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Robert Cadena and Joe Lynch provide an introduction to 3rd party logistics. 3rd party logistics services include 5 major categories: 1.) Transportation 2.) Warehousing 3.) Logistics 4.) Technology and 5.) Special Services. Robert is the Co-Founder and CEO of a company that provides operational, sales, marketing, and technology support to over 100 3PLs, so he has a very thorough understanding of the business.

About Robert Cadena

Robert Cadena is the Co-Founder and CEO of Lean Solutions Group, which provides operational, marketing, sales, and technology services to the logistics and transportation industry. Prior to the founding of Lean, Robert was the Founder and CEO of Chain Express, Corp, a full-service transportation brokerage specializing in LTL, volume, and truckload transportation. Robert’s experience and expertise in transportation, logistics, technology, and executive leadership make him uniquely qualified to run one of America’s fastest-growing companies. Robert earned a Bachelor’s degree in Economics from Florida International University.

About Lean Solutions Group

Lean Solutions Group provides operational, sales, marketing, and technology support to over 290 customers in logistics and 320 total To succeed in the transportation and logistics business, 3PLs need to be able to hire and retain the very best talent, while keeping a lid on costs. Since the competition for the best talent is fierce companies need an edge that will help them win, Lean Staffing Solutions is that edge. Lean provides a turnkey solution to staffing challenges using a proven process that will improve profits while reducing employee costs. Lean can deliver on this promise because they are the pioneers in helping U.S. based companies set up satellite offices in Colombia. Since 2014, Lean has worked with over 290 satisfied U.S. based transportation and logistics providers. Lean ensures that your satellite office in Colombia is staffed with highly educated, English speaking professionals trained in your company’s processes and systems. The Lean approach is a low cost, low risk, low hassle, and they manage the entire process with their account managers. Lean Staffing Solutions offers a suite of product offerings from traditional staffing to technology, sales, and marketing services.

Key Takeaways: An Introduction to 3rd Party Logistics

• According to CSCMP, a Third-Party Logistics Provider (3PL) is a company that provides multiple logistics services for use by customers. Preferably, these services are integrated, or “bundled” together by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers and finished products from manufacturers to distributors and retailers.
• Sometimes 3rd party logistics companies are described as:
  • Asset-based – companies that own actual assets like trucks, boats, planes, warehouses
  • Non-asset based – companies that don’t own assets like brokerages, service providers, etc.. these companies tend to invest in technology
  • Asset light – companies with assets and brokerage capabilities
• The definitions are confusing because the space is so dynamic and ever-changing.
• The easiest way to look at 3^rd party logistics is by the service they provide, which fall into 5 buckets: 1.) Transportation 2.) Logistics 3.) Warehousing 4.) Technology 5.) Special Services
• Transportation Services
  • Small Package
  • Air Cargo
  • Less Than Truckload (LTL)
  • Truckload
  • Intermodal
  • Ocean
  • Rail
  • Bulk
  • Dedicated Contract Carriage
  • Field Acquisition
  • Equipment / Drivers
  • Final Mile
• Warehousing Services
  • Pick and Pack, Sub-assembly
  • Cross-docking
  • Distribution Center Management
  • Site Location
  • Transloading
  • Vendor Managed Inventory
  • Fulfillment
• Logistics Services
  • LLP/4th Party Logistics
  • Integrated Logistics
  • Just-in-Time (JIT)
  • Global Trade Svcs
  • Inbound Logistics
  • Logistics Process Reengineering
  • Payment Auditing / Processing
  • Inventory Management
  • Vendor Management
  • Shared Services
• Technology Services
  • Customer / Supplier Management
  • EDI
  • Enterprise Resource Planning (ERP)
  • Freight Payment / Claims Auditing
  • Global Trade Management (GTM)
  • Optimization
  • Predictive Analytics
  • SC Design
  • Sustainability
  • Transportation Management System (TMS)
  • Visibility
  • Warehouse Management System (WMS)
• Special Services
  • Direct to Store
  • Direct to Home
  • Foreign Trade Zone
  • Import / Export / Customs
  • Reverse Logistics / Product Lifecycle Management
  • Marketing / Customer Service
  • Global Expansion
  • Supply Chain Security Analysis
  • Contingency / Crisis Planning
  • Logistics/Transportation Consulting
  • Labor Management
  • Sustainability and Green Logistics

