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Matt Edmundson: Welcome to
the eCommerce podcast with

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me, your host, Matt Edmundson.

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Uh, this is a show a podcast,
uh, all about helping you

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to deliver eCommerce wow.

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And we have a very special guest
today to help us do just that.

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Uh, Harry Drajpuch from
Amware Fulfillment.

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We're gonna be chatting about
how to build a fulfillment

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infrastructure that will scale

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your business.

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But before we jump into that, let
me suggest a few other e-commerce

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podcast episodes to listen to that.

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I also think you're gonna enjoy, uh,
check out my conversation with Justin

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Smith about the perfect warehouse and
how it could save you time and money

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and make your life easier, which let's
face it, sounds like a brilliant thing.

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Right?

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Uh, and also check out my
conversation with Matt Barnett

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about personalizing the customer
journey to increase lifetime value.

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You can find both these episodes along
with our entire back catalog, uh, for free

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on our website, eCommerce podcast.net.

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Head over there.

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It's easy.

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It's easy to find.

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You just need a web browser.

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That's it.

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Now this episode is brought to you
by the eCommerce cohort, which helps

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deliver eCommerce wow to your customers.

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Have you ever found it hard to keep up
with the world of eCommerce where it

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changes so fast and figuring it all out
can actually be a bit of a nightmare?

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And that's before you even look at your.

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Online business and try and figure
out what you should work on.

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How many of you know
what I'm talking about?

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Can I get an amen?

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Uh, while enter the eCommerce cohort
to solve this problem and many others,

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it's a lightweight membership group
with guided monthly sprints that

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cycle through all the key areas.

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eCommerce, the sole purpose of which
is basically to help you grow and scale

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your online business, gives you clear
actionable jobs to be done, and you'll

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know what to work on and also get
the support you need to get it done.

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So whether you are just starting out an
e-commerce or whether like me, you've

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been around a little while, I'd like to
call myself a well-established e-commerce.

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Which is translated for dinosaur.

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There you go.

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I encourage you to check it out.

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Honestly, if you have been in, if you
have been, if you are in eCommerce,

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wherever you are on your eCommerce
journey, seriously check it out.

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It's gonna be great for you.

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Uh, eCommercecohort.com is the
website, or you can email me

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directly matt@eCommercepodcast.net
with any, any questions that you.

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Uh, we'll do our level best to
answer them because honestly,

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this thing is sh amazing.

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Yes, it is.

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Check it out.

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Anyway, all of that said, without
further ado, here's my conversation

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with the fantabulous Harry.

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Well, I am here with Harry Drajpuch.

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He is the CEO of Amware Fulfillment.

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And guess what?

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Right?

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He's had 30 years experience
in the logistics industry.

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Uh, he's been an executive,
uh, in the whole thing.

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He has got so much experience, uh, in,
in logistics, in executive management.

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People, parcels, the whole deal.

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We're gonna get into that,
into this week's episode.

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In his previous role, uh, as the CEO of
Amway Logistics, he was responsible for

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technology and the performance of eight
nationwide fulfillment centers in the us.

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And prior to that, uh, he was the
president and CEO of Web Logistics

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where he had 3PL responsibility for
15 distribution centers, uh, and

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a large regional truckload fleet.

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Translate that into modern English.

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That sounds like a massive headache,
but we are gonna, we're gonna

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talk to Harry about all of this.

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He's served as a CEO, third party
logistics provider Kane Is Able,

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which I think is one of the coolest
company names I've come across for

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a while, and when he's not shaking
things up in the boardroom, Harry

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will be likely off flying his plane.

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He is an instrument rated pilot too.

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Uh, which, uh, Harry,
uh, welcome to this show.

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I'm excited to be talking to someone
who's actually got their pilots license,

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principally because last night I spent
about an hour and a half looking at what

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it was gonna take for me to get my pri
uh, private pilots license here in the uk.

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But maybe we'll get onto that.

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Maybe we won't, but welcome to the show's.

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Great to have you.

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Harry Drajpuch: Looking forward to it.

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Matt.

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Really excited about talking about
my favorite subject logistics.

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Matt Edmundson: How did you, um, I
can't imagine right, that as a, where,

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whereabouts in the states did you

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grow up?

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Harry Drajpuch: Uh, in a
northeast, upstate New York.

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Matt Edmundson: So you, you definitely
sound like you've got that kind

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of New York kind of accent going
on there, which is just beautiful.

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But I can't imagine that as a kid
growing up in the streets of New York,

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you, you sat there in school dreaming
one day of running logistics companies.

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Uh, I just, I dunno, maybe I'm wrong.

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Maybe I've misread the situation.

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So how did you get into that whole thing?

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Harry Drajpuch: So that's, uh,
it's an interesting way that I, I.

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Uh, wound up in logistics.

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Uh, interestingly enough, after
I graduated college, uh, with a

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marketing degree, uh, the last
thing I wanted to do was sell.

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But unfortunately those were the only
type of jobs available was selling.

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And I actually went to work, uh, um, for
a, a business forms company and I just

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happened to call on a trucking terminal.

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Uh, it was a cold call.

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I walked in and he said, You know,
we don't buy our forums here locally.

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But would you be interested
in a career in trucking?

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And I said, I don't know the
first thing about trucking.

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And, uh, we just got to talk for an hour.

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And, uh, it just sounded like a
very, very interesting, um, field.

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Uh, certainly more interesting
than business forms.

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And that's really how it started
from, from that point, I spent

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10 years in local transportation.

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And then I was actually recruited by a,
by a company if I was interested now,

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uh, and not in the rolling stock, but
would I be interested in the, in the

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four wall environment of warehousing.

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And, uh, so I made the transition.

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Uh, it's been 30 years in the, I'll say
in the warehousing logistics business.

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And it's really changed over the 30
years from, uh, you know, industrial

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B2B to really the, the, the explosion
of eCommerce and direct to consumer.

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Matt Edmundson: Hmm.

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Yeah, I bet it's changed a
lot and I'm keen to pick your

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brains on that whole thing.

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Uh, so you got into logistics just because
of a chance conversation with a guy.

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You said you friends to getting
in trucking a few years ago.

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Harry Drajpuch: It, it was
just, it was really that simple.

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The, the, the enticing thing
about that was I was offer a

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company car and an expensive.

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And he said, You're gonna spend half
of your time entertaining people,

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lunch, dinner, weekends, your home.

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You need to become very, very close
to these people who make decisions

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about which trucking company to use.

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So that kind of intrigued me and it was,
you know, you could take people out,

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you can take them to places you like.

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You can take them out to places they like.

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As a young man, that was, uh,
you know, really exciting.

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So I said, Yeah, let's have a go at it.

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Matt Edmundson: That's interesting
because it's one of the things that you

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don't do these days in eCommerce or in
digital businesses is you don't do that.

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You don't take people out for lunch.

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You, you know, you try and grab 10
minutes on a Zoom call somewhere if

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you can Do, you know what I mean, you.

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We seem to have, I don't know if
we've lost that ability to, to

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interact with people per se, but it
maybe it's not as needed as much now.

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I don't know.

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I I, Is this a lost skill, do you think?

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Or, or, or am I misreading it?

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Harry Drajpuch: No, I, I don't
think you're misreading it.

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I think back then that was a
segue to getting to know people

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and getting them to trust you.

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Um, You know, the back then the
industry was very, very heavily

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regulated and so choices were, uh,
weren't as wide as they were today.

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Uh, it was kind of like the
airline business, right?

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You, you get a seat, you go from A to B.

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It almost doesn't matter what airline it
is, they serve a little different food,

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but you know, the planes are all the same.

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Uh, the business was back then, so why,
why, why, why go with Harry's company?

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You know?

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And, and so you tried to build
up this relationship with a

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trusted, you personally as
opposed to trusting the company.

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Today it's very, very different, right?

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You're, you're, you're giving
in, in the eCommerce world.

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You're giving your product, your
lifeline, um, your, your, your revenue

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source, uh, to someone, to a company.

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Uh, and it's great that you like
Harry, but is the company competent?

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Can the company, you know, maneuver
and are they flexible enough and agile

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enough to change with the volatility
of what's going on out there?

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So today you have to lead,
uh, with a skillset and with

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a reputation and a service.

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And after that you get
to know your customers.

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You, you know, you get to know them
on a personal level so that they feel

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if there's a need, they've got someone
that they can rely on, uh, other

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than just an automated, uh, response
when they call a number for help.

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Matt Edmundson: That's fascinating.

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It's interesting isn't cuz you are.

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Right?

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I mean, now if I.

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If I, like yesterday I was looking up
the details of a company, um, deciding

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whether or not to do business with them.

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First thing I did was go to Trustpilot,
which is a review platform, and I wanted

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to see what reviews other people had left.

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Uh, and being Trustpilot, I had
maybe 50% confidence that the

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reviews were genuine and real.

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So I did a bit more digging, um,
around that company, but I did it

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all from the comfort of my own home.

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Or with my laptop.

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And within 10 minutes I, I'd
Googled and figured, you know,

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found about that company to go,
You know what, I'm not interested.

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I'm out.

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Right.

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I just, this is, there's just no way.

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Um, there was no lunch, there was
no wh in, there was no dining,

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there was nothing like that.

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Um, it was just all
done from a review set.

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So it's, I'm intrigued
to know, um, Harry, how.

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How you see leadership in some respects
going from what I would call old school,

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you know, the, the let's go out to
dinner, you know, meet the family to, Oh

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look, you've got a bad review on Google.

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I'm, I'm not interested.

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Harry Drajpuch: Um, it's really,
uh, it's really about competence.

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Uh, it's really about
energy for leadership.

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As I said, it's a, it's
a volatile industry.

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Um, it's not manufacturing.

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You can't say, Tomorrow I'm gonna
put out 500 orders or 5,000 orders.

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It's, you know, what excites people
on the web to buy from my customers.

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That drives volume.

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So, so people have to be, um,
extremely sharp, knowledgeable.

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Understand the business.

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Um, but, but more certainly, uh, a
positive attitude because customers

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are navigating out there, uh, and
they're competing, you know, uh,

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uh, for the, for the sales dollar.

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They've gotta make themselves
a little bit unique.

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Um, and so the, the, the demands of
the business change from day to day,

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and you have to, you, the expectation
is that you could adapt to it and you

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could be the nicest guy in the world.

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You could be the best dinner conversation.

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Everybody wants to hear about flying,
but can you get my product to my

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customer and the way they want it, when
they want it, and how they want it.

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Whenever they want it.

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That that's, that's the key thing today.

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And if you could do those things, then
it again, from a leadership perspective,

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you've gotta have people who always
think before they speak and try to

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figure out, how do I make this happen?

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Customers ask you for a specific reason,
and when they ask you with something

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they really need, they're not trying
to inconvenience me or my company.

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They're not trying to make it difficult.

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They're trying to make a buck, they're
trying to sell, they're trying to compete.

228
00:11:57,660 --> 00:11:57,780
Mm-hmm.

229
00:11:58,025 --> 00:12:00,900
, they're trying to understand the
market and what they can do to

230
00:12:00,900 --> 00:12:04,410
stay ahead of their competitors,
uh, you know, for that dollar.

231
00:12:04,410 --> 00:12:07,800
So, That's the kind of
leadership that you have to have.

232
00:12:07,800 --> 00:12:11,670
It's always thinking, uh, again,
it's so very positive, uh, is

233
00:12:11,670 --> 00:12:14,810
important because you're solving
problems every day in the business.

