Chris Reddick (President and CEO at Clarity Ventures) and Ron Halversen (Vice-President of Sales and Marketing at Clarity) discuss the importance of finding a group buying platform that can automate as many tasks as possible.

Part 4 of a 7-part series (Return to Part 3)

RON: The other thing in orders that a lot of people don't think about, and we've got numerous clients here in North America that do this, they might have an office for fulfillment here in the States, but they handle Canadian dollar orders on a website up in Canada quite often.  

So the order gets placed in Canadian dollars and then they do not want to, or can't handle, the Canadian dollars internally because it messes up accounting. It's very difficult to handle that information. So one of the things we do with Connect is—is we talked about the integration in a previous slide—we might be connecting the buying group platform with the back-office ERP, but in the middle we might be connecting to the three people to get delayed in shipping status information about customs and duties. We might be having a conversion API right in the middle where the order comes into Canadian dollars.  

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We parse the order, go up and ask the API, “Okay, this is in Canadian dollars. What's the exchange rate right now? Change it to US dollars. Update the order before placing the order into the ERP.” So the accounting team and everybody in the U.S. that's fulfilling the order don't have to deal with the multiple currencies. That could be another simple one. 

That one happens quite often, international orders and things like that. The order may be placed here, but the targeted shipping address is in France. So now all of a sudden we have to start doing things like that: taxes, intermodal, shipping, different things like that.  When it comes to the orders, the most important thing is to ask, “What is the panacea, right? What is utopia for you? What could you possibly automate?” 

Most of my clients are like, “Oh, we just want to do it real easy. We just need this.” And I'm like, “Yeah, but what do you want? Tell me what you want. Because probably 90% of what you want, we have out of the box, because we literally do this day in and day out.” 

So my best piece of information is, sit down and dream big when creating a group shopping platform. Write every single thing down that you can possibly want. Then, when you go shopping for a platform, if one vendor says, “Oh my gosh, that's pie in the sky, I can give you about 10% of that,” you might find another vendor that says, Yeah, 90% of that's out of the box, the last 10%, the last mile we can do. But it might only cost a couple grand to automate that.” You're like,” I can really have everything I want.” You never know if you don't ask.  

Again, back to what we said. If you don't know what you don't know, maybe you sit down and ask them, “What would you do? What have you seen others like us do? What do you think are best practices, and spend a significant amount of time during your upfront discovery to really mock up a lot of these different scenarios?” The fact of the matter is, most of it's available to you. You just don't know that it's available to you. So Chris, go ahead and dive into anything you want regarding the order system here. 

CHRIS: There's so much here that we can also dig into around governance within the system. Because whenever you're working with more than one party in the system, especially with shipping and fulfillment, inventory and lead time, even the pricing upfront with the group ordering process, these can be really challenging experiences for different members because they actually need the items. It's great that they're getting a discount, that's awesome. But they need them by a certain date or else it's a problem. And so there are a couple of things here that we want to be careful about. 

This is going into integrating with notifications and messaging and tying back all of this data that we're pulling in into workflows. But ultimately, whenever there is a group purchase, we may need a certain number of orders before we can actually execute on placing the order, with the possibly the manufacturer and distributor or being able to fill a container or some truckload, etc. So that's the first thing.  

What is the governance there? To be specific, with this group order, everyone needs to place their orders by this date and time and then they receive notifications if they've expressed interest in participating and they haven't participated yet. And then maybe there's even a model where we rate how high of an integrity there is around people saying they're going to participate and then they don't. And so being able to have some basic sophistication around this governance so that we're engaging folks and notifying them and giving them clear expectations. 

And that's something that you'll hear throughout our talks, expectation management with the end-customer. This is going to go so far to make their self-service experience a really positive one.  

In addition to the pieces there, then you also have, “Okay, the order is placed, the fulfillment is underway, what's the status?” This is where integrations can truly be night and day, because some businesses, they're going to be able to adapt and make fine-tuning adjustments if they just know what's going on, they just need to know. And the credibility of your buyers group as a whole is on the line whenever we're operating the software. And the members need to know if something is on its way and it's delayed, then they can make some changes.  

So be able to reflect the status of where the order is and where the shipment is in its route. And this is really important for the different vendors that you're working with as well, that you're able to integrate with them seamlessly too, so that they get a notification that, “Hey, there's an order.” Maybe they didn't find out about the order because the integration wasn't very good, and this caused a bunch of delays.  

These are all high-level concepts that just speak to what you just you just hit on. 

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RON: Yeah. And I love the comment about the notifications, that leads us right in to the next one when we're really talking about notifications, especially with regards to returns, right? Returns can be one of the most complex features alone of any eCommerce platform, whether it's a buying group or not. 

We have returns in our eCommerce platform, and I'm so surprised how many times I get a call asking about our platform. “Do you have returns?” “Sure. Doesn't everybody have returns?” And the answer comes back most of the time, no. Which surprises me.  

But it's because it's so complex. Is a return just simply, ”Hey, I need to return. And so I click a box, I do a return.” And like our platform, we have to do a simple way out of the box because you can't make assumptions about everybody, right? When you have an SMB come in and a start up, they don't even have QuickBooks, they don't have anything. You can't integrate into a very complex workflow system. You literally have to do everything on the site.  

So it might be simply, I need to return this item. They check a box, they hit submit, it sends the return into the system for approval, and then they have to go in and email them the return label, or an email of what the process is to return it, or they can reject or approve it. And that's what we have out of the box. But then typically, using our Connect platform, we're integrating into an ERP system where we may have to go back in.  

I know other things we have out of the box we've got is, “it eligible for return, yes or no?” If it's perishable and they want to return it, then they're not going to return the item. They're going to discard the item. And so now we have to track how many times we do that, are they abusing the system? 

Is there a restocking fee? Do certain suppliers take the item back and they have to see the item before they'll issue an RMA for replacement? Do they refurbish the item? Do they simply replace it, do they have to replace it? I mean, there are so many iterations of returns. So the thing is, you can [get] analysis paralysis, you can get stuck there very, very easily.  

So I love this bullet about keeping the process in the UI. Simple, right? It's got to be stupid simple. Group buyers have to be able to go in and go, “How do I check to see if this is even eligible for return?” Do you have an FAQ? Is there a self-service area? Is it on the screen of the product? Can they go back to the product in the catalog and download warranty information? Is there an FAQ for returns? Is there a section on the website called FAQs or Return Policy? You know, have you published that?  

You always hear returns for 30 days with receipt, right? And they'll have that in stores and brick and mortar because they're clear on that. They want to be 100% clear when you're leaving, that it's posted what the return policy is, and they'll usually print it right on the receipt. So when you get that paper receipt, it'll say right there on the bottom returns for 14 days with receipt. So you need to do that the same on the online system.  

 

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Automating as many steps as possible can reduce your staff expenses. It also ensures that steps don't get missed. Clarity is ready to show you how to automate your business even more.

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Continue to Part 5 to learn about notifications and returns on a buyers group platform.