Episode 560: Fulfillment trends in 2025 with DCL Logistics
The latest episode of The New Warehouse Podcast welcomes back Brian Tu, Chief Revenue Officer, and Dave Tu, President of DCL Logistics. With over 40 years in the 3PL industry, DCL Logistics has built a reputation for excellence in omni-channel fulfillment, serving trendsetting brands across multiple sectors. In this episode, they discuss the company’s record-breaking holiday season, its strategic investment in technology, and fulfillment trends in 2025. From operational scalability to balancing automation with human expertise, the conversation highlights key trends shaping the future of logistics.
Scaling for Peak Season Success
DCL Logistics has been making waves in the industry, especially after experiencing a massive surge in order volume during the 2023 holiday season. Their November and December shipments saw a 30% increase in order volume and nearly 40% growth in unit volume compared to the previous year. According to Brian, “We hit some major milestones, and it took a lot of planning. Our team has done an incredible job preparing for this growth.” They credit taking a proactive approach that ensures they are not reacting to seasonal spikes but planning a year. By working closely with brands, DCL Logistics anticipates peak demand and makes data-driven adjustments to their fulfillment strategy, aligning them with customer needs.
Investing in Smarter Technology
With rising labor and warehouse costs, DCL Logistics is prioritizing automation and predictive analytics to enhance efficiency. One of their most exciting projects for 2025 is implementing a new transportation management system (TMS) to optimize shipping. As Brian highlights, “Shipping costs make up 50-60% of our customers’ fulfillment spend. Leveraging technology to tap into more carriers in real-time is crucial to keeping costs low and transit times predictable.“
Beyond shipping, the company is rolling out robotic inventory tracking, which will conduct audits overnight, drastically improving accuracy and reducing manual labor. “We’re launching a robotics program in Q1 that will revolutionize how we conduct inventory audits—it’s a game-changer,” explains Dave. Additionally, integrating RFID technology will provide greater control and ensure more accurate and efficient warehouse operations.
Fulfillment Trends for 2025
As brands shift away from single-peak seasons like Black Friday and Cyber Monday, DCL Logistics is seeing more brands spread out promotions throughout the year. “Brands aren’t putting all their eggs in the holiday basket anymore. They’re planning around multiple peaks, like Prime Day, Mother’s Day, and other seasonal promotions,” notes Brian Tu. This shift requires 3PLs to adapt to fluctuating demand patterns and adjust their fulfillment strategies.
Looking ahead, DCL Logistics is closely monitoring industry shifts, particularly the impact of rising USPS costs and the expansion of regional and hybrid carriers. “USPS has been under tremendous pressure to turn the ship around. With rising costs and shifting logistics models, brands need to diversify their shipping strategies,” warns Brian Tu. By leveraging diversified shipping solutions, DCL Logistics aims to mitigate risks and provide reliable, cost-effective options for their customers.
Key Takeaways
- Strategic planning is essential for peak season success, with preparation starting a year in advance.
- Automation in inventory management is a priority, with robotics and RFID technology enhancing accuracy.
- Shipping optimization remains a primary focus, with a new TMS improving cost efficiency and delivery speed.
- The fulfillment calendar is evolving, and brands are capitalizing on multiple sales peaks instead of solely relying on the holiday season.
- USPS and carrier diversification will be critical for maintaining competitive shipping rates and service reliability.
