Caraway Home's Partnership With ITS Logistics Reduces Parcel Costs and Enhances Returns Management
Caraway Home has achieved a 20% reduction in parcel costs through its collaboration with third-party logistics provider (3PL) ITS Logistics. The partnership includes the use of a live rate-shopping tool that optimizes shipment pricing across regional and national carriers, improving cost efficiency as Caraway scales its omnichannel operations. ITS also developed a custom reverse logistics workflow for Caraway to support sustainability efforts by reducing waste from returned products. Damaged but functional items are resold on secondary marketplaces or donated through Habitat for Humanity. The partnership further includes an inventory management system that allows visibility and flexibility in managing shared stock across different sales channels, such as Walmart. Caraway's success with ITS has led to plans for expansion: Caraway will be the first tenant at ITS’s new 708,000-square-foot distribution center in York, Pennsylvania. The facility is set to begin receiving shipments in Q3 of this year.
Topics: 3PL partnership cost savings reverse logistics supply chain