Keyan Bazargan ⚒️ @OpsWithKeyan
shipping carrier RFP management for brands. https://t.co/thxOmOyg2K Los Angeles, CA Joined September 2022-
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DHL eCommerce committed to USPS as its sole final-mile carrier in a $10B-plus exclusive deal. Consolidators usually keep regional carriers (Veho, UniUni, OnTrac) as a fallback. DHL gave that up. What they get: years of committed volume in exchange for rates they could not reach otherwise. What they give up: the option to pivot. The bet: USPS has the deepest final-mile reach in the country, and it is durable enough to commit to. If DHL eCommerce is in your carrier mix, that locked-in pricing should keep their rates competitive.
@AlexYancher Congrats Alex! Very well deserved.
@jamesmerilatt Separate two things. 1) its not a foul 2) shai is right to protect his feet
@jimjannuzzio agreed. no 4 wall building can do everything well.
Good example & something for all brands to beware of. 3PL's sometimes hard code in weight values at a higher value than your actual weight. So the shipping carrier bills the 3PL at the correct weight, and the 3PL earns the extra margin for charging at a higher weight. Happens a lot.
@Seanfrank @KodyNordquist just curious, why no overnight or 2 day option?
@geezer_nerd @wholyv "Sorting" is process that is already mostly automated with conveyer belts and scanners This is one of the parts that's not automated. Humans do this exact task in every sorting warehouse. It's a very practical use case.
@JakeHigley53 @RomanEcom Greed is one of the 7 deadly sins
@ChadCarleton Not UniUni specific, but I'm going to start monitoring actual carrier performance much more closely. They break their SLA's all the time to save costs. Consistently poor performance is a leading indicator of who might go out of business.
If someone is offering you supply chain service "for free" or "at zero cost to brands". It means they making their money through middleman fees, which almost always exceed what you'd be paying as a flat fee. Always be skeptical of free. It's never free.
Vendors see a brand that doesn't understand the 3PL & parcel world, and their first instinct is to take advantage. Rather than educate, they take advantage of the information asymmetry. There will always be a new batch of naive brands taken advantage of by grifters. The grifters only need a few naive accounts like this to make a financial killing. Sad behavior.
Brand I evaluated is overpaying on shipping by 41% compared to their actual market value. They are using one of those big legacy 3PL's. I'd love to switch them to a better 3PL, but their termination fee's are so aggressive, that the best financial choice is to wait until their annual contract term is up. This is a relatively small growing brand that will be over $100k worse off financially because of the excessive markup and predatory contract. This type of shit pisses me off.
@yo_yahli this video is so clean
@Reinfish This is true thought leadership
@RossMackay111 I help brands with 3pl sourcing, vetting, analysis, negotiation, and contract review. But for DIY, check out: matchmakers/directories: thirdperson.co, fulfill.com good 3PLs founders on x, like @jeffannaraj or @EDunion
Full write-up on the blog: ironmargin.com/learn/5-things…
The single sharpest counter: ask the supplier to fill in their SLA schedule with the standards they can commit to. Tie chronic breach to no-fee exit. Either they commit, or they reveal they can't meet them.
Most 3PL contracts get signed once, filed, and not opened again until something breaks. Here are 5 patterns that show up across most supplier-favorable drafts:
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