Smart Shipping Software

Temando

In the last three years alone Temando has experienced 794 per cent revenue growth and has launched two international offices, one in London and one in the United States. Most importantly, the company has been responsible for millions of successful deliveries around the globe.

Temando’s complete solution sets the company apart. “Our solution is not a point solution that does one thing,” Founder and CEO Carl Hartmann explains. “It is the only enterprise, end-to-end [solution] on the planet. We are able to go with that customer journey from the time they look at something on an eCommerce website, to the time that the label is produced in the warehouse.”

This continuous support is crucial. “One of the big challenges that retailers all around the world have had is moving into eCommerce,” Mr Hartmann explains. “And, as eCommerce matures, so do customers’ expectations. As more people go online and customers become savvier, the market becomes more competitive.” As a result, retailers must continually strive to stay ahead of the curve.

Shipping is one of the greatest hurdles that online retailers must overcome, Mr Hartmann adds. The reason, he says, is because shipping influences the entire sale. In fact, shipping is one of the key reasons why online sales are not completed. The numbers are staggering – between 75 and 80 per cent of all online sales are abandoned. “To put this in context, if ten people come to a website, eight don’t complete the sale. The number one reason behind that is shipping.” The problem is either a lack of delivery options or a shipping cost that the customer considers too high.

The exact amount that customers are willing to pay for shipping varies widely, of course, and Temando realises that shipping solutions must be able to handle this complexity. If a customer is buying a $100 item and the shipping cost is $40, that customer will typically abandon the sale, Mr Hartmann points out. But, on the other hand, if the item is “mission critical” – a part that keeps a car or office printer running, for example – the customer may be more than willing to pay that $40 to get the part delivered that day. The key is matching a customer’s needs to the right shipping option. “Fundamentally, what Temando does is [provide] a platform that matches the experiences that a customer wants with the capabilities of a shipping provider,” Mr Hartmann summarises.

He credits his retail background for helping him understand the disparity between customer preferences. “When I was selling TVs in my university days, some customers would help you load it off the truck to save money, while other customers don’t want to lift anything,” he recalls. “You get this polarisation of expectations.” Temando’s innovative solution allows retailers to give customers what they want when it comes to shipping, thereby ensuring that fewer sales are abandoned.

One of the company’s key strategies has been to partner with eCommerce software giants like Magento. “We are all about integrating [as] deeply as we can with the different platforms,” Mr Hartmann explains. “Magento is a great example. It is now the most popular eCommerce software in the world by market share; roughly a third of all global merchants use it.” Temando offers a solution that tailors Magento to an individual’s needs for greater efficiency and increased sales. This means that things like zip code requests no longer get in the way of transactions. “Being built in the US, it [Magento] asks for zip codes,” Mr Hartmann explains. The problem is that the rest of the world uses post codes instead. “It might sound petty, but it confuses people.” And anything that confuses people can stand in the way of a sale.

Temando has also identified the components that software like Magento is missing – and built them in. Filling in these missing pieces is necessary to keep up with an evolving industry. “Five years ago, the average merchant was shipping from one location, but now retailers are shipping from multiple locations. They might have stores, they might have drop shippers; the supply chain model that underpins retail has evolved dramatically. So, we have used our logic and our IP to build in all the parts that are missing.” From “click and collect” to “ship from store”, Temando’s additions “can fundamentally reduce the cost of shipping, which leads to more sales.”

In addition to helping retailers increase sales, Temando also works to lower retailers’ operational costs. Typically, this goal is met “either by introducing a multi shipping provider or multi carrier logic or by automating processes,” says Mr Hartmann. Automation provides huge savings in time and money, yet there are still many retailers out there who are not taking full advantage of current technology. “There are so many things that can be automated through use of technology. But I come across merchants filling out things by hand and going to the post office. You’ve got small merchants that have never been educated that they can automate that. And you’ve got very big merchants that are still assigning orders manually by logic rather than using software to do that.” Some processes must still be handled manually, Mr Hartmann admits, but failing to take full advantage of available technology will almost certainly hold a business back. “Use humans when you need them and technology when you don’t,” he summarises.

The industry has taken notice of the waves that Temando’s innovative solutions have made; the company’s numerous awards include the 2012 Deloitte Rising Star Award – Software sector, 2012 Winner of The Australian Business Awards for Product Innovation, 2012 Winner of The Australian Business Awards for eBusiness, Winner of the 2013 IBM SmartCamp Regional Finals Istanbul, Winner of the 2013 IBM SmartCamp Sydney Finals, and Finalist in the 2012 and 2013 Deloitte Technology Fast 500 Asia Pacific Program. In addition, Mr Hartmann was recently named 2014’s Northern Region EY Entrepreneur of the Year in the Technology category. He was also recognised with this year’s Online Retailer Industry Recognition Award by the Online Retail Industry Awards (ORIAS).

Despite the recognition, Mr Hartmann credits his team for the company’s ongoing success. “It is very much a team effort,” he insists. “[Being] an entrepreneur is about being able to attract and inspire a team around you and create a shared vision. Creating shared vision is one of the very important qualities of successful leadership.” Bringing the team along for the journey is imperative, he explains, because “you can’t win the war by yourself.”

He also credits Temando’s collaborative nature for its success. “We are very focused on building solutions with our customers collaboratively,” he explains. “Everything we have built has been built in collaboration with our customers.” As a result, Temando’s solutions get to the root of industry concerns – and solve the problem. “If you are building a solution for the industry, with the industry, it will be something that the whole industry wants,” Mr Hartmann explains. The team’s past experience in retail has also helped Temando meet customer needs. “Coming from a background in retail, I think that just gives us a unique insight into how to solve the problem because we are tackling it from a very pragmatic way.”

Temando has already tackled a host of eCommerce challenges – and has increased sales around the globe as a result. And the company’s skyrocketing growth is not over yet. With tens of thousands of satisfied clients spreading the word, and more industry solutions already in the pipeline, Temando is still a rising star.

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September 19, 2018, 2:07 PM AEST