234
00:12:16,100 --> 00:12:16,480
Yeah,

235
00:12:16,480 --> 00:12:21,060
Matt Edmundson: it's, See the, the, the
thing about what you've just said is

236
00:12:21,060 --> 00:12:25,350
actually the principles of leadership
have stayed in effect the same, what

237
00:12:25,350 --> 00:12:28,620
you've talked about today is not different
to what you needed 20, 30 years ago.

238
00:12:28,920 --> 00:12:31,410
It's just a different environment
in which they operate now.

239
00:12:31,410 --> 00:12:31,680
Right.

240
00:12:31,680 --> 00:12:33,030
And understanding the environment.

241
00:12:33,030 --> 00:12:37,890
So, um, let me just touch on the
airplane thing, uh, because I came

242
00:12:37,890 --> 00:12:41,490
when I was doing a, you know, that
really unhealthy stalking thing

243
00:12:41,490 --> 00:12:45,600
and I was just going through your
LinkedIn profile, um, I saw on there.

244
00:12:46,635 --> 00:12:50,834
That you spent a little bit
of time mentoring teens in

245
00:12:50,834 --> 00:12:53,115
developing an interest in aviation.

246
00:12:53,115 --> 00:12:55,635
This is going back a few years, and
so obviously you've been doing the

247
00:12:55,635 --> 00:12:59,685
flying thing for a, for a fair while
and you've, you've been involved in,

248
00:12:59,805 --> 00:13:03,765
in these sort of organizations that,
that mentor teens, uh, in, in aviation.

249
00:13:04,860 --> 00:13:07,470
Why, how come you trucking and flying?

250
00:13:07,470 --> 00:13:07,830
Right?

251
00:13:07,830 --> 00:13:09,150
I mean, they're linked, I suppose.

252
00:13:09,150 --> 00:13:13,080
Is that how you got into the aviation
thing or was it just one day just decided,

253
00:13:13,080 --> 00:13:15,750
you know what, I'm, I'm gonna go fly
plane, watch Top gun and that's it.

254
00:13:15,750 --> 00:13:17,100
I'm off, which was my problem.

255
00:13:17,820 --> 00:13:22,470
. 
Harry Drajpuch: Um, I, I, I got
into aviation, uh, almost the

256
00:13:22,475 --> 00:13:24,420
same way I've got into logistics.

257
00:13:24,500 --> 00:13:26,400
I, I, I actually had a fear of flying.

258
00:13:26,400 --> 00:13:28,780
I didn't get on an airplane
until I was 28 years.

259
00:13:29,865 --> 00:13:30,195
Oh wow.

260
00:13:30,195 --> 00:13:35,295
And, um, you know, if you're going to, if
you want to advance in the business world,

261
00:13:35,295 --> 00:13:36,885
you can't take the train everywhere.

262
00:13:36,885 --> 00:13:38,775
You can't take a bus,
You can't take a car.

263
00:13:38,775 --> 00:13:40,635
At some point you've
gotta get on an airplane.

264
00:13:41,355 --> 00:13:43,915
And my first experience on an
airplane was white knuckle.

265
00:13:44,880 --> 00:13:47,730
Literally, I think I ripped out the arms.

266
00:13:47,730 --> 00:13:49,230
I was just gripping them so tight.

267
00:13:49,260 --> 00:13:51,870
The flight was an hour and a half,
was a short flight from Newark,

268
00:13:51,870 --> 00:13:53,520
New Jersey to Rochester, New York.

269
00:13:53,520 --> 00:13:54,390
I'll never forget it.

270
00:13:54,960 --> 00:13:57,960
Um, and when I got off, my knees
were, I just didn't like flying.

271
00:13:57,960 --> 00:13:59,880
I didn't know what kept
airplanes in the air.

272
00:14:00,240 --> 00:14:05,280
Uh, and so, um, I decided to start
to read up on it, Uh, learn about

273
00:14:05,285 --> 00:14:09,660
avionics aviation, what keeps planes
flying, you know, what technology

274
00:14:09,660 --> 00:14:10,890
improvements have happened.

275
00:14:11,400 --> 00:14:18,600
And I used to drive by a glider
port a, uh, once a week and, uh,

276
00:14:19,620 --> 00:14:21,720
for, for, for a birthday present.

277
00:14:21,780 --> 00:14:26,940
Uh, I, I, I got myself a demonstration
flight in a glider, right?

278
00:14:27,000 --> 00:14:27,900
Motorless.

279
00:14:28,830 --> 00:14:33,630
And, uh, part of that demonstration
was, uh, the, the fella in the

280
00:14:33,630 --> 00:14:38,340
backseat, the instructor lets you
take the stick and, you know, you

281
00:14:38,340 --> 00:14:39,810
can maneuver the plane a little bit.

282
00:14:39,815 --> 00:14:40,440
Was like, Really?

283
00:14:40,950 --> 00:14:42,630
You, you're gonna, you're
gonna let me do that?

284
00:14:42,630 --> 00:14:44,130
He goes, No, or you won't hurt anything.

285
00:14:44,520 --> 00:14:46,020
So I grabbed that stick.

286
00:14:46,320 --> 00:14:49,890
I don't think I've ever held anything
as tightly in my entire life and I

287
00:14:49,890 --> 00:14:54,840
made little movements on it and, and
I was so excited, uh, when he took

288
00:14:54,840 --> 00:14:56,820
it back that I didn't harm anything.

289
00:14:57,225 --> 00:15:00,645
That when I get that, when I got
down, when we landed, I walk right

290
00:15:00,645 --> 00:15:04,065
up to the office and bought, uh,
20 lessons, uh, to start that.

291
00:15:04,125 --> 00:15:04,635
Oh wow.

292
00:15:04,695 --> 00:15:06,175
That's how I got into Aviation.

293
00:15:07,705 --> 00:15:10,935
Matt Edmundson: And I that,
but you did it intentionally to

294
00:15:11,564 --> 00:15:12,615
overcome your fear of flying.

295
00:15:12,615 --> 00:15:15,465
So were you still afraid of
flying when you got into that

296
00:15:15,465 --> 00:15:16,625
glider for the first time?

297
00:15:16,675 --> 00:15:17,555
Harry Drajpuch: Oh, absolutely.

298
00:15:17,570 --> 00:15:19,755
I mean, uh, and not as much.

299
00:15:19,755 --> 00:15:22,935
I mean, I, you know, I, I
wasn't white knuckled, you know,

300
00:15:22,935 --> 00:15:24,705
there's still some trepidation.

301
00:15:24,935 --> 00:15:28,755
Um, you know, there's the newness
of everything and it's not what

302
00:15:28,755 --> 00:15:30,405
you know, it's what you don't know.

303
00:15:30,805 --> 00:15:33,925
Uh, and you know, you think about
everything that's ahead of you, that you

304
00:15:33,925 --> 00:15:36,805
have to learn to be safe and proficient.

305
00:15:37,285 --> 00:15:41,695
Um, but over, over the first few
lessons I became, uh, comfortable.

306
00:15:42,569 --> 00:15:46,770
And you get to a point where it almost
becomes second nature to fly in, that

307
00:15:46,770 --> 00:15:51,390
you don't think about the adverse, uh,
uh, potential, something happening.

308
00:15:51,390 --> 00:15:55,290
You're, you're always thinking
about, uh, ways to just be safe.

309
00:15:55,290 --> 00:15:57,990
And if this happens and that
happens, here's what you do.

310
00:15:58,290 --> 00:16:00,360
Flying is a very, very interesting thing.

311
00:16:00,360 --> 00:16:02,910
It's, um, it's always preparing.

312
00:16:03,885 --> 00:16:05,025
For an event.

313
00:16:05,085 --> 00:16:06,405
Uh, what if this happened?

314
00:16:06,405 --> 00:16:08,355
What if you, what if you ran out of fuel?

315
00:16:08,685 --> 00:16:10,275
Uh, what if circumstances changed?

316
00:16:10,305 --> 00:16:11,325
What if weather changed?

317
00:16:11,355 --> 00:16:12,525
What if you had to land the meat?

318
00:16:12,735 --> 00:16:14,835
You're always thinking about that.

319
00:16:15,165 --> 00:16:16,335
Uh, when you're flying.

320
00:16:16,755 --> 00:16:19,425
And when you, when you, when
you transition from that,

321
00:16:19,574 --> 00:16:20,865
business is no different.

322
00:16:21,435 --> 00:16:25,334
Um, everybody can do things when
things go well, when you're not

323
00:16:25,334 --> 00:16:28,905
throwing a curve ball, so to speak,
when everything goes according to

324
00:16:28,905 --> 00:16:33,045
Hoyle, when everything happens, as
it should happens, life is good.

325
00:16:33,245 --> 00:16:35,324
Unfortunately, that's not the case.

326
00:16:36,000 --> 00:16:38,280
Things occur every day in the business.

327
00:16:38,550 --> 00:16:42,960
Um, from simple things like printers
start now functioning and, you

328
00:16:42,960 --> 00:16:46,410
know, you lose your system, you
lose electricity in the building.

329
00:16:46,830 --> 00:16:49,920
There's, uh, people don't show
up for work for some reason.

330
00:16:49,920 --> 00:16:53,730
There's a, a high degree of call out,
There's a sickness, there's a snowstorm.

331
00:16:54,300 --> 00:16:58,290
Um, customers expect things to get done.

332
00:16:58,845 --> 00:17:04,515
Regardless of what happens, they expect
us to have a plan B and a plan C, so

333
00:17:04,515 --> 00:17:08,865
that we can always make sure that their
customers are not not dissatisfied, and

334
00:17:08,865 --> 00:17:10,875
that's not an unreasonable expectation.

335
00:17:11,265 --> 00:17:15,825
That is in part why they come to us
and ask us to handle their business.

336
00:17:17,430 --> 00:17:18,720
Matt Edmundson: That's a
really interesting point.

337
00:17:18,810 --> 00:17:20,160
Always preparing for the unknown.

338
00:17:20,550 --> 00:17:24,780
And so I guess you learn that from
flying that I think Harry, uh, is

339
00:17:24,780 --> 00:17:27,990
gonna be a great excuse that I can
use to say to my wife, Listen, this is

340
00:17:27,995 --> 00:17:29,370
the reason why I should learn a fly.

341
00:17:29,370 --> 00:17:30,810
It's gonna make me a better businessman.

342
00:17:32,530 --> 00:17:35,970
Harry Drajpuch: it, it will make your
weekends, um, much more interesting

343
00:17:35,975 --> 00:17:40,050
because of, instead of, instead of a three
hour drive to go enjoy something, you

344
00:17:40,050 --> 00:17:44,760
can now take a three hour flight and in a
three hour flight you can cover 600 miles.

345
00:17:45,075 --> 00:17:48,825
Versus in a three hour driveway,
you're covering 180 miles or 120

346
00:17:48,825 --> 00:17:50,265
kilometers, whatever the case may.

347
00:17:51,405 --> 00:17:51,735
Matt Edmundson: Yeah.

348
00:17:51,735 --> 00:17:51,945
Yeah.

349
00:17:51,945 --> 00:17:52,785
And that's very true.

350
00:17:52,995 --> 00:17:54,255
And so is that what you do?

351
00:17:54,255 --> 00:17:55,665
Is that how you spend your weekends?

352
00:17:55,665 --> 00:17:58,785
You just fly different parts
of the country and just hang

353
00:17:58,785 --> 00:17:59,025
out?

354
00:17:59,175 --> 00:18:02,655
Harry Drajpuch: Uh, used to, used to do
much, much more flying than I do today.

