Most fast-growing ecommerce operations start with a simple setup: one carrier, one label workflow, one primary warehouse.

Then reality hits.

You add a second carrier to cover a weak lane. You bring on a 3PL. You try regional last-mile. You expand to LTL. You start shipping from two locations. A few months later, “shipping” is no longer a function. It is a network.

That is where shipping provider management matters.

Because shipping providers are not just vendors. They are part of your customer experience, your margins, and your operational stability.

This guide breaks down what shipping provider management is, why it gets messy fast, what to track, and how to build a system that scales without constant firefighting.

What is shipping provider management?

Shipping provider management is the ongoing process of coordinating all the providers involved in moving orders to customers, including:

In plain terms, it is how you keep cost, service levels, and accountability under control when your operation is no longer “one carrier, one workflow.”

Why shipping provider management gets complicated quickly

Every new provider adds capability, but it also adds variability.

Here is what typically multiplies when you add providers:

If you do not manage the provider network intentionally, you end up with a fragile setup where knowledge lives in a few people, exceptions become normal, and you cannot confidently answer basic questions like:

Shipping provider management vs. carrier management

These terms get used interchangeably, but they are not the same.

Carrier management

Focused on carrier accounts, services, rates, pickups, and performance.

Shipping provider management

Broader. It includes carriers, 3PLs, and the systems and workflows that shape shipping outcomes. It is about managing a shipping ecosystem, not just a carrier list.

If your orders move through multiple hands before delivery, you are in “provider management” territory.

The outcomes you should manage providers for

Most teams fixate on label cost. That is only one part of the story.

Strong shipping provider management balances four outcomes:

1) Total shipping cost (not just postage)

Include the costs that show up after the label prints:

2) Service level protection

Your shipping network should support the promises you make:

3) Reliability and exceptions

Lost packages, damages, late deliveries, and missing scans are operational taxes.

4) Customer experience

Tracking clarity and delivery consistency drive trust, repeat purchase, and fewer “where is my order” contacts.

A practical maturity model for shipping provider management

You do not need perfection. You need progress and control.

Stage 1: Provider sprawl

Stage 2: Basic governance

Stage 3: Performance management

Stage 4: Orchestration

This is the shift from reactive shipping execution to real-time coordination.

What to standardize first

If you want a clean foundation, start with standardization. It creates stability and makes optimization possible.

1) Provider inventory

Build a simple provider map:

If you cannot list your providers and where they are used, you cannot manage them.

2) Decision rules at label time

Document your current selection logic, even if it is informal:

This is where cost and performance are won or lost.

3) Exception workflows

Define what happens when:

A provider network without fallback playbooks becomes chaos during peak.

4) Data consistency

Agree on the basics:

Bad data creates bad provider decisions.

Black-and-white handshake across a table covered with shipping contracts, rate sheets, labels, and a tablet showing logistics data.
Shipping provider management is part operations, part relationship management, and part contract discipline.

The metrics that actually matter

You can keep this lean and still learn a lot.

Start with a simple scorecard, per provider and per service:

Cost metrics

Performance metrics

Quality metrics

Behavior metrics

These metrics help you move from opinions to decisions.

Common provider management problems and how to fix them

Problem 1: Too many services, not enough guardrails

Fix:

Problem 2: One provider is quietly causing most of the pain

Fix:

Problem 3: Your 3PL ships differently than you think

Fix:

Problem 4: Billing surprises keep showing up

Fix:

Problem 5: Peak season breaks your setup

Fix:

How to evaluate tools that help manage shipping providers

You might be using a mix of tools already: a WMS, a shipping tool, a tracking tool, maybe audit software. The goal is not more tools. The goal is better decisions and tighter control.

Here are evaluation questions that reveal whether a tool will help you manage providers, not just print labels:

“Can we set rules that protect service levels, not just cost?”

Look for the ability to route based on constraints and outcomes.

“Can ops manage rules without engineering tickets?”

If not, rules get stale and manual overrides creep back.

“Can we see why a provider was chosen for a shipment?”

Decision auditability is a must.

“How does the system handle outages and fallbacks?”

Provider management is stress-tested by failure, not normal days.

