John Melizanis believes that third -party logistics fees often create surprising fees. Prices for withdrawals, packages and reception can turn the expected $ 1 per order to $ 2.50 or more, he says.
John is a co -founder of Shipdudes, 3pl based in New Jersey in 2020. “The brands appreciate their precise costs,” he told me.
In our recent interview, John dealt with the origin of the ship, retail retail, warehouse automation and more.
The whole sound of our conversation is inserted below. The transcript is modified for clarity and length.
Eric Bandholz: What are you doing?
John Melizanis: I am a co -founder of Shipdudes, Omnicannel Fulfillment Company in New Jersey. We help brands of electronic trading by boat around the world and penetrate the physical retail. We are behind the scenes for many companies sold in Sephora, GNC and Vitamin Shoppe.
In addition to transport, we support brands with EDI integration, marking and compliance with the regulations that are necessary for customers entering retail for the first time. Retail logistics can be demanding; Missed late vans can result in backward feedback. We have built systems for solving these challenges both operatively and technologically.
We serve three primary channels: direct consumer, marketplace such as Amazon and Chewy, and retail in the store. Our technology magazine integrates into all of them. Initially, we developed our own software, but now use a white marked platform that we have adapted strongly.
I started to meet orders in the garage, used a pirate ship with transport software and threw hundreds of packages at the post office. When we evolved in full 3PL, it was clear that some of the platforms did not reach in terms of inventory monitoring and order verification. Our system monitors everything – selection, package and ship – down to scan barcodes.
Bandholz: How do you handle your own package?
Melizanis: We understand that some brands require their own inserts, flooded boxes or more contradictory packaging. Internally, we joined customers into three phases: Startup, Scale-up and Enterprise. It is not only about size, but also about how the brand is operatively mature.
We support complex packaging needs, but we also offer instructions on how to simplify the identity of the brand identity. Some brands are governed by our advice, others not, but we have always offered it.
Bandholz: What about employees training?
Melizanis: It all begins with a process. If the process is solid and the employee is still fighting, it is probably not suitable.
Each package has printed standard operating procedures in English and Spanish, with a visual key to our Spanish -speaking staff. We emphasize the importance of their work: “Someone paid $ 100 for this order. How does he always get the wrong item?”
Every day we instill this thinking to build pride and ownership. Cameras at each station provide responsibility. If there is a problem with the customer, we will check the shots. If it has a recurring mistake, we train, revit SOP and retin.
It’s not perfect. Some rent will not work. But we give everyone a fair shot. If they cannot monitor this process, they are correct for the team.
Bandholz: What is the future of robotic collection?
Melizanis: I saw a hybrid system with robots that get from a basket such as giant slot machines. They are superior how you would think and run 24/7. We are likely to invest in something like this to choose from over the next few years.
Yet people will not leave completely. Many of our customers expect a high touch experience, including their own silk paper, insertion and compound boxes. This level of care still needs a person. I see recurring tasks such as a selection, while the package remains more manual for brands that appreciate the unpacking experience.
Collection is the main costs. In a 50,000 -square warehouse, walking from one ITM to another is quickly adding up. Automation could never reduce these costs.
However, the packaging is also expensive, especially in premium brands. It requires someone who understands the brand and thoughtfully. Have you ever got a small item in the giant Amazon Box? This happens when automation replaces human supervision.
Automation can optimize collection, but people remain essential for packaging, especially in the case of presentation.
Bandholz: How can brands reduce 3PL and transport costs?
Melizanis: It starts with the design of the product. Size, weight and fragility of all impacts. Larger items stand more on the ship and wrap. Brands with low variations and simple product are much easier and cheaper on the scale.
The ideal product of electronic trading is small, lightweight, sustainable and fits into bubble postal consignment. This minimizes the cost of fulfillment and maximizes margins. Not every brand can do it, but if you develop products, it’s worth thinking seriously.
In terms of transport costs, we used the carriers for different needs. For small, light, sustainable products, DHL and regional carriers such as Lone Star overnight, Tforce Freight and eight, can be cost -effective.
For larger or heavier items, USPS has robust programs and FedEx and UPS offered solid and reliable services, although they tend to be expensive. FedEx or UPS Ground is probably the best for customer experience.
People often forget the injection points. Where your package enters the carrier network. A rural decline in USPS can be slower (or faster) than one in the center of the metro, depending on volume and routing.
There is no universal for all. You must compare the right carrier with the product type, boat rental and customer expectations.
Bandholz: Des Shipdudes use itemized prices like most 3PL or flat rates?
Melizanis: We have prices. Most 3PL have more fees – withdrawals, inserts, reception, point checks. Brands sometimes think they pay $ 1 for an order, eventually pay $ 2.50 or more.
We use a flat rat. Multiply your orders with these rates and that’s what you pay – no surprises. We calculated this based on an average number of order tips.
We compose storage in the same way: one pallets fees, no added point check or counting fee. We are not the cheapest or existently, but we are simple. The brands appreciate their knowledge.
We also eliminated the typical 3PL communication mess. Each brand gets a dedicated SLACK channel with on -site support and account administrators.
Transport is our third and last billing item and it is a passage. We negotiate competitive rates, calculate all our offers and pass them directly. It saves customers time, money and confusion.
Bandholz: How can people connect with you?
Melizanis: Our website is Shipdudes.com. Check out the podcast, “new cash conversations.” I’m on LinkedIn.
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