355
00:18:02,655 --> 00:18:07,425
Business, Uh, with business the way it is
today and, and, uh, and the organization

356
00:18:07,430 --> 00:18:11,295
growing the way it is, it takes a
little bit more time to focus on that.

357
00:18:11,395 --> 00:18:15,955
But yes, uh, we'll, we'll look for
weekend getaways, uh, that are a

358
00:18:15,955 --> 00:18:20,185
three hour flight and, uh, leave on a
Friday night or on a Saturday morning

359
00:18:20,190 --> 00:18:21,655
and come home on a Sunday night.

360
00:18:22,045 --> 00:18:24,504
And I get to see some wonderful
things as a result of that.

361
00:18:25,285 --> 00:18:26,275
Matt Edmundson: Oh, that's fantastic.

362
00:18:26,365 --> 00:18:27,475
That sounds fantastic.

363
00:18:28,135 --> 00:18:33,600
So Harry, you've been, um, You've
been around for 30 odd years in

364
00:18:33,600 --> 00:18:35,129
the fulfillment industry, right?

365
00:18:35,129 --> 00:18:37,860
You've, that's a lot of trucks,
that's a lot of miles that you've

366
00:18:37,860 --> 00:18:39,120
sort of been involved with.

367
00:18:39,270 --> 00:18:42,090
Um, that's a lot of parcels
shipped, Shipped all over the place.

368
00:18:43,530 --> 00:18:45,630
What are some of the key
things that have changed?

369
00:18:45,630 --> 00:18:48,900
I mean, you alluded to, you know, it
used to be more business to business.

370
00:18:48,900 --> 00:18:52,650
Now eCommerce has sort of sort of
exploded, but, but what are some

371
00:18:52,650 --> 00:18:55,230
of the key things that you've
seen change over those 30 years?

372
00:18:55,530 --> 00:18:55,830
Harry Drajpuch: Oh,

373
00:18:55,830 --> 00:18:57,420
much has changed in the business.

374
00:18:57,480 --> 00:19:03,930
Um, we're, we're, uh, direct to consumer
was almost minuscule 30 years ago.

375
00:19:03,990 --> 00:19:06,360
Uh, almost part of, uh, today it's the.

376
00:19:07,365 --> 00:19:11,595
So shipments that used to go into
large distribution centers or large

377
00:19:11,595 --> 00:19:15,285
retailers, and they would handle the
final, you know, sale to the customer.

378
00:19:15,735 --> 00:19:20,295
Uh, you know, now it's, it's,
it's us shipping directly to you.

379
00:19:21,110 --> 00:19:26,610
And that experience is now when you
open the, the, the package from us, I

380
00:19:26,615 --> 00:19:31,980
think what's changed, uh, over time is
people's expectations used to be okay

381
00:19:31,985 --> 00:19:33,419
when you ordered something online.

382
00:19:33,419 --> 00:19:36,240
If it took a week or eight
days, that was kind of okay.

383
00:19:36,300 --> 00:19:38,449
You know, that was kind
of the norm, right?

384
00:19:38,610 --> 00:19:41,340
And then Amazon opened up and
then said, Hey, we can get

385
00:19:41,340 --> 00:19:43,560
your shipment to you next day.

386
00:19:44,265 --> 00:19:48,825
And all of a sudden, Hey
Harry, uh, can you do next day?

387
00:19:48,825 --> 00:19:52,395
I mean, we wanna, we wanna get our product
out the door when, you know, we give

388
00:19:52,400 --> 00:19:56,835
you an order today, want you to fill it
today so our customer gets it next day.

389
00:19:56,835 --> 00:20:00,405
So expectations have changed from speed.

390
00:20:00,960 --> 00:20:05,670
Um, from quality of service, uh,
the ability to do different things,

391
00:20:05,760 --> 00:20:10,740
Um, you know, not just pick a unit,
but to, uh, to customize it, if

392
00:20:10,740 --> 00:20:12,540
you will, to make changes to it.

393
00:20:12,540 --> 00:20:16,740
To package differently, uh, to do
nice packaging, to add a special

394
00:20:16,740 --> 00:20:18,660
card with a personalization.

395
00:20:19,080 --> 00:20:22,410
Um, you know, 30 years
ago that was unheard of.

396
00:20:22,410 --> 00:20:23,670
You want us to what?

397
00:20:23,730 --> 00:20:24,450
No, we don't do that.

398
00:20:24,450 --> 00:20:26,040
We're not gonna write anybody card.

399
00:20:26,040 --> 00:20:26,430
Come on.

400
00:20:26,790 --> 00:20:27,300
We don't do.

401
00:20:27,960 --> 00:20:31,980
And today the expectation is to
be as flexible and to figure out

402
00:20:32,010 --> 00:20:33,780
whatever it is we're asking you to do.

403
00:20:34,020 --> 00:20:38,400
Help us do that because that's something
that differentiates us in the marketplace.

404
00:20:40,380 --> 00:20:43,920
That's a really, uh, I, I
like the word you use there.

405
00:20:43,920 --> 00:20:44,580
Flexible.

406
00:20:45,465 --> 00:20:47,475
Because I think that's what
everybody wants, isn't it?

407
00:20:47,475 --> 00:20:49,995
These days we just want you
to be, we want you to do it a

408
00:20:49,995 --> 00:20:51,045
little bit differently for us.

409
00:20:51,045 --> 00:20:52,875
Cause we don't wanna be
the same as everybody else.

410
00:20:52,875 --> 00:20:56,265
Because seeing, being seen to be
the same as everybody else, being

411
00:20:56,265 --> 00:21:00,045
vanilla, being bland and boring, you
don't tend to differentiate yourself.

412
00:21:01,005 --> 00:21:04,245
Um, and so being flexible
I think is, is important.

413
00:21:04,245 --> 00:21:07,155
It's an in how you contrast that
to 30 years ago, it's like, no,

414
00:21:07,155 --> 00:21:08,085
we're not gonna write a card.

415
00:21:08,105 --> 00:21:09,615
Don't, don't, don't be crazy, but.

416
00:21:10,764 --> 00:21:11,125
Sure.

417
00:21:11,125 --> 00:21:13,524
Do you want us to spray
perfume on the card as well?

418
00:21:13,524 --> 00:21:16,435
We can put like a, a
lipstick imprint on there.

419
00:21:16,440 --> 00:21:17,425
What, what do you want?

420
00:21:17,425 --> 00:21:19,735
Tell us what you want and we
can be a bit more flexible.

421
00:21:20,425 --> 00:21:22,615
Um, how easy.

422
00:21:23,670 --> 00:21:25,650
Has it been for you guys
to make that transition?

423
00:21:25,650 --> 00:21:29,040
The reason I'm asking this is because,
actually for me, this is one of the,

424
00:21:29,430 --> 00:21:33,210
the, the things I think a lot of
eCommerce business was businesses

425
00:21:33,240 --> 00:21:37,320
struggle themselves with is being
that flexible and adapting to changing

426
00:21:37,320 --> 00:21:40,440
consumer demand relatively quickly.

427
00:21:40,445 --> 00:21:43,260
Actually, like you say, a few years
ago you were fine with an eight

428
00:21:43,260 --> 00:21:44,760
day delivery, now you want it next.

429
00:21:45,350 --> 00:21:48,169
But actually I want it next day with
the card, with the perfume, with

430
00:21:48,169 --> 00:21:49,370
the lipstick, with the chocolate.

431
00:21:49,820 --> 00:21:52,850
And, and I, as an eCommerce entrepreneur,
I have to keep up with that.

432
00:21:53,149 --> 00:21:57,110
So how have you dealt with that sort of
rapid consumer, uh, change in demand?

433
00:21:57,680 --> 00:22:00,200
So, um, several things.

434
00:22:00,200 --> 00:22:03,080
Um, it, it starts, it starts with people.

435
00:22:03,500 --> 00:22:08,149
Um, you have to make sure that the,
the people in your organization and

436
00:22:08,149 --> 00:22:12,720
those that you hire, Uh, you know,
have the right, uh, have the right

437
00:22:12,720 --> 00:22:15,030
attitude about willing to serve.

438
00:22:15,524 --> 00:22:19,365
About willing to please about
wanting to do a very, very good

439
00:22:19,365 --> 00:22:21,254
job as opposed to just do a job.

440
00:22:21,254 --> 00:22:24,735
I come in, I'm here for eight hours,
you know, why do I have to do this?

441
00:22:24,735 --> 00:22:25,935
Why do they have to have that?

442
00:22:25,965 --> 00:22:27,465
Why do they have to make it difficult?

443
00:22:27,465 --> 00:22:28,815
I gotta get all these orders out.

444
00:22:28,815 --> 00:22:30,014
Why do I have to do that?

445
00:22:30,555 --> 00:22:35,175
Um, if you start with a, a base from
that, you're pushing a rock uphill.

446
00:22:35,615 --> 00:22:40,534
But if you can, uh, if you can be
selective in your hiring, look for people

447
00:22:40,534 --> 00:22:44,495
that have that, that wanna do something
a little bit differently, that see it as

448
00:22:44,495 --> 00:22:48,725
a challenge, that wanna grow, that wanna
expand the things they do because it makes

449
00:22:48,730 --> 00:22:51,425
it interesting over the course of a day.

450
00:22:51,845 --> 00:22:55,715
Um, and then internally from your own
leadership team, and as I had mentioned

451
00:22:55,715 --> 00:23:01,264
earlier, positive energy is really, really
critical because there's, there's all

452
00:23:01,264 --> 00:23:03,725
sorts of pressures on the business today.

453
00:23:04,305 --> 00:23:07,245
Um, to be quick, to be perfect.

454
00:23:07,575 --> 00:23:10,605
Social media keeps my
customers up at night, right?

455
00:23:10,605 --> 00:23:11,505
Just like you do.

456
00:23:11,505 --> 00:23:15,465
Everybody gets online, not just to
find out, should I try this company?

457
00:23:16,035 --> 00:23:20,685
But once you, once you try it, you write
the review, Hey, ordered something from

458
00:23:20,685 --> 00:23:23,805
ABC company, Got the totally wrong thing.

459
00:23:23,805 --> 00:23:25,395
It was packaged miserably.

460
00:23:25,395 --> 00:23:26,865
I ordered three, I got two.

461
00:23:26,865 --> 00:23:27,915
Now I've gotta return it.

462
00:23:27,975 --> 00:23:28,815
What a hassle.

463
00:23:29,325 --> 00:23:32,295
And that keeps my, that keeps
my customers up at night.

464
00:23:32,300 --> 00:23:37,665
So, So the ability to, to
have people, um, Employees put

465
00:23:37,665 --> 00:23:39,945
themselves in the end user shoes.

466
00:23:39,945 --> 00:23:43,695
Would you wanna open up a package that
wasn't done right, that it appears

467
00:23:43,695 --> 00:23:47,745
somebody didn't care, just pushed
in there, shoved in, not, not, not

468
00:23:47,745 --> 00:23:50,115
taken care of, uh, packaged wrong.

469
00:23:50,115 --> 00:23:53,175
You've waited for this thing,
you've placed the order, and now

470
00:23:53,175 --> 00:23:54,855
it comes and you're disappointed.

471
00:23:55,095 --> 00:23:56,605
Now you have to wait for it again.

472
00:23:57,375 --> 00:24:01,185
If you can't change the mindset
from internal, this is the job

473
00:24:01,185 --> 00:24:02,835
I have to do and get it done.

474
00:24:03,195 --> 00:24:06,045
Uh, you know, here's when I come
in in the morning, here's my inbox

475
00:24:06,045 --> 00:24:07,215
when I go out, it's like this.

