Whether you’re a new or established brand, the right fulfillment partner should meet your needs at every stage.

No matter what stage your company is at in its fulfillment journey, MasonHub has solutions for you. Not only do we nurture fledgling brands, we can also help take “teenage” brands to the next level, and we offer established brands mitigated risk and the ability to execute seamlessly. So what category do you fit in? Here’s a look at some common stages of growth and their fulfillment needs.

The 3PL Newbie

• Order volume: 500-2.5K orders/month

• Currently self-fulfilling
• You don’t yet have a standard operating procedure for fulfillment, are not quite sure what a 3PL does and what is industry standard; and lack realistic forecasting ability. 
• Seeking a trust-based relationship with a provider who can help you make the right decisions for your brand and provide recommendations. 
• Paying a fulfillment provider may mean making other trade-offs in the business. 

Growing Pains

• Order volume: 5K-20K orders/month

• You’ve handled initial scaling yourself, and you know what you want and where you want to go, but you don’t know how to get there. 
• You’re a little anxious about relinquishing control of your operations. You know you can do things well on your own, but you also know you can’t get to the next stage alone. 
• Seeking a word-of-mouth recommendation from a brand similar to yours. 
• This is your first 3PL, so you want a provider who’s done this before, can streamline processes that take you too long, and handle the certifications and requirements for your product. 

Fresh Start Needed

• Order volume: 20K-50K orders/month
• You know your current 3PL can’t scale with you and what you want and don’t want in a new one. You also know what’s missing and what you need. 
• Seeking trust, transparency, communication, connection and flexibility. A long-term relationship where you can really grow. There’s a reason they say a good 3PL is like a marriage! 
• You may start looking for a new provider 3-4 months before your current contract expires. 

Been There, Done That

• Order volume: 100K+ orders/month
• You have a full and established operations team that is detail-oriented and price conscious.  
• You’ve done lots of due diligence and competitive research.
• Seeking mitigated risk, a financially sound partner with the ability to execute without much change to your operations. 

If you identify with some of these characteristics and have similar decision-making criteria when it comes to finding a fulfillment partner, get in touch with us to find out more about our order fulfillment services and how we can tailor them to meet your specific needs. Chances are, if you’re thinking about switching to a new 3PL or hiring your first one, we can help solve your fulfillment challenges. 

How to know when you’re ready and how to prep

How to Determine When it’s Time for Financing

You’ve come up with a solid business plan and you’re seeing an increased interest in what you have to offer. But ramping up your business to keep up with demand is easier said than done. Growing sustainably means that brands often need to find financing solutions that can help them scale. 

But how do you know when it is time to apply for financing? There are a few scenarios that many emerging businesses face that are indicative of when the time is right. In this retailer’s guide to financing, we’ll walk you through the signs as to when to get funding, so you can start future-proofing your business now.

Going Wholesale

Your direct-to-consumer brand relies heavily on marketing to get the word out about your products, which worked well so far. You’re ready to take it one step further, and possibly even some retailers are taking notice of your brand. Going omnichannel is a great way to get more of your products into the hands of consumers. What’s more, the wholesale business model benefits both the brand and the wholesaler by creating efficiencies. On the other hand, it also requires vigorous inventory planning, and going wholesale takes up a big chunk of a business’ budget. Juggling marketing spend while paying suppliers and hiring a third-party-logistics company (3PL) that can handle omnichannel fulfillment, can often be a burdensome headache that adds to the stress of growing a business. As you’ll need to reallocate more of your budget to inventory purchases and warehousing to supply the wholesaler, more of your money will be taken away from other areas. And that is where financing comes in.

You don’t want to run out of money by locking up your own dollars in purchase orders, but keep that cash on hand for more important business areas and unexpected situations. If you’re an emerging brand that’s ready to take on the wholesale world, but don’t have the extra cash to do so, then it is likely time for financing!

As an example, purchase order financing can help stressed business owners figure out how to pay suppliers the purchase order costs they need to, while keeping cash on hand which can be used to develop new products and increase marketing spend. You can find out more about Purchase Order Financing here.

