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Automotive Part Logistics: 3 Keys to Strategic Planning
Scott Hothem • July 16, 2014
Do you remember what a lengthy process it used to be to pick up a new movie from the video store? You would plan your evening commute to swing by the local video store on your way home. After rummaging through the hundreds of titles lining the wall, you finally come across the latest installment of Die Hard, or Terminator, or whatever Julia Roberts was doing at the time. You hand over your membership card and are on your way. That’s a lot of legwork for a two hour movie. Those were the days. Today, all you have to do is press the Netflix or Hulu app on your phone, tablet or even television remote to instantly connect to thousands of titles. This saves time on your way home, room in your wallet and space on your shelf.
The way we watch movies and TV isn’t the only thing to drastically change in the past 20 years. There has been a major overhaul in the way automotive parts are ordered, shipped, tracked and used. This evolution was by no means unsolicited. In the same way consumer demand and access forced video stores to go the way of the dinosaurs, customer expectations and market conditions have forced auto part fulfillment processes to become as streamlined as possible. As such, strategic planning in the automotive supply chain is more important than ever.
In spite of volatile revenue results stemming from the economic downturn in 2008, the automotive parts industry is expected to top $170 billion in 2014 according to a report from . As markets thrive and supply chain functions become more complicated the need for strategic logistical planning needs to be a key priority. The balance between superior service levels and reduced logistics/inventory expenses can be accomplished through three strategy considerations:
- Transition from a “Pull” to a “Push” tactic- Years ago the best practice was for distributors, dealerships to order or “pull” a certain part when inventory became low. This method can be very time and labor intensive because it is reactive in nature and is often a last minute order. Today, to remain efficient and reduce the risk of a poor end-user experience, a “push” strategy is more effective. Instead of low inventory triggering an order, leveraging an Enterprise Resource Plan, an order is sent, or “pushed”, to where it is needed. Allowing technological platforms to maintain inventory and place orders reduces errors and redundant tasks from your labor force and other resources.
- Inventory forecasting- Changing the way that inventory is managed and organized can support these new complex supply chains. Shipping smaller quantities more frequently can increase the efficacy of the entire operation. A high velocity network keeps the supply chain running smoothly. Segregating part types by size, volume and frequency of use is key in optimizing and forecasting inventory. This can be achieved through a customized plan with strategic facility and SKU layouts and management, as detailed .
- Technology- Many entities are still attempting to get as much as possible from aging and antiquated systems. Not only is this technology becoming increasingly less effective, it is also becoming more expensive to maintain. Your fulfillment technology is the pivotal element of the service parts supply chain. As the demand for replacement parts grows and the number of new model releases increases, legacy systems simply cannot handle the workload.
Integrating new technologies and supply chain functions into more sophisticated strategies is crucial for a supply chain that is fast, lean and cost effective. At ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½Centers, the experience, capability and resources to optimize technology, process and warehouse design is at the core of our performance.