476
00:24:07,215 --> 00:24:08,205
I had a good day.

477
00:24:08,475 --> 00:24:10,695
As opposed to did I take the care?

478
00:24:10,695 --> 00:24:11,655
Did I do it right?

479
00:24:11,655 --> 00:24:15,505
Did I, did I think about the person
who's gonna open this up and enjoy it?

480
00:24:16,125 --> 00:24:20,700
And I'm a part of that, so, so, Finding
people who wanna do that, and then

481
00:24:20,700 --> 00:24:24,840
having an atmosphere that walks the
talk, that supports that, you know,

482
00:24:24,840 --> 00:24:28,320
that is invested with them and make
sure that they, they understand what it

483
00:24:28,320 --> 00:24:32,370
is we're doing and they have care and
passion and, and it shows in your work.

484
00:24:33,930 --> 00:24:34,670
That's, Yes.

485
00:24:35,340 --> 00:24:35,790
Matt Edmundson: You know what?

486
00:24:35,790 --> 00:24:40,290
If you're listening to the podcast, just
rewind that section A and write that down

487
00:24:40,290 --> 00:24:42,629
because that's, uh, that, that's gold.

488
00:24:42,750 --> 00:24:45,840
Uh, and, um, listen, we're gonna
carry on this conversation.

489
00:24:45,840 --> 00:24:48,060
There's a couple of things that
Harry's just said that I really

490
00:24:48,060 --> 00:24:49,950
want to dig into, uh, specifically.

491
00:24:50,510 --> 00:24:54,920
I want to get into this whole opening
experience, um, and some of the

492
00:24:54,920 --> 00:24:57,889
things that we should think about
when sending parcels out to customers.

493
00:24:58,340 --> 00:24:59,270
Uh, don't go anywhere.

494
00:24:59,270 --> 00:25:04,310
We'll be right back in just a few
short moments after this quick sponsor

495
00:25:04,310 --> 00:25:04,610
break.

496
00:25:05,240 --> 00:25:05,750
Hey, there.

497
00:25:05,870 --> 00:25:07,010
Are you a business owner?

498
00:25:07,520 --> 00:25:11,240
Here at Aurion Digital we know
firsthand that running an eCommerce

499
00:25:11,240 --> 00:25:13,000
business can be really hard work.

500
00:25:13,730 --> 00:25:17,355
As the online space gets more
competitive, it is becoming even more

501
00:25:17,355 --> 00:25:19,215
challenging to stay ahead of the curve.

502
00:25:19,425 --> 00:25:20,625
We totally get it.

503
00:25:20,804 --> 00:25:24,945
So we wanna help you succeed by
offering a wide range of services from

504
00:25:24,945 --> 00:25:29,925
fulfillment, marketing, customer service,
and even coaching and consulting, just

505
00:25:29,929 --> 00:25:31,615
so that you can do what matters most.

506
00:25:32,235 --> 00:25:36,524
Save yourself the time and the money,
and let us handle the day to day tasks.

507
00:25:36,855 --> 00:25:40,334
This way you can run your business without
having to worry about the boring stuff.

508
00:25:41,025 --> 00:25:41,895
So what do you say?

509
00:25:41,985 --> 00:25:43,515
Are we a good fit for each other?

510
00:25:43,995 --> 00:25:47,725
Come check us out at auriondigital.com
and let us know what you think.

511
00:25:56,935 --> 00:25:58,784
Okay, I'm back with Harry.

512
00:25:59,114 --> 00:26:03,195
Uh, now Harry, before we uh, before
you, you talked about, um, one of

513
00:26:03,195 --> 00:26:06,074
the keys, uh, to keeping up with
the changing consumer demand.

514
00:26:06,614 --> 00:26:09,614
Um, the phrase you used was
to put yourself, uh, in your

515
00:26:09,614 --> 00:26:11,445
consumer, in your customer's shoes.

516
00:26:11,445 --> 00:26:11,715
Right?

517
00:26:11,955 --> 00:26:13,635
Would you wanna receive a parcel?

518
00:26:13,965 --> 00:26:16,155
Like this, for example.

519
00:26:16,575 --> 00:26:21,225
And for me, I, one of the messages
I guess I've been banging on, uh,

520
00:26:21,254 --> 00:26:25,034
for about, uh, for a little while on
my little soapbox, is how, how you

521
00:26:25,034 --> 00:26:27,254
differentiate yourself from Amazon, right?

522
00:26:27,524 --> 00:26:29,865
Amazon are always gonna get it
there quicker than you, more

523
00:26:29,865 --> 00:26:31,665
than likely, because it's Amazon.

524
00:26:31,764 --> 00:26:35,205
But what Amazon do is they
send their orders out in a very

525
00:26:35,210 --> 00:26:37,335
boring box with very boring.

526
00:26:37,750 --> 00:26:40,000
Internal packaging, Do,
you know what I mean?

527
00:26:40,000 --> 00:26:42,790
And it's like nothing
about it is interesting.

528
00:26:42,790 --> 00:26:44,379
Nothing about it is inspiring.

529
00:26:44,740 --> 00:26:48,190
And so you, There's a real opportunity
I think that we have as e-commerce

530
00:26:48,190 --> 00:26:50,889
entrepreneurs with what I call
the opening experience, right?

531
00:26:50,889 --> 00:26:52,600
Because this is the first time.

532
00:26:53,290 --> 00:26:56,260
That your customer has
touched something from you.

533
00:26:56,290 --> 00:26:59,050
Everything up until this
point has been pixels, right?

534
00:26:59,050 --> 00:27:01,960
They've looked on a website,
they've got email notifications.

535
00:27:02,080 --> 00:27:03,940
It's all been pixels now.

536
00:27:03,940 --> 00:27:04,990
It's actually real.

537
00:27:04,990 --> 00:27:06,610
It's the first time they
get to touch anything.

538
00:27:07,240 --> 00:27:12,790
What have you noticed recently, I guess,
about how people are packaging stuff and

539
00:27:12,790 --> 00:27:16,570
sending stuff out that are maybe some
of the latest trends, some of the ideas

540
00:27:16,570 --> 00:27:17,800
that we should probably think about?

541
00:27:18,400 --> 00:27:22,949
Harry Drajpuch: Um, well, It
is all about the experience.

542
00:27:23,564 --> 00:27:29,024
Um, things that, things that if you have,
if you're shipping out things that have

543
00:27:29,024 --> 00:27:34,304
multiple items in the box, um, could
be, could be um, could be perfumes,

544
00:27:34,875 --> 00:27:37,754
could be uh, skin creams, uh, lotions.

545
00:27:37,754 --> 00:27:38,504
Potions.

546
00:27:38,504 --> 00:27:39,705
Could be nutraceuticals.

547
00:27:39,705 --> 00:27:41,655
You've got a whole seven day regimen.

548
00:27:42,205 --> 00:27:48,145
I think, um, aids, uh, aids that keep
everything in a box, orderly inserts,

549
00:27:48,175 --> 00:27:53,275
foam, uh, that holds the product, um,
so that it looks neat when it comes.

550
00:27:53,635 --> 00:27:58,435
My customers are high-end, uh, uh,
high-end etailers, if you will.

551
00:27:58,435 --> 00:28:00,625
They're not, they're
not selling a commodity.

552
00:28:00,880 --> 00:28:03,370
They're selling a unique
brand, a unique product.

553
00:28:03,370 --> 00:28:05,470
There's probably a little
bit of an upcharge or maybe a

554
00:28:05,470 --> 00:28:06,850
lot of an upcharge for that.

555
00:28:07,330 --> 00:28:07,450
Mm-hmm.

556
00:28:07,810 --> 00:28:10,690
, they, they, they want that
open box to look like someone

557
00:28:10,695 --> 00:28:12,670
had taken the time, the care.

558
00:28:13,090 --> 00:28:14,740
Um, we do write personal notes.

559
00:28:14,740 --> 00:28:17,440
Some customers ask us to
have a handwritten note.

560
00:28:17,750 --> 00:28:19,490
That goes, that's addressed to Matt.

561
00:28:19,490 --> 00:28:20,990
Matt, thank you for your order.

562
00:28:21,080 --> 00:28:22,190
We hope you're happy.

563
00:28:22,490 --> 00:28:26,629
Uh, if there's any issue at all, you
know, whatever it may be, call, email.

564
00:28:26,930 --> 00:28:32,480
Um, so I think, um, as, as you
think about, uh, how that happens

565
00:28:32,480 --> 00:28:35,780
to your customer, why, you
know, you have to think about.

566
00:28:36,930 --> 00:28:39,570
The smile that they get when they open
it, and the fact that they're gonna

567
00:28:39,570 --> 00:28:42,540
want to buy again because they're
gonna want that experience again.

568
00:28:42,570 --> 00:28:46,860
They're gonna, they're gonna be justified
in making the, the purchase and the

569
00:28:46,865 --> 00:28:48,930
potential premium for your product.

570
00:28:50,790 --> 00:28:51,520
Matt Edmundson: I like that.

571
00:28:51,909 --> 00:28:52,520
I like that.

572
00:28:52,524 --> 00:28:54,149
Think about the smile when they open it.

573
00:28:54,270 --> 00:28:58,409
That's, um, you see, one of the
brands that I've, I've seen do this

574
00:28:58,409 --> 00:29:00,389
super well is obviously Apple, right?

575
00:29:00,389 --> 00:29:06,900
They to the point where even how
they wrap their cable, It just

576
00:29:06,900 --> 00:29:08,610
like, it's like a piece of art.

577
00:29:08,670 --> 00:29:12,810
Do, you know what I mean and the way
it arrives perfectly, sort of coiled in

578
00:29:12,810 --> 00:29:14,370
the box and everything's fit and snow.

579
00:29:14,670 --> 00:29:17,550
Even when you open the box,
it takes five minutes for it

580
00:29:17,550 --> 00:29:19,050
to, cuz it's so well fitting.

581
00:29:19,050 --> 00:29:19,650
Do, you know what I mean?

582
00:29:19,655 --> 00:29:20,850
Sort of suction type thing.

583
00:29:21,480 --> 00:29:27,240
Is this something, um, Is this something
that consumers, uh, consumers, uh,

584
00:29:27,420 --> 00:29:31,260
something that e-commerce retailers should
definitely be thinking about in terms

585
00:29:31,260 --> 00:29:36,060
of, you know, there are brands like Apple
pioneering this kind of thing, but there

586
00:29:36,060 --> 00:29:37,620
are people that do sell commodities.

587
00:29:37,620 --> 00:29:37,770
Yeah.

588
00:29:37,770 --> 00:29:38,130
I don't know.

589
00:29:38,130 --> 00:29:40,530
They may sell supplements
or something like that.

590
00:29:41,240 --> 00:29:46,110
Should they be thinking about their
packaging and always trying to

591
00:29:46,110 --> 00:29:48,480
sort of innovate and push forward?

592
00:29:52,365 --> 00:29:53,445
Harry Drajpuch: For many reasons.

593
00:29:53,445 --> 00:29:54,104
Yes.

594
00:29:54,195 --> 00:29:57,794
Um, and I'll start with Amazon
puts the smile outside the box.

595
00:29:57,794 --> 00:30:01,875
We put the smile inside the
box,  you see, I love that.

596
00:30:02,205 --> 00:30:02,504
Right.

597
00:30:02,504 --> 00:30:04,695
What is the difference between,
and, and there were numerous

598
00:30:04,695 --> 00:30:08,564
differences, but, but, but the, but
the, but the answer was, is yes.

