Choosing the Right Logistics Partner

After working for 3PL's for about 10 years There are 3 mistakes brands make when looking for a new 3PL. Do the opposite of these. #1 - Neglecting Cultural Fit and Communication Styles The relationship with your 3PL is more than just transactional; It is a long term "marriage." Avoid underestimating the importance of cultural fit and effective communication. Misaligned values or communication breakdowns can lead to frustration and inefficiency. Questions you should ask yourself ⬇️ Do you want a slack channel for you and your 3PL? Do you want an account manager on the ground at the warehouse? How quickly do they respond to your inquiries during procurement? (Its probably an indication of what the relationship will be like) Who are the types of people that work at the 3PL? What background do they have? Is it in logistics/supply chain? #2 - Not doing enough thorough research This is the one that bites people in the ass the most. You dont 25 different 3PL's in the mix. You need a solid 5. Better to go a mile deep than a mile wide. As a sales rep - this next part is kind of counterintuitive. Don't take the sales pitch at face value. Look for objective, third-party opinions and reviews to get a well-rounded understanding of their capabilities and service quality. Sure, sites like G2 and Trust Pilot are good but go deeper. Ask the 3PL for client referrals. Even better - go to their customer testimonial page and reach out to the brand by yourself. Go to e-com communities (Reddit, Facebook) - try to get in virtual or in person reviews of the 3PL performance. Once you dwindle down the list to your top 2-3 Then start understanding the company financials. I have seen many 3PL's either been shut down due, forcing merchants to leave abruptly. This is a crucial step. # 3 - Overlooking Scalability and Flexibility: You are, ideally, finding a 3PL partner for the next 3 years. Not the next 6 months. As your business grows, your logistics needs will evolve, and your 3PL should be able to accommodate this growth. Ask how they have supported the growth of brands throughout the years. The answers, or lack thereof, will be telling. Have them give you an example (or two) of them bending over backwards for a client when times got tough. Ask them how peak 2023 season went. Don't take "good" as a surface level answer. Ask more specific questions. Ask to what extent they dealt with large processing delays. What their average delivery time was. Any unexpected situations that came up and how did they handle them? I could go on forever, but these 3 areas are often most overlooked. The more you know, the better you will be choosing the right partner . #3PL #logistics #supplychain

Imagine Barry's frustration as 40% of his e-commerce margins vanished into shipping costs. 📦💸 His business was growing, but profitability felt like an endless battle against logistics expenses. Ever faced a similar challenge? Barry's situation was all too common in our industry. Expensive carriers for every shipment, oversized packaging driving up costs, and zero visibility into supply chain operations were creating the perfect storm. Here's how we streamlined operations at our state-of-the-art facilities and achieved a remarkable 60% cost reduction: 🚀 Optimized carrier selection: We analyzed shipping patterns and matched each order type with the most cost-effective solution, reducing average shipping costs by 35% 📦 Right-sized packaging solutions: Implemented automated packaging optimization that eliminated dimensional weight charges and cut material costs by another 15% 🏢 Strategic 3PL partnerships: Connected Barry with facilities in optimal locations, cutting warehousing costs by 25% while improving delivery times 📊 Enhanced real-time visibility: Integrated inventory management systems that prevented costly stock discrepancies and boosted customer satisfaction scores by 40% The results went far beyond cost savings. Barry's delivery times improved from 5-7 days to 2-3 days for 97% of his customers. Through white label fulfillment solutions, his brand maintained its identity while customer complaints dropped by 70%. Most importantly? Barry shifted from wrestling with daily logistics fires to focusing on business growth and scaling his operations. The key insight: Complex supply chain challenges require strategic, data-driven approaches rather than quick fixes. What logistics challenge is currently holding your business back? 🤔 #EcommerceSolutions #LogisticsExcellence

Should I work with … ? I get this question a lot about delivery providers. But it’s not a ‘yes or no’ answer. Here's why: ➡️ There isn’t one carrier that meets the needs of all shippers ➡️ Just as important as ‘yes or no’, is how, why, and when ➡️ You ultimately have to answer the question yourself Expert consultation can inform the decision. But it's not a substitute for defining specific needs. And sourcing carriers that best meet those needs. Planning on collecting feedback from others? Be careful who you ask. Everyone has an opinion on delivery providers. So, to answer the question, keep this in mind. ➡️ Define your goals and be intentional Do you need to … -improve delivery reliability and/or speed -improve operational flexibility -reduce expense -add capacity A project plan with well-defined objectives and timelines is required. ➡️ Focus on service first Consider carriers that meet specific service needs first. Then solve for the expense. ➡️ Seek out partners, not just delivery providers The right carriers will serve as valuable partners. Who are transparent and supportive. ----- So, the next time you ask ‘should I use this carrier’? Expect much more than a yes or no answer. At least from me. #ecommerce #logistics #retailing

