This episode cuts through 3PL marketing hype to expose common pitfalls brands face with fulfillment partners. It provides actionable strategies for vetting 3PLs, structuring contracts, and managing relationships to ensure efficient, cost-effective, and scalable logistics. Ecommerce operators will learn how to avoid common mistakes that lead to warehousing headaches and shipping delays.
Key takeaways
Implement a rigorous vetting process for 3PLs that goes beyond sales pitches, focusing on their operational efficiency, technology stack, and client references with similar business models.
Structure 3PL contracts with clear, measurable KPIs for service levels, inventory accuracy, and shipping times, and include clauses for penalties or incentives to ensure accountability.
Actively manage the 3PL relationship with regular communication, performance reviews, and a deep understanding of their systems to proactively address issues and optimize fulfillment processes.
Consider the long-term scalability of a 3PL and their ability to handle peak seasons and growth, rather than just focusing on immediate cost savings.
Explore alternative fulfillment models or hybrid approaches if a traditional 3PL relationship proves to be inefficient or costly for your specific business needs.
MOVE SUPPLY CHAIN Pay less for COGS, get shorter lead times, and improve payment terms in your supply chain with help from Move Supply Chain at https://movesupplychain.com. INTELLIGEMSIntelligems brings A/B testing to business decisions beyond copy and design. Test your pricing, shipping charges, free shipping thresholds, offers, SaaS tools, and more by clicking here: https://bit.ly/42DcmFl. Get 20% off the first 3 months with code FARIS20. // Andrew sits down with Chad Carlton, CEO of Good Company, a 3PL that ships over 3 million orders annually for fewer than 20 clients. In this tactical deep dive, they walk through every step of the fulfillment journey—from the moment your product hits the warehouse to when it lands at your customer’s door. You’ll learn: - Why most brands treat their 3PLs wrong—and how to fix it - The real cost structure behind pick, pack, and postage - When it makes sense to fulfill in-house vs outsource - How to reduce returns and increase resellable inventory - What "alignment of incentives" really looks like in logistics Real numbers, strategic decisions, and operational leverage that can drive profitability are candidly explored—especially in a margin-compressed environment. Whether you're considering switching 3PLs, scaling to multiple warehouses, or fixing your supply chain slippage, this episode gives you the framework to make better, more profitable decisions. // CHAPTER TITLES: 00:01:46 - Chad's Calling To Start a 3PL Business 00:08:39 - Why Your Business Should Use A 3PL 00:19:09 - Demanding The Right Price From A 3PL Partner 00:40:44 - The Process 00:53:38 - Midwest Is The Best Locat
What does this episode say about supply chain & operations?
Implement a rigorous vetting process for 3PLs that goes beyond sales pitches, focusing on their operational efficiency, technology stack, and client references with similar business models.
What does this episode say about founder & leadership?
Structure 3PL contracts with clear, measurable KPIs for service levels, inventory accuracy, and shipping times, and include clauses for penalties or incentives to ensure accountability.
What does this episode say about supply chain & operations?
Actively manage the 3PL relationship with regular communication, performance reviews, and a deep understanding of their systems to proactively address issues and optimize fulfillment processes.
What does this episode say about supply chain & operations?
Consider the long-term scalability of a 3PL and their ability to handle peak seasons and growth, rather than just focusing on immediate cost savings.
What does this episode say about supply chain & operations?
Explore alternative fulfillment models or hybrid approaches if a traditional 3PL relationship proves to be inefficient or costly for your specific business needs.