599
00:30:08,564 --> 00:30:13,185
It's, um, it's as critical to think
about, um, what goes inside the

600
00:30:13,185 --> 00:30:14,985
package other than the product.

601
00:30:15,510 --> 00:30:17,520
Again, uh, to differentiate.

602
00:30:17,550 --> 00:30:22,830
To differentiate yourself and to
make that purchase, uh, worthwhile

603
00:30:22,830 --> 00:30:26,670
to make it, that it justifies the
premium that you're going to pay.

604
00:30:27,180 --> 00:30:31,020
Um, different kind of tissue
papers that we add colored, but

605
00:30:31,230 --> 00:30:33,030
it's also important to vary that.

606
00:30:33,290 --> 00:30:37,610
Right month, month, quarter to quarter,
uh, make it a little bit different

607
00:30:37,610 --> 00:30:41,810
for people so that each time they look
forward to something new, when they open

608
00:30:41,810 --> 00:30:45,469
up the box, it's not just the product
that my customers are selling, it's

609
00:30:45,469 --> 00:30:49,610
that whole experience that starts from
the time they place the order until

610
00:30:49,610 --> 00:30:51,439
they actually receive the package.

611
00:30:51,679 --> 00:30:54,550
And that weight and that
expense was all worthwhile.

612
00:30:54,979 --> 00:30:59,830
Uh, you know, you noticed, uh, how,
how Apple packages the product.

613
00:31:00,330 --> 00:31:02,460
Many people notice how it's not packaged.

614
00:31:02,460 --> 00:31:05,580
I remember getting one of my first
shipments from Amazon and it was

615
00:31:05,580 --> 00:31:07,650
actually, it was actually a beverage.

616
00:31:07,965 --> 00:31:11,564
And they had thrown two, six packs
into a container, put a little bit

617
00:31:11,564 --> 00:31:13,215
of a paper in it, and that was it.

618
00:31:13,215 --> 00:31:17,115
When I got it, you could shake it, you
could hear it, opened it up and listen,

619
00:31:17,115 --> 00:31:18,825
I, you know, okay, I got it right.

620
00:31:18,825 --> 00:31:20,145
That's mass production.

621
00:31:20,445 --> 00:31:24,284
Uh, it's kind of like, it's the difference
between buying a Chevy and a cheap car, a

622
00:31:24,284 --> 00:31:30,385
cheaper car, a base car, and really buying
a BMW or Mercedes or rolls a high end.

623
00:31:31,975 --> 00:31:32,264
Matt Edmundson: That's

624
00:31:32,264 --> 00:31:32,745
brilliant.

625
00:31:33,155 --> 00:31:37,290
I, Harry, just so you know, I am gonna
steal that, but I will give you credit.

626
00:31:37,290 --> 00:31:39,300
Amazon put the smile on
the outside of the box.

627
00:31:39,305 --> 00:31:40,530
We put the smile on the inside.

628
00:31:40,800 --> 00:31:42,990
I'm gonna use that because that's genius.

629
00:31:43,050 --> 00:31:46,200
And um, I think again, if you
are listening to this and you

630
00:31:46,200 --> 00:31:49,080
have an eCommerce business,
that's such a great idea.

631
00:31:49,350 --> 00:31:50,520
Just that simple principle.

632
00:31:50,520 --> 00:31:54,570
If you're competing with, you know, Amazon
e-Tailers and you're kind of going, Amazon

633
00:31:54,570 --> 00:31:57,510
are doing this, it's like, yeah, but
they put the smile on the outside box.

634
00:31:57,515 --> 00:31:58,940
You have a chance to put it on the inside.

635
00:31:59,370 --> 00:32:01,665
Like it that I think is very clever.

636
00:32:01,965 --> 00:32:06,480
So if I'm, if I'm a growing business,
I've set my eCommerce business

637
00:32:06,485 --> 00:32:11,070
up and I'm, I'm sort of, I'm,
I'm starting to get some success.

638
00:32:11,640 --> 00:32:17,100
I'm coming to the point where I'm
thinking, do I outsource my fulfillment?

639
00:32:17,700 --> 00:32:21,630
Um, I've probably, to be fair, like
most entrepreneurs when they start,

640
00:32:21,630 --> 00:32:25,710
been doing it from my kitchen, uh,
and my stocks in the garage, , Do,

641
00:32:25,760 --> 00:32:28,200
you know what I mean, and I'm, I'm
shipping it out from the post office.

642
00:32:28,830 --> 00:32:33,750
Um, I guess there's, there comes a
point, isn't there where you kind

643
00:32:33,750 --> 00:32:38,520
of go, Do I outsource this or do
I do I set my own warehouse up.

644
00:32:38,910 --> 00:32:43,350
Um, and when we, when we started out
an e-commerce, to be fair, the only

645
00:32:43,350 --> 00:32:47,850
real option for us was to develop
our own warehouse because it, it

646
00:32:47,850 --> 00:32:50,850
wasn't, like you say, the direct
to consumer wasn't a common thing.

647
00:32:51,150 --> 00:32:53,760
UPS wouldn't deliver to people's
houses unless you paid them an

648
00:32:53,760 --> 00:32:55,860
extra 20 bucks or something crazy.

649
00:32:56,340 --> 00:32:58,110
Uh, because they were used
to shipping to businesses.

650
00:32:59,830 --> 00:33:02,939
Uh, that, what are some of the things that
I should think about at that junction?

651
00:33:03,060 --> 00:33:03,419
Do, you know, what I mean?

652
00:33:03,419 --> 00:33:05,970
I'm stood there now and I'm thinking
about these two possibilities.

653
00:33:05,970 --> 00:33:07,649
What are the, some of the things
that I should think about?

654
00:33:07,919 --> 00:33:11,730
Harry Drajpuch: Um, well, for sure you
should think about, uh, what is it going

655
00:33:11,735 --> 00:33:17,070
to cost you as your business grows,
uh, to be able to do the backend, the

656
00:33:17,070 --> 00:33:19,770
shipping, to be able to do that service.

657
00:33:20,239 --> 00:33:23,300
Um, you know, what kind
of space do you need?

658
00:33:23,449 --> 00:33:24,949
Uh, do you buy it?

659
00:33:24,949 --> 00:33:25,729
Do you lease it?

660
00:33:25,729 --> 00:33:27,919
How big, how much for how long?

661
00:33:28,189 --> 00:33:29,570
Can you manage people?

662
00:33:29,810 --> 00:33:30,919
Can you hire them?

663
00:33:30,919 --> 00:33:32,209
Can you onboard them?

664
00:33:32,209 --> 00:33:33,350
Can you keep them?

665
00:33:33,709 --> 00:33:36,020
Um, you know, do you
have the infrastructure?

666
00:33:36,020 --> 00:33:38,060
Do you want the infrastructure to do that?

667
00:33:38,300 --> 00:33:44,120
So, you know, at the end of the day, is it
bec, Is it going to be just as much focus.

668
00:33:44,790 --> 00:33:49,170
On getting the product out the door as it
is selling the product, then, you know,

669
00:33:49,170 --> 00:33:53,400
you make that decision and, and then you
weigh the pros and cons of outsourcing.

670
00:33:53,400 --> 00:33:55,950
When you outsource, you
generally save money.

671
00:33:56,220 --> 00:33:59,580
You generally save 10 to 20%
of your own internal costs.

672
00:34:00,000 --> 00:34:02,910
Um, outsourced companies
are a little more efficient.

673
00:34:03,150 --> 00:34:05,640
They can share labor
amongst different customers.

674
00:34:05,640 --> 00:34:08,440
You don't keep people around
not doing anything, so there's.

675
00:34:08,920 --> 00:34:09,550
Work to do.

676
00:34:09,550 --> 00:34:10,750
So they're more efficient.

677
00:34:11,200 --> 00:34:16,270
You can economically manage volume
swings, uh, when you outsource it, right?

678
00:34:16,300 --> 00:34:19,930
We are geared to be able to
handle differential volumes day

679
00:34:19,930 --> 00:34:21,880
to day, week to week, right?

680
00:34:21,880 --> 00:34:25,270
We know how to source people, we
know how to effectively use them.

681
00:34:25,520 --> 00:34:28,830
Um, When you outsource, you can
focus on your core business.

682
00:34:28,830 --> 00:34:31,620
And your core business isn't
getting the product out the door.

683
00:34:31,920 --> 00:34:35,550
Your core business is growing,
your company selling, figuring

684
00:34:35,550 --> 00:34:38,340
out different things that you
have to do to stay competitive,

685
00:34:38,340 --> 00:34:40,620
to grow, to be a differentiator.

686
00:34:40,950 --> 00:34:43,920
And then, you know, again, when
you outsource, you can scale very,

687
00:34:43,920 --> 00:34:45,870
very quickly, both up and down.

688
00:34:46,110 --> 00:34:47,160
Hey, I've got an idea.

689
00:34:47,160 --> 00:34:48,990
I wanna have a promotion
at the end of this month.

690
00:34:48,990 --> 00:34:50,130
It's two weeks away.

691
00:34:50,404 --> 00:34:52,264
Harry, we're gonna run a promotion.

692
00:34:52,384 --> 00:34:56,165
We think we're gonna have two to three
x of the sales over a four day period.

693
00:34:56,495 --> 00:34:57,424
Boom, you're done.

694
00:34:57,665 --> 00:34:58,895
The backend is a little better.

695
00:34:58,895 --> 00:34:59,915
You've been taken care of.

696
00:35:00,185 --> 00:35:04,205
Harry's gonna figure out what he's gotta
do to get that four times volume through.

697
00:35:04,355 --> 00:35:07,174
You can now focus on getting
the, getting your message out

698
00:35:07,180 --> 00:35:09,365
to people to buy the cons.

699
00:35:09,725 --> 00:35:13,085
Um, potentially you may lose a
little bit of control, right?

700
00:35:13,145 --> 00:35:15,815
Um, you're now outsourcing it to someone.

701
00:35:16,230 --> 00:35:18,750
Harry and his people, do they really care?

702
00:35:18,750 --> 00:35:20,160
Like my people care?

703
00:35:20,160 --> 00:35:23,760
Are they really going to focus on the
product and are they going to give it

704
00:35:23,760 --> 00:35:26,070
the attention that my people will have?

705
00:35:26,070 --> 00:35:28,920
I can just walk in my warehouse
and see what my people are doing.

706
00:35:29,280 --> 00:35:30,630
You know, Harry's is not here.

707
00:35:30,660 --> 00:35:32,100
Maybe it's a hundred miles away.

708
00:35:32,105 --> 00:35:33,690
Maybe it's just a block away, but.

709
00:35:34,424 --> 00:35:37,334
I don't, I don't have that
direct access that I had before.

710
00:35:37,785 --> 00:35:41,234
Um, you may lose people when you
make an outsourcing decision.

711
00:35:41,774 --> 00:35:46,605
Um, as a third party provider, we're
more than happy, uh, to take the

712
00:35:46,609 --> 00:35:50,865
people that work for you into our
environment, uh, that that's great.

713
00:35:50,870 --> 00:35:52,455
They already bring tribal knowledge.

714
00:35:52,459 --> 00:35:55,035
They've already got ideas
of how this should happen.

715
00:35:55,305 --> 00:35:58,365
You've probably already pre-screened
them and indoctrinated them.

716
00:35:58,605 --> 00:35:59,955
We'd be more than happy to take them.

717
00:36:00,600 --> 00:36:02,160
Sometimes it's not practical.

718
00:36:02,220 --> 00:36:05,910
Your office may be in New York,
your shipping may be in Dallas.

719
00:36:06,180 --> 00:36:07,890
Your people won't have an opportunity.

