537: Delta Fulfillment’s Approach to 3PL Partnerships and Growth
In this episode of The New Warehouse Podcast, Kevin interviews Dani Mechlowitz, founder and managing director of Delta Fulfillment, a UK-based third-party logistics (3PL) provider. Delta Fulfillment specializes in direct-to-consumer (DTC) logistics for brands with their own e-commerce platforms, predominantly Shopify users. Dani shares the evolution of Delta Fulfillment from its early days in dropshipping to becoming a strategic partner for brands focused on customer retention, community building, and efficient fulfillment. This episode dives into Delta’s unique approach to selecting and working with its ideal customer profile (ICP), enhancing partnerships, and preparing for peak shopping seasons.
Evolving 3PL Partnerships to Serve an Ideal Customer Profile
Dani emphasizes that defining an ICP was straightforward, but sticking to it took years of discipline. The early days of Delta Fulfillment involved servicing any customer that brought revenue. Over time, Dani realized the importance of working exclusively with customers who aligned with Delta’s strengths. Delta now uses a “scorecard system” to assess potential clients by factors like order volume, SKU count, seasonality, and product specifications. “Defining the ICP is critical,” says Dani. “We look at new businesses with a methodical eye to ensure they’re a fit.” Delta even revisits this profile every six months to maintain alignment as their clients grow, helping ensure both parties remain satisfied.
Adding Value Beyond Fulfillment with Strategic 3PL Partnerships
With an eye on customer engagement, Delta Fulfillment has pursued partnerships that add value beyond basic logistics. They teamed up with Penny Black for personalized gift inserts and upsell messages, helping clients drive repeat purchases. They also launched a collaboration with a TikTok agency to enable brands to showcase live warehouse content. “Our customers want more than fulfillment; they want growth tools. By offering TikTok content, they gain a unique way to connect with audiences,” Dani explains. This forward-thinking strategy aligns with the trend of using social media as a powerful sales channel, particularly as TikTok’s influence continues to expand.
Navigating Peak Season with Planning and Flexibility
For Delta, peak season preparation starts months in advance, with a detailed process for forecasting and staffing. As Dani notes, many of Delta’s customers are relatively new brands, often lacking data for accurate peak forecasts. “We rely on continuous communication to adapt quickly when forecasts fluctuate,” he says. Their approach includes managing inventory, hiring temp staff, and coordinating with clients on timing for sales events. By focusing on clear communication, Delta aims to prevent disruptions and maintain strong relationships with clients through the holiday rush. “Peak season is a partnership effort, and we work closely to meet expectations on both sides,” Dani states.
Key Takeaways
- Scorecard ICP System: Delta uses a scorecard system to assess potential clients, considering factors like order volume, SKU count, and seasonality.
- Strategic Partnerships: Collaborations with Penny Black and TikTok help Delta clients increase customer engagement and expand their social media reach.
- Peak Season Prep: Early forecasting and close communication with clients are critical to Delta’s strategy for a successful holiday season.
Listen to the episode below and leave your thoughts in the comments.
Guest Information
For more information on Delta Fulfillment, click here.
To connect with Dani on LinkedIn, click here.
Check out the content below for more information on driving value with 3PL partnerships.
525: Healing Brand and 3PL Relationships with Logistics Resolve