“Can we measure performance and exceptions by provider and lane?”

Without visibility, provider conversations turn into anecdotes.

A simple operating rhythm for managing shipping providers

This is what “good enough” can look like without overcomplicating it:

Weekly (30 minutes)

Monthly (60 minutes)

Quarterly (90 minutes)

That rhythm creates compounding improvement.

Where this is headed: from provider management to orchestration

At a certain scale, managing providers becomes less about adding options and more about coordinating decisions.

That is the difference between:

Orchestration is the next step: continuously coordinating providers, services, and data to protect outcomes in real time.

Less chaos. Smarter decisions. Protected performance.

Quick FAQ

Is shipping provider management only for large companies?

No. It is for complexity, not headcount. Multiple warehouses, multiple carriers, 3PL nodes, or tight delivery promises create provider management needs quickly.

What is the fastest win?

For most teams, it is service level guardrails plus reducing manual overrides. Overspending often comes from “just in case” expedited choices.

Do we need multiple providers to benefit?

You can improve with one carrier, but meaningful resilience and optimization usually require at least two viable options for key lanes.

Closing thought

Shipping provider management is not a one-time cleanup project.

It is an operating system for your shipping network.

Start with standardization, measure what matters, tighten rules, and build fallbacks. Then optimize with confidence rather than constantly reacting to the latest fire.

What is shipping orchestration?

Shipping orchestration is the ability to coordinate shipping decisions across various carriers, service levels, constraints, and performance data, ensuring that every shipment is routed with intent and your operation adapts as conditions change.

If shipping execution is “create label, hand off to carrier,” then shipping orchestration is:

This aligns with how “orchestration” is commonly described in logistics: connecting systems, breaking silos, and enabling smarter decisions in real time. 

One-line definition:

Shipping orchestration = Carrier Orchestration applied to outbound shipping: continuous coordination of carriers + services + data to protect cost and performance.

Shipping orchestration vs order orchestration vs TMS

People use these interchangeably, so here’s the clean separation:

Shipping orchestration

Focus: carrier/service decisioning + execution outcomes (cost, SLA, exceptions, performance drift).

Order orchestration

Focus: getting an order from confirmed to delivered across nodes and workflows, inventory reservation, node selection, work release, re-routing, and exception playbooks. 

TMS

Focus: broader transportation planning/optimization, often across modes and networks, may include carrier management and rating/dispatch capabilities.

How they fit together:

Order orchestration decides where/how to fulfill.

Shipping orchestration decides how to ship profitably and reliably once fulfillment is set.

The core problem shipping orchestration solves

Most teams don’t have a “shipping problem.” They have a decision problem.

As shipping complexity grows, you end up with:

Orchestration exists because logistics has become an interconnected system; optimizing one shipment at a time without feedback loops doesn’t scale. 

How shipping orchestration works (the 5-step loop)

This is the part most blogs skip. Here’s the actual mechanism:

  1. Sense reality
    Collect signals: rates, promised delivery days, carrier performance, pickup constraints, exception trends, DIM/weight risk, destination patterns.
  2. Decide
    Apply business rules + optimization logic (cost vs SLA vs risk). This is where guardrails live.
  3. Execute
    Print label, manifest/tender, update tracking and notifications.
  4. Manage exceptions
    Detect risk early, route actions, escalate, and prevent repeats.
  5. Learn + improve
    Update rules based on drift (performance changes, cost creep, recurring exceptions).

If your stack can’t complete step 5, you don’t have orchestration.

The capabilities that separate “real orchestration” from “rate shopping”

If you’re evaluating solutions (or auditing your current stack), look for these:

1) Decision governance

2) Constraints-aware routing

3) Performance feedback, not just tracking

4) Exception playbooks

5) Outcome reporting

When you need shipping orchestration

You’re in “orchestration territory” if any of these are true:

Implementation plan: 30–60–90 days

Days 0–30: Build your decision inputs

Days 31–60: Standardize routing + exception logic

Days 61–90: Close the loop

The KPI set to track monthly

FAQ

Is shipping orchestration the same as supply chain orchestration?