720
00:36:07,890 --> 00:36:12,090
So that's a decision that ge, these people
have been loyal to me as I've grown my

721
00:36:12,095 --> 00:36:14,340
business, I can potentially lose them.

722
00:36:15,000 --> 00:36:19,049
Um, and then, you know, managing
a third party provider is not the

723
00:36:19,049 --> 00:36:20,790
same as managing your own warehouse.

724
00:36:20,850 --> 00:36:22,860
It's a very, very different skillset.

725
00:36:23,279 --> 00:36:24,120
You're not managing.

726
00:36:25,025 --> 00:36:28,265
You've now given your, your business
to another, another company, and

727
00:36:28,265 --> 00:36:31,595
you've gotta learn how to manage
that company effectively, which is

728
00:36:31,595 --> 00:36:35,135
really a matter of setting up the
right service level agreements.

729
00:36:35,135 --> 00:36:37,745
Hey, I want 99% on time shipping.

730
00:36:38,045 --> 00:36:40,355
I want you to receive
product within six hours.

731
00:36:40,355 --> 00:36:44,705
I want this level of inventory accuracy,
you know, in, in, in a way it's a little

732
00:36:44,705 --> 00:36:48,575
bit of a relief because now you can't
just drive the standards that you.

733
00:36:49,444 --> 00:36:53,015
And manage that, versus you're standing
in the middle of a warehouse trying to

734
00:36:53,015 --> 00:36:54,725
figure out how to make all that happen.

735
00:36:54,754 --> 00:37:00,064
Very, very different skill set in managing
through someone versus doing it yourself.

736
00:37:00,274 --> 00:37:03,365
Might be a great example that
you become a general contractor.

737
00:37:03,575 --> 00:37:05,765
You used to kind of do all
the things in your house.

738
00:37:05,765 --> 00:37:09,575
You did the plumbing, you did the, the
framing, you did the electrical stuff.

739
00:37:09,785 --> 00:37:10,834
Now you're getting bigger.

740
00:37:10,834 --> 00:37:12,185
You can't do that anymore.

741
00:37:12,185 --> 00:37:13,895
Now you've gotta hire electricians.

742
00:37:13,895 --> 00:37:16,115
You've gotta hire a, a framing company.

743
00:37:16,115 --> 00:37:17,694
You've gotta hire a plumbing company.

744
00:37:18,100 --> 00:37:21,279
And you've gotta manage them to do the
work the same way you've done that.

745
00:37:21,759 --> 00:37:22,420
Little bit different.

746
00:37:22,420 --> 00:37:22,630
Yeah.

747
00:37:24,370 --> 00:37:25,060
Matt Edmundson: No, it's all top.

748
00:37:25,060 --> 00:37:25,900
Top advice.

749
00:37:25,900 --> 00:37:26,529
Top advice.

750
00:37:26,860 --> 00:37:34,155
Let's, um, if I, if I may, um,
Let's talk to the guy that actually

751
00:37:34,155 --> 00:37:35,775
does have a warehouse for a second.

752
00:37:35,805 --> 00:37:39,465
Uh, and they are, they've got a
little, you know, distribution center

753
00:37:39,465 --> 00:37:40,905
for their own eCommerce business.

754
00:37:41,535 --> 00:37:45,465
What are some of the things that
you would advise that they think

755
00:37:45,465 --> 00:37:46,725
about for their own business?

756
00:37:46,730 --> 00:37:51,435
Some of the key elements they definitely
need to get right in, in, in that, in

757
00:37:51,435 --> 00:37:55,470
that sort of, Do it, do it yourself as
the wrong phrase, you mean, But in terms

758
00:37:55,470 --> 00:37:58,230
of, in their warehouse, what are some of
the key things you think they should hit?

759
00:37:58,710 --> 00:38:00,960
Harry Drajpuch: Uh, well, they
should, they should always look at a

760
00:38:00,960 --> 00:38:03,060
continuous improvement program, right?

761
00:38:03,060 --> 00:38:03,870
Because mm-hmm.

762
00:38:04,109 --> 00:38:05,490
, um, costs go up.

763
00:38:05,490 --> 00:38:09,210
Your, your cost of doing business is
always going to increase unless you're in.

764
00:38:09,770 --> 00:38:12,770
Tough economic times, you could assume
you're gonna have to pay your people

765
00:38:12,770 --> 00:38:15,230
a little bit more, more for services.

766
00:38:15,380 --> 00:38:18,890
You know, here in the States, uh,
every year the, uh, the parcel

767
00:38:18,890 --> 00:38:22,220
carriers go through a general
rate increase of about 6%.

768
00:38:22,440 --> 00:38:25,100
I mean, you, you can bank on
that, like death and taxes.

769
00:38:25,105 --> 00:38:26,150
It just seems to go up.

770
00:38:27,110 --> 00:38:31,400
So I think what you need to be thinking
about is, you know, how do you, how

771
00:38:31,400 --> 00:38:33,650
can you continue to provide value?

772
00:38:34,395 --> 00:38:36,585
Because you can't always
pass everything through.

773
00:38:36,585 --> 00:38:37,875
At times that becomes mm-hmm.

774
00:38:38,170 --> 00:38:41,475
, you know, that may make you a little
bit less competitive and it may

775
00:38:41,475 --> 00:38:43,635
certainly erode your bottom margin.

776
00:38:43,965 --> 00:38:47,625
So you wanna constantly be focusing
on how can I get more productive

777
00:38:47,630 --> 00:38:48,975
with the people that I have?

778
00:38:48,975 --> 00:38:50,295
How can I get more efficient?

779
00:38:50,595 --> 00:38:53,115
Maybe you're doing everything
manually today, so you wanna

780
00:38:53,115 --> 00:38:56,235
start to think about, how do I
automate some of this stuff, Right?

781
00:38:56,265 --> 00:38:57,075
What do I need to think?

782
00:38:57,745 --> 00:39:00,565
For automation and what do
I think about for processes?

783
00:39:00,835 --> 00:39:04,525
So they, they need to be thinking about
the future and, and how they build

784
00:39:04,525 --> 00:39:08,215
their, you know, how they, how they
approach the future and how they're

785
00:39:08,215 --> 00:39:09,895
gonna really build their business.

786
00:39:09,895 --> 00:39:14,215
So you don't wanna build the
future state for five years down

787
00:39:14,215 --> 00:39:17,695
the road and think you're going
to be five or six times bigger.

788
00:39:18,390 --> 00:39:20,550
And then, uh, things slowed down for you.

789
00:39:20,550 --> 00:39:22,560
Well, we had that happen with a beverage.

790
00:39:22,590 --> 00:39:27,210
A beverage, uh, we know of a beverage,
uh, manufacturer or retailer mm-hmm.

791
00:39:27,450 --> 00:39:31,650
that was just going through the roof and
wound up building five times and then,

792
00:39:32,520 --> 00:39:36,150
All of a sudden it was a little bit
faddish and not really staying power.

793
00:39:36,150 --> 00:39:40,620
It wasn't Coca-Cola, wasn't Pepsi-Cola
and they wound up not being able to

794
00:39:40,620 --> 00:39:42,420
carry all this, that they've invested.

795
00:39:42,420 --> 00:39:44,820
They wound up going back bankrupt.

796
00:39:45,390 --> 00:39:49,620
Um, you know, consequently, I think
they should think about taking a modular

797
00:39:49,620 --> 00:39:51,810
approach to their business growth.

798
00:39:52,230 --> 00:39:54,495
Uh, Legos, right?

799
00:39:54,495 --> 00:39:57,255
You can build a little Lego
thing, but when you need to add

800
00:39:57,255 --> 00:39:59,295
on, it's very simple to add on.

801
00:39:59,595 --> 00:40:01,425
You need to think about
your business the same way.

802
00:40:01,425 --> 00:40:05,655
How can you modularize it so that
you can grow in incrementally?

803
00:40:06,135 --> 00:40:10,575
Uh, ideally they're gonna start to
think about the levels of technology.

804
00:40:10,935 --> 00:40:11,585
Simple things.

805
00:40:12,045 --> 00:40:16,965
Uh, maybe they needed an enhanced
WM system, not a small investment,

806
00:40:16,965 --> 00:40:19,245
but what are some of the
things that they can invest in?

807
00:40:19,665 --> 00:40:21,915
Automatic tapers, automatic labelers.

808
00:40:22,695 --> 00:40:24,465
Uh, cart directors.

809
00:40:24,735 --> 00:40:28,665
Um, these are not high tech items,
but these are items that can make them

810
00:40:28,665 --> 00:40:30,375
more efficient and that are affordable.

811
00:40:30,375 --> 00:40:30,555
Mm-hmm.

812
00:40:30,885 --> 00:40:34,035
. But if they've got any kind of a
serious growth plan, they really

813
00:40:34,035 --> 00:40:37,725
start, need to start thinking about
outsourcing to a third party provider,

814
00:40:37,995 --> 00:40:41,565
uh, that can help them grow and grow
with them and relieve them of that.

815
00:40:41,915 --> 00:40:44,045
You know, those decisions and
those investments, they're

816
00:40:44,049 --> 00:40:45,665
not small and significant.

817
00:40:46,115 --> 00:40:49,085
You know, you can go to a third party
who's already made those investments

818
00:40:49,085 --> 00:40:50,555
as a shared resource and use.

819
00:40:50,560 --> 00:40:54,035
That might be the difference between
buying your own jet because you think

820
00:40:54,035 --> 00:40:55,535
you're gonna be flying around a lot.

821
00:40:56,190 --> 00:40:59,400
And still using commercial
airlines for where you wanna go.

822
00:40:59,430 --> 00:40:59,880
Yeah.

823
00:41:00,090 --> 00:41:01,890
Hey, I'm starting to
travel now every week.

824
00:41:01,895 --> 00:41:03,660
Maybe I need buy my own airplane.

825
00:41:04,140 --> 00:41:06,750
We, we may laugh about
that for certain people.

826
00:41:06,750 --> 00:41:11,069
It may very, very well be the right
thing to do, but for most people we can

827
00:41:11,069 --> 00:41:15,270
agree it's not, They've gotta figure
out how to fly commercial, how to buy an

828
00:41:15,270 --> 00:41:19,650
advance, how to get that to, to, to work
a little bit more efficiently for them.

829
00:41:21,270 --> 00:41:25,845
Matt Edmundson: One of the things that I
came across, um, Talking about automation

830
00:41:25,845 --> 00:41:30,495
and, and, and some of the machines that
you mentioned, uh, was on a blog on

831
00:41:30,495 --> 00:41:32,205
your company website, the Amware blog.

832
00:41:32,205 --> 00:41:37,275
It says, Until machines completely replace
people, the biggest productivity and

833
00:41:37,280 --> 00:41:43,315
profit killer in the B2C warehouse is an
inability to hold onto warehouse workers.

834
00:41:44,385 --> 00:41:46,935
Uh, which I thought was a
really insightful comment.

835
00:41:46,940 --> 00:41:50,805
And you, the blog goes on to say,
we estimate each warehouse associate

836
00:41:50,805 --> 00:41:54,885
who leaves, costs companies about
eight and half thousand dollars.

837
00:41:55,845 --> 00:42:00,345
Um, is this something,
uh, that you've noticed?

838
00:42:00,345 --> 00:42:04,125
I mean, ob obviously it's on your
company blog, but I I maybe you can just

839
00:42:04,125 --> 00:42:05,505
expand on that a little bit further.