Lastly, when looking for a financing partner, surround yourself with skilled and experienced advisors and lenders who have worked in the category or product type you are offering. You can also ask other companies that have worked with your wholesaler about their experiences, both their successes and their follies with financing.

Accelerated Growth

Orders are pouring in, and your brand is seeing accelerated growth. When a lot of growth happens quickly, it is all about being able to scale sustainably. Future-proofing your business often takes thorough planning, and also some dollars to fuel that growth. Again, the worst use of your valuable cash is to spend it on manufacturing your products, because it ties up capital that is better used on equipment, marketing, and people (among other things.) If you find yourself in a situation where demand is growing quickly, but you’re lacking the funds to keep up, then it is likely time for financing!

Businesses often need extra capital to purchase more inventory and finance their growth sustainably. A line of credit from an experienced lender can free up a lot of your own cash for more important areas, while growing your inventory positions and scaling the business month-over-month. Fast growth indicates that it is time for financing, and also to cast your net and hire finance personnel to help with your business’ finances, and to handle the process of obtaining extra capital.

Long Lead Times When Buying Overseas

After a few years of economic uncertainty, it is safe to say: uncertainty is the future. Lockdowns, supply chain issues and other factors have led to many deep disruptions, and brands had to find new ways to keep up with demand. In order to adapt quickly to sudden changes in demand, it is advised to stock up and purchase more inventory ahead of time to stay ready and prepared, to not lose out on sales. After all, 46% of consumers are switching to the competition when their favorite brands run out of stock. 

The timeline from beginning production to landing goods in the warehouse, then delivering to customers or wholesale partners can take many months. To reduce uncertainty, make sure to keep more inventory on hand, diversify product sources, increase the number of suppliers, and shorten supply chains. 

If you find yourself running out of products often and needing to stock up, but don’t have enough cash on hand to do so while staying focused on other areas, it is likely time for financing! After all, your reputation and customer satisfaction are on the line. As brands grapple with the challenges of 2023, they’ll need to stay flexible. Especially with a looming recession on the horizon, being agile is more important than ever. Partnering with an experienced lender allows businesses to keep the cash on hand needed to adapt to sudden changes, smooth out bumpy periods, and more.

How Can My Business Prepare?

Accounting

The way businesses handle accounting and financial documents is important, and a first step to securing a financing deal. In order for lenders to grant loans or lines of credit, they are often looking for documents with accrual accounting, rather than cash basis accounting. Although cash basis accounting is easier to maintain and understand, accrual basis accounting gives a fuller and more long-term perspective on how the company is faring, which makes you more likely to obtain the capital that you are looking for. 

Know Your Performance Inside and Out

Another important way to prepare is to get a good understanding of the problem you are solving. Know your sales performance and margins inside and out, and be able to communicate how you are going to use the funds. Update your books at least monthly, and be able to speak on how you are managing expenses like salaries and marketing. Show in your cash flow projections how you are planning to use the money to find out how much you really need. This will go a long way with investors and lenders, and brings you a step closer to receiving the funds your business needs.

Understand Your Options

There are many different financing options out there, and it is important to gain a good understanding of what they are, including pros and cons. Not every financing option makes for a good solution, and heavily depends on the nature and setup of your business. Businesses just starting out can benefit from unsecured options like merchant cash advances (MCAs) from businesses like Shopify. Merchant cash advances are an easy and quick way to get business funding: the lender gives you a lump sum of money that you repay through sales, and you don’t need any collateral to secure the loan.

On the other hand, there are also more mature capital solutions. Secured loans, or asset-based loans, are backed by collateral such as inventory and receivables. Rather than taking a percentage of sales or even ownership in exchange for a loan, lenders secure their investment by lending against assets that you already have in your warehouse. As an example, a working capital loan and funding from Assembled Brands provides emerging businesses with the necessary capital to pay for day-to-day overhead and operating expenses. 

Get informed, understand your options, and carefully decide which funding solution makes the most sense for your business.

The Bottom Line

Determining when it is time for financing varies from business to business. Generally, in stages of heightened growth or expansion, it is likely time to look into financing to support that growth. Use your business’ cash for the most important areas of your venture. Avoid locking up your own cash in inventory or purchase orders to stay flexible – especially in times of economic uncertainty.

