Summary
- Suzone transitioned from being an investor to a product manager at Redu, focusing on order management due to merchant feedback.
- Major pain points include manual order processing, inefficiencies in fulfillment, and high shipping costs.
- Key features developed include automated order merging, address correction, and bulk shipping to enhance efficiency and reduce costs.
- Merchants have reported significant time and cost savings, with one example saving $15,000 in shipping costs within 30 days.
- Future developments include a warehouse management system that optimizes inventory placement and picking processes using AI.
- AI integration will allow for smarter inventory management and forecasting, enhancing overall operational efficiency.
- The goal is to create a seamless experience for merchants, reducing manual tasks and improving fulfillment speed and accuracy.
Transcript
0:00 What's up, Suz? >> Hey, Brandon. >> Excited to get started. Happy to have you here. We'll have give it a little bit of time for uh things to join or people to join. All the call booths were taken a good time. Took a quick sprint around the office to try and find a place, but couldn't uh couldn't get one. >> Same with me. >> Yeah. Nice. Okay. Awesome. Well, I'm excited. For anybody that doesn't know, Suz has built a couple of the products here at Redu. Currently building out order management. So, today that's what we're going to focus on. Suz, you do you want to give any more context about yourself? What I guess your process has been like at Redu and landed you on order management?
0:37 >> Um, I'm Suzone. I joined Redu about a year ago. Um, I was actually an investor before this really invested in Redu. Joined Redu because of the team and I believe in the products that we build. Originally started on order tracking at Redu and was the GM of order tracking. grew that and then switched over to the order management system which is our fulfillment software and uh we decided to build that up mostly because of feedback we got from merchants that you know it was a pain that they needed to be solved. Um but I've been loving building that out. It's been really fun.
1:11 >> Yeah, that's great. I think let's just jump in. I think that's a great segue in you had talked about the reason that you're building it based off of pain points. What are like some of the major pain points that you were hearing and then what led you to then go and build this? >> Yeah, good question. So there are a lot of pains around fulfilling orders with merchants. I usually group them in three categories and those are like kind of the three categories that we continually solve problems for. Um the first category is uh like merchants doing manual processes to fulfill. So this is anything that like requires prep on their orders. This could be like, you know, figuring out what to do with your orders that have bad addresses or um, you know, fraud orders and stuff like that. Those are like big problems for merchants. They don't really know what to do with them and it takes a lot of time to resolve them. The second category is we try to make their actual fulfillment process more efficient.
2:06 Fulfilling orders takes a lot of time. It's hard. It's complicated. It requires a lot of human capital. And the more efficient we can make that process, the better for our merchants. They can save money, save time. Amazon has also set a very high standard for how fast orders should be getting out. And so, you know, we're constantly solving around helping our merchants just get better and faster at fulfilling. And then the third category of like the the pain that we solve for is money. And it's just like, you know, shipping costs are like our merchants's second highest cost. and it's very expensive to buy labels. And so just the cost of fulfilling and the cost of shipping, we try to help our merchants solve that problem.
2:49 >> Yeah, that's incredible. I think like you were saying, expectations are getting unrealistic almost with shipping. And so trying to keep up with expectations while keeping people happy and also being able to still like have margin on the back end that you can continue to operate your store and all of that rolls into fulfillment in one way or another, right? being able to still keep customers happy, get it to them the right time in a place that they're happy to then come back and and repeat purchase so that your other expenses and other areas for acquiring a new customer can also stay down like it all plays into it. So excited to to dive in even a step deeper. You had talked about what you had built and the pain points. What are some of the specific features that feed into those pain points that you're building into and what pushed you to prioritize those features first during your build?
3:34 >> Yeah, good question. We didn't prioritize all of them when we first built it out, but I'll go over maybe like one or two features in each of those buckets. Um, and maybe I'll just share my screen and show you guys. >> Yeah, that's great. >> So, I'll take you through these. Okay, so the first problem that I talked about was um the manual processes. So like the most we call it success if like a merchant doesn't have to do anything to prepare their orders before they fulfill and they just can come into their order management system and start fulfilling right off the bat. So that's what we've tried to do. So one by one we've kind of tried to tackle these. So I'm inside of our order management system. I'm going to jump into this dashboard that gives an overview. This is where like a merchant can go at the beginning of the day to see what they need to do today to actually fulfill orders and how many do they have to fulfill. What do they need to do before they fulfill? So I I mentioned at the beginning like two common problems that merchants are solving for um in this category is like incorrect addresses and also like you know fraud. Another one is customer puts in multiple orders right after each other. You don't want to send that out in three boxes. That's three labels that you have to purchase. you should send those out in one. And so a merchant can come here and they'll see like their action items that they need to do at the beginning of the day. They'll see that they have merge suggestions or address.
