Acquisitions Anonymous - #1 for business buying, selling and operating The $13M Revenue Warehouse with Just 25 Full-Time Employees
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Dec 31, 2024 Delve into the complexities of a $3.5M EBITDA warehousing company thriving in the e-commerce era. The discussion covers challenges like labor dynamics and customer concentration, ensuring you get insights into the 3PL industry's operational intricacies. From holiday shipping hurdles to the importance of technology and automation, uncover how this asset-light model achieves impressive margins. The hosts also explore real estate challenges and the potential for expansion, encouraging a deep understanding of scaling in logistics.
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3PL Profitability
- 3PLs profit primarily from high-volume B2C fulfillment and shipping rate markups.
- Value-added services and B2B fulfillment are less profitable and used to secure client accounts.
3PL Challenges
- 3PL providers are often unappreciated until problems arise, similar to long snappers in football.
- Managing a lower-quality workforce due to labor arbitrage is another challenge they face.
3PL Innovation
- Bill Snell observed a 3PL using hacked video game controllers for order processing.
- They also used fingertip scanners to track box sizes, demonstrating efficiency efforts.