Also, leverage the assets you already have. If you’re a direct-to-consumer brand, your current inventory and receivables can be used to finance your growth without having to give up ownership or equity. A line of credit allows for flexibility and comes in handy when you are expecting to make a big purchase in the future, but don’t know yet how much it’ll cost.

If your brand is ready to take the next steps in their growth journey and apply for financing, our partners at Assembled Brands are ready to help. The lender has extensive experience with revolving lines of credit, and has helped countless top consumer brands finance their growth over the last decade.

What makes MasonHub a Best Place to Work?

Talk about starting 2023 on a good note! This year, MasonHub was honored with not one, but two, Built In Best Places To Work Awards for Los Angeles: 50 Best Startups To Work For and 100 Best Places to Work. How do they go about creating team culture?

Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits. To reflect the benefits candidates are searching for more frequently on Built In, the program also weighs criteria like remote and flexible work opportunities, programs for DEI and other people-first cultural offerings.  

“These companies understand their people are their most valuable asset, and they’ve stepped up to meet the modern professional’s new expectations, including the desire to work for companies that deliver purpose, growth and inclusion. These winners set the stage for a human-centered future of work,” says Sheridan Orr, Chief Marketing Officer, Built In. 

Read on to find out how MasonHub cultivates its unique team culture.

Create a Sense of Purpose

MasonHub was built from the ground up to solve the pain points of fulfillment. Each person who works at MasonHub is creating a better fulfillment experience for brands. And it’s a great feeling to know that your product is helping people. New hires often say it’s this sense of purpose that draws them to the company. Whether they’re developing software or working in customer service, they derive satisfaction from solving client’s problems.

Make Sure Everyone Feels Heard

It takes numerous teams of people working in sync to power a fulfillment center. From front-line workers to floor supervisors and account managers, it’s important to foster an atmosphere where people can speak up and know that they’re being heard. Something as simple as a whiteboard where team members can leave input for leadership, can be a powerful tool for building better communication.

Nurture From Within

Whether it’s a manager making time to mentor a direct report or a structured leadership workshop, it’s always a best practice to identify future leaders and nurture them from within. Not only does this create a better team morale, it’s a great way to retain and incentivize talent. As hiring and retention continue to be workplace challenges, it’s smart to make sure employees feel valued and know that you’re willing to invest in developing their skills.

NTT DATA and Penske’s study shows opportunity with tech solutions, returns, and hiring.

NTT DATA and Penske’s annual Third-Party Logistics study, now in its 27th year, revealed that among the shippers polled – consumer packaged goods, retailers and consumer brands being the largest cluster represented – more brands emphasizing tech and returns when it comes to their 3PLs. Hiring and retaining employees is also a major concern on both sides of the business.

Perhaps the most surprising stat is that 83% of shippers in 2022 versus 90% in 2021 felt that their relationships with their 3PLs were successful. There was also a 2% decrease YOY among shippers who felt that using a 3PL improved service to customers. This could point to the fact that more 3PLs aren’t meeting customer expectations or a misalignment of goals. Either way, there is opportunity for 3PLs to improve their SLAs and customer experience. MasonHub, for example, meets SLAs with 99.9% shipping accuracy.

A more positive stat was a 5% increase YOY in the number of shippers who thought that using 3PLs contributed to reducing overall logistics costs. For instance, MasonHub’s customers report 20-30% overall lower shipping costs.

Technology Solutions

The study states, “Technology serves as a key differentiator, especially among 3PLs that leverage technology as a medium across different service dimensions to increase revenue and elevate business growth. Today, technology is just as important as people.” *

The opinion that technology is very important to 3PL expertise has remained high for the past 20 years, rating above 91% since 2010. A greater number of shippers stated that technology solutions are playing a greater role in their 3PL partnership evaluations and selection process.

Unfortunately, it appears there’s a disconnect between tech solutions and the role they play in partnership selection versus the ability of shippers to effectively leverage those solutions. Only 25% rates themselves very effective or extremely effective at leveraging solutions being offered by their 3PL provider. Meanwhile, 37% rated themselves slightly effective or not at effective at all. Nearly one-third rated themselves moderately effective.