Most partnerships fail within two years. 🤯 😕 This stat surprised me. But the high failure rate is not because the partnerships didn't have a solid joint value proposition. They usually do. But what they don't often have is: a common operational framework. This hit home when Asher Mathew and I were interviewing Richard Ezekiel, author of Coelevate. Richard is at Amazon now, and he has spent decades at Fortune 500 companies and startups. In his book, he codifies what many of us have learned the hard way: sustainable partnerships need structure, not just a shared vision. We discussed: ➡️ The "Partnership T" framework ⬅️ The horizontal bar represents shared customer value, while the vertical bar represents operational structure. Most partnerships focus on the horizontal but neglect the vertical. ➡️ The Virtual Company Mindset ⬅️ Great partnerships function like a shared operating entity between two companies. You're building architecture for two companies to evolve together, which requires workforce alignment and unified metrics. ➡️ Platform Strategy Isn't Plug-and-Play ⬅️ Scaling partnerships means understanding the unique supply chains of each business, not copy-pasting one-to-one models. This resonates with what I often see in market: companies rush to announce partnerships in a splashy press release without building the infrastructure for sustained collaboration. Partnerships needs the operational rigor that sales, marketing, and product have developed. Richard's new book gives us a common language and methodology, while sharing the real life examples that illustrate the core principles. To get more insights on how to build lasting partnerships, listen to the full conversation here: https://lnkd.in/eqycPfC4

Parcel carriers bill using the higher of Actual or Dimensional weight. 📦 Compare shipping 5 lbs. of popcorn to 5 lbs. of bricks. The popcorn, despite having the same weight as the bricks, takes up more space, thus reducing capacity for other packages. How do you calculate Dimensional Weight (in inches)? ➡️ Use the formula: Length x Width x Height of the package, divided by the DIM divisor. The DIM divisor (also known as the DIM factor) serves as the denominator. For example: A 23” x 12” x 10” package with a standard FedEx DIM divisor of 139 = 2760 / 139 = 20 lbs. dimensional weight (rounded up) If the actual weight is 5 lbs., you'll be charged based on the higher 20 lbs. dimensional weight. Pro Tip: Negotiate for higher DIM divisors to cut down on shipping costs and optimize package sizes based on items being shipped. 

Your 3PL isn't just a vendor—it's the single biggest lever you're ignoring. We ship 35,000 orders monthly with a tiny 0.16% error rate. Here's how we turned our logistics from a headache into a competitive advantage... When I tell other founders our error rate is 0.16%, they don't believe me. That's just 50 mistakes in 35,000 monthly orders. If we had settled for “industry standard” rates of 1-3%, that would = 350 to 1050. This isn't luck. It's the difference between a service provider and a true partner in your business. Most founders underestimate the complexity behind the scenes: • Multiple product variations • Bundled offers • Flash promotions • Custom inserts • Subscription management • Retail allocation One small mistake in any of these compounds into customer service nightmares, retention issues, negative brand perception, and cash flow problems. Here’s how we deal with this → Our 3PL built us an HOURLY inventory tracking system with near-perfect accuracy for over six years. Do you obsess over attribution models for your marketing spend but accept outdated weekly inventory counts? That's madness. Real-time inventory visibility changes EVERYTHING: • Confident marketing decisions • Better cash flow management • Proactive stock planning • Prevention of stockouts But the biggest unlock isn't technology — it's communication. We have 20+ dedicated Slack channels with our 3PL team, designed to help organize every possible scenario from customs delays to bundle changes. When something critical happens, we can text their leadership directly. We actually take it on step further with them and have our main rep, JOIN our weekly all hands. This way there are no surprises for them (or us). EVER. Now, tell me a 3PL that's willing to do that? This isn't standard. This is a TRUE partnership. Something you need to forge with your key supply chain vendors. The moment I knew we had something special came a few years ago... When we were about to stock out during a major promotion, our account manager called me at 11pm. But it wasn’t to report the problem, it was to share their solution. ❤️ Other reasons our 3PL works for us: → They're centrally located in the US, providing exceptional blended shipping rates. → Their pricing model has no surprises - we know our costs based on order volume. But most importantly, they treat Obvi like their own business. If you're in the market for a 3PL that truly understands DTC brands and can scale with you, DM me. I don't recommend partners lightly, but this relationship has been transformative for our business.

