In this episode of The New Warehouse Podcast, Kevin chats with Alan Silberstein, co-founder of ShipLab, a rapidly growing 3PL fulfillment partner based in beautiful San Diego. Alan shares the story behind ShipLab’s remarkable journey from an 800-square-foot garage startup to operating 175,000 square feet of warehouse space in just seven years. The conversation dives into the unique challenges of e-commerce fulfillment, how ShipLab supports brands in optimizing their logistics and the role of innovation and customer-centric service in their growth.
The Dual Advantage of Being a 3PL Provider and a Client
ShipLab was born from necessity. Not uncommon in the industry, Alan and his partners struggled to find a 3PL provider capable of catering to their growing e-commerce needs. “Most places knew pallets but not e-commerce. So, we rented an 800-square-foot warehouse and created a service for ourselves,” Alan explains. Today, ShipLab operates two facilities with distinct focuses—one for e-commerce and the other for traditional pallet-based fulfillment.
ShipLab’s dual role as a provider and a client sets it apart. As Alan puts it, “The cool thing is, as we’ve grown to where we are now, and we now work with many different brands, we’re still our clients to this day, which is a cool differentiator for us. We’re providing the service, but we’re still receiving it as well. So we know whether things are working well, and whenever they might not be, we know how to fix them and when we need to fix them because our brands will suffer along with our clients.”
This vested interest in quality ensures Shiplab identifies and addresses challenges swiftly, ensuring a seamless experience for all its partners.
The Role of Quality in Fulfillment Partner Selection
While diversifying inventory across multiple locations makes sense for larger brands, Alan argues this isn’t always necessary. “For most brands, the hassle outweighs the benefits,” he says. Despite being in a single location, ShipLab leverages its proximity to California ports and competitive carrier rates to ensure efficient operations.
Customer service quality, however, remains a non-negotiable priority. “Quality service outweighs a few cents saved on shipping. We’ve had clients leave for cost reasons only to come back because they realized the value of our reliability,” Alan shares. Their approach underscores the importance of treating every brand as their own.
Scaling Smart: Lessons from ShipLab’s Rapid Growth
From its humble beginnings, ShipLab’s rise offers key insights into scaling a business. Early mistakes, such as not barcoding inventory, highlighted the importance of strong systems. “Proper organization and barcoding are vital. It’s easy to lose inventory or make errors without them,” Alan admits.
The team also strikes a balance between automation and human expertise. “Automation improves efficiency, but skilled humans are still essential,” Alan emphasizes. This philosophy not only supports operational excellence but also fosters long-term client trust.
Key Takeaways
- Quality service and strong client relationships from a 3PL provider trump cost-cutting measures.
- Automation enhances operations, but human oversight remains critical for accuracy and adaptability.
- ShipLab’s use of the ShipHero empowers clients with real-time control and visibility, enabling them to make order adjustments instantly and track inventory seamlessly, reducing delays and enhancing efficiency.
- Success in fulfillment requires scalable systems, clear SOPs, and a commitment to doing what you promise.