Learn More: An Introduction to 3rd Party Logistics

Robert Cadena

Lean Solutions Group

The Fastest Growing Logistics Companies with Trey Griggs

The Logistics of Logistics Podcast

• If you enjoy the podcast, please leave a positive review, subscribe, and share it with your friends and colleagues.
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Michael Leto and Joe Lynch discuss Emerge levels up, a phrase used at Emerge to describe the company’s rapid growth. Michael is the CEO of Emerge, one of the fastest-growing startups in the U.S. and is transforming the $800 billion transportation and logistics industry with its digital freight marketplace platform.

About Michael Leto

Michael Leto, CEO of Emerge, has been in the transportation industry for over 21 years and played an active role in creating one of the largest and fastest-growing 3PLs in the country. He has been recognized as one of Arizona’s “Top 35 Entrepreneurs 35 and Younger” by AZ Central, “40 Under 40” by Phoenix Business Journal, and creating a culture awarded “Best Places to Work”. He has a proven track record of building and scaling successful e-commerce platforms and assimilating teams to drive results and execute strategic initiatives.

About Emerge

Emerge, based in Scottsdale, AZ, is one of the fastest-growing startups in the U.S. and is transforming the $800 billion transportation and logistics industry with its digital freight marketplace platform. Emerge’s award-winning marketplace provides access to direct capacity and live market conditions helping shippers and carriers make the strongest, most beneficial decisions when procuring domestic freight. Launched in 2017, Emerge is backed by Greycroft, New Road Capital, 9Yards Capital, and the founder of GlobalTranz.

Key Takeaways: Emerge Levels Up

• Michael Leto is Co-CEO at Emerge, a company that is reinventing freight procurement (RFP).
• Based in Scottsdale, AZ, Emerge is one of the fastest-growing startups in the U.S. and is transforming the $800 billion transportation and logistics industry with its Digital Freight Marketplace platform. Emerge’s award-winning marketplace provides access to direct capacity and live market conditions helping shippers and carriers make the strongest, most beneficial decisions when procuring domestic freight.
• In the podcast interview, Michael discuss recent developments at Emerge including:
• Emerge has closed a $130 million Series B funding round led by 9Yards Capital, Tiger Global Management and The Spruce House Partnership. Existing investors New Road Capital Partners and Greycroft also participated in the round.
• The company expects to run about $4 billion in freight through its system in 2021 and wants to scale to $15 billion next year.
• John Paul Hampstead of FreightWaves wrote a great article about Emerge’s explosive growth and latest funding round.
• Emerge, the leading platform for freight procurement, has raised $130 million in a Series B funding round to expand product development and research while significantly scaling their enterprise sales efforts.
• Emerge welcomes George Abernathy as its new President. George George has more than 30 years of supply chain and transportation industry leadership experience with carrier, broker, and technology companies. George will help guide the company to the next level.
• Emerge uses a network model, which becomes increasingly valuable to users (carriers, shippers, agents) as it scales.
• Emerge is hiring: Emerge Careers
• Emerge also has a tremendous Agent Program

Learn More About Emerge Levels Up 

Michael Leto

Emerge

How to Manage Through FTL Market Transitions

The Emerge Story with Andrew Leto

Building a Freight Juggernaut Again with Michael Leto

The Freight RFP Process is Broken – Let’s Fix It with Maggie Petrovic

The Logistics of Logistics Podcast

• If you enjoy the podcast, please leave a positive review, subscribe, and share it with your friends and colleagues.
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Once a year, shippers and carriers begin the arduous freight RFP process, when shippers send out request for pricing (or proposal) for contract rates to their list of trucking companies. Unfortunately, “process” might be a generous term for what’s really going on.