840
00:42:06,315 --> 00:42:10,415
Harry Drajpuch: So, the current situation
here in this states, uh, is that there's

841
00:42:10,415 --> 00:42:13,235
11 million open jobs and 4 million people.

842
00:42:14,035 --> 00:42:15,180
Um, Right, right.

843
00:42:15,180 --> 00:42:15,990
If you believe that.

844
00:42:15,990 --> 00:42:17,100
So you, you, you, mm-hmm.

845
00:42:17,440 --> 00:42:18,090
pe, Right?

846
00:42:18,120 --> 00:42:21,000
It's a, it's a, um, it's a buyer's market.

847
00:42:21,000 --> 00:42:25,170
If you wanna think about employees and
associates, clearly when someone leaves,

848
00:42:25,170 --> 00:42:26,820
you've gotta go through retraining.

849
00:42:27,180 --> 00:42:30,570
Uh, you know, you've gotta go through
a learning curve that takes time.

850
00:42:30,600 --> 00:42:34,020
Their efficiency, their productivity
doesn't come up to speed for three, four

851
00:42:34,020 --> 00:42:36,290
months, depending upon what they're doing.

852
00:42:36,510 --> 00:42:37,350
It's a morale.

853
00:42:38,049 --> 00:42:40,840
People start to leave around you,
you start to wonder, why am I here?

854
00:42:41,110 --> 00:42:43,330
What do these people know
who are coming and going?

855
00:42:43,330 --> 00:42:44,200
That I don't know.

856
00:42:44,799 --> 00:42:46,810
Uh, so it's very, very real.

857
00:42:47,745 --> 00:42:49,875
It's something that has to be focused on.

858
00:42:50,205 --> 00:42:53,925
Um, and it's something today that you
have to work with your associates to

859
00:42:53,925 --> 00:42:55,665
make sure you make it a good place.

860
00:42:55,670 --> 00:42:56,685
You're competitive.

861
00:42:57,075 --> 00:42:59,445
Um, you include them,
they're part of the solution.

862
00:42:59,445 --> 00:43:02,235
They're not just chattel who
comes in and goes and, you

863
00:43:02,235 --> 00:43:03,435
know, do what we tell you to do.

864
00:43:03,435 --> 00:43:06,645
It's a very different environment
you want them to feel a part of.

865
00:43:06,675 --> 00:43:09,795
Uh, you want them to feel a part
of the solution and that they

866
00:43:09,795 --> 00:43:13,095
make a difference, which means you
have to resource them properly.

867
00:43:13,095 --> 00:43:16,725
You have to give them the right tools,
uh, and you've gotta spend time.

868
00:43:16,995 --> 00:43:18,915
And not take for granted
they're going to be here.

869
00:43:18,915 --> 00:43:23,055
You've actually gotta spend time, uh,
investing in them and making sure you

870
00:43:23,060 --> 00:43:26,565
hear them, spend time with them, know
them, understand what drives them.

871
00:43:27,045 --> 00:43:31,365
We use, uh, we use a tool here, uh,
called Predictive Index, which makes

872
00:43:31,365 --> 00:43:35,535
sure that we can match people to the
right job so that they're happy doing

873
00:43:35,535 --> 00:43:37,245
it, as opposed to it's a paycheck.

874
00:43:37,245 --> 00:43:38,265
I need a paycheck.

875
00:43:39,145 --> 00:43:44,635
Yeah, I think, um, you know, wages
here in the States have gone through

876
00:43:44,635 --> 00:43:46,825
the roof because of supply and demand.

877
00:43:47,185 --> 00:43:48,745
Uh, because businesses are growing.

878
00:43:49,455 --> 00:43:53,654
And you don't want employees
leaving for 50 cents or 25 cents.

879
00:43:54,105 --> 00:43:57,195
You really want them to stay because they
want to be part of what you're doing.

880
00:43:57,195 --> 00:43:58,335
They believe in what you're doing.

881
00:43:58,340 --> 00:43:59,205
They wanna be part of it.

882
00:43:59,205 --> 00:44:02,895
They feel you're putting back on
them, just like opening up that box

883
00:44:02,895 --> 00:44:04,335
and having that great experience.

884
00:44:04,485 --> 00:44:05,935
They like walking through your door.

885
00:44:06,424 --> 00:44:09,634
And not feeling like they're gonna be
working on the salt mine for eight hours.

886
00:44:09,785 --> 00:44:11,255
That, Hey, I'm gonna be in here.

887
00:44:11,255 --> 00:44:12,305
I enjoy being here.

888
00:44:12,310 --> 00:44:16,384
I've got people I enjoy working with
and I'm appreciated when I'm here.

889
00:44:16,685 --> 00:44:19,865
That more than anything else,
uh, next to a paycheck, is what

890
00:44:19,865 --> 00:44:21,154
people really, really want.

891
00:44:21,154 --> 00:44:22,565
They wanna be appreciated.

892
00:44:22,569 --> 00:44:25,775
They wanna pat on the back, they wanna
shout out when they do a great job.

893
00:44:27,330 --> 00:44:31,020
Matt Edmundson: Yeah, that's so helpful
because I, I think I, I can't remember

894
00:44:31,020 --> 00:44:33,900
if it was the same blog or somewhere else
that I've read it, but the churn rate of

895
00:44:33,900 --> 00:44:40,080
staff in warehouses is like 40% or some
crazy high amount of people, um, that

896
00:44:40,080 --> 00:44:41,730
just come and go and are dissatisfied.

897
00:44:41,730 --> 00:44:45,170
And the high cost associated with
that are worth bearing in mind.

898
00:44:45,450 --> 00:44:47,970
Actually, if you're an eCommerce
entrepreneur and you do need staff in.

899
00:44:48,630 --> 00:44:49,620
In your warehouse.

900
00:44:50,160 --> 00:44:51,810
Uh, I thought that was
super, super insightful.

901
00:44:51,810 --> 00:44:55,710
The other thing, um, this was on a
blog, uh, I think you wrote this one,

902
00:44:56,009 --> 00:44:59,250
um, Harry on multichannel merchant.com.

903
00:45:00,060 --> 00:45:03,420
And this is something else that,
uh, when I noticed this in our own

904
00:45:03,450 --> 00:45:04,650
eCommerce businesses, it changed.

905
00:45:05,685 --> 00:45:08,385
It changed how we did things
significantly, if I'm honest with you.

906
00:45:08,925 --> 00:45:10,335
Uh, and I just wanted to draw it out.

907
00:45:10,635 --> 00:45:16,275
Um, if you currently ship 100,000
items per year with a 98.5%

908
00:45:16,275 --> 00:45:20,085
accuracy, that means that 1500
customers won't get the right order.

909
00:45:20,775 --> 00:45:25,825
So, for example, you could wind
up paying around $43 23 cents.

910
00:45:25,825 --> 00:45:31,155
I think this was based on an example
per error, which equates to 65 grand

911
00:45:31,155 --> 00:45:34,305
per year, uh, to correct these.

912
00:45:34,555 --> 00:45:36,085
Issues on a 90.

913
00:45:36,174 --> 00:45:42,445
So in, at first glance, 98.5%
accuracy sounds really good.

914
00:45:43,195 --> 00:45:46,075
But then when you throw the mathematics
in this and go, Hang on a minute,

915
00:45:46,080 --> 00:45:49,884
there's a cost here, uh, of putting
something right, and you need to track

916
00:45:49,884 --> 00:45:52,615
that, um, to a total of 65 grand.

917
00:45:52,825 --> 00:45:54,085
This is what freaked me out.

918
00:45:54,134 --> 00:45:57,955
Uh, a few years ago when we tracked,
you know, we were losing like 70 grand a

919
00:45:57,955 --> 00:46:01,495
year just because on picking and packing
errors, uh, in the, in the warehouse.

920
00:46:01,500 --> 00:46:02,330
And we thought we were doing

921
00:46:02,330 --> 00:46:02,910
Harry Drajpuch: pretty good.

922
00:46:03,950 --> 00:46:05,505
You were probably doing pretty good.

923
00:46:05,505 --> 00:46:08,115
And to your point, it's, it's
great when you tell customers,

924
00:46:08,115 --> 00:46:10,755
I'm gonna give you 98.5 or 99.

925
00:46:11,985 --> 00:46:13,485
They're, they're all excited about it.

926
00:46:13,485 --> 00:46:14,265
That's great.

927
00:46:14,775 --> 00:46:16,095
Until they do what you do.

928
00:46:16,095 --> 00:46:19,755
And put pencil to paper and say, Wait
a minute, what does that 1% mean?

929
00:46:19,755 --> 00:46:23,835
Well, I'm gonna disappoint
500 customers a month for you.

930
00:46:24,285 --> 00:46:25,965
And they Wait a minute, what do you mean?

931
00:46:26,685 --> 00:46:28,515
Well, that's what 99% means.

932
00:46:29,400 --> 00:46:32,520
When O'Hare airport, 99% means
two takeoffs of landings are

933
00:46:32,520 --> 00:46:33,690
not gonna make it every day.

934
00:46:33,690 --> 00:46:36,120
That's what 99% means
in the airline business.

935
00:46:36,420 --> 00:46:39,270
99% in our business because
we have people working.

936
00:46:39,600 --> 00:46:40,920
Yes, we're going to have it.

937
00:46:41,009 --> 00:46:43,200
And so we need to talk about that.

938
00:46:43,259 --> 00:46:46,950
You know, what is an acceptable
level for you and what are you

939
00:46:46,955 --> 00:46:53,640
willing to, what do you worth it
to go from 99 to 99.5 to 99.9.

940
00:46:53,970 --> 00:46:56,220
And there are things that
we can do, obviously.

941
00:46:56,610 --> 00:46:57,810
Additional checks.

942
00:46:58,200 --> 00:47:02,250
Um, but more importantly, it's really
technology that you can add in because

943
00:47:02,250 --> 00:47:05,280
if you think about the repetitive
nature of what people do, yeah, we

944
00:47:05,280 --> 00:47:09,210
have some people who can pick 200
orders an hour over a seven hour day.

945
00:47:09,215 --> 00:47:12,390
They're picking 1400 orders,
couple line items, you know,

946
00:47:12,395 --> 00:47:13,740
they may make a mistake or two.

947
00:47:13,745 --> 00:47:13,980
Right?

948
00:47:13,980 --> 00:47:14,520
They're human.

949
00:47:14,520 --> 00:47:15,960
You're not dealing with robots here.

950
00:47:16,380 --> 00:47:18,360
So we, we've installed
things like pick to.

951
00:47:19,625 --> 00:47:22,895
Where they can just focus on a
light that lights up and they go

952
00:47:22,895 --> 00:47:25,895
into that bin and it tells them
too, and they pick two from that.

953
00:47:26,254 --> 00:47:29,285
Um, that, that helps improve accuracy.

954
00:47:29,524 --> 00:47:34,595
Obviously the ability to scan an item
improves accuracy, weight scales that

955
00:47:34,595 --> 00:47:36,685
weigh shipments before they go out Auto.

956
00:47:37,860 --> 00:47:39,330
That helps accuracy.

957
00:47:39,660 --> 00:47:43,050
Um, we have voice pick in our warehouse
that literally tells someone what they

958
00:47:43,050 --> 00:47:46,530
need to pick and they need to respond
back, and they also need to scan back.

959
00:47:46,770 --> 00:47:50,400
So there are levels and layers
of quality that you can put in,

960
00:47:50,760 --> 00:47:52,170
but they are not inexpensive.

961
00:47:52,170 --> 00:47:55,380
And as you talk about someone who
is growing their business and wants

962
00:47:55,380 --> 00:48:00,060
this level of, of accuracy, um,
this is what they're looking at

963
00:48:00,065 --> 00:48:01,620
and this is what they have to do.