It seems there’s a greater need for customer education when it comes to using 3PLs technology, another opportunity for 3PLs to distinguish themselves.

Reverse Logistics

In regards to reverse logistics, shippers are outsourcing these services almost 50% more than they did a year prior. Three-quarters of consumer-focused shippers rated the returns experience as being very or extremely important to consumer loyalty, and 65% stated that returns expectations are growing. A majority – 61% – said they expect to see increased volumes of returns over the next three years. This is due to growth in online purchases and DTC shipping.

Among 3PLs who provided reverse logistics services, more than half – 59% – stated that reverse logistics are only slightly to moderately important to their future offerings and 15% stated that it was not important at all. This could signal that they’re missing an opportunity to serve more brands. MasonHub not only handles returns for clients, they also integrate with several returns-focused platforms to improve the customer experience. After all, consumers are four times more likely to return online purchases over those made in a physical store.

The Labor Crisis

In regards to the labor crisis, more than one-quarter of shippers polled believed that there has been a permanent shift in the availability of labor, and more than one-fifth of them believe the talent shortage will last two years or more.

The jobs that both shippers and 3PLs rated as most difficult to fill were hourly workers such as pickers and packers, and certified/licensed hourly personnel such as truck drivers and equipment operators. The same was true for retaining such talent. The most respondents on both sides said that it takes two to three months to fill these positions.

As for wages, nearly one-fourth of respondents on both shipping and 3PL sides said they increased comp 0-3.99% and virtually the same percentage said they increased comp 4-6.99% in response to operations pressures.

In Conclusion

Ongoing challenges, strategic misalignments or unexpected challenges could be straining 3PL-shipper relationships. But a majority of shippers – 71% – reported that using 3PLs has contributed to improving customer service. Additionally, 71% or shippers and 92% of 3PLs agree that 3PLs provide new and innovative ways to improve logistics effectiveness.

*2023 27th Annual Third-Party Logistics Study: The State of Logistics Outsourcing, C. John Langley Jr., Ph.D., and NTT DATA, 2023.

Thirty thousand shoppers in 25+ countries were polled.

Here are a few stats that might not surprise you: According to GfK’s Consumer Life trend study, In the past month, 72% of Americans have purchased something online using a PC, and 57% using a mobile phone. And many cross these channels interchangeably during the shopping journey. E-commerce is still as prevalent as ever, even as more and more top retailers and brands invest in the omnichannel experience.

In-person experiences are more important than ever as people re-enter physical stores: only 19% of Americans agree that virtual interactions with people and places can be as good as being there in person.

Personalized experiences are requested across all channels and throughout the entire shopping journey by consumers. In fact, 36% like the idea of technology that “knows” them and can recommend products and take actions based on their wants and needs. So what are their top priorities?

36% of shoppers say price is the most important factor in their purchasing decision

34% say they only buy products or services from a trusted brand 

GfK’s FutureBuy study looks more specifically across online and in-person shopping. Every year, shoppers in 25 countries share their buying habits, the channels and touchpoints they use, their interactions with retailers, and how they include technology in their purchase journey.

Among some of the interesting insights: 42% of shoppers like it when a website keeps track of their visits and then recommends things to them, and 36% agree that they like to buy products that are tailored to them. Guided selling tools are becoming more popular – 35% have taken a quiz or used some form of a guided selling tool to get matched with personalized products as part of the digital shopping experience.

Finally, 42% of Americans agree that they would be more loyal to a brand/retailer that lets them provide input to help tailor products/services to their need. And 34% of shoppers feel that they get targeted on social media with personalized and relevant products, and 31% have shopped by clicking on posts on social media. So while those ads in your Instagram feed might give you the feeling that your phone can read your mind, it doesn’t stop people from clicking to buy. The bottom line: It’s ever more important for brands to be wherever their customers are, whether it’s on their e-commerce sites, social media or in stores.

OSF Digital’s 2022 Omnichannel Retail Index shares insights for retailers and brands to accelerate growth. 

