Who Does Waterdrop Use for Warehousing & Fulfillment?

Waterdrop uses Barrett Distribution Centers, Inc. as their primary third-party logistics (3PL) and fulfillment partner.

Introduction to Waterdrop: Pioneering Sustainable Hydration

Waterdrop has established itself as Europe's fastest-growing hydration brand, offering innovative "Microdrink" cubes that dissolve in water to create flavorful, vitamin-enriched beverages without sugar or artificial additives. The Austrian-founded company produces compact, dissolvable cubes packed with natural fruit and plant extracts designed to encourage healthier hydration habits while reducing plastic waste.

After achieving remarkable success throughout Europe, Waterdrop embarked on an ambitious expansion into the North American market. Their product lineup includes Microdrink vitamin hydration cubes, Microenergy caffeine hydration cubes, Microlyte electrolyte hydration cubes, reusable water bottles, and innovative smart water filtration systems. Following a successful Series B funding round of $70 million, Waterdrop has rapidly expanded its U.S. retail presence from a primarily direct-to-consumer model to placement in over 3,000 stores including Walmart and Target locations.

Why Waterdrop Needed to Optimize Fulfillment

As Waterdrop prepared for hypergrowth in the North American market, they faced several critical challenges:

• Establishing logistics infrastructure in a new continent without previous operational footprint
• Managing complex omnichannel distribution across both direct-to-consumer eCommerce and rapidly expanding retail partnerships
• Building brand awareness in a market unfamiliar with their innovative product category
• Scaling operations efficiently to support ambitious growth targets across various retail channels
• Maintaining their sustainability mission throughout their supply chain expansion

With retail presence growing from just a few exclusive stores to more than 3,000 locations within a year, Waterdrop needed a logistics partner with sophisticated capabilities to manage this accelerated expansion while maintaining operational excellence.

Partnership Details and Results

Waterdrop selected Barrett Distribution Centers as their exclusive North American 3PL provider, launching operations from Barrett's Memphis facility. This strategic location houses premium eCommerce and omnichannel fulfillment centers, positioning Waterdrop optimally for national distribution.

While specific metrics from this recent partnership are still developing, Barrett's approach includes:

• Comprehensive performance tracking through internal operating metrics focused on process management, cost control, and service delivery
• Client-specific key performance indicators tied to contractual arrangements and corporate objectives
• Quarterly budget reviews to evaluate financial and operational performance and identify improvement opportunities
• Data visibility through Tableau Business Intelligence, providing Waterdrop with real-time access to their transactional data

The partnership is designed to support not only Waterdrop's immediate eCommerce fulfillment needs but also their planned retail and omnichannel expansion into convenience stores, food service, grocery clubs, and other retail channels throughout North America.

The Barrett Distribution Solution

Barrett Distribution Centers implemented a comprehensive fulfillment solution tailored to Waterdrop's unique needs:

1. Scalable infrastructure: Barrett's Memphis campus provides immediate capacity with room for growth as Waterdrop expands across North American markets
2. Omnichannel capabilities: Integrated systems to support both direct-to-consumer eCommerce fulfillment and retail distribution channels
3. Technology integration: Advanced logistics technology including Tableau Business Intelligence for real-time data visualization and performance monitoring
4. Operational excellence: Documented standard operating procedures and customer-specific work instructions maintained within a closed-loop corrective action system
5. Continuous improvement: Regular performance reviews and customer satisfaction surveys to identify and implement operational enhancements

As noted by Courtenay Schick, Senior Operations Manager at Waterdrop, the company was particularly impressed with Barrett's "commitment to operational excellence and history of scaling eCommerce brands." Barrett's "industry expertise, scalable solutions, and innovative technology" aligned perfectly with Waterdrop's mission of providing sustainable hydration solutions to North American consumers.

Lessons for Other eCommerce Brands

The Waterdrop-Barrett partnership offers valuable insights for other eCommerce brands considering third-party logistics partnerships:

• Select partners with market-specific expertise: Waterdrop chose Barrett specifically for their experience with North American logistics, providing crucial regional knowledge for their expansion
• Prioritize scalability: Rapid growth requires logistics infrastructure that can expand quickly without compromising service quality
• Invest in omnichannel capabilities: Modern brands need 3PL partners who can seamlessly handle both direct-to-consumer and retail distribution channels
• Align with mission and values: Waterdrop's sustainability focus required a partner who could implement environmentally responsible logistics practices

Is Barrett Distribution Centers Right for Your Business?

When evaluating whether Barrett Distribution Centers could be a good fit for your eCommerce business, consider these factors:

• Growth trajectory: Barrett specializes in supporting high-growth brands expanding across multiple channels
• Geographic needs: With significant infrastructure in the Memphis region, Barrett offers excellent coverage for nationwide distribution
• Technology requirements: Companies valuing data visibility and performance analytics will benefit from Barrett's business intelligence tools
• Product type: Barrett has demonstrated expertise with consumer packaged goods, particularly in the health and wellness sector
• Service level expectations: Brands requiring comprehensive performance tracking and continuous improvement initiatives align well with Barrett's approach

If you're unsure whether Barrett or another 3PL would be the best fit for your specific needs, consider using a 3PL matchmaking service to identify the optimal fulfillment partner based on your unique requirements.

Final Thoughts: Powering Sustainable Growth Through Strategic Logistics

Waterdrop's partnership with Barrett Distribution Centers represents a textbook example of how the right 3PL relationship can facilitate successful market expansion for innovative brands. By selecting a logistics partner with the infrastructure, technology, and expertise aligned with their ambitious growth plans, Waterdrop has positioned itself for sustained success in the North American market.

For eCommerce brands at any stage of growth, the lesson is clear: logistics partnerships should be strategic decisions that support not only current operational needs but future expansion plans. With the right 3PL partner, brands can focus on product innovation and customer experience while trusting that their fulfillment operations will scale efficiently to meet increasing demand.

As Waterdrop continues its mission to encourage sustainable hydration habits worldwide, its partnership with Barrett Distribution Centers demonstrates how effective logistics can be a powerful enabler of both business growth and positive environmental impact.