How FurMe recaptured $4.00 per unit moving to a Canadian 3PL

Learn how FurMe partnered with Fulfill to locate a Vancouver 3PL that specializes in Section 321 services.

50%

reduction to inbound container costs

$4.00

per unit recaptured using Section 321

1

month improvement to inventory replenishment time

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"I have previously searched for 3PLs on my own and it is a nightmare to vet them alone - when oftentimes they promise you the world, but there are non-stop issues if you don't select the correct 3PL. You’re talking to your 3PL daily and mistakes matter, because mistakes cost you time and money to fix, so it's very important to select the right 3PL. I didn't want to go down that route blindly again when looking for our cross-border 3PL partner, so that's why I reached out to Fulfill to recommend options based on our direct needs, with a smaller pool to engage with."
Owner of FurMe Technology
Matt Homa
Overview

Learn how FurMe partnered with Fulfill to locate a Vancouver 3PL that specializes in Section 321 services.

FurMe specializes in creating high-quality pet products and operates primarily through direct-to-consumer channels. Despite having its own warehouse in the Midwest, FurMe faced challenges in managing inbound shipping times and costs, particularly for goods sourced from China. The company sought a Section 321 fulfillment solution to take over their orders in the Western US.

FurMe needed to reduce inbound shipping costs and inventory replenishment times from China.

Before partnering with a Vancouver 3PL, FurMe self-fulfilled all orders from their own Midwest warehouse, and encountered significant delays with shipping times on inbound containers coming from China (with transit times reaching up to 60 days). In addition to lead times, shipping containers to the Midwest were more costly than a West-coast option due to the added freight and drayage components. Although their centrally located warehouse was beneficial for many aspects of their operation, including the personalization of in-house fulfillment, the high costs and extended lead times made it clear that a strategic change to their fulfillment approach was necessary.

To remain competitive and meet customer expectations, FurMe sought a 3PL solution that would:

  1. Reduce container shipping times, particularly from China to the US.
  2. Take advantage of Section 321 for duty savings.
  3. Maintain a high standard of service similar to their in-house operation 

To accommodate his go-forward fulfillment strategy, FurMe’s owner Matt Homa specifically needed to identify a West-coast 3PL in Mexico or Canada, identifying Tijuana and Vancouver as the target search locations.

"A major pain point for us was shipping times from China to the US which were trending towards 60 days, and we like to be super flexible so improving this was crucial for us, along with a better cost structure on imports."

Fulfill connected FurMe with a Vancouver-based 3PL to improve inbound costs and transport times.

During Covid as his business started to scale, Matt conducted a self-directed 3PL search to fully outsource his fulfillment, ultimately landing on a California 3PL partner. After a period of unsatisfactory execution from the 3PL and daily mistakes, Matt decided to bring fulfillment back in-house to ensure quality service and accurate order fulfillment for his customers. Two years later, facing a nuanced search involving cross-border fulfillment, Matt decided to work with Fulfill, leveraging its 3PL Matchmaking Service to identify thoroughly vetted Canadian and Mexican options.

After multiple calls with Matt to review FurMe’s needs, Fulfill’s logistics experts focused on 3PLs with excellent order fulfillment times, cross-border expertise, and strong communication practices. Fulfill prepared a shortlist of 3PLs interested in FurMe’s scope, introducing them to a handful of 3PL partners that fit their specific needs. Following introductory calls with 3PLs and review of price proposals supported by Fulfill, FurMe selected a 3PL in Vancouver - EEKO 3PL - that significantly reducing inbound shipping times and costs, simultaneously enabling FurMe to take full advantage of Section 321, leading to considerable duty savings.

Given Matt had previously experienced the difficulties of vetting 3PLs independently, describing the process as a "nightmare", he was pleased with the streamlined process and quality of 3PL options presented by Fulfill, helping to eliminate the guesswork and ensure a smooth transition.

"Working with Fulfill was a positive experience because I could tell their team exactly what I needed and the elements that are most important to me. They provided a handful of recommendations so I can focus on the needle-moving activities. Otherwise, your options are to scour through Google with everyone under the sun popping up as an option. I don't know how anyone does it that way, especially for something that is so important and critical to your operations."

FurMe reduced inbound shipping costs by 50% and recaptured $4.00 per unit on orders

Working with Fulfill allowed Matt to focus on the metrics that matters most with a 3PL, and negotiate optimal terms for FurMe’s fulfillment needs. Since partnering with EEKO, FurMe has seen remarkable results:

  • 50% Reduction in Inbound Shipping Costs: By shifting a portion of their fulfillment operations to the West Coast, FurMe cut container shipping costs from China in half, significantly reducing their overall expenses.
  • $4.00 Improvement Per Unit: Leveraging Section 321 entry through Canada, FurMe recaptured approximately $4.00 per unit, even after accounting for 3PL fees, including pick, pack, and storage costs.
  • 1 Month Improvement to Inventory Replenishment: The move to the West Coast reduced container transit times from approximately 60 days to 30 days, offering a newfound flexibility that increased product availability and enhanced customer satisfaction.

Importantly, Matt continues to fulfill orders to the East Coast and Central US through FurMe’s owned and operated warehouse in the Midwest, reduciung time-in-transit and carrier costs across the board for FurMe. After nine months of working with EEKO, led by it’s owner Josef Schechter, FurMe consistently enjoys exceptional customer service with direct contact to facility owners, ensuring immediate responses to any support tickets or needed changes in operations. This direct line of communication was a critical factor for FurMe, ensuring flexibility and responsiveness in their fulfillment process.

"One of my important factors with a 3PL partner is having direct contact with their team on the floor. If problems happen or there are things we need to change on the fly, I need to be able to talk to someone on ground in that facility to - it could be pulling a box, checking an item, or changing an order. I didn't want one of these massive 3PLs where you have to email in your request, that's a non-starter for us. EEKO is fantastic because I have the owners cell phones, I can call them or text them any time of the day and they'll make it happen. So, it's just been fantastic customer service all around, since they do everything they say they will and more.”