Setting the Scene

OSF Digital, an award-winning provider of digital transformation services to companies worldwide, has released its 2022 Omnichannel Retail Index (Index) findings and there’s work to be done as far as retailers and brands investing in omnichannel. Launched in 2015 in partnership with The National Retail Federation (NRF), the Index is widely recognized as the industry’s most comprehensive omnichannel and digital best practice benchmark study.

The 7th annual study found that top-scoring retailers and brands are aggressively increasing adoption rates of omnichannel and digital capabilities, such as optimized content, frictionless checkout, and cross-channel capabilities, to meet rising shopper demands.  Despite this, most companies in the Index have implemented less than 61% of best-practice capabilities, sometimes struggling to deliver seamless shopping experiences. 

The highest-ranking company in the Index, Bed Bath & Beyond had implemented 85% of the Index’s designated best practices, which is a significant jump from 2021, when Bloomingdale’s had highest score was 72%. This increase is a sign that digital investments are paying off. Another sign that retailers and brands are prioritizing omnichannel and digital investments is that this year, 12 companies have outperformed last year’s leader with scores ranging from 73%- to 85%. 

Key Findings

The Omnichannel Retail Index interactive digital report outlines key findings on the state of omnichannel and digital best practices, offering insights on investment trends and customer demands. Some of the key findings include:

• The implementation of Buy Online Pick-Up In-Store (BOPIS) curbside pickup has increased significantly, accelerated by the pandemic. BOPIS has become table stakes, offered by 84%; however, the cross-channel experience leaves much to be desired. The adoption of supporting functionalities that enable frictionless experiences has mainly remained flat in the past years, including the ability to schedule pickup times, filter by store availability, etc.
• 74% of the loyalty programs are based on a typical “earn & burn” approach. Only 49% allow shoppers to redeem points for product discounts, and even fewer allow shoppers to redeem points for “experiences.” 
• From fast fashion to home improvement, sustainability is in focus. 67% promote sustainable products or sustainability programs. 

Methodology

The Omnichannel Retail Index takes the pulse of digital commerce and omnichannel retail. The Index examines how 100+ leading U.S. and global retailers and brands perform against 250+ criteria across web, mobile, and in-store capabilities. The Index examines how these companies deliver on the omnichannel promise through detailed and extensive mystery shopping conducted by OSF Digital’s strategy consultants. For the first time, this year’s report also shares consumer research and data by GfK to understand where retailers and brands are delivering or falling short of consumer expectations. Gfk is a consulting service and always-on, AI-powered intelligence platform for the global consumer products industry. Also new this year is the analysis of these companies’ sustainability practices and programs.

Learn how MasonHub’s software helps beauty companies save money and increase the bottom line.  

There’s never been a more critical time to strengthen your back-end operations and optimize fulfillment with a partner that brings expertise, infrastructure and technology to the table. You could argue that order fulfillment services are the most critical part of the retail life cycle. It’s this series of processes that gets your product into a customer’s hands. Using the right provider not only makes fulfillment struggles easier, it frees up time to focus on your business. It can also be more cost-effective and lead to a better customer experience.

MasonHub was created by retailers, for retailers to solve common pain points by placing technology and high-touch services at the forefront of everything we do. We’re trusted by top beauty brands such as Vegamour, Thirteen Lune, Iconic London, Pley and Stratia to deliver an on-time, accurate and unforgettable fulfillment experience. We also save our customers up to 30 percent on shipping costs. Here’s how our products work to optimize your business.

1. Dynamic Kitting and Bundling

In fulfillment, kitting and bundling refers to grouping products into kits or bundles. Dynamic kitting and bundling refers to the automatic adjustment of inventory levels as an item is purchased, whether it’s individually or as part of a kit. This allows you to sell multiple items without having to tie up inventory in a kit. MasonHub’s software also enables you to let your customers choose the components in a kit, of which there can be hundreds of combinations. 

Say you offer single eyeshadows, palettes, mascaras and brow pencils, all in multiple colors. Your customers have the option to buy each item separately, and you can also offer these products together as a kit. Customers also have the option to choose which colors or items they want in their kit. Or, you can bundle multiple items–eyeshadow palettes and face palettes, for example–so customers receive a discount when they buy multiple products. This is a great way to get people to buy more.

