to allow measurement of activity and return on investment (ROI) for customers using more than one channel . Successful ominchannel retailers drive all sales channels using the same database of consumers, products, pricing and promotions to provide a seamless interactive experience for its customers, regardless of channel . There are countless benefits to omnichanneling; however, there are also many challenges . Integrating technology platforms is an inherently complex and lengthy process . As a result, many retailers remain paralyzed and unable to implement simple capabilities despite customer demand . On the operational side, in-store staff members – on hourly pay – are expected to be more than sales representatives; they are also product evangelists, customer service advocates and distribution experts .

Automation might prove to be the solution to the omnichannel retail puzzle . Customers no longer expect to interact with a salesperson to purchase a product . Instead, people are buying products online, every day . Automated retail shops are a natural marriage of e-commerce and physical retailing, offering the convenience of buying on-the-go and the instant gratification of shopping in a physical store .

Automated retail provides brands with an intuitive, discreet and highly engaging solution that goes beyond traditional

vending . The new breed of automated retail stores does not only provide secure, around-the-clock product access, but these storeowners also know who is viewing which products . They also monitor market trends, automatically order products when supplies run low, dispense items from shopping lists that have been assembled online or via a mobile device, accept online, e-wallet, credit card and cash payments and dispense change . More importantly, automated retail stores can also serve as an effective “last mile” delivery solution . Local pick-up stations are essential tools in improving customer convenience and are key for future growth via e-commerce . Direct selling corporations across the globe are already implementing innovation in this space through the use of drop-box solutions .

Automated retail is a natural extension to any Web store, and it empowers the customers to make their purchases online before picking up the product at their convenience . As a standalone product access solution, the automated retail store furthers a fundamental new approach to retailing and to “last mile” distribution, while providing organizations an inexpensive way to test new points of sale that were previously inaccessible .

In the direct selling industry, where controlled access to products is paramount, an automated retail store can serve as a convenient product access point for distributors, providing a 24/7, multilingual, pleasant, uniform and efficient ordering experience and giving sellers an opportunity to build their brand awareness .

By placing automated retail at the heart of their commerce strategies, direct sellers can unify online and in-store siloes across all areas of business and culture, adopt a lighter, more agile footprint and adapt to an ever-changing world that is increasingly becoming more connected .

Marios Iacovou is CEO of Filuet Group

At FILUET GROUP, we believe that the direct selling industry has much to benefit from technological innovations such as automated product access points.

To learn more about meetings in Buffalo, see Linda D’Agostino at Booth #98 at the

Annual Meeting. Bring this ad and we’ll give you a Starbucks gift card just for stopping by.

YOU HAVEN’T SEEN BUFFALO.

If you haven’t seen Buffalo lately...

MeetBuffaloNiagara.com

To learn more about meetings in Buffalo, see Linda D’Agostino at Booth #98 at the

Annual Meeting. Bring this ad and we’ll give you a Starbucks gift card just for stopping by.

YOU HAVEN’T SEEN BUFFALO.

If you haven’t seen Buffalo lately...

MeetBuffaloNiagara.com

To learn more about meetings in Buffalo, see Linda D’Agostino at Booth #98 at the

Annual Meeting. Bring this ad and we’ll give you a Starbucks gift card just for stopping by.

YOU HAVEN’T SEEN BUFFALO.

If you haven’t seen Buffalo lately...

MeetBuffaloNiagara.com

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Operational Strategies | 18

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Your company relies on outside vendors and consultants to help conceive, design and implement the projects that make it successful . Finding the right person or company for the job is crucial . During this year’s Annual Meeting tradeshow, you’ll have access to 135 industry vendors who can help you with everything from overhauling your compensation plan to picking the next incentive trip for your sales leaders . We encourage you to make the most of the tradeshow’s open hours throughout the meeting to have conversations with exhibitors about how their companies can help yours grow . Make the most of this time to meet one-on-one with vendors and build the partnerships that will transform your business .

Share Your Experience Visit the solution-filled exhibit hall with your team and take photos inside the 360-degree photo booth, developed by Iacono Productions . Then, share your photos and tweets of your experience on large screens at either end of the expo floor! Have fun and be a part of this amazing technology!

