great so hi everybody I'm Lincoln white
with Fulton fish market calm thanks a
lot for us for joining us for this
presentation where we talk about how
we've used Magento as a key part of our
technology ecosystem to sell fresh
seafood online which is a pretty tough
product to sell online but we'll talk to
you about the business vision and then
we'll get into the technology ecosystem
thanks a lot for meet Magento for a
great conference
thanks for jury who's been emceeing this
stage for the last couple days great job
and we're glad to be here so John our
CFO will start I think with some notes
about Fulton fish market the seafood
business what the opportunity and
challenges our e-commerce wise sure so
welcome everybody and thank you for
taking the time to meet with us here so
full disclosure I just joined Fulton
fish market about two weeks ago so don't
ask me too many hard questions but I'm
gonna talk to you about why I joined
what makes me excited about the
opportunity for Fulton Street so well
first question is where is pull the
street fish market you see this picture
this is in the Bronx not on Fulton
Street
so the Polk Street fish market moved
from Fulton Street down in the financial
district up into the Bronx about 13
years ago in 2005 just because they
outgrew it so now the full street fish
market is I believe it's about 500 yards
five football fields long
there's millions of pounds of seafood
that go through it every day and we are
the only ecommerce and logistics portal
that operate out of it so we're actually
the biggest buyer out of the poultry
fish market selling to a larger
distributed network and these are just a
couple examples of people playing with
fish inside the market this is out on
the dock so it's sort of a fish market
that you would expect to see and we're
applying the technology at Lincoln to
the team have built out to an industry
that typically hasn't had this type of
application applied to it and we think
the market opportunity is is unlimited
so we're super excited and sort of why
seafood because and why fresh suit
because one is healthy and
the American consumer and the
international consumers as more
information is available realizing that
healthy and fresh food is a way to lower
health care costs have a better and
healthier life lower blood pressure and
so on and so on and also it's better for
the environment as we like processed
fewer things and put them in your body
fewer four-top fewer toxins so and part
this is part of the main value prop this
is what really attracted me like how do
you get the frit the seafood to
somebody's house as quickly as possible
and in a fresh way so it comes from the
ocean fish market or Roger house within
24 to 48 hours like that is the true
like value prop so as a b2b or b2c
consumer if I've ordered something right
now I could have it at my house in
Williamsburg Brooklyn within by tomorrow
afternoon like if I want a couple tuna
steaks a couple pieces of salmon for me
my wife that's easier than even going to
Whole Foods and buying it down the
street so that's what really is an
amazing opportunity in that and I can't
wait to see where this goes just a
couple notes to add to this slide
because it's big about what we're trying
to accomplish this is how me growing up
in Ohio bought seafood and not only was
it a five step process very often the
ocean 70% of the seafood this consuming
United States is caught in unregulated
polluted waters in Asia 70% of the
seafood that's caught in North American
waters it's highly regulated
transparently caught and source
sustainably fished is sent to Asia
because that consumer cares about more
than price they want quality so we're
turning this industry on its head and
going after consumer that's putting more
than cost in the value equation and they
want something that's a day or two out
of the water at home and they're willing
to pay for that if you go to our site
you're gonna see we got BMW prices a big
part of our future objective is to get
them down to Volvo prices but this is
what we're all about so we'll talk a
little bit about the technology
Magento today sits at the center of our
whole technology ecosystem we got a b2b
site for restaurants and and seafood
shops we have a consumer site for all of
you to buy fresh seafood and have it
shipped out of the market sometimes it's
coming in too
market alive and it's at your house the
next day by 10 o'clock in the morning
and then we've got third-party sellers
so box.com is an online Costco they're
selling fresh seafood those orders come
into our Magento system and get
fulfilled out of Magento and we ship for
boxed we've got Gordon food service the
third largest food service provider in
the country they're now offering fresh
seafood in their catalog and those
orders again flow into Magento and we
fulfill them out of the largest seafood
market in the world in the South Bronx
the Fulton fish market these are some of
the parts and pieces of our ecosystem
many of these are familiar to you some
parts that are unique to us are the
routes that we have to manage to get
fresh seafood to businesses on schedule
so in some cases we're shipping pallets
of fresh seafood to Chicago to Las Vegas
to Austin on a nightly basis and we have
to make 4 a.m. flights at a LaGuardia
and JFK in the cargo holds of these
airlines to get the seafood there on
time then we have last mile couriers
that have to pick up this seafood in the
last mile couriers vary depending on the
load on the city to get the seafood to
the right restaurant for the consumer
I'd say 99% its UPS and FedEx Next Day
Air but for the b2c business which right
now is larger than the b2b the b2b
business which right now is larger than
the b2c there's a lot of logistics and
last-mile coordination and I'll talk to
you a little about that SendGrid for
emails QuickBooks is our financial
