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"Streamlining Commerce Operations with a Dedicated Fulfillment Site Takeover"

While dedicated fulfillment offers benefits, brands can become overinvested, draining resources, and pulling focus from core operations. They must handle high return volumes, inventory management, shipping costs fluctuations, labor shortages, changing regulations and more. When the costs outweigh the benefits, they seek a better solution. In a “dedicated fulfillment site takeover,” a 3PL assumes control and management of a retailer's distribution site(s), helping brands reduce the risks.

The dramatic rise in ecommerce, accelerated by the pandemic, triggered significant disruptions in the supply chain causing more merchants to seek greater control over their product distribution channels. The effects were far-reaching as retailers battled challenges with inventory supply and demand, rising costs, jammed ports and inflation while consumer demand called for reduced shipping costs, quicker delivery times and an enhanced customer experience.

Prominent brands in the retail industry were convinced that by investing in and managing their own supply chains they would be able to better streamline costs and expedite product delivery to meet customer expectations. They also felt they could create a stable supply chain, futureproofing against disruptions. However, self-fulfillment came at a cost – merchants became overinvested, which led to financial pressures, unmet forecasts and reduced business, leaving them with too much exposure and unused assets. This drove them to look for a solution.

In a “dedicated fulfillment site takeover,” a 3PL assumes control and management of a specific retailer’s distribution site(s). The 3PL can take over the entire fulfillment process or some of it – including labor management, order processing, inventory management, packing and shipping, within their designated facility. The 3PL can also take on the liability for the facility including the building lease, Material Handling Equipment (MHE), and other fixed assets. This approach streamlines and optimizes their supply chain and enhances operational efficiencies, all while reducing fixed overhead to maximize brand profitability. Cart.com recently conducted two dedicated site takeovers successfully, including American retailer, PacSun. Russell Bowers, COO and CFO of PacSun said, “We are pleased to partner with Cart.com and believe its scale, proprietary technologies and operational expertise will enhance our efficiency and increase customer satisfaction.”

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