Mark Ang of GoBolt On How To Reduce E-commerce Logistics Costs

An Interview With Rachel Kline

Real-time truck tracking — By utilizing advanced tracking technology, we can closely monitor the location and progress of our trucks throughout the delivery process. This allows us to proactively address any potential delays or obstacles in real-time, minimizing the percentage of failed deliveries. As a result, we have experienced a significant reduction in the overall cost of completing a delivery, as well as a decrease in associated expenses such as re-deliveries or returns. Additionally, by streamlining our operations and optimizing routes based on real-time data, we can minimize unnecessary mileage and fuel consumption, thus reducing emissions and contributing to our sustainability goals.

As e-commerce continues to grow and evolve, businesses face increasing challenges in managing logistics costs. Efficient and cost-effective logistics are crucial to remaining competitive in this rapidly changing landscape. In this interview series, we are talking to e-commerce managers, supply chain professionals, logistics experts, and anyone with hands-on experience in the field of e-commerce logistics. As a part of this series, we had the pleasure of interviewing Mark Ang.

Mark Ang is the CEO and Co-Founder of GoBolt, a technology company building the first sustainable and vertically integrated supply chain network. GoBolt provides a simplified, customer-centric, and planet positive approach to end-to-end logistics — from fulfillment to last-mile delivery — for products of all sizes.

Thank you so much for your time! I know that you’re super busy. Before diving in, our readers would like to get to know you. Can you tell us a bit about your backstory and how you grew up?

When I was younger, my brother and I took on the task of demolishing and rebuilding a sixplex apartment building for our father, who was a property developer. It was during this time that I began to develop my skills in construction and management. I was assisting in various aspects of the family business, like scoping projects, obtaining quotes, managing finances, collaborating with architects, and overseeing construction projects.

These early experiences in the business world set the stage for my journey as an entrepreneur. In my early 20s, I co-founded Second Closet, a valet storage company based in Toronto. Eventually, we rebranded and evolved into GoBolt, a third-party logistics provider (3PL) specializing in fulfillment and last-mile delivery with a focus on sustainability.

What led you to this specific career path?

During university, my co-founder Heindrik Bernabe and I started a business that stored students’ belongings over the summer. We were on track to become a university business success story until the trucking company we had partnered with suddenly quit during final exam week, leaving us with 84 pickups and customers still to be serviced.

Being customer-focused and determined, we made a decision to honor our commitment to those 84 students. Despite the demands of our final exams, we stayed up all night studying and personally completed the remaining pickups. This experience ignited my entrepreneurial spirit and shaped my perspective on the importance of delivering exceptional service.

As the business grew our target market evolved from students to anyone looking to maximize their space by storing seasonal possessions. However, we noticed that most customers were using our services for long-term storage, and we didn’t want to contribute to excessive hoarding. This realization prompted a shift in our focus. Today, six years later, I am proud to be the CEO and co-founder of GoBolt.

What started as a humble university venture has grown into a thriving company providing fulfillment and last-mile delivery services for numerous businesses and well-known brands. We have a dedicated team of over 1,000+ employees, operate in 10 major cities, and manage a fleet of hundreds of vans and trucks across the United States and Canada.

The journey from that challenging moment during my final exams to where I am now has taught me the value of commitment, resilience, and customer satisfaction. It has solidified my passion for entrepreneurship and the potential to make a positive impact in the world of logistics.

Can you share the most exciting story that has happened to you since you began at your company?

Transitioning from being a valet storage company to becoming an end-to-end logistics provider during the COVID-19 pandemic was an especially exciting time. Despite the challenging circumstances, we had already integrated with what would become one of our largest merchants. We negotiated a contract with them almost overnight, which started with just a single page letter outlining the rates for delivery. We repurposed our fleet and staff to handle the deliveries and experienced a surge in business.

Our team found the new direction of the business to be easier and more enjoyable than our previous work. As a result of our successful collaboration, the merchant put in a large national tender, and we expanded from one location in Toronto to seven or eight locations across Canada. I vividly recall receiving a call from the merchant’s sourcing team, informing me that we had won the tender and would be entrusted with multiple sites. This was a significant achievement for our company, and it brought both great joy and great relief to me and my team as we were in the midst of a lot of uncertainty during that time.