Not exactly. Supply chain orchestration is broader, encompassing planning and logistics within a connected process. Shipping orchestration is a narrower layer focused on outbound carrier/service decisioning. 

Is shipping orchestration just automation?

Automation runs workflows. Orchestration continuously coordinates decisions and updates logic based on performance feedback.

What’s the biggest ROI lever?

Reducing exceptions and drift (late spikes, misapplied services, cost creep). The cheapest label often isn’t the cheapest outcome.

What is a carrier management system?

A carrier management system is software designed to help businesses manage their relationships with transportation carriers across the entire lifecycle: from carrier onboarding and contract management to performance monitoring and dispute resolution. 

Think of it as the difference between:

Important: “CMS” can mean different things

Depending on your world, “carrier management system” might refer to:

So the right question isn’t “Do we need a CMS?”

It’s “Which carrier problems are we trying to stop repeating?”

CMS vs TMS vs multi-carrier shipping software

Here’s the cleanest way to separate them:

Multi-carrier shipping software

Job: Print labels, shop rates, track shipments.

Great for label execution. Weak for long-term carrier governance.

CMS (carrier management system)

Job: Manage the carrier relationship end-to-end:

TMS (transportation management system)

Job: Broader transportation planning + execution + optimization across modes and systems (often including CMS as a module). 

Rule of thumb:

If the pain is “we can’t control carriers consistently,” CMS is the lever.

If the pain is “we can’t plan/optimize transportation holistically,” TMS is the lever.

When do you actually need a carrier management system?

You don’t need a CMS because your operation is “big.”

You need one because your operation is starting to break in predictable ways.

Common signals:

The 10 CMS capabilities that matter (and how to tell if they’re real)

1) Carrier onboarding + compliance

Insurance, certifications, documentation, renewal reminders, and compliance status.

If your compliance process is “ask Bob if we have the cert,” you’re one audit away from pain.

2) Contract + rate management

CMS should centralize:

3) Service catalog + constraints

Carriers aren’t just names, they’re constraints:

4) Tracking + event visibility

At minimum: milestone events, proactive alerts, and standardized shipment status.

Visibility is the foundation for accountability. 

5) Exception workflows (the real money)

A CMS should help you:

6) Carrier performance scorecards

Look for scorecards that can be segmented by:

7) Dispute + claims handling

Not glamorous. Very profitable.

If claims are handled in email threads, you’re quietly bleeding time and money. 

8) Rate + service selection logic (where applicable)

Not every CMS implements “routing logic,” but the best setups allow for consistent selection rules, ensuring the operation doesn’t depend on the individual working that day. 

9) Reporting that operators can actually use

Dashboards should answer:

10) Governance + controls

Permissions, audit logs, approval flows.

As you scale, “who can change service rules” becomes a revenue question.

A simple selection framework: score your CMS on three outcomes

Most people choose software based on feature lists. That’s how you end up with a tool you “have” but don’t “use.”

Instead, score vendors on outcomes:

Outcome A: Control (can we standardize decisions?)

Outcome B: Accountability (can we measure performance honestly?)

Outcome C: Improvement (can we prevent repeat issues?)

Litmus test question for any CMS demo:

“Show me how you identify a carrier performance drift over the last 30 days, isolate the cause, and prevent it from recurring.”

If the answer is “export a spreadsheet,” keep shopping.

30-60-90 day implementation plan

Days 0–30: Build a single “carrier truth”

Days 31–60: Standardize workflows

Days 61–90: Turn on scorecards + governance

Common mistakes (that make CMS feel like “busywork”)

  1. Treating CMS as a database instead of an operating system
     If it doesn’t change decisions, it won’t change outcomes.
  2. Optimizing for rate only
    The cheapest label can still be the most expensive outcome if it creates exceptions, WISMO tickets, claims, or reships.
  3. No “owner” for carrier performance
     If nobody owns review cadence + corrective actions, drift becomes normal.
  4. Too many carriers too early
     Every carrier adds complexity, including rules, exceptions, invoices, and customer expectations.

Metrics you should track (monthly, minimum)

These are the “truth metrics” that keep carrier conversations grounded.

Where Carrier Orchestration fits

A CMS helps you manage carriers.