The process is broken and dreaded by both shippers and carriers. It is not a good way to start or manage a shipper-carrier relationship. It is why many companies are rethinking the freight RFP process.

Every shipper is different and manages the process differently, but in general the current process looks like this:

Step 1 – Compile a Big List of Carriers

Typically, the process begins with the shipper compiling a list of all the carriers that they want to include on their RFP. The list begins with existing carrier relationships, but shippers figure they should cast a wide net, so they add all the carriers they can: carriers who have dialed their number in the past year (which they have been diligent to jot down), carriers found on LinkedIn, through Google searches, or anywhere else. Perhaps, the right carriers are involved, and they are properly vetted, but just as likely some great carriers are missing and some duds were included on the list.

Step 2 – Compile the Lanes

Next, the lanes that will be included in the RFP are compiled in a big spreadsheet. Ideally, the list will include shipment frequency, accessorials, freight characteristics, pickup, and delivery location requirements, etc. In many cases, the information required to properly quote the freight is missing – nothing deliberately devious, just a natural result of a using the wrong technology for the job.

Step 3 – Send Lanes to Carriers

Next, the spreadsheets are emailed to the carriers along with quoting instructions. At this point, the shipper realizes that some number of shipper emails bounced, and even more are ignored. While shippers think that their RFP is a great opportunity for carriers, the carriers are not always thrilled. To be profitable, carriers need to be very specific and deliberate about the lanes and freight they move. Carriers operate on thin margins and giving rates that are good for one year can be a very dangerous proposition, especially in these volatile times.

Step 4 – Receive and Organize the Quotes

At some point, the shipper receives quotes back from some carriers. Quotes from responding carriers are organized into one spreadsheet so they can be compared to other quotes. The quotes are evaluated, however without the proper tools, the insights gained are minimal. While some shippers may add a service quality dimension, for the most part, the emphasis is on price rather than quality.

Step 5 – Award the Business

The quotes are evaluated, and carriers are awarded lanes, usually because they are the lowest price. The quotes are unfortunately treated like a zero-sum game rather than a win-win relationship. If the market rates fluctuate significantly over the next year, the rates become “paper rates” that are only good on paper.

The current freight RFP process often doesn’t provide either the shipper or the carrier, the desired results. Shippers end up with far too many tender rejections and their freight moving via the spot market. Meanwhile carriers struggle to find the steady direct shipper freight that will enable them to run profitably. The huge carrier lists, mass emails, and unwieldly Excel spreadsheets is the problem, not the solution. The technology, or rather the lack of technology puts the focus on making the broken process work rather than developing win-win relationships.

The Freight RFP Process Doesn’t Work for Shippers or Carriers

Shippers Hate the Current Process Because:

• The lack of technology makes the process clunky, cumbersome, and time consuming – so time consuming that most shippers only want to endure the process once per year.
• Results in paper rates – rates that are only good on paper.
• Too much focus on the process and not enough focus on building win-win relationships with carriers.
• Lack of carrier vetting and not enough of the right carriers involved.

Carriers Hate the Current Process Because:

• Bid fatigue – too much time wasted on RFPs for shippers that never move freight with your company.
• Shipper motivations are unclear. Are they seriously looking for new carriers or are they just market testing their current carriers?
• Predicting the market and developing solid rates for the next 12 months is pretty much impossible.
• Not enough focus on building relationships with the right shippers.

There is a Better Way to Manage the Freight RFP Process

The fine folks at Emerge have reinvented freight procurement by developing a technology platform specifically made for managing freight RFPs. The founders of Emerge also founded the pioneering freight brokerage, Globaltranz so they know a thing or two about moving freight.

Emerge provides a freight RFP platform that streamlines the process for free – yes, free. Getting registered and set up is a breeze and the results are significantly better than mass emailing spreadsheets to every carrier you know.

When you use the Emerge platform, the process looks like this:

Step 1: Load Incumbent Carriers and Brokers into the Emerge Platform

The Emerge platform is purpose built for RFPs so uploading carriers’ information into the system is simple and easy. Once the carrier information is loaded, it never has to be loaded again. By the way, there is a good chance your carriers are already on the Emerge platform, because it gives them access to the very best direct shipper freight.