system we're questioning whether we're
outgrowing that we've got attached to
Magento a lot of custom built in PHP and
my sequel applications a work order
management system that I'll give you a
quick glimpse of salespeople are
constantly making deals in the field
with restaurants about hey we'll give
you this established price for some
seafood and we have a system outside of
Magento that updates those committed
prices and then make sure we're
invoicing the consumer against their
orders on the price as we committed to
not only is our product difficult
because it's got to be fresh and get
there within a day or two it's difficult
because the price constantly changes if
you eat fresh seafood at a restaurant is
they're always saying market price
you're in the market on a nightly basis
it's the stock exchange of fish people
are buying and and and selling and
sometimes it's there and sometimes it's
not and when it's not there the price
jacks up
so it's tough for us to manage prices in
the salesperson price so we not only
have a salesperson price management tool
we have a set of automated algorithms
that were constantly upgrading that's
looking at the history of prices in the
market and trying to project a
profitable price on the online site that
folks will also buy at and that's
constantly updating Magento on a daily
basis with market pricing we also use
tiered pricing so if you're a
high-volume customer you might get
better pricing when you're logged in
then if you're a low volume customer
you're somebody who's really a hassle to
deal with and we got another tool that
we use to manage our routes and I'll
give you a quick glimpse of that I think
I can give you a glimpse of some of
these tools real time I'll show you the
routing tool first we created a Magento
attribute just called route and on its
face it's pretty straightforward but the
route is built and it's composed of leg
providers sometimes there's multiple leg
providers there might be multiple
airline hops difference maybe even
changing airlines with different times
associated with that and then last mile
couriers there might be one or two last
mile couriers so in Magento we have an
attribute that's it might say route LGA
to Memphis but that routes composed of
multiple carriers and multiple deadlines
and multiple legs that that we generate
in this PHP based route management
system and that interacts with Magento
to update our reporting so operations
knows what seafoods got to get out the
door at 4 a.m. vs. 6 a.m. versus they've
got until noon to get it ready to go out
the door and it lets them manage their
work better
I mentioned sales person pricing so this
is a PHP based tool that interfaces with
Magento that lets a sales rep see for
their restaurant in this case it's
Ruth's Chris Steakhouse in Austin and
this is Bill's a SUSE AK one of our
sales people he can look at a variety of
seafood the wholesale price that we've
paid most recently in the market on
average the retail price for selling it
for online and here we give Bill some
freedom to do override price deals with
his customer and then if that customers
to order today this is this this pricing
systems gonna interact with Magento to
invoice the customer for those items for
that customer at that override price
so it's sort of a cool little thing
we've built onto Magento to help us
manage SKU level pricing that's changing
very quickly they the customer the the
the sales rep can generate a PDF of this
and hand that price sheet to the
customer and leave them with that the
other little PHP thing we're sort of
proud of that I'll show you this is just
our work management system so every item
gets procured with they're walking
through the market if the markets open
from 1:00 in the morning till 7:00 in
the morning with mobile devices they're
buying the seafood we receive it we take
the temperature the weight we fabricate
it fillet at pin Bonin we cryovac it
package it put it in boxes to go we're
tracking the work for each one of those
items across the tabs on this different
station so will receive the fish
fabricate the seafood assemble and
cryovac it pack it and ship it out the
door here we're looking at a packing
screen with some of the items that
packed and went out the door this
morning we're tracking the location the
quantity of course what's stored came
from the deadline that we had to get
that out to the airport or to the
courier to get it delivered so let me go
back to the slide presentation to remind
myself where we are so these so we you
know we're also this work management
system is constantly talking to Magento
is printing out UPC and bar coded tags
at different stages so we can track all
that information this is what we call a
tote tag that would get attached to a
tote of salmon for example that's gonna
be now broken down into individual
orders and all of this is for quality
control obviously you can imagine not
only is customer satisfaction involved
with the quality control but people can
get really sick too if you don't control
it very well so we always want to be
able to track it all the way back to who
we bought it from in the market we can
track it back from who the who the
market participant bought it from as
well just a glimpse of how we're packing
and shipping with ice packs and
insulation materials and we're trying to
derive algorithms that will tell us
based on an order how many ice packs to
put in and how much the size box and
what type of material it's just a pallet
some of the pallets of seafood that are
going out on a daily basis so what's the
team that's built this it's a pretty
international team our Cordova
right now are out of Romania team called
Oak three that's built a lot of the
custom PHP you've seen they've done the
initial Magento implementation for us
and they've done some really good work
we've got some developers in Canada with
