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How to attract the right customers
Complexity drives costs, plus don't miss this NYC event.
How to attract the right customers
Complexity drives costs, plus don't miss this NYC event.
Last week at the IWLA Fulfillment Forum, a lot of the conversation came back to the same question: How do we attract and service the right customers?
The answers were pretty consistent. Sell to customers that fit your operation. Know your costs and capabilities extremely well. Use technology to make your teams more productive, not simply to replace them.
The best nugget came from Sean Copeland, CEO of Supership. Paraphrasing him, every "no" to an outlandish customer request is potentially a "yes" from somebody else. Get good at saying "yes, but..."
I think that's especially relevant in the mid-market where flexibility is often part of what makes a provider valuable. The problem is that flexibility creates complexity, and complexity drives cost.
So the "but" matters. If you're going to accommodate the request, help the brand understand what they're actually asking you to operate and why it affects their cost. Otherwise, you're just absorbing the complexity for free.
WHATβS TRENDING
π¦ Demand is cooling, but ecommerce continues to hold
Several early indicators for fulfillment volume softened in July. The Logistics Managers' Index fell to 68.9 from 71.1 in June as retailers worked through inventory pulled forward earlier this summer. Downstream retail inventory moved into contraction while logistics capacity remained tight.
Imports are leveling out as well. NRF's Global Port Tracker has September through November close to flat year over year, with full-year 2026 imports up just 0.1%. A lot of the inbound and transload volume that normally arrives in the fall came early this year.
Ecommerce remains the counterweight, growing 9.7% year over year in the most recent quarter and holding near 17% of total retail sales. For providers, there may be less market growth carrying everyone into Q4. More growth will have to come from winning and retaining the right business.
π¦ The warehouse market is tightening again
Prologis agreed to acquire Segro for roughly $19 billion, adding another 117 million square feet across Europe to an already massive global portfolio.
The timing is interesting. US industrial vacancy declined in Q2 for the first time since 2022, big-box leasing reached a four-year high, and speculative construction continues to slow.
For 3PLs, the tenant-friendly market of the past couple of years may be starting to turn. Well-located space becomes more valuable as vacancy tightens, particularly for operators with renewals or expansion decisions coming up.
π¦ Amazon's delivery-partner model is being challenged
New Jersey's attorney general sued Amazon over its Delivery Service Partner program, alleging the company suppressed driver wages by restricting contractors from hiring each other's drivers and discouraging unionization. The state calls it the first case accusing a company of operating an illegal monopsony in a labor market.
The case is relevant beyond Amazon because contractor-heavy models are common throughout final mile. For providers using similar structures, the questions around no-hire provisions and how much control a customer can exercise over independent operators are worth following as the case develops.
Also This Week
π¦ Another major manufacturing project is headed to Texas. Tesla, SpaceX, and xAI committed $16.8 billion to the first phase of Terafab, a planned chip manufacturing complex in Grimes County. The immediate fulfillment impact is limited, but manufacturing projects at this scale eventually pull suppliers, warehousing, and transportation demand toward them.
PARTNER HIGHLIGHT
Highlight: Northstar Boat Ride NYC
The Northstar Boat Ride NYC is an event for verified fulfillment providers, brands, carriers, and logistics technology companies. Slotted parent company owner Aaron Alpeter will be participating in one of the executive panel alongside executives from Caraway, Rho Nutrition, ShipHero, and Third Person.
I'll also be in attendance and I'm looking forward to connecting with many of you who are already confirmed attendees.
If you're not signed up, Fulfillment Focus readers can use code SLOTTED99 for discounted Standard tickets. This brings the price down from $149 to just $99! The offer is limited to the first 35 registrations.
The event takes place Tuesday, August 25, departing from Brooklyn Army Terminal at 6:15 PM. Programming includes dinner, networking, and panels on brand reputation, AI, and the future of fulfillment.
OPPORTUNITIES IN FULFILLMENT
Vice President of Operations @ Crane WW | Texas
Logistics Director @ GXO | North Carolina
General Manager @ Allen Distribution | Illinois
Director of Operations @ Barrett Distribution Centers | Mississippi
Operations Director @ GCG Companies | Illinois