4:56 So they could come in here and you know view those and make decisions here or like a oneup from that is just to completely automate those. So for more merge orders, you know, where a merchant or a customer is putting in multiple orders, we've built an automerge setting where today a customer is either not merging those at all. They don't even know about them. They're buying different labels or they have to manually go in and merge. Instead of those, let's just merge them ourselves.
5:24 So our merchants can build some criteria that needs to be met in order for orders to merge together. So obviously the names need to match, right? emails need to match. And a merchant can customize this however they want to. But if this setting is on, merchants are saving tons of money by doing this. And they never have to spend another minute or another hour merging orders together. They're saving money and saving time. So, this is a really cool one. I'll show you. Oh, go ahead, Brandon.
5:52 >> Just one more question on it. How frequently would you say that is happening? Like do you have an example of a a merchant that was asking for something like this and how frequently they are were merging themselves and how much time they're saving on the auto merge currently? >> Totally. I mean we have it it varies obviously by size for a merchant. >> Sure. >> But just like one example of one of our merchants, they were they were spending about 45 minutes merging things together and that merchant saves about $7,000 a month on us merging these orders together.
6:25 So, they're saving time, but then they're saving a ton of money off of labels, and they never even have to think about their merches anymore, >> right? Okay. >> Show you I'll show you that for this merchant that I'm actually on right now in just a second for both of these features. So, the next feature I'll just quickly highlight here is um addresses. So, what do you do when an address is wrong? Right now, a merchant is either not doing anything and they'll send out that package and very often it will be marked as return to sender. So they'll get that back like two weeks later and then they have to email the customer, figure out the right address and then send it out again or they'll pause fulfillment for this. They'll have their support team email that customer.
7:04 They'll go back and forth and then they'll finally be able to fulfill it when the address is correct. So we've just completely automated all of that for them. So, I'm inside of our settings right now showing you and this is we basically have two AI agents, sorry, three AI agents now that are actually solving these addresses. One is doing little fixes, one is looking back on previous customer orders to see if the address was correct for their previous order. Um, and the other one is um sending putting an order on hold, sending an email to the customer and then the customer can change their address in the email and in Redu's dashboard and then that will update to to their marketplace. It'll update to Redo and then when that address is now updated, it takes the order off of hold.
7:50 So basically like the merchant never has to worry about a bad address again, right? We're automating all of it. Less return to senders, saving time and money. So, that's just another example of how we've solved some of these problems around merchants having to do a lot of manual processes. >> Yeah, that's that's incredible. And almost like checks and balances along the way to make sure that everything is set up and if you can't get it within your own dashboard, being able to like what you would want your customer support team to do anyways is reach out, make sure you get a valid address. But if that's happening automatically, >> they respond to it. You don't even have to see the response. You don't even know the address was wrong. You don't even need to know anything. You just need to know who's taking care of it.
8:30 >> Very cool. Very cool. >> And just quickly before I moved on to the next thing, you know, this is one of our merchants dashboards that I'm on. Like they've saved $1,000 from automerge in the last 30 days and we've corrected 102 addresses. So that's 102 addresses they would have had to do manually. So very cool for them. >> Significantly more frequent I think than I would have guessed honestly. I was just going to say I think that's more frequent more frequent than I would have guessed that many incorrect addresses happening.
9:00 >> Happens all the time. The next thing I'll go over is how we make our merchants more efficient. I'm only going to go over one of these because I feel like this answer is taking a long time, but we do a lot of things to make our merchants more efficient. We do um you know auto batching. We do um a lot of automations. The one that I'll show you is actually bulk shipments. So, right now when uh when merchants are going to fulfill orders, they'll often just like print out all of their orders and the order of like order came in yesterday, so I'm going to do that one first and then I'm going to do like oldest to newest basically. So, there's not a lot of rhyme or reason to how they're fulfilling it. Redo puts more order in the fulfillment process to make it more efficient. One of the things that we do is bulk shipping. This is um when customers order, a merchant can look at their orders by the actual item that was ordered instead of oldest to newest. So they have this merchant has 34 shipments that all ordered the exact same item.
