Episode Transcript
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(00:00):
Hey!
(00:00):
Eric from PromoPilot here.
Well.
.
.
kinda.
This AI is speaking for me.
My podcast platform has a new feature that turns blog posts into audio content and so I figured I would give it a shot since I produce content at the PromoPilot blog more frequently than podcast content.
Depending on how this is received, I may convert more blog posts to audio content like this episode.
(00:24):
If you hate it, I want to know.
You can reach out to me at info@promopilot.io.
I hope you enjoy this piece about logistics and how one company is serving the promo space specifically.
Here we go.
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Most distributors outsource logistics so they can stay focused on sales and marketing.
But fulfillment is more than a background process—it’s what keeps customers happy.
(00:47):
A poor delivery experience can undo all the effort you put into the sale.
That’s why it’s so important to understand the difference between third-party and fourth-party logistics,
and how to choose the right partner.
So let’s start with third-party logistics, or 3PLs.
A 3PL is a company that handles logistics operations for you.
(01:08):
They take care of warehousing, inventory, picking and packing orders, and shipping.
Many also offer extras like kitting, light assembly, or inventory management.
In other words, they become your outsourced warehouse and shipping department.
You save the cost of running your own warehouse and get the benefit of their logistics expertise and better shipping rates.
(01:29):
Of course, there are challenges that come with traditional 3PLs.
The first is rigidity.
As many of them grow,they start to resemble mini-Amazons,
built for high-volume,standardized operations.
That leaves little room for flexibility if your business has unique needs.
The second challenge is customization.
(01:50):
Most 3PLs don’t want to bother with branded packaging,
special inserts,or anything that doesn’t fit their standard process.
And if they do allow it, it usually comes with significant fees.
For promotional distributors,that lack of flexibility in packaging and presentation can be a real problem,
because the unboxing moment is part of the marketing experience.
(02:12):
Another challenge is handling hybrid orders.
Our industry is full of them—orders that combine stocked items with print-on-demand or decorated products.
Most 3PLs are not set up to handle production and fulfillment together,
so distributors end up splitting orders or managing two different workflows.
International fulfillment can also be a headache.
(02:33):
If your 3PL doesn’t have overseas warehouses or partners,
you’re stuck shipping everything from one domestic facility.
That leads to long transit times, higher costs, and customs issues.
Without a network of multiple nodes, global growth becomes complicated.
And then there’s the issue of metrics.
Many 3PLs are optimized for business-to-consumer ecommerce,
(02:58):
where fast inventory turnover is the goal.
But in a company store program, turnover isn’t the only measure of success.
Sometimes the value is in having a large catalog of SKUs ready to ship on demand,
even if each SKU doesn’t move quickly.
That nuance often gets lost with traditional providers.
Finally, location matters.
(03:19):
If a 3PL is tied to one or two warehouses,it limits your ability to cut freight costs or improve delivery times.
Freight is often one of the biggest costs in a program,
so being able to fulfill closer to the end customer can make a major difference.
This is where fourth-party logistics, or 4PLs, enter the picture.
(03:39):
A 4PL plays a much bigger role.
Instead of just handling storage and shipping, a 4PL manages the entire supply chain on your behalf.
They might coordinate multiple 3PLs,negotiate with carriers,
oversee transportation,and provide analytics.
Think of it this way (03:57):
a 3PL runs the warehouse,while a 4PL orchestrates the entire logistics strategy.
In many cases, 4PLs don’t even own warehouses or trucks.
Their value is in coordinating all the pieces,acting as your single point of contact and your logistics advisor.
Now, let’s bring this down to earth with a real-world example.
(04:18):
When I was working on the distributor side,I was actively searching for a partner who could play this kind of role.
Recently, I was introduced to a company in our industry that really gets it.
They’re called Xpedite.
And just to be clear, this isn’t a sponsored mention.
I don’t have an arrangement with them.
I just think it’s worth sharing because they operate in a way that’s rare to find.
(04:41):
Xpedite positions itself somewhere between a 3PL and a 4PL.
They provide the physical warehousing and distribution like a 3PL,
but they also step into a consultative,solution-oriented role like a 4PL.
The best way to describe them is as a fulfillment agency for promo distributors.
So what makes them different?
(05:02):
First, flexibility.
They’ll accommodate custom packaging, branded boxes, special inserts, even gift wrapping.
They understand how important the unboxing experience is in our industry,
and they’re willing to support it.
Second, hybrid fulfillment.
Xpedite integrates production with distribution.
(05:23):
They have in-house digital printing and embroidery capabilities,
so a print-on-demand product can be produced and shipped alongside inventory items in a single order.
That solves a huge problem for distributors.
Third, global reach.
Xpedite operates in the U.
S.
and Canada, but they also have partners overseas.
(05:44):
That means they can do in-country fulfillment,reducing shipping costs and delivery times for international customers.
Instead of juggling multiple 3PLs, you let Xpedite coordinate the global network.
Fourth, they support special projects.
If you need to assemble hundreds of kits for an event,
or launch a direct mail campaign,they’ll take that on.
(06:05):
They can handle one-off projects right alongside day-to-day fulfillment.
And finally, they offer dedicated support.
Each account has an operations manager,and they use a ticket system to ensure requests don’t fall through the cracks.
That kind of hands-on approach is how they maintain boutique service,
even as clients scale up or go through peak seasons.
(06:28):
To give you a sense of their perspective,I asked Laura Harper,
Xpedite’s Owner and President,a few questions.
When I asked what makes them different from a typical 3PL,
she said,“One partner with endless solutions versus fitting into a box of set capabilities.
Most 3PLs don’t want or understand the promo industry.
(06:49):
They want barcoded products, which is never going to happen in this industry.
We already know who out there is good with promo, so it saves distributors a lot of time.
” On hybrid orders, Laura said, “We do offer hybrid solutions for print-on-demand.
We can work with your system to only receive the orders for stocked inventory if that’s what you want.
” On international fulfillment,she explained,“We offer in-country services delivering regionally,
(07:14):
which reduces international costs.
” When I asked about customization,she said,“We absolutely will customize packaging and inserts however it’s requested.
Very white glove.
” And when I asked how they view the term 4PL,she said,
“In layman’s terms we are a 4PL,but truly we’re an operations logistics partner assisting with global production and distribution.
(07:37):
” So, what’s the lesson here?
If you’re a distributor frustrated with your current 3PL,
the key is to find a partner who understands your business.
Look for responsiveness,a sense of urgency,and the willingness to listen and create solutions instead of forcing you into their system.
Not every 3PL is equipped to do that, but companies like Xpedite are showing that it’s possible.
(08:00):
That’s the big takeaway.
Logistics is not one-size-fits-all, especially in our industry.
Whether you choose a 3PL,a 4PL,or a hybrid partner like Xpedite,
the right choice is the one that helps you deliver better experiences for your clients.