Carrier orchestration is what happens when you use carrier data + performance + constraints to continuously coordinate decisions (service selection, routing logic, exception prevention) so you’re not just reacting, you’re steering.

A simple way to think about it:

FAQs

Is a CMS only for freight?

No. CMS concepts apply to parcel, LTL, last-mile, and hybrid networks. The “shape” changes, but the job (control + accountability) is the same.

Is CMS the same as a carrier TMS?

No, “carrier TMS” is usually software for the carrier’s internal operations (dispatch, fleet, accounting). CMS is typically shipper/broker-side carrier management. 

What’s the biggest ROI lever? Usually, exception prevention + performance drift management + invoice accuracy, because those are recurring costs that hide in plain sight. 

If you’re scaling a brand or operating a 3PL, you know that transparency in the supply chain isn’t always ideal. That’s where blind bills of lading come into play.

Sometimes, a little discretion can protect your margins, supplier relationships, and business strategy.

What are Blind Bills of Lading?

Blind bills of lading are modified shipping documents that hide the identity of one or more parties in the transaction—usually the shipper, the consignee, or both.

In most cases, it’s used to protect the supplier’s identity from the buyer or end customer. It allows a reseller, wholesaler, or 3PL to keep their source or fulfillment details private while still facilitating a standard freight move.

Unlike a standard BOL—which clearly lists the shipper, consignee, and carrier—a blind BOL intentionally obscures some of that information. Depending on who initiates the request, you may see:

It’s commonly used in drop shipping, wholesale distribution, and white-label fulfillment.

Why Would Someone Use a Blind BOL?

There are several business reasons to request a blind BOL:

How Blind BOLs Work (and What to Watch Out For)

To execute a blind shipment, the shipper (or broker) provides alternate documentation to the carrier—usually before pickup. The carrier is then instructed to use the blind BOL instead of the actual shipping document. It’s crucial that:

Mistakes in a blind BOL can cause missed pickups, delays, or even legal issues if documentation doesn’t align with carrier requirements.

And not all carriers allow blind shipments, especially without prior notice. Some may charge additional fees or require the use of a specific platform to manage the request.

Real-World Use Cases

Example 1: DTC brand using a 3PL
 A premium skincare brand works with a fulfillment partner that ships directly from a shared warehouse. To maintain brand integrity, the brand uses blind bills of lading that list the brand as the shipper—even though the product physically ships from the 3PL’s facility.

Example 2: Marketplace wholesaler
 A seller on Amazon sources bulk goods from multiple manufacturers. Rather than expose the factory details to Amazon or the customer, they use blind BOLs to list their LLC as the shipper.

Example 3: White-label manufacturer
 A private label supplement company fulfills orders for dozens of resellers. Each one uses blind shipping to hide the manufacturer’s identity and control their brand experience.

How eHub Can Help

Whether you’re operating as a brand, a broker, or a 3PL, eHub’s network and fulfillment intelligence platform helps you execute complex routing logic—including blind shipments—without losing control.

With built-in flexibility across our WMS, label orchestration, and 3PL integrations, you can:

With our capabilities, you can be sure the right package reaches the right place with precisely the level of transparency (or discretion) you want.

Final Thoughts

Blind bills of lading aren’t about being secretive—they’re all about being strategic.

If you’re running a fulfillment operation that depends on discretion, relationship protection, or white-label scale, understanding how blind BOLs work is a critical part of your shipping playbook.

Need help making blind shipments work at scale?
Let’s talk.

For most growing ecommerce brands, the idea of “warehousing and distribution” feels like background noise. You’re focused on sales, marketing, product sourcing, and customer experience. Logistics is something you don’t think about—until it breaks.

But warehousing and distribution aren’t just about where your products sit. It’s about how efficiently they move, how much you spend to store and ship them, and how reliably they reach your customer. And that’s where many brands begin to feel the weight of complexity.

Whether you’re fulfilling orders from a garage, running a small warehouse, or working with a 3PL, understanding how warehousing and distribution work (and how it’s evolving) can help you streamline your operation—and unlock better margins at scale.

What Is Warehousing and Distribution?