The moment a customer places an item in their cart, inventory levels automatically adjust so you always know what you have on hand and when to order more. Read on to find out how you can use our pre-sell and back-order management feature to keep selling even when inventory is not at your warehouse yet. 

2. Oversell Policy and Pre-sell and Back-order Management

There’s nothing more frustrating than when you go to put an item in your shopping cart, and you get a “sold out” message. Setting up an oversell policy can prevent this from happening, while enabling you to make the sale and not miss out on consumer demand. 

When you notice that you’re running low on stock of an item, click “Set up oversell policy” and choose how many units you’ll allow to sell and for what duration. You should base this on the amount of inventory you have coming in, and when it’s scheduled to arrive. Your customers can complete their purchase, while being notified of the expected shipping date. Once the inventory arrives, those orders will be prioritized and get fulfilled first.

Back-order management means that you can continue processing orders for back-ordered items. When the inventory arrives at the warehouse, the system automatically fulfills those orders first. This same technology also allows a brand to pre-sell items such as an anticipated new release or re-stock. Once the items arrive, they are automatically fulfilled first. You can create excitement around these items, and rest easy knowing that everything is taken care of for a seamless fulfillment experience. 

3. Customized Fulfillment Experiences 

In beauty, sampling can be one of your most important marketing tools because it’s a way to get product into customers’ hands. MasonHub’s Fulfillment Automation Marketing Engine, or F.A.M.E. for short, does just that: it translates customer attributes into physical fulfillment experiences. 

Start by tagging customer attributes such as someone with a high average order volume or a repeat customer. Next, set up actions based on these attributes. For example, you can make sure first-time buyers get a sample and a coupon code to encourage them to buy it once they try it. A repeat customer could receive a sample of your most expensive product, and a handwritten thank-you note. You can also set up actions based on order attributes. For example, if someone buys an eyeshadow palette, they will also get a travel-size mascara or free brush. 

There’s no limit to the customizations you can set up using F.A.M.E. And you can be confident that the staff in our fully-owned and operated fulfillment centers is handling your pack-outs. Personalized notes? Custom tissue paper? We got you. We work cross-functionally between your operations and marketing departments to yield great results, and your customers will be delighted by the experience.  

4. Distributed Order Management and Split Shipments 

When a company splits its inventory across multiple fulfillment centers, such as East Coast and West Coast, it allows for optimized speed (the closer the fulfillment center is to the customer, the faster the order can reach them) and cost (the less distance a package has to travel, the less it costs to ship).  

A company can also prioritize speed based on an item’s availability, meaning the order will be fulfilled immediately from the location where inventory is available, regardless of how far it is from the customer. Split shipping refers to when an order contains multiple items, and the items are split up so that they arrive in different shipments. This is another way to prioritize speed of shipping. 

For beauty brands especially, partnering with a fulfillment provider that possesses this technology and multichannel retail expertise can not only save you money, it can increase your revenues and take your business to the next level.

Founder Patrick Boateng II on the benefits of bundling and how budgeting enhances creativity. 

Patrick Boateng II was working in mainland China as a U.S. diplomat when he had his aha moment. Stress, combined with extreme air and water pollution, wreaked havoc on his once perfect skin, and his quest for an effective skincare routine led to the realization that there were no products in the market for men of color. In 2018, he founded mens’ skincare brand Ceylon, named for the hero ingredient in its cleanser, toner and moisturizer: antioxidant-rich Black Tea from Sri Lanka. As the company kicks into hyper-growth mode, Patrick shares some of his operational struggles–and wins– as well as what inspires him creatively.  

What was your experience with fulfillment prior to MasonHub?

“From DTC to wholesale to gifting, I did it all. Early on, every company starts with that. It gives you a chance to get that 1:1 feel with customers and it feels good to handle the product and ship it. You get your hands dirty because every retailer has their own methods for fulfillment.”

In Beauty, appearances often extend to packaging. What’s your approach to pack-outs? 

“We’ve found that it’s a big expense for us, and it goes straight to the recycling bin. So our packaging is very ordinary, which lets the experience stand out more. We are going to be judged more on the results after the customer uses the product.”

What’s the best part about being able to hand off fulfillment? 

