The True Cost of Fulfillment: How to Protect Margins Amid Rising Carrier Rates
Description
Episode Summary
In this episode of the Free to Grow CFO podcast, Jon Blair and Tony Runyan discuss the current challenges in the logistics and e-commerce sectors, focusing on tariffs, mid-year carrier rate changes, and strategies for managing cash flow and inventory. They explore the implications of bonded warehousing and the importance of understanding the total cost of fulfillment. The discussion highlights the need for brands to adapt to ongoing uncertainties and optimize their operations to maintain profitability.
Key Takeaways
-Mid-year rate increases are occurring despite lower package volumes.
-Bonded warehousing can defer tariff payments but has complexities.
-Uncertainty in tariffs is affecting budgeting for brands.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Tony Runyan - https://www.linkedin.com/in/tonyrunyan/
Free to Grow CFO - https://www.freetogrowcfo.com/
Transcript
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00:00 Introduction and Overview of Current Challenges
03:00 Navigating Tariffs and Uncertainty
05:59 Strategies for Cash Flow Management
09:01 Understanding Bonded Warehousing
12:03 Mid-Year Carrier Rate Changes
16:58 Impact of COVID on Shipping Dynamics
20:10 Adapting to Rate Changes
20:45 Optimizing Inventory Load Balancing
28:08 Conclusion and Future Considerations
United States