At its core, warehousing and distribution is the process of storing inventory and getting it into your customer’s hands.

It sounds simple enough. However, once SKUs multiply, sales channels expand, or you start shipping internationally, warehousing and distribution quickly become one of your most strategic (and expensive) functions.

Why It’s More Than Just Space and Boxes

Good warehousing and distribution isn’t just about finding the cheapest storage or fastest shipper. It’s about building resilience into your supply chain.

Here’s what that looks like in practice:

The most successful brands aren’t just outsourcing logistics—they’re treating it like a core competency. They understand how their fulfillment operation directly impacts customer satisfaction, margin, and retention.

When Should You Rethink Your Warehousing and Distribution Strategy?

If any of these sound familiar, it may be time to rethink your setup:

You’re not alone. At eHub, we work with merchants every day who thought their setup was “fine”—until they saw how much money and time they were leaving on the table.

How eHub Helps E-commerce Brands Streamline Fulfillment

eHub simplifies warehousing and distribution by giving brands:

Whether you’re evaluating a new 3PL, building out a multi-node fulfillment network, or just trying to scale cleanly without losing control, our team helps you make smarter decisions at every step.

Final Takeaway

Warehousing and distribution is the beating heart of every product-based business. You can’t grow without it—but if you ignore it, it will eventually start working against you.

By treating fulfillment as a competitive edge (not a cost center), you can unlock real leverage—shorter transit times, happier customers, better margins, and less stress for your team.

If you’re ready to explore what a better warehousing and distribution strategy looks like, we’re here to help.

When it comes to e-commerce fulfillment, the “last mile” is often the hardest—and most expensive—part of the journey. It’s also the most visible to customers.

Today’s shoppers expect fast, affordable, and transparent delivery. Meeting those expectations without breaking the bank is one of the biggest challenges brands and 3PLs face.

If you’re exploring 3PL last mile delivery solutions, understanding how third-party logistics providers approach this critical phase—and how technology like eHub can make it even better—is key to building a fulfillment strategy that scales.

What Is Last Mile Delivery in a 3PL Context?

Last mile delivery refers to the final step of the shipping journey: moving a package from a fulfillment center to the customer’s doorstep.

When you work with a 3PL (third-party logistics provider), they typically manage:

Some 3PLs also offer additional last-mile options through local couriers, regional carriers, or hybrid delivery models to balance cost and speed.

Key Challenges in 3PL Last Mile Delivery

Delivering that final mile isn’t as simple as slapping on a label. 3PLs—and the brands they serve—face a number of challenges:

Cost Pressures

The last mile can represent over 50% of total shipping costs. Residential deliveries, fuel surcharges, and accessorial fees add up quickly.

Speed vs. Affordability

Consumers want two-day (or even same-day) delivery, but expedited options drive costs higher. Striking the right balance between speed and affordability is critical.

Visibility Gaps

Customers expect real-time tracking and proactive updates. Gaps in tracking or communication can create a poor delivery experience.

Returns Complexity

Reverse logistics—handling returns—is a growing challenge, especially for 3PLs managing high-volume ecommerce operations.

How eHub Supports 3PL Last Mile Delivery

At eHub, we make last-mile delivery more innovative and more cost-effective for both 3PLs and the brands they serve.

Here’s how:

Multi-Carrier Access

Through eHub Ship, users can access USPS, UPS, FedEx, DHL, and regional carriers from a single platform. This gives 3PLs and merchants greater flexibility in managing last-mile delivery strategies.

Shipping Automation

Our platform automatically selects the best carrier and service level based on order parameters, helping reduce manual decision-making and optimize costs.

Cost-Effective Parcel Solutions

eHub makes it easier for fulfillment providers to access competitive shipping options for affordable residential delivery.

Simplified Returns Management

With eHub, merchants and 3PLs can better manage return labels and workflows, closing the loop on the post-purchase experience.

Scalable Fulfillment Partnerships

Through our network of vetted 3PLs, eHub helps brands expand into new fulfillment centers and markets, shortening delivery distances and supporting faster, more affordable last-mile solutions.

From checkout to final delivery, eHub helps fulfillment teams optimize speed, cost, and visibility across the last mile.

