Service Providers Must Step Up to Facilitate & Scale Omnichannel Retailers

Scott Hothem • February 21, 2012

Barrett Distribution Centers COO, Tim Barrett, provides 3PL perspective to concept presented in Dec. 2011 Harvard Business Review (HBR), “The Future of Shopping.”

A decade after the dot-com implosion, e-commerce is living up to its initial hype. For consumer goods manufacturers and retailers, morphing traditional brick and mortar and e-commerce retailing has become imperative to the success of their brands and companies.

World class third party logistics providers (3PLs) should be investing now in systems, processes and team training to provide the integrated solution these companies will need to fully leverage the advantages of selling in both channels. To succeed, this process must be seamless to the end consumer, the manufacturer, and the retailer.

We are early in the curve of e-commerce growth. Forrester Research estimates that e-commerce in theUnited Statesalone is nearly $200 billion, or 9% of retail sales. Five years ago, this number was 5%. E-commerce is likely to reach 15-20% of total sales within the next few years. And the business model is now highly profitable, unlike during the dot-com bubble of the late 1990’s: Amazon’s five year return on investment is 17%, whereas traditional discount and department stores average 6%.

Soon it will be hard to even define ‘e-commerce’ and harder still, to clearly delineate e-commerce sales and returns from brick and mortar sales and return activity in our facilities. Retailers and customers will be interacting simultaneously through multiple channels – websites, physical stores, kiosks, direct mail catalogs, call centers, and mobile devices. According to Darrell Rigby of Bain & Co in a recent Harvard Business Review article, unless conventional retailers adapt to these changes, integrating disparate channels into a seamless experience, they are not likely to succeed. Rigby coined the term, ‘Omnichannel retailing’ for this new retail environment.

Integrating the logistics backbone for these Omnichannel retailers requires collaboration and detailed planning. A critical first step is to provide the technology to manage one inventory for the entire enterprise. For example, the manufacturer or retailer may want to allocate certain SKUs or volumes of inventory for each segment of the business. In order to successfully support this strategy, the third party logistics provider must be able to dynamically manage these various inventory segments behind the scenes for the customer. Inventory will need to move seamlessly “on the fly” between segments in order to optimize the sell-through for the 3PL’s customers.

High levels of integration are required between segments to optimize sales. The systems of the third party logistics provider must communicate inventory levels real time to the customer’s websites and enterprise resource planning (ERP) systems. Sophisticated 3PLs are also able to manage fill rate rules, back orders, and replenishment functions on behalf of the client. These systems will optimize order fill rates and ultimately sales volume.

Successful 3PLs are also an asset to an integrated returns and reverse logistics operation. Cross-channel returns must be seamless to the client and the end consumer. Warehouse Management System (WMS) returns modules need to be adept at not only accounting for the return, but communicating in a timely manner to the client so that the end consumer is satisfied with a refund or replacement item the same day the return is received. After accounting for the return, inspecting and dispositioning the item, and satisfying the end consumer, theReturnsCenter should be accumulating returns data and reason codes, and converting this information into actionable reporting for the manufacturer or retailer. From these reports, market-driven companies can spot patterns, and make changes to ultimately improve the front end sales experience for their customers, improving satisfaction levels for the consumer with the first purchase and improving customer brand loyalty and reducing returns. For the manufacturer, this type of actionable knowledge can lead to improvements in product quality, or simply better information on the product that is provided to the consumer in their purchase process. Both improved product quality and consumer expectations will lead to higher brand loyalty and lower returns over time.

Taken together, these strategies will lead to increased sales and lower costs for our customers – really the ultimate goal of a world class logistics provider, and trusted partner to the innovating retail segment.

