The One With Warehouse & 3PL Basics: What Founders Need to Know (Part 1)

Foreign. You're listening to Supply Chain Moves, the podcast built for DTC founders who want smoother supply chains, lower costs, and faster launches. I'm Lara and I'm here to share the lessons I've learned building and fixing supply chains for brands just like yours. Today we're talking about the warehouses in 3 PLs and most founders think l ship from my garage until it's too much, then I'll hire a warehouse. But that mindset is why so many brands bleed money or drown in customer service headaches. This part will cover the basics and the most common mistakes I see. Question number one what's the role of a warehouse or 3PL in DTC brand? A warehouse or 3PL isn't just storage. It's where orders are picked, packed and shipped. It's also where returns land and where accuracy either builds customer trust or destroys it. A 3M skincare brand switched from self fulfilling in their Office to A3PL. Their team went from packing boxes to focusing on marketing. Their revenue double in 12 months because they finally had time to grow. Question number two when should a founder move from a self fulfillment to a three plus when you're spending more time packing boxes than growing the brand? For most founders, that's at 200 to 400 orders a month. And beyond that, you're paying in opportunity cost. Question number three what do founders misunderstand about three PLs? They think all three PLs are the same in reality. Some specializes in apparel, some in cosmetics, some in oversized goods. And an apparel brand once joined a general 3 PL that wasn't set up for handling garments. Clothes arrived wrinkled. Customer complaints went through the roof because wrong partners means wrong outcome. Question number four what hidden cost should founders watch for? There are storage fees, minimum pick and pack charges, and returns handling. One brand was paying 6,000amonth just in storage because a 3 PL charge by pallet, not by cubic foot. Switching to a cubic foot model cut the bill in half. Question number five how do you know if your warehouse setup is healthy? Check your KPIs. Order accuracy should be more than 98% on time. Shipping should be more than 95%. Storage cost should be less than 15% of logistics spend. If you don't know these numbers, your warehouse is running you, not the other way around. Thanks for hanging out with me on supply chain moves. If this episode made your supply chain a little less painful, share it with another founder because nobody deserves to learn these lessons the hard way and I'll see you on the next one.