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What happens when your business takes off overnight? E-commerce brands don’t fail because they can’t sell. They fail because they can’t fulfill. If you’re an e-Comm. brand, you probably started your business with a system that met your needs at the time. However, success can quickly become challenging without a flexible fulfillment strategy, leading to higher costs, bottlenecks and frustrated customers. In this post, we’ll discuss how scalable fulfillment impacts your business and how to find the right 3PL partner to keep operations running smoothly. What Is Scalable E-commerce Fulfillment? Scalable fulfillment refers to a logistics provider’s ability to adjust operations to accommodate fluctuating order volumes. This includes adapting labor resources, leveraging automation, optimizing warehouse management and fine-tuning order processing. If any part of this system fails to scale effectively, inefficiencies arise—delays, errors and unhappy customers. While early-stage businesses often prioritize affordability and convenience when selecting a fulfillment solution, building scalability into your strategy early on is key to long-term success. Why Scalability Matters in Fulfillment 1. Self-Fulfillment Can Only Take You So Far Most e-commerce businesses start by fulfilling orders themselves. This makes sense—it’s cost-effective and gives merchants complete control over packaging and shipping. In the early days, you only needed was storage space, shipping materials and a label printer. But as sales grow, the limitations of self-fulfillment become clear. More orders mean more inventory, packaging and labor. Maintaining order tracking, SKU management and shipping deadlines becomes a full-time job. Without the right infrastructure, delays mount, errors increase and customers look elsewhere. 2. Maintaining Quality as You Scale You can inspect every package with a low order volume, ensuring accuracy and crafting a great unboxing experience. But as demand grows, maintaining that same attention to detail becomes difficult. Many 3PLs struggle to replicate the same personalized experience, which can impact customer loyalty. Scaling fulfillment ensures that your customers continue to receive the quality they expect—even as order volumes grow. 3. Managing Seasonal Peaks and Slowdowns Many e-commerce businesses experience fluctuating demand. Whether it’s holiday shopping surges or slow post-season periods, fulfillment operations must be agile enough to scale up or down.  Without a flexible system, brands may overinvest in infrastructure they don’t always need or face fulfillment slowdowns when they need to ramp up. A scalable fulfillment partner helps you adjust resources, preventing costly inefficiencies. What to Look for in a Scalable Fulfillment Partner If your business is growing, choosing the right 3PL partner is critical. Here’s what to prioritize: 1. A Nationwide Fulfillment Network A single fulfillment center can quickly become overwhelmed. Instead, look for a partner with multiple strategically located warehouses . This allows you to: ✅ Speed up delivery times by distributing inventory closer to customers ✅ Prevent bottlenecks by shifting fulfillment to different locations ✅ Ensure seamless fulfillment even during unexpected surges 2. Automated Fulfillment Solutions Automation reduces reliance on seasonal labor, improves accuracy and speeds up order processing. With ongoing labor shortages, 3PLs integrating automation—such as robotic picking, AI-driven inventory management and automated sorting—offer a significant advantage. 3. Technology That Grows with You Your fulfillment partner’s tech stack should handle your business’s growth—not just for today but for years to come. Ask potential providers: ✔ Can their systems manage a rapid increase in order volume? ✔ Do they integrate with your e-commerce platform and order management system? ✔ Do they offer real-time inventory tracking and predictive analytics? 4. Scalable Value-Added Services Branded packaging , kitting and special inserts can enhance the customer experience—but can your fulfillment provider handle these extras as you scale? Ensure they can maintain the same level of personalization and quality even as order volumes rise. 5. Reliable Customer Support Fast fulfillment is only part of the equation. A scalable provider should also help you maintain strong customer service, offering: 🔹 Real-time order tracking to reduce customer inquiries 🔹 Streamlined returns processing 🔹 Dedicated support teams to handle peak-season demand The Bottom Line: Future-Proof Your Fulfillment Strategy Scaling your fulfillment operations isn’t just about keeping up with growth—it’s about setting your business up for long-term success. The right fulfillment partner will help you stay agile, efficient and prepared for whatever comes next. If you’re looking for a fulfillment provider who can support your business through every growth stage, ÐÇ¿Õ´«Ã½ is here to help. Let’s discuss how we can build a scalable, seamless fulfillment strategy for your brand. Contact us today for a complimentary supply chain consultation to meet with one of our ÐÇ¿Õ´«Ã½ experts.
