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.

Newer Post >

Recent Blog Posts

What Is Omnichannel Fulfillment?

By Faith Artieda • July 9, 2026

Your ecommerce business is thriving. Orders are flowing in through your Shopify store, Amazon sales continue to climb, and then it happens—you land your biggest opportunity yet: a purchase order from a major retailer like Walmart, Target, or Costco. It's the kind of milestone every growing brand works toward. But for many businesses, it's also where fulfillment becomes significantly more complicated. Suddenly, you're managing multiple sales channels, each with its own shipping requirements, inventory demands, compliance standards, and customer expectations. What worked when you were shipping directly to consumers may no longer be enough to support retail distribution. This is where omnichannel fulfillment becomes essential. In the first episode of Inside Barrett with Faith Artieda , Barrett's Senior Vice President of Customer Solutions, Scott Hothem , explained that omnichannel fulfillment isn't simply about shipping products through multiple channels—it's about having the operational expertise to manage every channel successfully while maintaining a consistent customer experience. More Than Shipping Orders Many people assume omnichannel fulfillment simply means offering multiple ways for customers to buy products. While that's true from the consumer's perspective, the logistics behind those purchases are entirely different. A customer placing an order on your website expects fast, accurate delivery to their front door. That order may include just one or two items that need to be individually picked, packed, and shipped. A retailer, on the other hand, might place a purchase order for thousands of units. Those shipments often require palletization, retailer-specific labels, advance shipment notifications (ASNs), routing guide compliance, scheduled delivery appointments, and strict packaging requirements. Missing even one requirement can result in costly chargebacks or delayed deliveries. "The channels are very, very different," Scott explained during the interview. "How you manage inventory is different. Those retailers often want unique SKUs that you don't sell on your primary direct-to-consumer website." Although both orders originate from the same inventory, they require completely different operational workflows. Growth Creates Complexity For many brands, expanding into retail feels like the natural next step—but it also introduces new challenges. Inventory must remain synchronized across every sales channel. Technology systems need to communicate seamlessly. Customer expectations continue to rise, and retailers demand near-perfect compliance. Without the right fulfillment strategy, brands can quickly become overwhelmed. That's why Scott believes the role of a 3PL extends far beyond storing inventory and shipping packages. At Barrett, the goal is to help brands navigate these transitions before they become problems. Whether a company is launching its first retail partnership or rapidly scaling its ecommerce business, Barrett works alongside customers to build fulfillment solutions that evolve with their growth—not solutions they'll outgrow in a year or two. As Scott put it during the interview, Barrett strives to become a brand's " forever 3PL " by supporting customers through every stage of their journey. Omnichannel Is About Visibility, Flexibility, and Partnership Successful omnichannel fulfillment requires much more than warehouse capacity. It depends on real-time inventory visibility, seamless technology integrations, retail compliance expertise, transportation management, and a fulfillment operation capable of adapting as customer demand changes. It also requires a logistics partner that understands your business well enough to anticipate challenges before they impact your customers. That's the approach Barrett has taken for more than 80 years. Rather than offering a one-size-fits-all fulfillment model, Barrett designs customized omnichannel solutions that allow brands to manage direct-to-consumer, wholesale, marketplace, and retail fulfillment through a single, integrated operation. With expertise in retail compliance, transportation management, value-added services, and advanced warehouse technology, Barrett helps brands simplify complex supply chains while preparing for future growth. Looking Ahead Today's consumers don't think about fulfillment channels—they simply expect their orders to arrive on time, regardless of where they made the purchase. For brands, meeting those expectations requires more than great products. It requires a fulfillment strategy built to support every channel, every customer, and every stage of growth. As Scott shared in Inside Barrett , the right 3PL doesn't just help you fulfill today's orders. It helps prepare your business for tomorrow's opportunities. And that's what omnichannel fulfillment is really all about.

How Do I Know If It's Time to Switch 3PLs?

