3PL Flexibility and Scalability in Action

Kevin chats with Vincent Fletcher of Carton Cloud, alongside Shaun Hagen, live from Manifest 2026 in Las Vegas. Carton Cloud offers a combined warehouse and transport management system built from real 3PL operations. The conversation centers on how 3PLs are navigating rising volumes, labor constraints, and shifting customer demands. 

Fletcher and Hagen share how Carton Cloud is helping operators stay flexible and scale effectively, especially as workflows evolve from traditional B2B models to high-volume e-commerce fulfillment.

Adapting to Volatility Requires True 3PL Flexibility

The past year forced operators to rethink how they run their warehouses. Uncertainty made long-term planning difficult. Instead, success came down to responsiveness. As Shaun Hagen explains, “It wasn’t who guessed what was gonna happen, it was who could respond quickly to what would happen and again, work really closely with their customers.” 

This shift is happening alongside real operational pressure. He notes, “We saw continuation of labor market shortages and rising costs, you know, put a lot of pressure on operators who essentially, you know, had to be able to do more with the same or less.”

Despite these challenges, demand continues to grow. Carton Cloud sees order volumes up 24% year over year, with peak periods rising 33%. This creates a balancing act. Warehouses must scale up quickly during peak periods, then scale down just as quickly during slower periods. Flexibility is no longer optional. It is a core capability.

Scaling Operations Means Managing New Workflows

Growth is not just about more volume. It is about different types of work. Many 3PLs are shifting from palletized B2B orders to high-volume, direct-to-consumer fulfillment. That change creates entirely new operational demands. Vincent Fletcher explains, “Our last 18 months have really been on padding out what’s needed to fulfill large numbers of orders as opposed to large orders.”

This shift introduces complexity inside the warehouse. Fletcher adds, “It’s just totally different workflows and that kind of thing that you need there.” A single facility may now handle bulk storage alongside rapid e-commerce picking and packing.

To support this, Carton Cloud has focused on integrations, faster workflows, and updated packing processes. The goal is simple. Help operators handle both scale and variation without slowing down.

AI’s Role in Enabling Smarter 3PL Flexibility

AI is everywhere in logistics conversations. However, Carton Cloud takes a practical approach. As Hagen puts it, “AI is a tool, and you have to solve a real-world problem with it.” The focus is on real use cases, not hype. He adds, “It’s interesting to come back a year later and see where AI is actually delivering value, where it’s supporting, where it’s taking over, and where it’s just not quite there.” 

Internally, AI is already driving efficiency. Fletcher shares how tasks like documentation and configuration are now faster and easier. He explains, “Being able to assist them there with AI to have it just configure those things… massively accelerates the onboarding process.”

At the same time, AI is changing how software is built and extended. Companies can now create custom tools quickly. But there is still a gap between quick prototypes and reliable systems. That is where platforms like Carton Cloud continue to play a critical role, providing stability while enabling flexibility.

Key Takeaways

• Order volumes increased 24% year over year, with a peak up 33%
• Labor shortages and rising costs are forcing operators to do more with less
• Flexibility and responsiveness now matter more than forecasting accuracy
• 3PLs are shifting from large pallet orders to high-volume small orders
• Mixed workflows (B2B + DTC) are becoming the new standard
• AI is improving internal efficiency, especially in configuration and onboarding
• Custom API-based tools are becoming more accessible for operators
• Scalable systems must support both growth and operational variation

Listen to the episode below and leave your thoughts in the comments.

Guest Information

For more information on Carton Cloud, click here.

To connect with Vincent Fletcher on LinkedIn, click here.

To connect with Shaun Hagen on LinkedIn, click here.

For more information about 3PL flexibility, check out the podcasts below. 

3PL Culture and Fulfillment Experience

Instawork is Tackling Warehouse Talent Shifts with Flexibility and Data

Final Mile Delivery Savings and Flexibility with Tusk Logistics