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Why Warehousing Near the Port of Baltimore Matters

By Faith Artieda • October 7, 2026

By the time your inventory reaches the Port of Baltimore, it has already completed a considerable journey. But for the brand waiting on those products, arrival at the port is hardly the finish line. The merchandise still needs to clear the next stage of its journey, reach a warehouse, become available for distribution, and ultimately find its way to a retailer or customer's doorstep. When those steps involve unnecessary distance or too many handoffs, an exciting arrival can quickly become another source of complexity. For brands importing through Baltimore, the location of the warehouse deserves a closer look. Keep the Next Step Close When your inventory finally reaches the Port of Baltimore, you want the next step to feel like progress, not another logistical hurdle. Barrett Distribution Centers' Curtis Bay facility is located within 10 miles of the port, creating a natural transition from international transportation into domestic fulfillment. Rather than viewing Baltimore simply as the place where products enter the country, brands can use it as the starting point for what comes next, whether that means preparing inventory for retail, fulfilling ecommerce demand, or moving products farther into their distribution network. For Horseware, an Irish equestrian brand working with Barrett for its United States fulfillment, that location carried real significance. “Barrett’s strategic Mid-Atlantic warehouse location, near the Port of Baltimore, is pivotal for us,” said Conor Farrelly, Logistics Manager at Horseware. Horseware's decision was not based on proximity alone. Barrett's experience supporting retail, business to business, and ecommerce fulfillment also mattered because imported inventory rarely has only one destination. Your Inventory Arrived. Now What? Picture a container filled with products arriving in Baltimore. Inside, some of that inventory may eventually be purchased by an ecommerce customer. Another portion could be destined for a retailer. Certain products may require labeling, pre ticketing, palletization, cross docking, or other preparation before they are ready to continue moving. Suddenly, the warehouse is doing much more than providing square footage. That is where the conversation around port proximity becomes more interesting. Barrett's Baltimore operation can support ecommerce fulfillment, retail distribution, omnichannel operations, and value added services, giving brands the ability to move inventory from international arrival toward the channels where it will actually generate demand. For a growing brand, that versatility matters. Sales strategies evolve, retailer opportunities emerge, and a business that once relied predominantly on one channel can gradually become far more complex. The warehouse receiving imported inventory should not become the obstacle standing between today's operation and tomorrow's opportunity. Look Beyond the Distance on the Map It is easy to evaluate port warehousing by mileage alone. Certainly, distance matters, but a nearby building is only useful if the operation inside it can support the business waiting on the other side. A more revealing question is: What can happen to our inventory once it gets there? Does the location make sense not only for receiving products, but also for moving them toward the markets and customers they ultimately need to reach? Those questions transform warehouse selection from a real estate decision into a broader fulfillment decision. For brands importing through the Port of Baltimore, proximity can create a valuable beginning. What ultimately matters, however, is where the operation allows the brand to go from there. Your products have already traveled a long way to reach Baltimore. The right warehouse should help make the rest of their journey count. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.

Your Holiday Orders Are About to Spike. What Happens to Everything Else?

By Faith Artieda • October 6, 2026

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Personalized orders can require additional touches at precisely the moment speed becomes increasingly important. Harrison Smith , Director of Commercial Revenue at Barrett Distribution Centers, emphasizes the importance of examining these patterns rather than relying on broad annual averages. “It’s looking at yearly trends, looking at within the year, what does that look like? Do you have those peaks?” Understanding the peak is important. Understanding everything happening around the peak is equally consequential. A brand could finish the year with an average of 5,000 monthly orders, for example, while experiencing dramatically different volumes from one month to another. Once promotions, seasonal inventory, retail activity, and multiple sales channels enter the equation, the average begins to conceal more than it reveals. As Harrison explains, “When I work with brands, I wanna understand everything about the business.” That broader perspective gives a fulfillment partner context. 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A direct to consumer order and a major retailer order may contain the same product, but they are not necessarily the same fulfillment task. Without the right experience behind the operation, Scott cautions that “brands can get into trouble really, really quickly.” During the busiest months of the year, there is considerably less room for that learning curve. Your 3PL Needs More Than a Forecast Forecasts provide a starting point, but numbers become far more useful when brands explain what is driving them. If marketing is preparing a major promotion, tell your fulfillment partner. If a retailer order is expected during an already busy week, communicate it early. If inventory is arriving later than planned or a particular product is suddenly outperforming expectations, that information belongs in the conversation too. This is where a strong 3PL relationship becomes less transactional. Bryan Corbett at Barrett has described the relationship between brands and their fulfillment partners as one built on expertise, honesty, and trust. His perspective is refreshingly practical: “Sometimes the customer's not always right. And sometimes Barrett's not always right. Sometimes we make mistakes.” Peak season does not eliminate those realities. If anything, increased volume magnifies them. Plans change. Forecasts miss. Unexpected problems emerge. The strength of the operation becomes visible in how people respond. As Bryan puts it, “You show your expertise through your honesty and your trustworthiness. You can’t separate the two.” Growth Should Create Opportunity, Not Fragility The ultimate objective of peak planning is not to construct a perfectly predictable holiday season. That would be unrealistic. It is to build enough visibility, communication, and flexibility into the operation that success does not destabilize everything surrounding it. Your holiday promotion should be allowed to outperform expectations. A retailer opportunity should feel exciting. A sudden surge in demand should represent momentum rather than an immediate operational crisis. That requires a fulfillment partner capable of seeing the entire business, not simply the orders accumulating in one queue. Because when holiday volume accelerates, the rest of your business does not disappear. It keeps moving, and your 3PL needs to be prepared to move with it. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.

