Wayfair: CastleGate and First-Mile Logistics
Former VP, CastleGate Logistics at Wayfair
inpractise.com/articles/wayfair-castlegate-and-first-mile-logistics
Published on February 23, 2022
Wayfair: CastleGate and First-Mile Logistics(February 3, 2022)
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Executive Bio
John Esborn
Former VP, CastleGate Logistics at Wayfair
John has 30 years experience in the air and ocean logistics and freight forwarding industry. In 2016, John was hired by Wayfair to get an NVOCC license and build out the first-mile logistics network. John was responsible for negotiating fixed rate deals with ocean carriers and organizing logistics from handling goods at the terminal port to drayage in the destination country. John previously worked at UTI, recently acquired by DSV company, and has experience at Oceanair, Con-Way, and Emery Worldwide.
In Practise Notes
- Core insight into why AMZN and W move upstream to own more of the inventory = controlling costs and passing it back to the customer
- W first-mile value prop to suppliers
- Differences between NVOCC and freight forwarders and why AMZN and W is advantaged as a BCO
- AMZN and W have significant advantages gaining access and better pricing from ocean carriers
- Total unit cost breakdown of shipping a container from Asia to US today vs normal times
- W and AMZN earn significant cost savings on ocean freight relative to retailers using 3PL's
- Although W disclosure states ~30% of large items ship via CG, it seems that this is refers to the fulfilment and not the first mile which is closer to 100%.
Interview Transcript
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