Exhibit Hall Schedule:

Sunday, May 31 Noon – 4:30 p.m. Hall Open for Learning Opportunities6:00 p.m – 8:00 p.m. Blue Jeans Bash Opening Reception

Monday, June 17:30 a.m. – 6:00 p.m . Hall Open for Business

Tuesday, June 28:00 a.m. – 1:00 p.m . Hall Open for Business

Inside the Pavilions:Eight industry vendors will be in the center of the exhibit hall inside unique pavilions . Whether you enjoy a special treat during Sunday’s Blue Jean Bash or browse through their exhibits during one of the networking functions, you’ll want to check out what these pavilions have to offer! Pavilion exhibitors include:

Find Your Solution in the Exhibit Hall at the DSA 2015 Annual Meeting

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Operations Partners Directory

The ConnectionCompany Contact: Melissa HyvareBooth #: 75 Company Description: U .S . based leading call center providing inbound/outbound voice, Live Web Chat, email, SMS and Social Media Response outsourcing solutions .

Direct Distribution CentresCompany Contact: Susan DelveCompany Description: Direct Distribution's nationwide network of shared use facilities, state-of-the-art warehouse management systems and breadth of experience, manages your supply chain from product receipt to customer delivery in Canada . With over one million square feet of existing infrastructure located in Vancouver, Calgary, Regina, Saskatoon, Winnipeg and Toronto, Direct enables you to rapidly deploy your products to grow your business within a targeted region or expand your product line nationally . Regardless of your market entry or expansion needs, Direct offers you a scalable, customized and cost-effective solution . Direct’s demonstrable experience processing thousands of orders per day, for products ranging from after-market parts to natural health products to retail goods to specialty chemicals, gives you the confidence that Direct can fulfill your supply chain needs on-time and with 100% accuracy . No matter what your supply chain needs - Direct provides a solution you can trust .

Filuet GroupCompany Contact: Marios IacovouBooth #: 88Company Description: FILUET GROUP is a supply chain specialist providing contract logistics and BPO solutions to direct sellers entering the Russian and the CIS markets . In an ever evolving logistics landscape FILUET GROUP designs and implements solutions using innovative technologies combined with 20 years’ worth of industry experience . Our whole-hearted commitment to the success of our customers has earned us the trust of some of the most well-known and successful direct selling corporations, which we proudly serve today .

IDSTCCompany Contact: Greg FinkBooth #: 123Company Description: Providing enterprise software, sales force business tools and mobile salesforce web sites, since 2001 IDSTC’s solutions have transformed hundreds of direct sellers’ operational strategies into operational excellence . Our integrated platform provides multi-channel mobile commerce and order management, compensation, genealogy and sales performance management, sales force communications, international business management, inventory and shipping management, sales force business tools and mobile salesforce web sites .

IntegraCoreCompany Contact: Todd ClayBooth #: 107Company Description: Just Push Start! Our Focus, Your Scale, Your Control . Join us at the DSA 2015 Annual Meeting in booth # 107, see you there!

Saddle Creek LogisticsCompany Contact: Jeff JonesCompany Description: Saddle Creek Logistics Services provides comprehensive fulfillment solutions in support of our customers’ business objectives . Direct-selling companies turn to us to improve service to their customers, provide scalability, accommodate business fluctuations, and control supply-chain costs . They especially value our nationwide network, advanced technology and ability to customize operations to suit their special requirements .

PayoneerCompany Contact: Nicole Kikoksi MaioBooth #: 40Company Description: Payoneer empowers global commerce by connecting businesses, professionals, countries and currencies with its innovative cross-border payments platform . In today’s borderless digital world, Payoneer enables millions of businesses and professionals from more than 200 countries to reach new audiences by facilitating seamless, cross-border payments . Additionally, thousands of leading corporations including Google, Airbnb, Elance-oDesk and Getty Images rely on Payoneer’s mass payout services .

My Digital ClientsCompany Contact: Jordan JohnstonBooth #: 128Company Description: MDC DOT is a unique all-in-one marketing solution that provides customer relationship management, marketing automation, social media marketing and more all in a single platform . Digital Marketing for people who lives sales, not technology .

SP Express Company Contact: Niel RandallBooth #: 2Company Description: SP Express is a customer-centric provider of flexible order fulfillment services for high-volume and high-touch commerce requirements . Our leadership team has hundreds of years of combined experience in order fulfillment, warehousing, shipping and transportation services in the U .S ., and we are proud to have been a chosen partner of DSA members for 12 years . SP Express direct selling and eCommerce integrations are turnkey solutions combining inventory-synced distribution and order fulfillment services for clients in both direct-to-consumer and business-to-business markets . We are known for our customized, scalable and cost-effective offering, and we invite all DSA members to present us with your logistics challenges . We wish all Annual Meeting attendees a great show and a prosperous 2015 .

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PresortedFirst Class

US Postage

PAIDWashington, DC

Permit #1916

1667 K Street, NWSuite 1100Washington, DC 20006202-452-8866 | 202-452-9010 Faxwww.dsa.org

May 31 - June 2

Upcoming DSA Events:

DSA Calendar of Events