Overview
Alogistico is a new California-based 3PL built from the ground up to address the omnichannel needs of modern business. Their focus was on combining classic, white-glove client service with a technology backbone that could drive efficiency, transparency, and scalability for their clients.
The benefit of a greenfield startup is that you can build an enterprise without being constrained by legacy processes. They wanted to build a platform they could commit to, build, and adapt – and not need to go back and change. Proprietary software was inflexible; created points of failure; and was too difficult to learn, replicate, modify, and enhance. Realizing they needed a flexible, cloud-based WMS (warehouse management system), Alogistico took the recommendation of a partner to contact Deposco.
But like any thoughtful business, they also evaluated out-of-the-box suites who told them they could see the vision, but that they must scale like the big guys do.
With these suites, there was no introductory pricing. “$1 million out of the gate, all-inclusive, and $40k per user in licensing fees, putting us at $800k per year based on 2 shifts with 10 people,” said Steve Christiansen, President of Alogistico. “That’s just untenable for a startup business.” It didn’t help that EDI wasn’t included in the core offering and required a custom bolt-on approach – that meant even a simple pallet put-away would likely require outside consultants to handle the integration.
Between the feature set and the cost, it was clear – Deposco was the answer to Alogistico’s needs.
There are always concerns from a cost standpoint when you get started. But looking at Deposco’s overall feel from a product, development, delivery, cost, and fairness standpoint, we felt better with Deposco. It’s where we want to go as an enterprise.”
Solution
Deposco stepped up to Alogistico’s philosophy: get it done for your customer; no excuses. There were many business complexities, including 2 different NetSuite customers that integrated in 2 different ways. Alogistico was in a major crunch. They had already leased space and signed without their first customer in writing. Nevertheless, Deposco had the new system live in just 55 business days from design.
Deposco outlined the requirements, managed the schedule for the accelerated project, and was on-site to ensure that they had all the resources at their fingertips to scan, pick/pack, and get staff up to speed rapidly. With Deposco driving the warehouse side, everything else was bolt-on; they were able to replicate the onsite support, pick that up, and scale.
On December 21st, Alogistico received 375K Eaches of swimwear for a client — but the cartons were a mess. Packages had been opened, no weights were supplied, and they had no way to get a mass update. Deposco worked with Alogistico through Christmas Eve to get the receipts in the system in an incredible timeframe, which enabled the company to ship their first orders on Dec 27. They went live on December 28, and the first week of full inbound/outbound, they shipped 1k orders.
Deposco’s daily, hands-on interactions made a huge difference. Not just remote support, but their detailed understanding of IT/Operations and guidance through issues on the floor, the stuff you don’t get out of a manual, delivered a massive benefit. You can’t put a price on that! We got incredible support at a time when Deposco had scheduled PTO. Those actions speak to the relationship. They are an extension of Alogistico and a foundational piece of our tech-forward customer commitment.”
And swimwear was just the beginning. Over the next three months, Desposco enabled multiple wins for Alogistico, including:
- 15 days — Wholesale EDI deployed, allowing Alogistico to start shipping orders for REI, selling Amazon aggregator products, and supporting all kinds of orders.
- 30 days – Productivity doubled
- 45 days – Custom dashboards were live, showing productivity tracking and analysis of product dynamics
By Day 75, Alogistico realized they had a $3 million business on track to double its run rate in about six months from day 1.
“When you have 2 different Netsuite customers integrating in different ways, that flexibility is massive. We can align to different levels of sophistication with Deposco,” Christiansen said.
Alogistico credits the responsiveness of Deposco’s team, swift delivery (a couple of weeks for deliverables), face-to-face support, and our ability to match how their business operates: don’t over-analyze; get 80% of the information and go.
We know what we’re getting with Deposco. That adds a whole new degree of tech-savvy and where we take our customers in the future. Now we can offer good rates and good service – delivering confidence as their partner for technical services and integrations, instead of just a hollow ‘yes’. We can manage it all together so as not to break the business. Deposco is a great asset to have.”
Due to the flexibility of the platform, Alogistico is now engaged with MHE providers that will enable support for future customers with large space requirements and high velocities of over 110 million units per year.
Deposco was good putty in our hands to mold what we needed to do. I’m confident they can be that foundation for us, advancing our adaptability well into the future to grow year after year. The powerful combination of Deposco and Alogistico has created tech-forward scalability that allows our customers to work on other parts of their sales and supply chains with us and never look back.”
