29 min listen
Selecting an E-commerce Fulfillment Partner with AJ Khanijow
Selecting an E-commerce Fulfillment Partner with AJ Khanijow
ratings:
Length:
28 minutes
Released:
Apr 30, 2019
Format:
Podcast episode
Description
[00:20] Opening / Introduction I (AJ Khanijow) am the founder and CEO of Fulfyld, an e-commerce fulfillment company that specializes in B2C shipments and home delivery. Fulfyld is based in Huntsville, Alabama. [01:00] Tell us about your background. Where did you grow up? Where did you go to school and what did you study? I grew up in Huntsville, Alabama. I earned an industrial engineering degree from Auburn University. The industrial engineering program was great because it gave me a good background in both engineering and business. [01:30] What was your first job? My first job was in the business intelligence space for a consulting company. Shortly after, I became a quality engineer for an automotive company. Automotive supply chains are big and complex. While working in automotive, I was exposed to supply chain best practices and a variety of different 3rd party logistics providers. [02:15] When and why did you start your company? I started Fulfyld about five years ago in 2014 Early on, the company was a manufacturer of packaging for the United States military. We got into the fulfillment space almost by accident when a client of ours sold some products online and didn't know how to get them shipped to their customers. Today, the company's focus is on e-commerce fulfillment and shipping directly to the consumer (home delivery). [03:25] Take us through the process of selecting an e-commerce fulfillment partner. First e-commerce companies should conduct a thorough internal assessment of their company to determine what they want from an e-commerce fulfillment partner. Companies should understand all the moving parts internally and what exactly your partner is going to be doing vs what will be managed in-house. Next, determine suitable locations for e-commerce fulfillment. Fulfillment locations should be close to carrier transportation hubs, ports, customers, and suppliers. Decide if you would like to fulfill externally or internally. Figure out how your ERP and e-commerce platform will integrate with your e-commerce fulfillment partner. [05:00] What comes after the internal assessment when selecting an e-commerce fulfillment partner? Cultural Fit: How does your business fit within the culture of your fulfillment partner? I always look to see if I can hang out with potential partners, that way you knows if it will be a good fit. [6:30] Range of Services: Ensure they offer all the services necessary for your supply chain to succeed. If your partner makes a critical mistake, it could be detrimental to your business. [7:30] Third-Party Logistics: Will they be able to accommodate all of your SKUs? [9:15] Technology Integration: Many traditional 3PLs specialize in TL and LTL shipping so their systems may not be suitable for managing small parcel shipments. Booking a dozen TL shipments is very different from processing thousands of small parcel shipments. To manage that volume of customer orders, you must have the right systems (technology) for the job. [11:00] Location: Your partner needs to be in close proximity to the carrier terminals. For instance, Huntsville is great for us because it is close to three of the biggest hubs (terminals) for small parcel carriers: Louisville, Memphis, and Atlanta. Make sure you are in a state that is low cost and good for business. The labor rate in L.A. is almost double what it is in Alabama. [13:20] Dedicated Customer Service: The ability to pick up the phone and talk to someone who is dedicated to your account is something I highly recommend. Essentially, your e-commerce fulfillment partner is running your supply chain so communication is critical. Problems must be identified and solved quickly, which means you can't be directed to a call center - you need an account manager who knows your business. [15:50] E-commerce Experience: Having experience in the e-commerce business is a requirement. E-commerce companies are usually young companies, so they need to select an e-commerce fulfi
Released:
Apr 30, 2019
Format:
Podcast episode
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