In episode 441 of The New Warehouse podcast, Kevin is joined by Aaron Alpeter, founder of Izba. Izba, a multifaceted company in the supply chain and e-commerce space, aims to assist startups in scaling their operations effectively. In this insightful episode, Alpeter shares his expertise on the fulfillment side of e-commerce, the evolving brand-provider relationships post-COVID, and the unique offerings of Izba.
Building Supply Chains for Startups with Supply Chain Expertise
Investors expect businesses to be stable and profitable from day one. Alpeter discusses how Izba started as a consulting business and evolved into a multi-company entity focused on helping founders scale their businesses and build their supply chains. “It’s actually three companies in one, with a mission to help founders start, scale, and exit their businesses,” Alpeter explains.
Enhancing E-Commerce Operations
Izba’s acquisition of Sourcify and the development of Capabl software are vital components of its business model. Alpeter elaborates on how these tools empower brands: “Capabl helps brands hold their 3PLs accountable and provides validation for 3PLs doing good work.” He highlights the efficiency and accountability brought to e-commerce operations through these innovative solutions. “Sourcify helps brands lower their COGS. So if you’ve got a widget you’re making for $10 today, we’ve got a network of about 3000 factories from around the world capable of making it at a lower price.”
The Future of E-Commerce and Fulfillment
Looking ahead, Alpeter predicts a more conservative growth approach for 3PLs. He suggests that success will come from focusing on performance rather than just technological aspects or marketing. “Letting your performance be what makes you special,” Alpeter remarks, highlighting the importance of delivering quality service and building a reputation based on reliability and efficiency.
Aaron Alpeter discusses consumer demand for faster fulfillment: “We have figured out how to do 15-minute fulfillment… but nobody demands that. So that product is going away.” While rapid fulfillment is feasible, the consumer need for fast turnaround times is not as prevalent, leading to a shift away from such services.
Alpeter emphasizes the need for 3PLs to focus on specific customer types or commodities to stay competitive. “The best thing 3PLs can do in 2024 is to go through their portfolios and prune brands that don’t fit their Ideal Customer Profile (ICP),” he advises. By doing so, 3PLs can ensure they’re providing the highest level of service to brands that align with their capabilities and philosophies.
Alpeter encourages 3PLs to consider joining the Izba Exchange. “By integrating with Izba, 3PLs can have their performance fully audited, leveraging data from platforms like Shopify to provide a comprehensive operational scorecard. This integration will be a key differentiator in the Izba Exchange, showcasing empirical performance data, such as shipping 99% on time for many brands, helping them stand out in a crowded market of fulfillment providers.”
Key Takeaways on Building Supply Chains
- Comprehensive Startup Support: Izba’s unique blend of consulting, sourcing, and software services provides holistic support for startups in supply chain management.
- Innovative Tools for E-Commerce: Integrating Sourcify and Capabl into Izba’s offerings enhances operational efficiency and accountability in e-commerce.
- Future-Oriented Approach: Alpeter’s insights into expanding applications for their technology indicate a forward-thinking strategy for Izba in the evolving landscape of e-commerce and fulfillment.
EP 441: Building Supply Chains with Izba