With the current volatility in logistics, from fluctuating demand to tight capacity, having strong relationships with carriers can significantly impact your bottom line. When carriers have to choose between multiple loads, they’re going to prioritize those from shippers who make their lives easier. This isn’t just about paying top dollar; it’s about being efficient, predictable, and understanding the carrier's needs. Providing flexible pickup and delivery windows, accurate load information, and minimizing detention are some of the critical ways you can stand out. These practices don’t just improve your reputation—they streamline your operations, cut costs, and enhance efficiency. A shipper who consistently respects that time is invaluable. If you’re a shipper of choice, carriers know they’re less likely to run into delays, waste time on the dock, or deal with miscommunication. This trust turns into loyalty. The key to becoming a shipper of choice starts with communication. Clear, upfront information about shipments, loads, and expectations reduces confusion and allows carriers to plan efficiently. Carriers appreciate transparency, and in return, you get a reliable partner who’s more willing to work with you, even in difficult circumstances. It’s not just about relationships; it’s also about operations. Leveraging technology to optimize your supply chain can make you more attractive to carriers. Automated updates, seamless payment systems, and real-time tracking are features that carriers appreciate, and they demonstrate that you value efficiency just as much as they do. With these measures in place, you’ll find that more carriers are willing to work with you—and even prioritize your business over others. In times of capacity shortages, this can be the difference between getting your freight moved or facing costly delays. Moreover, building a reputation as a shipper of choice creates long-term benefits. Over time, it becomes easier to negotiate favorable rates, secure capacity, and establish a consistent network of reliable carriers. #Trucking #OwnerOperator #SupplyChain

Freight Broker vs. Freight Forwarder vs. NVOCC vs. Carrier: Key Differences in Logistics and Shipping In the realm of logistics and international shipping, a variety of entities collaborate to ensure the smooth and efficient movement of goods. However, the roles and responsibilities of these entities are often conflated, leading to confusion. For professionals involved in finance, supply chain management, and logistics, understanding the distinctions between these players is crucial for optimizing cost management, ensuring compliance, and managing contracts effectively. Here’s a detailed breakdown of their roles: Freight Broker A freight broker acts as an intermediary, facilitating the connection between shippers and carriers. While they negotiate rates and coordinate transportation, they do not handle the goods directly. Freight brokers earn commissions on their services but do not assume liability for the cargo. Freight Forwarder A freight forwarder is a comprehensive logistics provider responsible for managing end-to-end shipments. This includes handling documentation, arranging for customs clearance, warehousing, and coordinating multi-modal transportation. Freight forwarders typically issue their own House Bill of Lading (HBL) and assume full responsibility for the movement of the goods, making them a more hands-on entity in the shipping process. NVOCC (Non-Vessel Operating Common Carrier) An NVOCC functions as a carrier without actually owning vessels. Instead, NVOCCs purchase shipping space from ocean carriers in bulk and issue their own House Bill of Lading. They are primarily involved in international shipping, offering freight consolidation services to optimize space and reduce costs. By consolidating smaller shipments into larger ones, NVOCCs can enhance efficiency for their clients. Carrier A carrier is the entity directly responsible for the physical transportation of goods across various modes of transport—whether by road, sea, air, or rail. Carriers are the actual providers of transportation services, and they issue the Master Bill of Lading (MBL), which governs the shipment’s journey. Examples of carriers include trucking companies, shipping lines, airlines, and rail operators. They bear the responsibility for moving the cargo from origin to destination. Why Understanding These Roles Matters Cost Optimization: The choice of provider has a direct impact on freight rates and overall operational costs. Properly selecting the right entity for the job can yield significant savings. Risk Management: Brokers do not assume liability for cargo, whereas freight forwarders, NVOCCs, and carriers do. This distinction is important when evaluating the risk and liability associated with a shipment. Compliance and Documentation: Different providers offer varying levels of service when it comes to customs clearance and documentation. Understanding these distinctions ensures proper compliance and streamlines the paperwork process.