Final Thoughts: It’s Not Just About Speed—It’s About the Customer Experience

Winning in e-commerce isn’t just about offering faster shipping—it’s about delivering a consistent, reliable experience that keeps customers coming back.

A strong 3PL partner combined with innovative last-mile optimization tools can help you achieve both.


And that’s where eHub fits in.

Whether you’re growing your brand, expanding into new regions, or looking to simplify complex logistics challenges, we’re here to help you build a fulfillment strategy that delivers on every promise you make.

Introduction

Logiwa, a leading warehouse management system (WMS), is built for high-volume e-commerce and fulfillment operations. To enhance shipping efficiency, Logiwa seamlessly integrates with eHub’s shipping platform, unlocking access to competitive carrier contracts and powerful automation. This partnership streamlines shipping, reduces costs, and maximizes efficiency for e-commerce businesses.

1. Seamless Integration: Unlock Competitive Carrier Contracts

2. Rate Shopping Made Easy: Compare and Save

3. Optimize Shipping Strategies with Data & Automation

4. Key Features That Elevate Shipping Operations

5. The Result? A Smarter, More Cost-Effective Shipping Solution

By combining Logiwa’s powerful WMS with eHub’s shipping platform, businesses can:

Ready to optimize your shipping with Logiwa and eHub? Contact us today!

Introduction

The Canada Post strike, which began on November 15, has disrupted parcel deliveries across the country at one of the busiest times of the year. With over 55,000 postal workers off the job, negotiations between Canada Post and the Canadian Union of Postal Workers remain ongoing. Meanwhile, shippers are left scrambling to find alternatives during the holiday peak season.

Here’s what you need to know about the strike and how it’s affecting shippers across Canada.

A Logistical Standstill

At the heart of the strike are demands for better wages, improved safety conditions, and an expansion of public postal services. While both sides are still negotiating, delays have begun piling up. Even when the strike ends, Canada Post has indicated it will take time to clear the backlog of packages, which could stretch for up to 10 days.

For shippers relying on Canada Post, this means bracing for continued disruptions and potentially seeking alternative carriers.

The Ripple Effect on Carriers

The strike has sent ripple effects throughout the industry. Major carriers like UPS and Purolator are taking on extra volume, but their networks are already stretched thin. Some are freezing shipments or limiting package intake to maintain operations. FedEx, for example, has implemented temporary restrictions at its retail locations, while Purolator has paused service for select shipping partners.

This influx of volume is creating a bottleneck, with on-time delivery rates in Canada reportedly dropping by 14% since late October.

How Shippers Can Adapt

To navigate the disruptions, shippers are exploring creative solutions:

Diversify Carrier Options: Relying on one carrier is a risk—now more than ever. Regional and niche providers can help cover gaps, especially in less urban areas.

Use Door-to-Door Services: Opt for services that manage deliveries end-to-end to ensure your U.S.-to-Canada shipments bypass Canada Post entirely.

Keep Customers Informed: Clear communication about potential delays, pickup options, or alternative shipping methods can help maintain customer satisfaction.

These strategies not only address immediate challenges but also help build long-term resilience.

A Call to Prepare for the Future

The Canada Post strike highlights the importance of having a robust logistics strategy. While the strike will eventually end, it’s a stark reminder of how dependent many shippers are on a single provider. Diversifying carrier networks, leveraging new technologies, and maintaining flexibility are key to staying ahead in an unpredictable industry.

At eHub, we’re here to help shippers navigate challenges like these with ease. Whether it’s finding the right carrier or optimizing your shipping strategy, our expertise ensures you’re ready for whatever comes next.

The logistics landscape is evolving rapidly, with businesses striving to meet ever-increasing customer demands. At the recent Deliver America logistics conference, Adam McCoy, COO of eHub, took center stage alongside Nathan Goobie, Director of Small Parcel and Shipping Solutions at Techdinamics, to explore a game-changing strategy: Hybrid Fulfillment.

In their joint keynote presentation titled “Achieving Amazon-Level Success: The Power of Hybrid Fulfillment,” Adam and Nathan shared invaluable insights into how this strategic approach is shaping the future of e-commerce fulfillment.