“We are working on international expansion this year– Tokyo, Singapore, Israel, Hong Kong–and we have to go there to reach new audiences. Now we can leave for a few weeks and not have to worry about operations. We also do international fulfillment from MasonHub and coordinate inbounds and outbounds from our factories in Asia.”

Which value-added services have helped you the most? 

“Subscriptions are really doing well, both our regular post-paid and pre-paid subscriptions that increase savings. And we are leaning into bundling so customers can create their own routines. Maybe they use our three main products, or they have four steps because they add the razor bump gel. It’s about increasing the convenience factor and increasing AOVs and margins and still delivering a high level of service without it costing more to ship four separate things.” 

What skills have you developed since founding the brand? 

“I studied international relations and urban planning, but I would consider this like going to business school. My background helped me craft a brand that looks great, but everything else I had to learn by doing. Most of my time now is spent on finance management and logistics.

You get very scared at beginning when you think about money, but I love budgeting because that budget is what allows you to be creative. How rare can we go with ingredients? What is the cost you can endure per liter of a fragrance oil? That is really where I understand that the unit economics allow you to create something no one has ever smelled.”

What draws you to collaborate with other publications and creatives?

“We like finding out how to they talk to audiences we want to connect with. With PAX Monographs, an architectural publication founded by people I went to school with, we’re burnishing our design credentials and they are helping us show up in a new exciting way. Find Peace. Keep Peace. supports mental health awareness and has given us new attention in a local community. And working with the POC queer magazine Brunch Club we have seen an uptick in engagement. We are always trying to find ongoing innovation, support stories that deserve to be told, engage in new ways and make it fun.” 

What’s next for the brand?

“We are launching four more products next year in the fragrance and body care categories.”

You know a Service Level Agreement (SLA) is essential–but what separates an average SLA from a best-in-class one? And why is having the best SLA possible so important?

When it comes to SLAs, you need to ensure you have at least the basics in place: a clear agreement that’s well documented and thoroughly understood by both parties. But an SLA can–and should–be so much more than that. Especially when it comes to fulfillment. 

What is an SLA?

A Service Level Agreement (SLA) is a contract between you and your 3PL partner that defines expected services, benchmarks, responsibilities, timelines, and other key agreements determined by both parties. 

For beauty, wellness, and fashion brands, a basic fulfillment SLA should include details for at least these focus areas:

• Inventory Accuracy
• Receiving Inbound Shipments
• Standard and Expedited Shipping
• Unit Fill Rate
• Order Drop to Ship Time
• Returns Cycle Timeline
• Platform Uptime and Availability
• Lot and Batch Management
• Kitting and Assembly

What do you need for a best-in-class fulfillment SLA?

To take your fulfillment SLA to the next level, you need more than just the basics–you need the highest accuracy rates, shipping times and rates, and so much more. It’s essential to not only address the key metrics and performance numbers you need for each focus area, but to ensure your 3PL partner can provide them. A best-in-class fulfillment SLA should include:

• Inventory Accuracy: At least 98% or greater; and if your brand requires annual inventory counts, your fulfillment SLA should include at least two counts per year
• Receiving Inbound Shipments: 98% of inbound shipments should be received within three business days. 
• Standard and Expedited Shipping: For standard shipping, at least 95% of orders received by 12pm should be shipped same day; for expedited shipping, at least 97% of orders received by 2pm should be shipped same day
• Unit Fill Rate: At least 99.2% or greater
• Returns Cycle Timeline: 97% within two business days, and/or within 48 hours of receipt between Monday and Friday
• Platform Uptime and Availability: 99.9% or greater, excluding scheduled maintenance during non-business hours
• Kitting and Assembly: Custom bundle creation and packaging

How do I get a best-in-class fulfillment SLA?

The best fulfillment SLAs are provided by the best 3PL partners. To set your brand up for lasting success, make sure you have the right fulfillment company by your side–one that truly understands what it takes to create both a best-in-class SLA and a best-in-class partnership.

If you’re a beauty, wellness, or fashion brand looking for the right 3PL partner, MasonHub is here to help. Built by retailers for retailers, our expert team has seen every fulfillment struggle firsthand. We know how to overcome challenges, help you rapidly scale, and set you up for omnichannel dominance.

