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I didn't just fall into advising 3pls and brands how to optimize their fulfillment…
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Matthew Wolmer posted thisSmall warehouse profit leaks drive CFOs nuts. I learned this the brutal way by.. 👉 Paying to ship AIR. My TikTok Shop package DIMs were wrong. I carried 8 box sizes when I only needed 3. Then carrier invoices arrived & started reading like death sentences. I KNEW I COULDN’T KEEP GOING LIKE THIS. If I had Shiphero back then I would have: Pulled 30 days of shipment data & downloaded the carrier invoices. Then I match each shipment by tracking # & compare: → Package dimensions stored in ShipHero → Box selected for the order → Label cost recorded at shipment → Final charge on the carrier invoice → Revenue left after fulfillment Next I would group the shipments by box size & order profile, sort them by the largest cost difference. That would show me where the wrong dimensions, oversized boxes & carrier adjustments were taking margin. 3 simple fixes: ✅ I corrected the dimensions ✅ Reduced our box library from 8 sizes to 3 ✅ Reviewed label costs against final invoices. Those changes improved my margin by around 40% over 180 days. Most ppl overcomplicate margin & business. The data is there in front of you to work w/. Especially now, ShipHero MCP lets you do this. Effortlessly pull the data. Match the charges. Fix the leak. Retain PROFIT in mins. 🤯 __________________ 💬 Where do you see the most fulfillment costs stacking up in your op?
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Matthew Wolmer shared thisMaking very good use of America.gov at the moment. The world is my oyster, the opportunities are endless...
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Matthew Wolmer posted thisMost brands dont want to hear it but it’s necessary. 3PLs don’t want dead inventory either. More profitable volume shipped out = more profit in their pocket . That pallet sitting for 9 months is costing the brand storage & the 3PL valuable space. 👉 Nobody wins. Slow-moving inventory is a storage problem for the 3pl and a sales problem for the brand. It’s also merchandising, purchasing or forecasting that ended up in the warehouse. This is where the 3PL can help instead of just storing the problem. ~ Pull sales-by-SKU report from ShipHero WMS. ~ Sign into Shiphero MCP. Ask last 90 days. ~ Have it find the slowest moving SKUs. ~ Have it suggest kit bundle recommendations. All in Claude + Shiphero. Then call the brand: “Hey, these 5 SKUs haven’t sold in 90 days. Can we bundle them into a kit, lower the price & get this inventory moving?” “Here are examples of how this would look from our side” Take it a step further.. ~ Look at the new kit profile. ~ Slightly discount so it’s sells fast, price it right. ~ Choose the right packaging. ~ Rate shop it so shipping label is cheapest ever. ✅ Now brand gets cash out of dead inventory. ✅ The 3PL gets space back. Get fast ones in. ✅ The customer gets a better deal. ✅Brand will see you as partner looking ahead. That’s why the best 3PL relationships go beyond pick, pack & ship. Sometimes a 20 min convo + the data already inside your WMS solves the problem. The one BOTH companies are paying for. What’s your take on this? ___________________ 💬 3PLs/Brands: Have you ever tried this approach w/ brands? If not, ...and more importantly, what are you actually doing about it to improve it?
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Matthew Wolmer reposted thisThe undisputed success metric that can help ANY BUSINESS SUCCEED is CUSTOMER SERVICE. Be obsessed with this and a lot of the other BS tends to work itself out. Yall agree?
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Matthew Wolmer shared thisBrands think about returns from the customer side. Easy portal. Fast refund. Happy customer. 3pls dont. Their warehouse receives a box containing: ~ No paperwork. ~ 2 SKUs. ~ 1 used item. ~ A product from another company. Occasionally something that raises more questions than answers 😂 Returns need an actual operational workflow: ✅ Identify & Inspect. ✅ Grade & Restock. ✅ Quarantine & Dispose. ✅ Update inventory & Refund correctly. As the brand, I wanted returns to feel effortless. Now seeing the warehouse side, I understand why “easy returns” can become very complicated 30 ft behind the website. Customer experience ends with “refund issued.” For warehouses the work definitely does not. Fix the returns to benefit all sides. __________ 💬 3pls/Brands: Why are returns the red headed step child in the family? PS- I say this as 1/2 ginger myself 😂
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Matthew Wolmer posted thisThe undisputed success metric that can help ANY BUSINESS SUCCEED is CUSTOMER SERVICE. Be obsessed with this and a lot of the other BS tends to work itself out. Yall agree?
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Matthew Wolmer posted thisIm actually starting to get very annoyed seeing companies use screw ups as an opportunity to engineer fake engagement. You are a brand & company, not a person, just STOP. We all know the ppl interacting with those cringey posts are BOTS they created themselves.
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Matthew Wolmer shared thisDTC brands & 3PLs need to get along much better. I find it odd how much friction exists b/w 2 businesses that should directly benefit from each other winning. The right 3PL helps a brand scale w/o: ~ building a warehouse ~ hiring a fulfillment team ~ constantly adding operational overhead. The right brand helps a 3PL grow through: ~ increasing volume & clean inventory ~ predictable demand ~ order profile that can be fulfilled profitably. The incentives should be aligned. Brands should want their 3PL profitable enough to keep investing in the operation to ensure scale. 3PLs should want their brands growing because healthy volume grows their business too. Yet the relationship can quickly turn into: “Why am I paying for this?” vs. “This client is destroying our margin.” So where does it break? My guess? 3pl settling on WIDE brand profile. Brands not asking the right questions on tours. Thats the culprits. ________________ 💬Brand/3PLs, I’m curious which side you sit on and what you think causes the disconnect? Share your take below! 👇
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9h
Matt Hammer yall already run it, love it!
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Matthew Wolmer liked thisMatthew Wolmer liked thisWe're in the business of making our customers customers happy. ShipHero makes our job easy. https://lnkd.in/gvvpG5Bp
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Matthew Wolmer liked thisMatthew Wolmer liked thisCPG is hard. Being a founder is hard. You have an amazing product, great branding, all the grit and determination, and STILL it can make you feel buried. CPG founders literally jump in the fire, build the parachute after you jump, and as Chrisi Hammer would say feel like “you are under water with a teeny little straw poking out” 😂😂 Frozen logistics, freight costs, Best Buy dates, cold chain, inventory, lead times, promos, slotting fees, velocity, sell through, marketing, consumer experience, reviews, UGC, content creation, working capital, packaging, COGS, distribution, demos, accrual, charge backs, and ON AND ON. The crazy thing? We love it. We love the challenge. And most of all, we love the people that join us in the journey. This community is unmatched. The support is incredible. No problem is too big. There is always a way. We are forever grateful for the people helping to push Sunshine Buns forward. I truly believe that life is never ending challenges across every aspect. Its relentless. Surround yourself with people you can share straws with while you’re underwater and also share a beach chair with when you have a moment to relax. Community and relationships are everything. Through good and bad, through trial and triumph. And just keep going. YOU NEVER GROW UNTIL YOU GO!
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Theodore H. Veru Business Scholar
Dr. Charles R. Canedy 3rd
This is awarded to a Business student who displays academic excellence in his/her related field of study.
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