Original air date: 10AM PST. Aug 15th. Virtual.
With 15,000+ 3PLs in the USA alone, and millions in sales on the line, you need to choose the right 3PL partner. Tune into this 50-minute panel to discover the strategic steps top DTC brands take in identifying a fulfillment partner:
- [Panelist] Nick Parece – VP, IT – NOBULL
- [Panelist] Navid Veiseh – CFO – Heyday
- [Panelist] Robert Damico – Head of Ops – Omorpho
- [Moderator] Mo Afshar – CEO – Pipe17
Special presentations by:
- Joe Spisak – CEO – Founder Fulfill.com
- Aaron Alpeter – CEO, Founder – Izba, Capabl
Introduction
This panel discussion brought together industry experts to discuss the role of third-party logistics (3PLs) in the supply chain, the importance of technology, and the challenges and opportunities in managing 3PL relationships.
Role of 3PLs During the Logistics Apocalypse
- Challenges During COVID-19: The panelists discussed the difficulties in switching and changing 3PLs during the pandemic, which they referred to as the “logistics apocalypse.”
- Consolidation and Standardization: Efforts are being made to consolidate 3PLs, rate cards, SLAs, and contracts to choose the right partners that can deliver various services.
- Key Takeaways:
- Inherited relationships require careful management.
- Consolidation helps in standardizing contracts and services.
- Flexibility in 3PLs is essential for complex business needs.
Fulfillment Options and Strategies
- Different Approaches: Panelists shared their unique approaches to fulfillment, from importing goods from China to leveraging Amazon’s Fulfillment by Amazon (FBA).
- Importance of Partnership: Trust and partnership with 3PLs were emphasized, along with the need for seamless integration.
- Key Takeaways:
- Understanding the business model of 3PLs is vital.
- Flexibility and seamless partnership are essential for efficiency.
- Cost structures and hidden fees must be transparent.
Technology’s Role in 3PL Relationships
- Enabling Growth: Technology was seen as a key enabler for scaling and standardizing operations.
- Data Accuracy and Visibility: Accurate data and visibility into the supply chain were highlighted as crucial.
- Key Takeaways:
- Technology opens doors and allows for future options.
- It enables small teams to operate at scale.
- Data accuracy and visibility are essential for decision-making.
Lessons Learned and Wishful Thinking
- Understanding Costs: Panelists wished they had understood the total supply chain costs, not just the 3PL costs.
- Aligning Expectations: Transparency and alignment on expectations were seen as areas for improvement.
- Key Takeaways:
- Look at total supply chain costs, not just individual components.
- Aligning on expectations and being transparent is crucial.
- Understanding the growth plans of 3PLs can guide better partnerships.
Tracking SLAs and Auditing Invoices
- Monitoring and Reviewing: The importance of actively monitoring SLAs and reviewing invoices was discussed.
- Forecasting and Planning: Sharing forecasts with 3PL partners was seen as a way to help them plan resources.
- Key Takeaways:
- Regular review of invoices can lead to significant savings.
- Active monitoring of SLAs ensures compliance.
- Forecasting helps brands and 3PLs plan together accordingly.
Conclusion
The panel discussion provided valuable insights into the complex world of 3PL relationships, emphasizing the importance of partnership, transparency, technology, and a holistic view of the supply chain. The key takeaways offer practical guidance for merchants and brands looking to optimize their 3PL relationships and fulfillment strategies.