Supply chain experts share practices and predictions to improve retail operations.

After a two-year virtual hiatus, 10,000 founders, executives and investors from large retailers, branded manufacturers, startups and tech companies reunited at Shoptalk 2022 in Las Vegas from March 27-30. This year’s retail convention featured plenty of programming dedicated to supply chain and operations. “Not only is supply chain grabbing the news headlines, more surprisingly, consumers are talking about it, very actively. Simply put, if you are not leading in supply chain right now, you’re not going to win,” said Aimee Bayer-Thomas, chief supply chain officer of Ulta Beauty. So, how do you lead? Read on for the convention’s top takeaways.

1. Make inventory and labor more productive  

Operations executives from Target to Tractor Supply talked about how they calibrate inventory across multiple nodes, from regional distribution centers to fast fulfillment centers to retail stores, in order to make sure it reaches consumers as quickly and cost-effectively as possible. That goes hand-in-hand with efficient labor, a mix of trained associates and increasing automation. 

2. Automation continues to transform logistics

Lior Elazary, cofounder and CEO of InVia Robotics described his technology as “a buffer” between people and robots that enables warehouse associates to be productive instead of overworked.  Meanwhile, Gatik cofounder and CEO Guatam Narang talked about revolutionizing middle-mile delivery with autonomous trucks. “It’s a good place to start because of fixed, repeatable routes that are shorter in nature,” he said of how his company helps retailers like Walmart.

3. Improve the delivery experience at every stage 

For most retailers, delivery is the largest and fastest-growing expense. Last-mile and same-day delivery companies Uber, DoorDash, Shipt took to the stage to describe how they distinguish themselves among consumers, and while no one claimed to know what the future holds, it’s clear there is plenty of room for competition and improvement on speed, quality and cost.

4. Don’t build your own logistics infrastructure

American Eagle Outfitters made headlines after acquiring Quiet Logistics and Air Terra last year, signaling not only the value of fulfillment and delivery services, but also the trend towards sharing resources rather than competing for them.

“We thought about building our own. But the reality is, to do it ourselves would cost hundreds of millions of dollars, and we would always be subscale. We would never have the kind of efficiency, inventory productivity, cost advantages, and speed of a bigger network,” said American Eagle CEO Michael Rempell. Chief supply chain officer Shekar Natarajan declared, “Everyone has to realize, competing in supply chains is not an advantage. Supply chains at hyperscale are an advantage. The future is for supply chain is not more building more assets. It is utilizing assets better.”

5. Operations jobs are ready for their close-up

“Supply chain is not a back-office function. It’s a customer-facing function,” said American Eagle’s Rempell. “It was our fastest growing expense, and now it’s one that we’re leveraging. And it’s touching our consumers every day. Of course supply chain needs a seat at the table.” 

6. Listen to your customers 

Ulta Beauty’s Bayer-Thomas said that striving to understand customers’ needs prior to the pandemic – piloting ship-from-store, for example – made it possible to pivot when operations were forced into overdrive. “We continue to stay in tune so we can remain agile and evolve quickly when we need to, based on what our guests expect,” she said. In other words, test new models constantly, because they could be called upon to work at a moment’s notice. 

7. Form partnership ecosystems

Even the most accomplished founders said they rely on experts outside their core competencies to help them serve customers better. “We shouldn’t be trying to do everything; what we need are the right partners,” said Gatik’s Narang. “It could be infrastructure for vehicle electrification, server maintenance, how to get trucks built faster. That’s the right way to go about it.” “If I can’t offer options or develop something on my own, then I have partners to help me,” said Letitia Webster, Tractor Supply’s SVP of omnichannel.  

8. Back-end solutions are key to growth

“What we’ve seen with digitally native brands, especially those with plug-and-play front-end platforms, is that their back-end becomes complicated. Therefore, it’s difficult for them to scale into new channels. We give them the ability to start online but introduce them to wholesale, marketplaces and drop ship, and we make it more efficient,” said MasonHub founder and CEO Donny Salazar. “Because they don’t have the large tech teams we retailers used to have back in the day, it’s even more important to have a plug-and-play solution on the back-end.”