Our partnership with this merchant also aligned with our environmental goals and helped us advance our electric vehicle strategy. It continues to be a major partnership for us to this day. Overall, this story represents a pivotal moment for our company, where we navigated the challenges of the pandemic and successfully transformed our business, securing a significant contract and expanding our operations.

What are some of the most interesting or exciting projects you are working on now? How do you think that might help people?

Definitely the development of the physical infrastructure for our electric vehicle (EV) fleet. Many businesses, both brands and logistics providers, have concerns and uncertainties about what it entails to operate an EV fleet. I’ve heard some horror stories, and I want to ensure we avoid those pitfalls. Fortunately, as a younger and more nimble company, we have the ability to take bigger, riskier bets. We can underwrite these investments and explore opportunities that larger businesses might find challenging. Our focus is on building value, not only in terms of the physical infrastructure but also from a routing perspective, delivery management, and sortation. We are developing what we refer to as an EV operating system, which encompasses these elements.

Additionally, we have a skunkworks project in progress, aimed at offering our fleet management software to any logistics business looking to modernize their software stack and transition towards EVs in the future. This software solution is designed to work seamlessly with both internal combustion engines (ICE) and EVs. We believe that by making our software available, we can contribute to electrifying logistics globally, not just in the markets where we operate.

Overall, the EV core project and the accompanying software development are truly exciting endeavors that we believe will have a positive impact on the logistics industry, helping to drive the global transition to electrification.

You’re a successful business leader. What are three traits about yourself that you feel helped fuel your success? Can you share a story or example for each?

First, I know that I couldn’t have found success without the support of my great team. I consider myself and our team to be incredibly tenacious. Throughout the journey, my team and I faced numerous challenges and setbacks. However, we remained persistent and resilient. We worked tirelessly, putting in long hours and even working seven days a week. This unwavering determination allowed us to keep pushing forward and strive for our goals.

Secondly, I attribute a portion of our success to sheer luck. There were moments when we were incredibly fortunate. For instance, when COVID-19 hit, although it was a tragic global event, we happened to have recurring revenue from our previous venture, an existing fleet, movers, and a potential contract lined up. It was more a stroke of luck than business genius that allowed us to seize the opportunity and navigate through the pandemic successfully.

Lastly, I believe that hard work played a significant role in our achievements. I firmly believe in controlling the inputs I contribute to any endeavor. I focus on dedicating myself to the task at hand, putting in maximum effort, and maintaining a high level of tenacity. By staying dedicated and focused on driving the right inputs, I trust that the system will work and yield successful outcomes.

As the business has progressed toward stability and profitability, I’ve also recognized the importance of investing in myself personally. I’ve sought guidance from an executive coach and made a commitment to exercise regularly, working out three to five times a week. These personal investments have helped me regain a sense of motivation and enthusiasm for what lies ahead. I believe they will be instrumental in fueling the next phase of growth, which I anticipate to be an even more significant journey than the first six years.

What was the original vision for your logistics business? What pain point(s) were you trying to solve for your customers?

The original vision for our logistics business was to address a specific pain point in the industry. Our very first B2B merchant was a large Canadian mattress company that was looking for a solution to their reverse logistics needs. Previously, they were using a junk service to pick up discarded mattresses and dispose of them. However, we saw an opportunity to provide a more meaningful and impactful service.

Instead of throwing away the mattresses, we implemented a process where our movers would pick up mattresses that were in good and reusable condition and donate them to charities, benefiting families in need. This unique approach resonated with our merchants and created a recurring and mutually beneficial partnership. As they grew, we grew alongside them, and our software played a crucial role in enhancing the experience for both their customer service associates and the end customers receiving the deliveries.

In essence, we were solving a coordination cost problem for companies stuck in archaic practices. Our software has adapted to serve the needs of various companies, but for this particular client, it has become highly tailored and specific.

At the core, our focus was on handling big and bulky products, whether it was reverse logistics or direct logistics. As we excelled in this area, more merchants approached us, seeking solutions for their storage, fulfillment, pick and pack, and last-mile delivery needs. We gradually expanded our services to encompass the entire logistics stack, including e-commerce fulfillment, last-mile truck delivery, and last-mile parcel delivery.

The original vision of our logistics business was rooted in solving the challenges of handling heavy and hard-to-manage products while delivering a positive social impact. Through adapting to merchant feedback and embracing their needs, we have grown and diversified our offerings, becoming a comprehensive logistics solution provider.