So your business is expanding or has blown up overnight....what should you be looking for in a 3rd party fulfillment (3pl) party. 1️⃣ Expertise and Specialization: Look for a 3PL provider with expertise in your industry and specialized services aligned with your needs. Whether it's e-commerce fulfillment, perishable goods handling, or specialized transportation, partnering with a company well-versed in your sector can offer tailored solutions and insights. 2️⃣ Technology and Innovation: Evaluate the technological capabilities of prospective 3PL partners. Advanced systems for inventory management, order tracking, and real-time analytics can significantly enhance visibility and streamline operations within your supply chain. 3️⃣ Scalability and Flexibility: As your business grows, your logistics requirements may evolve. Seek a 3PL provider capable of scaling operations seamlessly to accommodate fluctuations in demand and seasonal peaks. Flexibility in service offerings and contractual agreements is key to adapting to changing market dynamics. 4️⃣ Geographical Reach and Network: Consider the geographical reach and network of the 3PL provider. A robust network of distribution centers and transportation hubs can enhance speed-to-market and reduce transit times, ultimately improving customer satisfaction. 5️⃣ Operational Excellence and Compliance: Prioritize 3PL partners with a track record of operational excellence and adherence to industry regulations and compliance standards. Certifications such as ISO, C-TPAT, and TSA can signify a commitment to quality and security throughout the supply chain. 6️⃣ Cost and Value Proposition: While cost is a significant factor, focus on the overall value proposition offered by potential 3PL partners. Evaluate not only pricing structures but also the level of service, reliability, and added value initiatives such as sustainability practices or value-added services. 7️⃣ Customer References and Reviews: Finally, seek out customer references and reviews to gain insights into the experiences of other businesses partnering with the 3PL provider. Positive testimonials and case studies can provide confidence in the provider's ability to deliver on promises. Choosing the right 3PL partner is a strategic decision with long-term implications for your business success. By carefully evaluating these factors, you can identify a partner that aligns with your goals, enhances operational efficiency, and drives growth in your supply chain. #SupplyChain #Logistics #3PL #Operations #BusinessStrategy #SupplyChainManagement #Partnership

Trucking Assets: Key Factors in Selecting Freight Partners In the intricate world of freight movement across North America, the significance of trucking assets cannot be overstated. While possessing trucks and trailers is fundamental, it is merely the starting point. To effectively mitigate risks and ensure seamless operations, several critical factors must be considered when selecting the right partners for freight transportation. ☑️First and foremost, safety scores are paramount. These scores reflect a company's commitment to maintaining high safety standards, which is essential not only for compliance but also for protecting the integrity of the cargo and the well-being of drivers. A partner with a strong safety record is likely to prioritize the same values in their operations. ☑️Insurance coverage is another vital consideration. Adequate insurance protects against unforeseen events that could lead to financial losses. It is crucial to verify that potential partners have comprehensive coverage that aligns with the specific needs of your freight. ☑️Lane density in major shipping corridors also plays a significant role in partner selection. Understanding the traffic patterns and demand in these lanes can help optimize routes and reduce transit times. A partner with established expertise in high-density lanes can enhance efficiency and reliability. ☑️The condition and maintenance of equipment are equally important. Factors such as the age of the trucks, the robustness of maintenance programs, and the truck-to-trailer ratio can significantly impact operational efficiency. A well-maintained fleet not only ensures timely deliveries but also minimizes the risk of breakdowns that could disrupt service. However, beyond these tangible metrics lies a more nuanced aspect of partnership: the alignment of values and culture. It is essential to assess the ethics, vision, and operational philosophy of potential partners. Do they share your commitment to quality service and customer satisfaction? A partner whose values resonate with your own can foster a more collaborative and productive relationship. In conclusion, while the logistics of freight movement may seem straightforward, the selection of trucking partners requires a comprehensive approach. By evaluating safety scores, insurance coverage, lane density, equipment condition, and cultural alignment, businesses can make informed decisions that enhance their operational capabilities and reduce risks. Ultimately, the right partnerships are not just about moving freight; they are about building relationships that contribute to long-term success. #partnershipsmatter #winningtogether #truckingproz #wellingtongroupofcompanies #bleedredwhiteblue