Step 2: Load Lanes into the Platform

No more spreadsheets! The Emerge platform makes it easy to upload your lanes from your TMS or even your Excel spreadsheets. The platform prompts the shipper to add the information pertinent to carriers. The platform is completely customizable so shippers can add or delete fields.

Step 3 – Create an RFP event

No more mass emails! With the push of a button, carriers are invited to bid on lanes. The Emerge platform will also recommend vetted carriers who are interested in those lanes. If you choose one of the recommended carriers, Emerge will receive a 9.9% fee from the Carrier, which is how Emerge makes money. Carriers have flocked to Emerge because the low 9.9% fee is much less than the markup that traditional freight brokers add to a load.

Step 4 – Evaluate the Bids

As the bids are received, the system organizes the information and enables better decision making. While carriers respond to the bids, the shipper has access to a dashboard that provides useful insights. In the Emerge system every carrier is vetted so shippers can make informed freight procurement decisions based on price and service quality.

Step 5 – Award the Business

Awarding lanes to carriers is easily managed within the system. Shippers can create and manage contracts and documentation within the application, including digital signatures. The streamlined process makes it so easy to conduct RFP events that most shippers who use the Emerge platform do quarterly bids, which means carriers can be more confident when quoting lanes.

A Streamlined Process and Improved Shipper-Carrier Relationships

In addition to streamlining the process and making it much more robust, the Emerge platform has a few other key advantages:

• Freed of the time consuming, clunky process, shippers and carriers can spend more time discussing the freight characteristics and getting to know each other.
• With the process streamlined, shippers are moving to quarterly RFPs, which enables the carriers to deliver more competitive bids – and live with them (no more paper rates).
• In addition to their incumbent carriers, shippers have access to thousands of vetted carriers within the Emerge system.

Over the past few decades, the supply chain has become digital and freight tech has evolved to streamline the shipping process. However, for many shippers the freight RFP process is stuck in the past, relying on Excel spreadsheets and mass emails. If your company is rethinking the freight RFP process, Emerge’s purpose-built RFP technology platform is a good place to start.

Learn More About Rethinking the Freight RFP Process

Building a Freight Juggernaut Again with Michael Leto

The Emerge Story with Andrew Leto

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Robert Cadena and Joe Lynch provide an introduction to 3rd party logistics. 3rd party logistics services include 5 major categories: 1.) Transportation 2.) Warehousing 3.) Logistics 4.) Technology and 5.) Special Services. Robert is the Co-Founder and CEO of a company that provides operational, sales, marketing, and technology support to over 100 3PLs, so he has a very thorough understanding of the business.

About Robert Cadena

Robert Cadena is the Co-Founder and CEO of Lean Staffing Solutions, which provides operational, marketing, sales, and technology services to the logistics and transportation industry. Prior to the founding of Lean, Robert was the Founder and CEO of Chain Express, Corp, a full-service transportation brokerage specializing in LTL, volume, and truckload transportation. Robert’s experience and expertise in transportation, logistics, technology, and executive leadership make him uniquely qualified to run one of America’s fastest-growing companies. Robert earned a Bachelor’s degree in Economics from Florida International University.

About Lean Solutions Group

Lean Solutions Group provides operational, sales, marketing, and technology support to over 290 customers in logistics and 320 total To succeed in the transportation and logistics business, 3PLs need to be able to hire and retain the very best talent, while keeping a lid on costs. Since the competition for the best talent is fierce companies need an edge that will help them win, Lean Staffing Solutions is that edge. Lean provides a turnkey solution to staffing challenges using a proven process that will improve profits while reducing employee costs. Lean can deliver on this promise because they are the pioneers in helping U.S. based companies set up satellite offices in Colombia. Since 2014, Lean has worked with over 290 satisfied U.S. based transportation and logistics providers. Lean ensures that your satellite office in Colombia is staffed with highly educated, English speaking professionals trained in your company’s processes and systems. The Lean approach is a low cost, low risk, low hassle, and they manage the entire process with their account managers. Lean Staffing Solutions offers a suite of product offerings from traditional staffing to technology, sales, and marketing services.