What are some of the biggest challenges your customers currently face regarding e-commerce logistics costs?

Some of the biggest challenges our merchants currently face regarding e-commerce logistics costs revolve around inventory and last-mile delivery expenses. Inventory costs can be significant as they have to bear the burden of storing a large amount of inventory, which often doesn’t add much value to their operations. As a logistics provider, we understand the need to address this challenge.

To help mitigate inventory costs, we employ strategies such as optimizing storage locations based on market dynamics. Since we operate in multiple markets with varying real estate costs, we can be more aggressive in certain geographies where storage expenses are lower. This allows us to optimize the allocation of inventory and move slower-moving goods to different locations if it makes logistical sense. By strategically managing inventory placement, we can reduce costs and maximize efficiency.

Another significant challenge is the cost of last-mile delivery. To tackle this issue, we utilize two main strategies: zone skipping and air skipping. Zone skipping involves consolidating and shipping products in bulk to specific areas closer to the end customers, reducing the need for costly individual shipments from distant locations. Air skipping refers to transporting products via air freight to bring them closer to their final destinations.

By implementing zone skipping and air skipping strategies, we optimize last-mile delivery costs. By getting the products closer to the customers initially, we can achieve more cost-effective delivery. Additionally, if there is excess inventory, we can distribute it across cheaper storage locations, ensuring efficient utilization of warehouse space.

Our goal at GoBolt is to create a logistics infrastructure that optimizes inventory allocation and minimizes last-mile costs through strategic planning and transportation consolidation. By offering these solutions, we help our merchants navigate the challenges associated with e-commerce logistics costs, ultimately enhancing their operational efficiency and cost-effectiveness.

What role do technology and automation play in reducing e-commerce logistics costs, and what specific tools or solutions have you found most effective in achieving this?

Technology and automation play a pivotal role in reducing e-commerce logistics costs. At GoBolt, we’ve leveraged technology to develop innovative tools and solutions that have proven highly effective in achieving this goal.

One of our key advancements is the order orchestration software we have built. This software enables us to streamline and optimize the entire logistics process. By owning both the fulfillment and transportation execution, we have greater control and flexibility in managing orders from start to finish. Our software empowers us to make data-driven decisions on the optimal warehouse to fulfill from and routing options for each product based on various factors.

Furthermore, our zone skipping and sortation coordination capabilities have been instrumental in driving cost reductions. We have developed sophisticated algorithms and technologies to ensure that products are sorted efficiently and directed to the right lanes for their respective destinations. By implementing this sortation tech, we can achieve a high level of accuracy and efficiency even when handling a large volume of orders daily.

It is important to note that all these technological advancements are proprietary and developed in-house by our talented team. By having full control over the development and implementation of these tools, we can fine-tune them to meet the specific needs of our logistics operations and achieve optimal cost savings.

Technology and automation have allowed us to streamline logistics operations, optimize order fulfillment, and reduce costs significantly. Our order orchestration software, along with zone skipping and sortation coordination, has been the most effective tools in achieving these goals . By continuously investing in technology and pushing the boundaries of innovation, we aim to further enhance our capabilities and deliver even greater cost efficiencies for our e-commerce merchants.

How do you ensure that as a logistics provider you deliver the highest quality of service at the lowest possible cost, and what metrics do you use to measure performance?

We track things like on-time delivery rate, pick accuracy, and the reviews that our shoppers provide us — and we review feedback and metrics consistently.

To measure performance, we’ve built software around both soliciting feedback and solving for the right outcome. Most of our processes are completely scan based. There’s a lot of checks and balances between different associates and different parts of the business. These are in place to make sure that if there is an error for whatever reason, it gets caught before it goes out. And when it goes out, there’s confirmation in our truck that we’re scanning the right product to the right home.

So, we do that and scale it and make it as efficient as possible because we developed the software ourselves. As such, we can reduce the number of steps while still achieving the same quality outcome and that drives the lowest possible cost.

What are some of the key factors that influence your customers’ decisions when selecting logistics providers, and what advice would you give to other e-commerce professionals looking to make similar choices?