964
00:48:01,860 --> 00:48:06,330
Now, this is why in, in the airline
industry, it's why we use checklists.

965
00:48:06,825 --> 00:48:10,785
No matter how many years you've been
flying, every pilot that works for

966
00:48:10,785 --> 00:48:15,015
an airline, every day for everything
has a checklist to run through.

967
00:48:15,375 --> 00:48:19,305
And you need to be thankful for that
because it's easy to forget that because

968
00:48:19,310 --> 00:48:21,105
you have multiple flights in a day.

969
00:48:21,495 --> 00:48:24,975
And there have been issues in the
airline industry previously where

970
00:48:24,975 --> 00:48:27,525
they've run through a checklist
that didn't do it diligently, and

971
00:48:27,525 --> 00:48:29,055
it wound up not with a good outcome.

972
00:48:30,975 --> 00:48:33,135
Matt Edmundson: No,
that's very good, Harry.

973
00:48:33,135 --> 00:48:38,385
My, uh, I'm, I'm aware of time here and
so, um, I, I, I just, I wanted to touch

974
00:48:38,385 --> 00:48:41,445
on one, my final question, uh, quickly.

975
00:48:41,565 --> 00:48:44,145
Um, and I, this, I should have maybe
asked this at the start, cause I think

976
00:48:44,145 --> 00:48:45,285
it's quite an important question.

977
00:48:45,855 --> 00:48:50,515
One of the things that I've noticed,
Um, with our customers and with even

978
00:48:50,515 --> 00:48:56,995
me in my own demand, uh, in, in buying
online is I am becoming more and more

979
00:48:56,995 --> 00:49:00,895
aware of the sustainability issues with
e-commerce, uh, especially around shipping

980
00:49:00,955 --> 00:49:06,115
and shipping, uh, in an, in a, in a way
that is not environmentally sustainable.

981
00:49:06,115 --> 00:49:06,895
I think it's becoming a.

982
00:49:07,540 --> 00:49:09,190
Bigger and bigger global problem.

983
00:49:09,820 --> 00:49:13,210
Um, what are some of the things that
you see there in, in your industry

984
00:49:13,210 --> 00:49:15,070
that are improving sustainability?

985
00:49:15,250 --> 00:49:15,970
Um,

986
00:49:16,029 --> 00:49:16,630
Harry Drajpuch: packaging.

987
00:49:16,630 --> 00:49:18,310
Start with packaging, right?

988
00:49:18,400 --> 00:49:22,090
Uh, make sure that packaging first
and foremost is the right size.

989
00:49:22,090 --> 00:49:25,900
So there's not waste that's associated
with it for a lot of reasons.

990
00:49:25,900 --> 00:49:28,060
Not just sustainability, but cost.

991
00:49:28,390 --> 00:49:32,170
Uh, if you're shipping in oversized
boxes, you're going to pay a dimensional,

992
00:49:32,200 --> 00:49:34,750
uh, penalty, uh, with parcel carriers.

993
00:49:35,110 --> 00:49:39,100
But you're also gonna put more stuff
potentially in a landfill if you do that.

994
00:49:39,250 --> 00:49:44,410
So making sure that packaging is right,
really, um, going away from plastic.

995
00:49:45,075 --> 00:49:46,995
To more paper products always help.

996
00:49:46,995 --> 00:49:53,504
So, uh, using using paper, uh, as a, as
a, uh, as a gunnage inside the package

997
00:49:53,504 --> 00:49:58,575
versus plastic, airbags, peanuts,
uh, those things don't necessarily

998
00:49:58,575 --> 00:50:00,555
dissolve well in a, in a landfill.

999
00:50:00,984 --> 00:50:04,705
But paper does paper's recyclable,
cardboard is recyclable.

1000
00:50:04,884 --> 00:50:09,774
So, uh, we're trying to use not just
materials that can be recycled, but

1001
00:50:09,774 --> 00:50:12,955
we're trying to use materials that
have been recycled so that we're

1002
00:50:12,955 --> 00:50:16,555
not just starting, you know, we're
not always using something new.

1003
00:50:16,734 --> 00:50:21,685
We're outsourcing, uh, corrugated, that's
been recycled paper that's been recycled.

1004
00:50:21,865 --> 00:50:26,245
And so from a sustainability
perspective, uh, we can do that and we

1005
00:50:26,245 --> 00:50:27,865
can do that while we lower costs as.

1006
00:50:30,180 --> 00:50:31,080
Matt Edmundson: No,
that's super important.

1007
00:50:31,080 --> 00:50:33,900
One of the things that, um, if you're
a regular listen to the show, you

1008
00:50:33,900 --> 00:50:36,450
will have heard me mention this
before, but one of the things that we.

1009
00:50:37,170 --> 00:50:42,299
Uh, in our eCommerce business was we,
we substituted, I can't say that word.

1010
00:50:42,420 --> 00:50:47,310
We substituted, you know, the plastic
bubbles, um, that you, that people use.

1011
00:50:47,700 --> 00:50:51,720
Uh, we substituted them for popcorn,
uh, because we found popcorn was a

1012
00:50:51,720 --> 00:50:53,820
lightweight material was biodegradable.

1013
00:50:54,455 --> 00:50:55,565
It was a little bit fun.

1014
00:50:55,565 --> 00:50:57,605
It was quirky, so
customers talked about it.

1015
00:50:57,605 --> 00:50:59,555
Obviously didn't have
caramel or butter on it.

1016
00:50:59,555 --> 00:51:00,515
It was just plain popcorn.

1017
00:51:01,175 --> 00:51:06,005
Um, and it was just great for us, you
know, And customers absolutely loved it.

1018
00:51:06,005 --> 00:51:08,435
And they were posting pictures
of it all over social media.

1019
00:51:08,885 --> 00:51:10,895
Um, and it meant the
warehouse smell of popcorn.

1020
00:51:10,900 --> 00:51:13,085
And if you ever needed a low
calorie snake, you just went

1021
00:51:13,085 --> 00:51:14,195
to the warehouse and got some

1022
00:51:16,115 --> 00:51:17,675
It was a great packaging material.

1023
00:51:18,005 --> 00:51:18,875
Really, really good.

1024
00:51:19,565 --> 00:51:21,905
Uh, Harry, thank you
so much for your time.

1025
00:51:21,905 --> 00:51:23,195
Thank you for being with us.

1026
00:51:23,715 --> 00:51:24,795
Been an absolute treat.

1027
00:51:24,795 --> 00:51:27,285
I can't believe how quickly the
time's gone, if I'm honest with you.

1028
00:51:27,675 --> 00:51:29,775
Uh, how do people reach you?

1029
00:51:29,780 --> 00:51:30,675
How do they connect with you?

1030
00:51:30,675 --> 00:51:32,745
If they want, If they want
to, if they wanna do that.

1031
00:51:33,165 --> 00:51:34,605
Harry Drajpuch: Well, Matt,
it's been a pleasure as well.

1032
00:51:34,605 --> 00:51:35,625
Thank you for having me.

1033
00:51:35,625 --> 00:51:38,565
If people need to reach
me, best way is email.

1034
00:51:38,985 --> 00:51:41,065
It would be Harry dot drajpuch.

1035
00:51:41,345 --> 00:51:49,205
D R A J P U C H  @Amwaylogistics.com
or just take that mouthful name

1036
00:51:49,205 --> 00:51:50,645
and look me up on LinkedIn.

1037
00:51:50,650 --> 00:51:52,174
You can message me that way as well.

1038
00:51:54,665 --> 00:51:56,435
Matt Edmundson: Yeah, I did have
to clarify how I pronounced your

1039
00:51:56,435 --> 00:51:57,815
surname at the start, didn't I?

1040
00:51:59,195 --> 00:52:00,605
Its great.

1041
00:52:00,785 --> 00:52:04,955
And we will of course link to
Harry, both his email and his

1042
00:52:04,955 --> 00:52:06,455
LinkedIn profile in the show notes.

1043
00:52:06,455 --> 00:52:10,445
You can get those four free on
the website eCommerce podcast.net.

1044
00:52:11,165 --> 00:52:15,095
Um, but Harry, uh, for me, I
genuinely really appreciate it.

1045
00:52:15,100 --> 00:52:17,975
Thank you so much for being with us
and, uh, for sharing a lot of value.

1046
00:52:18,035 --> 00:52:19,235
Harry Drajpuch: Matt,
Thank you for having me.

1047
00:52:19,235 --> 00:52:19,985
It's been a pleasure.

1048
00:52:19,985 --> 00:52:20,995
Hope we do it again.

1049
00:52:21,990 --> 00:52:23,220
Matt Edmundson: So there you have it.

1050
00:52:23,220 --> 00:52:25,109
What a fantastic conversation.

1051
00:52:25,109 --> 00:52:25,470
Huge.

1052
00:52:25,470 --> 00:52:29,009
Thanks again to Harry
for joining me today.

1053
00:52:29,009 --> 00:52:30,180
Love that conversation.

1054
00:52:30,359 --> 00:52:33,720
What a legend, what a lot
of experience that chap has.

1055
00:52:34,109 --> 00:52:37,109
Uh, also, let me give a big
shout out to today's show.

1056
00:52:37,109 --> 00:52:38,680
Sponsor that eCommerce cohort.

1057
00:52:39,270 --> 00:52:44,940
Head over to eCommercecohort.com for
more information about this new type of

1058
00:52:44,940 --> 00:52:47,549
membership and community that you can.

1059
00:52:48,555 --> 00:52:52,305
Be sure to subscribe wherever you get your
podcast from because as I like to say,

1060
00:52:52,305 --> 00:52:57,525
we have certain great episodes lined up
and I don't want you to miss any of them.

1061
00:52:57,765 --> 00:53:03,465
And in case yes, in case no one
has told you yet today, let me

1062
00:53:03,465 --> 00:53:04,545
be the first person to do it.

1063
00:53:04,755 --> 00:53:10,485
You my friend, are awesome,
utterly awesome, and it's a

1064
00:53:10,485 --> 00:53:13,245
burden we all have to bear.

1065
00:53:13,455 --> 00:53:15,525
Granted, some of us wear
it better than others.

1066
00:53:16,075 --> 00:53:17,655
But it is what it is.

1067
00:53:18,045 --> 00:53:21,465
Uh, the eCommerce podcast
is produced by Aurion Media.

1068
00:53:21,675 --> 00:53:25,485
You can find our entire archive of
episodes on your favorite podcast app.

1069
00:53:25,485 --> 00:53:30,255
And the team that makes this show
possible is the wonderful and talented

1070
00:53:30,255 --> 00:53:34,965
and amazing all round, uh, Good Egg,
which is Sadaf Beynon,Josh Catchpole,

1071
00:53:34,965 --> 00:53:38,905
Estella Robin and Tim Johnson, our
theme song has been written by My

1072
00:53:38,910 --> 00:53:41,245
Good Self and my son Josh Edmundson.

1073
00:53:41,575 --> 00:53:45,175
And if you would like to read the
transcript or show notes, head over to

1074
00:53:45,175 --> 00:53:51,115
our website, eCommercepodcast.net where
you can also sign up for our newsletter.

1075
00:53:51,535 --> 00:53:52,855
So that's it from me.

1076
00:53:52,860 --> 00:53:54,745
Thank you so much for joining me.

1077
00:53:54,745 --> 00:53:56,125
Have a fantastic week.

1078
00:53:56,335 --> 00:53:58,585
I will see you next time by for now.