Mistaking Cost For Value

We were hesitant to use a third party, so we took our time vetting various 3PLs. After discussions with our operations, executive, and finance teams, we selected a well-known 3PL supplier with the lowest cost.
 
Looking back, that was the wrong measure.
 
We made the classic mistake: focusing solely on the short-term bottom line, despite our doubts about the vendor’s ability to deliver on SLAs. We treated fulfillment as a cost center rather than a core component of our product offering, and we paid the price.​

Within a few months, we had another situation on our hands. We solved the bottlenecks, but faced new problems when fulfilling direct-to-consumer orders due to low data reliability, mispick errors, and poor quality of service.

Packages weighing more than 10 pounds often arrived in poor condition, triggering customer reimbursement requests and a constant stream of complaints.

The number of incoming tickets jumped by 70%, overwhelming our customer experience team. The cost of reshipping orders, issuing refunds, and customer attrition far outweighed the initial low cost from the 3PL.

 
What’s more, when we looked at the transit times and negotiated different carriers, the cost consideration changed considerably. The pricing that was originally so tempting wasn't sustainable, as we ultimately had to pay more to get the transit times and quality of delivery service levels that we wanted.

We decided to reverse course, swallow our losses, and revisit the 3PL vendor selection process.​

Course Correcting With Shipfusion

Throughout our false start, we’d maintained contact with another vendor: Shipfusion. Although we’d rejected Shipfusion’s initial quote, the team continued to check in with us and monitor our progress. When we decided to pay the penalty to break our contract and put our misstep behind us, they were there. Finally, we were ready for a real partnership.​
 
Once we moved fulfillment to Shipfusion, we felt like we could breathe again. Our previous vendor operated out of a gloomy warehouse, where people worked hard to meet quotas rather than serve customers. In contrast, Shipfusion offers personal service from a dedicated team of people building careers and innovative systems.
 
Their food fulfillment centers ensure our products arrive fresh and on time through:

• FDA- and SQF-certified warehouses that meet stringent North American food safety and quality standards
• Refrigerated, climate-controlled environments that protect product freshness
• Cutting-edge inventory tracking tools that improve accuracy and fulfillment speed

Instead of cycling through one rep after another to resolve an issue, as was the case with our previous 3PL provider, we now deal directly with a senior account manager whose team meets our every need. Quarterly check-ins allow us to review our fulfillment performance and adjust our policies and processes as needed.
 
For instance, we recently implemented changes to better track the organic integrity of our products across the supply chain while maintaining regulatory compliance. Shipfusion had the expertise to help us meet these requirements. We initially sought help for order fulfillment, but got so much more with Shipfusion, a partner who can help us navigate the complexities of supply chain management.

From Upfront Investment to Long-Term Savings

The initial quote from Shipfusion wasn’t the cheapest option, so we focused on the immediate cost advantage rather than the long-term benefits, choosing price over quality and outcomes. After switching to Shipfusion, the real eye-opener has been the money we’ve saved and the value we’ve gotten. 
 
The Shipfusion team was transparent about pricing upfront. While we had an initial investment of moving our inventory and our usage fees are moderately higher, it’s worth it for quality fulfillment. 

A few results we've seen since switching to Shipfusion:

• Order accuracy rate has skyrocketed to 99.9%
• 60% improvement in shipping costs
• Packing errors and last-mile fulfillment issues have practically disappeared
• Our customers have never been happier and are rewarding us with their loyalty

Ironically, the biggest benefit of working with Shipfusion has been how little I have to work with Shipfusion. Their team handles every aspect of order fulfillment. Instead of putting out fires or dealing with inventory nightmares, we now have peace of mind. When you combine their tech with their personal touch, the result is perfection.

Backtracking to Make Things Right

Life is too short to be drinking poor quality coffee. Shipfusion ensures we can maintain our high quality of service and be proud to share delicious, health-conscious coffee with current and future customers.

If I had a time machine, I would go back to listen to—and amplify—the customer experience, and base our decision on customer care rather than perceived cost savings. We now know that Shipfusion has our back, and we feel very confident that they're the partners who will help us continue to grow.​