By Faith Artieda • July 7, 2026

Switching third-party logistics (3PL) providers isn't a decision most businesses take lightly. It requires time, planning, and trust. But staying with the wrong partner can cost even more—through missed shipments, unhappy customers, and lost opportunities for growth. So how do you know when it's time to make a change? One of the biggest signs is when your 3PL starts holding your business back instead of helping it move forward. Maybe customer service has become difficult to reach, order accuracy has declined, or you're constantly following up on issues that should have been resolved proactively. Your fulfillment partner should give you confidence, not create more work for your team. Growth is another common reason brands switch providers. A 3PL that worked well when you were shipping a few hundred orders each week may not have the systems, technology, or expertise to support new retail partnerships, higher order volumes, or omnichannel fulfillment. As your business evolves, your logistics partner should evolve with it. It's also worth evaluating how your 3PL approaches the relationship. Do they take the time to understand your goals and recommend improvements, or are they simply processing orders? The best providers act as an extension of your business, offering strategic guidance, transparent communication, and solutions designed to support long-term success. At Barrett Distribution Centers, we believe a successful partnership starts long before the first shipment leaves the warehouse. That's why we invest time upfront to understand each customer's business, design a customized fulfillment strategy, and build solutions that can scale as your company grows. Rather than focusing on short-term transactions, our goal is to become a long-term logistics partner that supports your business through every stage of growth. If your current 3PL is creating more challenges than solutions, it may be time to ask whether they're still the right fit. The best fulfillment partner isn't just the one that ships your orders—it's the one that helps your business grow with confidence.

Should a 3PL Give You a Quote Before Learning About Your Business?

By Faith Artieda • July 6, 2026

When companies begin searching for a third-party logistics (3PL) provider, one of the first questions they ask is, "How much does it cost?" It's a fair question. Every business wants to understand pricing before making a significant investment in its supply chain. But if a 3PL is willing to send over a quote after only a brief conversation—or without asking any questions at all—it may be worth taking a closer look. The reality is that no two brands operate the same way. Even companies selling similar products can have completely different fulfillment needs. One brand may ship a handful of SKUs directly to consumers, while another manages thousands of products across ecommerce, retail, and wholesale channels. Those differences affect everything from warehouse space and labor to transportation, technology, inventory management. That's why the best 3PL partnerships don't begin with pricing—they begin with discovery. A strong logistics partner wants to understand your business before recommending a solution. They'll ask about your products, order volumes, growth plans, customer expectations, and sales channels. They'll want to know whether you're shipping directly to consumers, supplying major retailers, or managing both. More importantly, they'll take the time to understand where your business is today—and where you want it to be tomorrow. At Barrett Distribution Centers, that's exactly how every partnership begins. Rather than relying on standardized pricing sheets, our team takes a consultative approach. We work closely with prospective customers to understand their operational requirements, fulfillment profiles, technology needs, and long-term goals before developing a customized solution. It's a process that allows our engineering, operations, and customer solutions teams to design a fulfillment strategy that's built specifically for each brand—not a one-size-fits-all model. That extra time upfront often makes all the difference. Over the past eight decades, Barrett has helped brands navigate rapid growth, expand into new retail channels, and scale from startup operations into nationally recognized businesses. Those long-term relationships are built on understanding each customer's unique challenges before recommending the right solution. It's one of the reasons many of our customers stay with Barrett as they grow, rather than outgrowing their logistics provider. Barrett's focus on customized omnichannel fulfillment, retail compliance, technology, and continuous improvement enables us to support brands through every stage of growth. Choosing a fulfillment provider is about more than comparing prices. It's about finding a partner that's invested in your success and willing to learn your business before offering a solution. While discovery may take a little more time upfront, it often leads to a stronger partnership, a more efficient operation, and a fulfillment strategy designed to grow alongside your brand. Because in logistics, the best solutions aren't the fastest to quote—they're the ones built specifically for you.