PROVO, Utah, Feb. 11, 2025 /PRNewswire/ -- Enveyo , the leading provider of logistics data management, visibility, and shipping optimization software, today announced that ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½Centers , a leading North American third-party logistics (3PL) provider, selected Enveyo technology to power its transportation management, logistics visibility, advanced analytics, and parcel auditing processes. As a 3PL provider for DTC and B2B brands that operates 25+ locations across the United States, ÐÇ¿Õ´«Ã½ sought a technology provider that not only has substantial experience in supporting complex 3PL processes , but also has the ability to scale with them as their customer segment of e-commerce brands grow and their needs evolve. ÐÇ¿Õ´«Ã½ was looking for a technology platform that could: Streamline transportation management processes with a robust technology engine for the handling of multiple parcel carriers, rates and surcharges Support an infinite number of complex business rules, carrier rates, and processes Ingest any volume of data in any format from their business systems, carriers, and technology partners Enable real-time and easy access to a shipping data control tower with customizable dashboards Publish a white-labeled client portal delivering reporting and analytics on transportation spend in real-time Automatically audit carrier performance with extensive reporting on dispute reason, status, and results Display time in transit data across their network of carriers to gain visibility into package tracking and delivery status data in real-time Scale with ÐÇ¿Õ´«Ã½ and their customers' needs, at their pace Jude Plante, General Manager of Transportation at ÐÇ¿Õ´«Ã½, explains, "We needed a technology partner with extensive knowledge of the complexities a 3PL of our size faces, who could also provide robust and holistic technology solutions that elevate our operations and strengthen our client relationships. Enveyo fit that profile perfectly." "We're honored to partner with ÐÇ¿Õ´«Ã½ to support their optimization initiatives around parcel program visibility for their growing customer base along with streamlining billing management processes," says Enveyo CEO & Co-Founder, Coby Nilsson . "More DTC and B2B brands are seeking modern 3PL operations with data-driven technology at the core. We're thrilled to be part of the value-added solutions ÐÇ¿Õ´«Ã½ is offering." "The market is more dynamic than ever before," Plante adds. "The supply chain and logistics complexities involved with fulfilling an order are plentiful. Enveyo understands the nuances and challenges of a modern 3PL, and we're excited to partner with their team and technology to add value to our clients and end customers' shipping experiences." To learn more about how Enveyo optimizes logistics operations for leading 3PL providers like ÐÇ¿Õ´«Ã½ and shippers worldwide, visit www.enveyo.com . About Enveyo Enveyo is the leading provider of logistics data management, visibility, and shipping optimization software, helping shippers and 3PLs of all sizes move their logistics forward through data-driven technology. From shipment analytics and automated carrier selection to post-purchase delivery experience management and carrier auditing, Enveyo is the only suite deploying solutions across the logistics lifecycle. Powered by a robust, enterprise data management platform, Enveyo Insights, Modeling, Cloudroute, Alerting, and Audit solutions enable organizations to make business-transforming shipping decisions. To learn more about how Enveyo moves logistics forward, visit enveyo.com . About ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½ Since 1941, ÐÇ¿Õ´«Ã½ has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. ÐÇ¿Õ´«Ã½ continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15 times, ÐÇ¿Õ´«Ã½ is big enough to do the job and still small enough to deeply care about your business. eCommerce brands interested in a new 3PL partnership may contact ÐÇ¿Õ´«Ã½ directly here .  Official Release Here
Here's a helpful timeline/guide that is applicable for clients with a "classical" peak season in Q4: 🎯 Use Q1 to add 3PLs to your RFP discovery list/search. This master list should not be more than 7-10 providers. 🎯 You should have your preferred 3PL partner list dwindled down to three no later than end of Q1. 🎯 Use the beginning of Q2 for site visits (3 max)—engage with operations and folks on the floor. At this stage, "pricing gaps" should be somewhat narrow between 2-3 companies. Focus on who will "get the job done" and who you envision your company working with for the next 2-3+ years! This is super important. 🎯 Aim to award a verbal "yes" halfway through Q2, no later than end of May. You'll want to allow another 30-45 days to work through legal discussions. 🎯 Ideally, you should sign an MSA with your chosen 3PL no later than the end of June. This allows inventory transfers over the summer and ensures the new operation has ample "time" to touch the product, test systems, etc. 🎯 Go-Live by Oct 1—You really don't want to "go live" in November, two weeks before the major holidays/peak, etc. Launching by Oct 1 allows for at least a 30-day period before the ultra-craziness begins! The Right 3PL Can Make All the Difference—Let’s Chat If you're just about to start your RFP or need help with any of the above, contact us - ÐÇ¿Õ´«Ã½ would love to be your next 3PL partner to run your supply chain!
