The Andrew Faris Podcast Why Most 3PLs Fail Brands—and What to Do Instead (With Chad Carelton)
Jun 17, 2025
Chad Carelton, CEO of Good Company, leads a 3PL that efficiently ships over 3 million orders yearly for just 20 clients. In this enlightening conversation, they discuss the common pitfalls brands face with 3PLs and how to remedy them. Chad explains the importance of aligning incentives for better logistics and dives into cost structures behind fulfillment. He shares strategies to optimize warehouse operations, manage returns as opportunities, and tackle the decision of in-house fulfillment versus outsourcing, all crucial for profitable e-commerce.
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Chad's 3PL Origin Story
- Chad Carlton started The Good Company after managing retail fulfillment and serving manufacturers in need of direct-to-customer shipping solutions.
- The business scaled during COVID and now focuses on fewer clients with deep relationships, shipping millions of orders annually.
3PLs Reduce Overhead and Risk
- Running your own warehouse includes labor, materials, postage, and significant overhead that scales painfully.
- A 3PL can offer cost savings by absorbing overhead and providing predictable costs as you grow.
Scaling Staff Eases Seasonal Spikes
- Deploying sufficient staff to handle order spikes allows a 3PL to absorb client demand surges predictably.
- This flexibility lessens the impact of seasonal fluctuations on client fulfillment quality.