10:02 And so instead of like fulfilling these 34 shipments throughout the day and having to go back to the bin in their warehouse over and over again randomly, they can just come in here on these 34 shipments and go and grab 34 of this one item all at once and fulfill this at the exact same time. So they'll never have to go back to that bin again because they're doing it all at once. So we have some merchants that use this that say that this has cut down on like 75% of their fulfillment time. Um, and so they're requiring less people to fulfill and less time to fulfill. They're also just getting their orders out a lot faster, right? I mean, it's just so much more efficient than what their process was before. So, this is having a huge impact on our merchants. Um, and it's a very, very cool feature. And then we have a bunch of other automations that help our merchants fulfill faster, but I think this is one that, um, has a very high impact. And then um on the third point of like you know the third thing that we do that really merchants have a lot of pain around is shipping costs.
11:03 And what we try to help our merchants with is just being smarter about shipping. So like you know if someone ordered an expedited order then um we can be smarter about like how we choose which uh carrier they're shipping with. So, we have automations built for our merchants and they're things like, hey, if somebody selected priority shipping at checkout, then choose the priority option. But if they they selected ground shipping, then I want to select the cheapest option of, you know, my different carriers that I want to ship ground with. So, that way you're not having to guess what's the cheapest.
11:44 you're not having to say, you know, I think USPS is cheaper um on, you know, most of my orders, so I'm just going to go with that. Instead, we will rate shop for you and we'll do all the hard work on figuring out what carrier you should actually choose in each scenario. So, this has been really valuable for a lot of our merchants both on like the timesaving side because now no one has to go in and, you know, like actually select a different service. It's alreadyed for them when they're fulfilling. It's also just really big from a dollar standpoint. They don't even have to think about it. They know that Redu is selecting the right carrier for them. So, that's been very effective for our merchants.
12:23 >> Very cool. Walk me through the build out of that flow a little bit. Sorry. Just that's something that we're building, right? But we're able to kind of like work alongside the merchant on building that out to make sure that like you said, it's not even something they have to think about. It's just happening for them on the back end. >> Yep. That's right. That's right. So for every merchant, theirs is going to look a little different, right? Because their checkout options are different, but they can build it out. We can build it out all the same of being smarter on who to who to use as your carrier.
12:51 >> Okay, very cool. You've given us a handful of examples like along that answer of merchants, what they're using, how they're benefiting from it. Are there any others that you have or that come top of mind on just holistically that are having a positive impact with MS and like a specific call out that what's working the best for them? Um yeah, we have the merchants that are use utilizing some of these like automations are definitely receiving like just such an impactful benefit. One of our merchants that we onboarded um about 3 months ago has said that like 90% of his fulfillment process is gone and that 10% now you so they're able to pick faster, pack faster with fewer mistakes, too.
13:34 And so all of those things are just, you know, saving them time and money. Um, and then you know I pulled a couple stats on some of the merchants that are using like automerge and something like and stuff like that. Um, I'll just give like a couple examples of like how effective those are. So like one of our merchants uh located on the East Coast in the last 30 days they've, you know, they do like 5,000 orders a month and they've gotten $15,000 in savings from automerge and they weren't merging before. So, that's like new savings in shipping costs, you know, very very impactful for that brand. Um, another merchant similar like they do 5,000 shipments a month, they got $6,000 of savings last month. So, like just very impactful.
14:23 And all these guys time and money through some of these features. So, it's pretty cool. >> Yeah, that's that's incredible. Incredible. That's $15,000. They then decide either straight a profit or you go reinvest that and find new ways to make that work for you. I think that's a very cool setup. Okay, we walked through a handful of things that you've already built, how it's working. Would love to hear what's on the horizon. Like I know you're uh never stop building, never stop on a vision on on what you want to accomplish. So I'm curious to hear what you have uh cooking right now.
14:55 >> Yeah, good question. We've got a lot cooking. I think the thing that I'd like want to tell you guys about is um probably like the next thing that like our eyes are on is building out a warehouse management system. So, we've got like our order management system right now that does a lot of the fulfillment side of things and you know, we're printing labels and stuff like that. The warehouse management system is going to be cool because it will do everything in your operations in your warehouse. So, we'll know where your inventory is in your warehouse, how much you have, and it will get much more smarter at having route optimization as you go and pick from and pack your orders. So, that will be really cool.