Key Takeaways: An Introduction to 3rd Party Logistics

• According to CSCMP, a Third-Party Logistics Provider (3PL) is a company that provides multiple logistics services for use by customers. Preferably, these services are integrated, or “bundled” together by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers and finished products from manufacturers to distributors and retailers.
• Sometimes 3rd party logistics companies are described as:
  • Asset-based – companies that own actual assets like trucks, boats, planes, warehouses
  • Non-asset based – companies that don’t own assets like brokerages, service providers, etc.. these companies tend to invest in technology
  • Asset light – companies with assets and brokerage capabilities
• The definitions are confusing because the space is so dynamic and ever-changing.
• The easiest way to look at 3^rd party logistics is by the service they provide, which fall into 5 buckets: 1.) Transportation 2.) Logistics 3.) Warehousing 4.) Technology 5.) Special Services
• Transportation Services
  • Small Package
  • Air Cargo
  • Less Than Truckload (LTL)
  • Truckload
  • Intermodal
  • Ocean
  • Rail
  • Bulk
  • Dedicated Contract Carriage
  • Field Acquisition
  • Equipment / Drivers
  • Final Mile
• Warehousing Services
  • Pick and Pack, Sub-assembly
  • Cross-docking
  • Distribution Center Management
  • Site Location
  • Transloading
  • Vendor Managed Inventory
  • Fulfillment
• Logistics Services
  • LLP/4th Party Logistics
  • Integrated Logistics
  • Just-in-Time (JIT)
  • Global Trade Svcs
  • Inbound Logistics
  • Logistics Process Reengineering
  • Payment Auditing / Processing
  • Inventory Management
  • Vendor Management
  • Shared Services
• Technology Services
  • Customer / Supplier Management
  • EDI
  • Enterprise Resource Planning (ERP)
  • Freight Payment / Claims Auditing
  • Global Trade Management (GTM)
  • Optimization
  • Predictive Analytics
  • SC Design
  • Sustainability
  • Transportation Management System (TMS)
  • Visibility
  • Warehouse Management System (WMS)
• Special Services
  • Direct to Store
  • Direct to Home
  • Foreign Trade Zone
  • Import / Export / Customs
  • Reverse Logistics / Product Lifecycle Management
  • Marketing / Customer Service
  • Global Expansion
  • Supply Chain Security Analysis
  • Contingency / Crisis Planning
  • Logistics/Transportation Consulting
  • Labor Management
  • Sustainability and Green Logistics

Learn More: An Introduction to 3rd Party Logistics

Robert Cadena

Lean Solutions Group

The Fastest Growing Logistics Companies with Trey Griggs

The Logistics of Logistics Podcast

• If you enjoy the podcast, please leave a positive review, subscribe, and share it with your friends and colleagues.
• The Logistics of Logistics Podcast: Google, Apple, Castbox, Spotify, Stitcher, PlayerFM, Tunein, Podbean, Owltail, Libsyn, Overcast

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AJ Khanijow and Joe Lynch discuss the 5 keys to direct to consumer success. As the founder of an e-commerce fulfillment company, AJ works closely with direct to consumer companies and he has helped his clients avoid the many pitfalls.

About AJ Khanijow

 AJ Khanijow is the founder of Fulfyld, a warehousing and fulfillment company based in Huntsville, Alabama. AJ and his team at Fulfyld specialize in e-commerce fulfillment. Prior to founding Fulfyld, AJ held business development and leadership positions in the manufacturing, technology, packaging, and consulting industries. AJ earned an industrial engineering degree from Auburn University.

 About Fulfyld

 Fulfyld is an e-commerce fulfillment and warehousing company based in Huntsville, Alabama. Fulfyld’s unique service offering includes the technology and customer service required by direct to consumer brands along with deep expertise in value-added services, product sourcing, and packaging that enables them to become an extension of their customer’s supply chain. Customers range from local to global companies, each with unique e-commerce fulfillment needs. Fulfyld integrates directly with e-commerce marketplaces and shopping carts to simplify your shipping process. Fulfyld ships same-day, every day, for one flat-rate.