What is Hybrid Fulfillment?

Hybrid fulfillment combines the strengths of in-house fulfillment with third-party logistics (3PL) providers to create a scalable, flexible solution for businesses. This powerful strategy allows companies to scale efficiently while maintaining control over their core competencies.

Key Takeaways from the Session:

Unpacking Amazon’s Fulfillment Secrets: Adam and Nathan discussed the methods that have made Amazon a leader in e-commerce. By analyzing and adapting Amazon’s fulfillment model, businesses of all sizes can position themselves for growth and success.

Innovative Approaches to Hybrid Fulfillment: The session highlighted how businesses can tailor hybrid strategies to their unique needs, ensuring they benefit from the best of both worlds – in-house fulfillment and 3PL partnerships.

Trends Shaping the Fulfillment Industry: Adam and Nathan also discuss emerging trends influencing the fulfillment landscape, helping attendees stay ahead in an increasingly competitive market.

Why Hybrid Fulfillment Matters:

The benefits of hybrid fulfillment go beyond just scalability and flexibility. As Adam and Nathan emphasized, this strategy helps businesses:

Increase Scalability: Adapt to fluctuating demand without the burden of infrastructure investment.

Cut Costs: Leverage 3PL providers to manage warehousing and fulfillment, avoiding large upfront expenses.

Boost Efficiency: Focus on core business functions while ensuring seamless order fulfillment.


Enhance Customer Experience: Deliver faster and meet customer expectations with a broader inventory reach.

Watch the Full Session

Want to dive deeper into the conversation? The entire keynote session, filled with actionable insights and strategic recommendations, is available to watch. Don’t miss this opportunity to learn how you can implement hybrid fulfillment and achieve Amazon-level success.

Ready to Transform Your Fulfillment Strategy?

eHub is here to help. Contact us today to learn more about how hybrid fulfillment can work for your business.

Summarized Transcript:

—

“Achieving Amazon-Level Success: The Power of Hybrid Fulfillment” Session

—

**Dominic:**  

We would like to welcome you all to the session *Achieving Amazon-Level Success: The Power of Hybrid Fulfillment*. I have two bios for you here.  

We have Nathan, who’s an experienced leader in IT and supply chain, focusing on parcel solutions and operational growth. He’s currently serving as the Director of Parcel and Shipping Solutions at Techdinamics.  

I have Adam McCoy here, who’s an accomplished product leader with over 15 years of experience in product conception, launch, and management. In 2023, Adam transitioned to the role of COO at eHub. They used to be mortal enemies, but now they’re working together to present to you their feelings of love and collaboration.  

Please give a silent clap for them. Look at that, everyone’s silently clapping, love it! Okay, let’s jump right into it.

—

**Adam McCoy:**  

Thanks, Dominic. So today, we’re going to focus on achieving Amazon-level success through hybrid fulfillment. We’ll cover different topics, including defining hybrid fulfillment, touching on automation, technology, and the network required for this setup. By the end of today, we want you to understand what hybrid fulfillment is and how it can help you compete with Amazon or achieve success similar to Amazon.

—

**Nathan Goobie:**  

Great, thanks, Adam.

Amazon has had incredible growth, and it’s amazing to watch their expansion. To put things into perspective, the Las Vegas Metro area has just under 3 million people. If you cut that in half, it roughly represents the number of employees Amazon has. Their footprint is even more impressive. Amazon has 623 million active square feet.

For comparison, we’re in the Horseshoe Casino, which has about 68,000 square feet. So, Amazon’s footprint equals over 9,000 Horseshoe Casinos!

Even more impressive than their footprint is what they’ve done from a logistics perspective. Amazon created an industry standard in logistics. They can deliver to 72% of the U.S. within 24 hours, which gives them a massive e-commerce advantage.

—

**Adam McCoy:**  

How many of you have purchased a product from Amazon simply because it would arrive quickly? Almost every hand goes up. Amazon has built a competitive advantage around fast shipping, and that’s a core part of their success.