a firm called simply PHP that we're
starting to bring on board and they're
doing good stuff for us we have a team
of folks some folks that are supporting
the market in New York and some
developers in New York and in Washington
DC combination of sequel database - but
my sequel database developers Magento
expertise and PHP expertise so that's a
little bit of a picture of where we are
and how Magento has been huge in
launching this revolution in the seafood
industry where are we going next we're
launching Zendesk for customer service
we really want to accelerate our
direct-to-consumer business we think
there's a huge message and story to tell
that's going to engage a large subset of
consumers that are really concerned
about seafood quality especially when
you learn about the health benefits of
adding fresh seafood to your family's
diet and the lack of transparency about
what you're buying in a restaurant or to
grocery store that's been thawed frozen
thawed frozen five times on its way from
Asia and often isn't even what you think
it is we're going to upgrade the Magento
- we hope and believe that we're gonna
get speed improvements and capability
improvements in the less customization
at the very least we'll probably have to
go to it just to maintain support we
want to consolidate our online stores
today if you go to our site you see we
got a b2b store or b2c store a store for
Community Supported fisheries we want to
aggregate all those and try and use
Magento functionality so it's one it's
one store and then when you log in you
see the product assortment the pricing
and the messaging that's associated with
those different customer groups we're
really going to grow our third-party and
drop shipping so these orders from third
parties that come into Magento we
believe we're the world's best freshest
brand of seafood we can sell it through
any site amazon's a possibility for us
Jets a possibility for us so we're gonna
grow that another thing we're going to
do is source and fulfill at the water we
want to set up these fulfillment centers
when we start to get high enough volume
right where the fish is coming out of
the water why does it need to come into
the New York City market so in some
cases we're doing a lot of salmon coming
from the Pacific to the New York market
to ship it back to the west coast and as
that volume grows it's going to be
affordable for us and make sense for us
to put those fulfillment centers talking
to Magento right out where the fish is
being caught
and prepare the fish there and ship it
to the consumer from wherever it's
coming in off the water inventory
systems a big gap for us today too much
of its in memory and Excel we're buying
fresh seafood some of its got a shelf
life of one two three two maybe five
days if it's shellfish and that's too
often tracked in Excel and in people's
heads and we need to start building a
more robust inventory system to help us
manage inventory that might be left over
from today's purchases and still good
enough to ship out tomorrow and I
mentioned invoicing today we the
customer places in order for a five
pound salmon unfortunately salmon won't
grow to exactly five pounds sometimes
they decided to grow to four point nine
sometimes five point five so you ship
them a 5.5 pounds salmon and you want to
build them for that five point five
pounds the actual weight of the seafood
and sometimes there's a material
difference
we're invoicing the consumers today out
of a system that doesn't put the actuals
back into Magento so that's a problem
for us right when you're a customer and
you go look at your order history you're
seeing what you ordered not what we
actually shipped you and we want to
drive those actuals back into Magento
and invoice out of Magento instead of
out of a separate system I think that'll
really improve customer satisfaction and
reduce a lot of aggravation we have
managing the way we've set it up now it
also makes my life a lot easier yeah so
janta the new CFO he's been on the
ground eight day so the CEO and CFO are
still getting along I'm sure that's
gonna change over time but inventory
system I think he's already identifying
you know as a big big thing we got to do
so we're hitting me getting near the end
here all of you can save 20% off to get
free shipping on fresh seafood at Fulton
fish market calm and glad to answer any
questions if there are any about what
we're doing thank you
oh yeah thanks
yeah if you look at our prices we're
trying to build that into the price so
if you were to go on your phone right
now to our site you're gonna see the
consumer prices are pretty expensive and
we're trying to reflect the cost of
overnight shipping
we keep flipping back and forth between
UPS and FedEx because when you flip back
and forth they keep calling us and
switch back to us and we'll give you a
better deal so we're playing that game
we're on the phone
starting at Alette 11 o'clock at night
calling the airline seeing who can give
us the best rate four pallets of seafood
on a given night to different cities and
trying to negotiate that so it's a it is
not a there's an art and a science to it
because the price already reflects if
you order more than 100 bucks that's
free shipping everybody just expects
that now b2b and b2c so we're trying to
build into the product price the cost of
shipping these material yeah and so
that's big for us getting the logistics
cost down the last mile caught we're
thinking so hard about the last mile
piece and you see that even like jet and
Amazon haven't figured it out we got a
lot of thinking to do there we run our
own courier and delivery service in New
York City we're piloting that to see how
we do with that because we can just take
it right out of the market into New York
and then of course we got third-party
couriers that we've contracted with
across the rest of the country
you