Key Takeaways: 5 Keys to Direct to Consumer (DTC) Success

 Direct to Consumer (DTC) Success Background

• Most DTC brands included above have a few things in common:
  • They sell mainly physical goods as opposed to services like home cleaning or music streaming.
  • They are mostly vertical brands, meaning they produce and distribute their own physical goods, rather than acting as marketplaces that sell many brands.
  • Many DTC firms have backed by venture capital at some stage(s).
  • They have smaller product catalogs than traditional retailers.
  • They avoid mainstream manufacturing.
  • They appeal to younger generations by evidencing their ethical supply chains and using their brand’s story to connect with their audience.
• The DTC e-commerce revolution is still pretty new, with e-commerce still only representing about 10% of retail sales in the U.S., according to the U.S. Department of Commerce. During the pandemic, e-commerce sales surged, and it may result in permanently higher sales for the e-commerce sector.
• The ten top DTC advertisers: SmileDirectClub, DoorDash, 23andMe, Poshmark, UNTUCKit, Touch of Modern, Hims, Casper Sleep, Stitch Fix, ThirdLove,

AJ Khanijow’s 5 Keys to Direct to Consumer (DTC) Success

1. Develop a Great Brand. A company’s brand is it’s promise to its customers. The brand tells them what they can expect from the company’s products and services, and it differentiates the company from its competitors’. While some DTC companies skimp on branding in the start-up phase, the best DTC companies develop strong brands.
2. Create a Memorable Customer Experience. Whether they are buying online or retail, customers increasingly expect a great experience. The best DTC businesses have learned to create a great consumer experience. DTC brands can most effectively build relationships with consistent yet personalized communications, delivered throughout the customer’s lifecycle.
3. Data, Data, Data. Every DTC firm recognizes the value of customer and marketing data. In AJ’s experience, many DTC firms struggle to develop good supply chain analytics. As a result, some DTC brands struggle with sales forecasting and product shortages.
4. Prepare to Sell on Every Channel. Many of the successful direct to consumer businesses have begun selling in traditional retail stores. While this may seem counter-intuitive, the businesses are responding to the needs of the consumer. Conversely, older brands (pre-DTC) are beginning to adopt DTC offerings. The bottom line, companies need to offer their products on the channels where consumers want to buy.
5. Select the Right Fulfillment Partner. Hiring the right e-commerce fulfillment company is key because that fulfillment partner could be the difference between success and failure. The fulfillment partner can greatly impact customer satisfaction because they own the order fulfillment process (order processing, pick and pack, shipping, documentation, delivery, and if necessary, returns). Fulfillment is just the starting point. DTC brands often need expertise and service beyond warehousing, fulfillment, and distribution. The right fulfillment partner should be capable of providing whatever value-added service is needed for the brand to succeed and grow. Look for a company that can assist with the following services: procurement, sourcing, manufacturing, and fabrication, assembly, and packaging.

Learn More About the 5 Keys to Direct to Consumer (DTC) Success

 AJ Khanijow

Fulfyld

Selecting an E-commerce Fulfillment Partner with AJ Khanijow

The Logistics of Logistics Podcast

• If you enjoy the podcast, please leave a positive review, subscribe, and share it with your friends and colleagues.
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AJ Khanijow and Joe Lynch discuss selecting an e-commerce fulfillment partner. For e-commerce companies the difference between success and failure is fulfillment. As the founder of an fulfillment company that specializing in e-commerce, AJ knows what companies should look for in an e-commerce fulfillment partner.

About AJ Khanijow

AJ Khanijow is the founder of Fulfyld, a warehousing and fulfillment company based in Huntsville, Alabama. AJ and his team at Fulfyld specialize in e-commerce fulfillment. Prior to founding Fulfyld, AJ held business development and leadership positions in the manufacturing, technology, packaging and consulting industries. AJ earned an industrial engineering degree from Auburn University.