What Does It Mean When Your 3PL Feels Like an Extension of Your Brand?

By Faith Artieda • October 2, 2026

Customers may never know the names of the people receiving inventory, preparing orders, managing fulfillment, or solving problems behind the scenes. They may never see the warehouse at all. Yet every one of those decisions eventually reaches them. That reality makes the relationship between a brand and its 3PL unusually consequential. Fulfillment may happen outside a company's own walls, but the experience it creates still carries the company's name. Accuracy, presentation, responsiveness, and consistency all become part of how customers perceive the brand itself. For Katherine Wroth at Barrett Distribution Centers, one piece of customer feedback captures exactly what that relationship should feel like. “The biggest thing that I hear from clients and brands is they say, ‘I feel like Barrett is an extension of our brand.’ And that's exactly what we want at Barrett.” An Extension Should Be Able to Evolve With You Becoming an extension of a brand requires more than understanding how to fulfill today's orders. Businesses change, sometimes dramatically, and the operation supporting them must be capable of navigating that progression. Katherine points to customers that may begin primarily in direct to consumer fulfillment before expanding into business to business distribution and, eventually, a broader omnichannel model. Each stage introduces different expectations and complexities. The objective is continuity. “They can stay with Barrett instead of having to go to multiple 3PLs.” For a growing company, that continuity can become increasingly valuable. Expansion should open possibilities for a brand, not automatically trigger another search for a fulfillment provider capable of handling the next stage. Ownership Changes How People Approach the Work The idea of acting as an extension of a customer's brand also depends on the people making decisions inside the warehouse. William Johnson describes an ownership mentality that encourages Barrett employees to consider the consequences of those decisions personally. “Everybody in our building runs this as if they're the owner. So, we're always looking at it from a perspective, if this was my money, how would I spend it?” That philosophy becomes more tangible through Barrett's participation in the Great Game of Business. William explains that Barrett uses profit sharing and open book financial practices to engage employees as owners and give them greater visibility into the financial success of the business. The concept is straightforward but meaningful. When people understand how their decisions influence a larger outcome, their work becomes more than a sequence of individual tasks. They gain context for why those decisions matter. That investment extends to professional growth as well. William describes daily huddles and a workplace where employees regularly progress from hourly positions to leads and from leads to supervisors. The People Behind the Operation Matter Culture can sound abstract until you hear from someone who has experienced it firsthand. In the video, Scott Hothem reflects on his own experience at Barrett with a simple observation: “I love it here. I love the family feeling here.” That sense of familiarity carries into how Barrett wants customers to experience the company. Scott describes Barrett as a family owned business with the scale to support growing brands while retaining the personal connection that can disappear inside a much larger organization. “They know they're not getting a faceless 3PL. They're getting a family-owned business that's large enough to grow their business anywhere.” That distinction matters because fulfillment is ultimately performed by people. Technology can improve visibility. Systems can connect sales channels. Processes can create consistency. Scale can provide room for growth. Yet people still make decisions, communicate when circumstances change, and determine how problems are addressed. A 3PL becomes an extension of a brand when those people recognize that the inventory in front of them represents something larger than products sitting inside a warehouse. It represents a company's reputation and, ultimately, the experience promised to its customers. The warehouse may belong to your 3PL. The experience leaving it still belongs to your brand. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.