15:40 I'll I'll actually share my screen and just give like a sneak peek of it if that's cool, Brandon. >> Yeah, do it. >> Okay, let's jump in here. Okay, this tab. Okay, so this is cool. Um, most warehouse management systems, they'll do something with like route optimization. Redu's building, we're building ours much smarter. Most are just like where are your bins? It's a toz, you know, it's not super smart on knowing like how relative and close everything is in your warehouse. It's just kind of like your A bin could actually be really close to your Z bin, but you wouldn't know that.
16:16 So, the route optimization is good, but it's not great. So, we've built out this warehouse builder where you can like either upload an image into uh the system of your warehouse and we'll route it for you or you can build it out manually. But basically like this is like a a bird's eye view of your warehouse and where all your bins are sitting. So the idea is when an order comes in, we'll know like, oh, I'm only going to give you orders from these two rows or maybe it's from these rows, you know, and and we'll be able to be much smarter about the orders to give to certain people in your warehouse to go and pick those so that you can pick way more orders in less amount of time. So this is cool.
16:57 And then the next thing that we're kind of building out is the ability to put orders into totes and um and do wave picking. So, this is cool. Um, this is like going to be like what's on an iPad or a phone depending on what you're using in your warehouse, but you'll be able to come in here and a user will sign in and they'll be able to see at a high level like what you need to do today and they can start a batch to go and pick. So, I'm going to pick a batch of 12 orders and I'm going to go start picking them. This is running through that route optimization in the warehouse. So, it's giving me the orders that are close to each other are going to be efficient to go and pick. And you can go through these and actually like pick these. So, as I pick these, I'm going to, you know, I'm on my iPad. I'm manually picking them. It's going through this list of picked orders.
17:48 There's a lot of these. I'm going to go fast. Okay, here we go. So, I'm at the end almost. So, I've picked all of this these products from my bins. And then it's going to have me organize them by order. And so, I'm placing these into totes, right? And so I'm going one by one and scanning items into a different tote. So I'm not going to go through the entire process, but after this I then hand this off to a packer who's then going to, you know, scan to verify the items and actually print off a label and send it send it on its way. So we'll be able to do everything from like, you know, the picking with totes to handing off to the packer. Right now we're mostly at that packer um in this scenario. So, this is this is really cool just because a lot of our merchants like they need this, you know, and and we'll be able we'll be able to allow them to be even faster at picking and even faster at packing all in one software all in one place.
18:43 >> Very cool. I've had a handful of conversations just this past week actually of people asking me like, "When are you guys going to move into like a W space?" And uh we're headed that way. So, very cool. every day, but excited to be able to say we're doing it. We're now building. >> Very cool. I think what's already built in MS, how that coordinates with WMS and what you guys are building, I think is just going to be a very efficient process for a lot of merchants, save them a lot of money, and make their customers a lot happier. So, I think at the end of the day, like very excited about what you're building. as you look at how AI fits into all of this, where I guess where do you see or where are you building that into into this process?
19:25 You already mentioned a couple of the agents on the MS side that you had highlighted, but as you look to build with AI, I guess what excites you on that front? >> Yeah, there is a lot of things AI just allows you to like solve problems that you couldn't solve before. I think like you know any of the things that like merchants are doing manually like completely are just automated they go away. Anything that like suggestion on like where you should put inventory in your warehouse like I'll give you one example that I talked to a merchant about the other day that uses AI and I think is just really cool. So if you are planning a sale, let's say like Black Friday is coming up, you know, and we know like which SKUs are going to move really fast on Black Friday, you know, like we can forecast those things. We could say like to the merchant, hey, we suggest to you merchant that you these sweaters are going to move really fast on your upcoming sale on sweaters. So, we suggest you move those to this part of your warehouse. It'll decrease your fulfillment time by this much. So, we can like not only make suggestions, but also show the impact of those things and like, you know, just be much smarter about the placement in your warehouse, how you should go and pick those items, the order that you should pick them in, everything, everything around that. So I think I think it just becomes a lot more powerful.
20:41 >> Yeah, I love that. I love that. Very cool. I know we're coming up on time. I am very excited about what you're building. I think the efficiency that comes like we had talked about from a toz on the pig pack and ship process, how AI levels that up even more is very exciting on what's already happening and very exciting to see like how fast you build and what we can get into over the coming months. And so next time we have you on, I'm sure you'll be showcasing like a V2 of everything that we went through today. and how it's how it's working. Okay, thank you very much, Suz.
21:12 Until next time. >> Awesome. Thanks everyone. See you.