Executive Bio
John Esborn
Former VP, CastleGate Logistics at Wayfair
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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Audio
Wayfair: CastleGate and First-Mile Logistics(February 3, 2022)
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