—

**Nathan Goobie:**  

It’s fascinating how, regardless of size, every brand faces the same challenge—reducing delivery times. Whether you’re a small retailer or a large business, we’re all trying to get products to customers faster and more affordably. Today, we’ll discuss how hybrid fulfillment can help tackle these challenges, with scalability and flexibility being key.

—

**Adam McCoy:**  

Nathan made a great point. Whether you’re a big or small company, the problems can be similar, just at different scales. One big challenge Amazon has tackled better than others is the regulatory landscape, especially in Europe, where fulfillment becomes complicated due to varying tax codes and compliance requirements.

Today, we’re going to discuss strategies for hybrid fulfillment and how it can help overcome these challenges.

—

**Nathan Goobie:**  

Let’s dive into what hybrid fulfillment is. Imagine you’re a brand fulfilling orders in-house on the East Coast. With hybrid fulfillment, you can partner with a 3PL on the West Coast to serve that region more efficiently. This allows you to scale while taking advantage of your strengths and those of your partners.

—

**Adam McCoy:**  

I love the hybrid car analogy—balancing the benefits of gas and electric cars. Hybrid fulfillment is about getting the best of both in-house and 3PL fulfillment. You scale without losing control or needing significant capital investments.

—

**Nathan Goobie:**  

Absolutely. And let’s not forget the importance of technology. It’s what ties everything together. Whether it’s automation or inventory management, having the right tech stack is key to making hybrid fulfillment work seamlessly.

—

**Adam McCoy:**  

Technology is critical, especially when managing multiple locations. Whether it’s forecasting inventory or measuring performance, analytics and transparency are essential for success.

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**Nathan Goobie:**  

We’ve also seen companies like James Cargo, who started in the UK, expand globally using hybrid fulfillment. By partnering with 3PLs in the U.S. and Canada, they’ve managed to offer fast and affordable shipping while leveraging the same technology across locations. It’s a perfect example of how hybrid fulfillment enables brands to achieve Amazon-level success.

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**Adam McCoy:**  

Another great example is Gab Wireless. They use hybrid fulfillment to handle products requiring serialization. Instead of managing everything in-house, they partnered with a 3PL specializing in serialized products, allowing them to scale without increasing capital expenditures.

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**Nathan Goobie:**  

Exactly. It’s all about delivering a five-star experience to your customers—reducing shipping times, improving efficiency, and building a network that supports your business goals. With the right hybrid fulfillment strategy, you can compete with even the biggest players in the industry.

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**Dominic:**  

Thanks to Nathan and Adam for sharing those insights. Now, let’s open it up for questions!

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FedEx is set to increase its package and freight shipping rates by an average of 5.9%, effective January 6, 2025. The latest FedEx rate hike will affect both domestic and international deliveries, including popular services like Ground Economy, Ground Multiweight, International Premium, and various freight options.

In addition to the rate hike, businesses should be aware of increased fees for residential deliveries, specific ZIP codes, and packages requiring extra handling. For e-commerce shippers relying on Ground Economy, these changes mean it’s time to revisit your shipping strategies, especially when dealing with heavier packages and remote destinations.

Brandon Staton, founder of Shipmint, pointed out the impact on shipping costs: “E-commerce shippers using Ground Economy services will need to keep a close watch on how the increases in both minimum charges and surcharges impact their shipping costs.” 

With FedEx’s two-day air services facing even steeper rate hikes, some shippers may consider ground delivery as an alternative. However, Adi Karamcheti, consultant at Shipware, warns that ground delivery rates for longer-distance shipments will also see noticeable increases. “It seems FedEx thinks they can get shippers to pay more to get things delivered before the third day,” he noted.

While UPS has yet to announce its 2025 rate changes, both major carriers operate in a post-pandemic environment where demand is softer, giving businesses more leverage in shipping negotiations. “Never accept what the big two offer as pricing concessions as the final say,” Karamcheti advises. “Make sure that you do actually negotiate with them.”

What This Means for You:

FedEx’s annual rate adjustments are a good reminder to review your shipping mix and explore ways to minimize costs. 

At eHub, we’re ready to help you navigate these changes—whether it’s by finding alternative carriers, optimizing your shipping strategy, or tapping into our partner network to save you time and secure the best rates for your business.