About Fulfyld

Based in Huntsville, Alabama, Fulfyld has offered e-commerce fulfillment services for every step of the supply chain since 2016. Our customers range from local to global companies, each with unique e-commerce fulfillment needs. Fulfyld integrates directly with e-commerce marketplaces and shopping carts to simplify your shipping process. We ship same-day, every day, for one flat-rate.

Key Takeaways – Selecting an E-commerce Fulfillment Partner

• First e-commerce companies should conduct a thorough internal assessment of their company to determine what they want from an e-commerce fulfillment partner. Companies should understand all the moving parts internally and what exactly your partner is going to be doing vs what will be managed in-house.
• Next, determine suitable locations for e-commerce fulfillment. Fulfillment locations should be close to carrier transportation hubs, ports, customers, and suppliers.
• Decide if you would like to fulfill externally or internally. Figure out how your ERP and e-commerce platform will integrate with your e-commerce fulfillment partner.
• Cultural Fit: How does your business fit within the culture of your fulfillment partner? I always look to see if I can hang out with potential partners, that way you knows if it will be a good fit.
• Range of Services: Ensure they offer all the services necessary for your supply chain to succeed. If your partner makes a critical mistake, it could be detrimental to your business.
• Third-Party Logistics: Will they be able to accommodate all of your SKUs?
• Technology Integration: Many traditional 3PLs specialize in TL and LTL shipping so their systems may not be suitable for managing small parcel shipments. Booking a dozen TL shipments is very different from processing thousands of small parcel shipments. To manage that volume of customer orders, you must have the right systems (technology) for the job.
• Location: Your partner needs to be in close proximity to the carrier terminals. For instance, Huntsville is great for us because it is close to three of the biggest hubs (terminals) for small parcel carriers: Louisville, Memphis, and Atlanta.  Make sure you are in a state that is low cost and good for business. The labor rate in L.A. is almost double what it is in Alabama.
• Dedicated Customer Service: The ability to pick up the phone and talk to someone who is dedicated to your account is something I highly recommend. Essentially, your e-commerce fulfillment partner is running your supply chain so communication is critical. Problems must be identified and solved quickly, which means you can’t be directed to a call center – you need an account manager who knows your business.
• E-commerce Experience: Having experience in the e-commerce business is a requirement.  E-commerce companies are usually young companies, so they need to select an e-commerce fulfillment partner who is experienced in e-commerce fulfillment, small parcel and B2C shipping. There are large, established 3PLs who have great capabilities but know very little about e-commerce fulfillment.
• Operational Excellence: To be successful, your fulfillment partner must have great operations. Ask questions about how they manage orders. Do they have defined processes? Does their technology and order management system allow you to view things in real time? Do they have relationships with the small parcel carriers?
• Reputation and References: Ask your prospective partner for references and talk to some of their current customers. Check out their LinkedIn company page and look at LinkedIn profiles for some of their employees. LinkedIn can tell you quite a bit about the size and capability of a company.
• Contract: Review their contract and determine if it is fair. Is the contract biased and filled with unnecessary legal jargon? Are you being charged ridiculous fees? If you are picking a strategic partner, the contract shouldn’t be transactional. Make sure the contract is transparent and your interests are aligned.
• Engage the Cross-functional Team: Perhaps the most important thing you can do when selecting an e-commerce fulfillment partner is to engage the cross-functional team (accounting, sales, engineering, operations, etc..) in the process. An e-commerce fulfillment partner is an extension of your company and it touches virtually every function, so get input from each functional area. Your e-commerce fulfillment partner is the beating heart of the business because they are ones who convert an order into delivery and hopefully a satisfied customer.

Learn more About Selecting an E-commerce Fulfillment Partner

Fulfyld

Ajesh (AJ) Khanijow

Reducing Cost and Improving Transit Time for eCommerce Shipments from China with Brian Miller

The Logistics of Logistics Podcast

• If you enjoy the podcast, please leave a positive review, subscribe, and share it with your friends and colleagues.
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