Purchasers of logistics services today are more sophisticated than ever before. The amount of investment in software, solutions, analytics, and team members has increased exponentially since COVID-19 unearthed a lot of weaknesses in supply chains. For most brands that we interact with, their supply chain teams have grown by an order of magnitude. With that, there’s a lot more decision making power within those teams. They are very smart purchasers. They know what they’re looking for and they know how to measure it. We’re finding that it’s a combination of quality, cost, and now sustainability.

It’s important for purchasers of logistics services to seek providers who offer multiple solutions tailored to their specific needs. A one-size-fits-all approach rarely works, and a provider should be able to present alternative options for execution. We believe in being dynamic and adaptable, and we offer three distinct service lines: pick and pack, truck delivery, and parcel delivery. We don’t have a fixed agenda to upsell specific services but prioritize delivering the best outcome for the merchant in terms of quality, cost, or both. This customer-centric approach has shaped our orientation, and we strive to be a true partner in fulfilling their logistics requirements.

Can you please share five innovative or unconventional strategies that you’ve employed to reduce e-commerce logistics costs?

1. Zone skip/Air skip — To reduce logistics costs we’ve implemented zone skip and air skip. By strategically flying shipments to their destination markets when feasible, we have been able to achieve significant cost savings. This approach has proven successful in fulfilling our goals by providing faster delivery times for our customers. As a result, customers can experience next-day delivery for coast-to-coast shipments. This not only enhances satisfaction for our merchants and their shoppers, but also optimizes the overall efficiency of our logistics operations and reduces costs.
2. Direct injection — We have developed an internal Cross Border Domestic Delivery Solution at GoBolt that enables us to establish a more diverse carrier network specifically tailored for Canadian-based merchants. By leveraging this direct injection strategy, we’ve been successful in opening up customs to wholesale costs, allowing us to streamline the clearance process and reduce associated fees. This approach has proven highly effective in achieving our goals of cost reduction while enhancing the efficiency of cross-border delivery operations for our merchants.
3. Intelligent order orchestration — Our strategy to reduce costs for our merchants includes the implementation of intelligent order orchestration. Through this approach, we utilize advanced algorithms and data analysis to optimize the movement of stock, ensuring it is positioned closer to its final destination. By strategically placing inventory in regional warehouses or fulfillment centers, we can significantly reduce shipping distances and associated costs for our merchants. This intelligent order orchestration also enables us to improve shipping times, as products are readily available and can be dispatched more efficiently.
4. EV vehicles — We have expanded our fleet of EVs and by doing so, we are able to eliminate fuel surcharges, which can account for up to 50% in increased per delivery costs. The transition to EVs has proven to be highly successful in achieving our goals of cost reduction. Not only do EVs contribute to a more sustainable and environmentally friendly operation, but they also significantly reduce our dependence on traditional fuel sources, resulting in substantial cost savings. This strategy has allowed us to offer competitive pricing to our merchants while ensuring efficient and cost-effective delivery services.
5. In-house routing software and intelligent date of delivery logic — With GoBolt’s proprietary in-house software, we are able to optimize delivery routes and schedules based on various factors such as order volume, location, and delivery time windows. By efficiently planning routes and consolidating shipments, we can increase the density of deliveries, allowing us to extend more cost-efficient delivery options to merchants. This strategy has proven successful in achieving our goals by reducing the number of individual trips, minimizing fuel consumption, and optimizing driver utilization. As a result, we have been able to significantly lower our logistics costs while still providing reliable and timely deliveries to our retail partners.
6. Real-time truck tracking — By utilizing advanced tracking technology, we can closely monitor the location and progress of our trucks throughout the delivery process. This allows us to proactively address any potential delays or obstacles in real-time, minimizing the percentage of failed deliveries. As a result, we have experienced a significant reduction in the overall cost of completing a delivery, as well as a decrease in associated expenses such as re-deliveries or returns. Additionally, by streamlining our operations and optimizing routes based on real-time data, we can minimize unnecessary mileage and fuel consumption, thus reducing emissions and contributing to our sustainability goals.

Looking ahead, what are the biggest challenges and opportunities in reducing ecommerce logistics costs, and how do you plan to address them in the coming years?

Establishing trust and transparency between logistics purchasers and providers is crucial. We encourage sharing objectives and key performance indicators (KPIs) to align our efforts. Some purchasers may hesitate to disclose their cost to fulfill an order, but we believe transparency is key in fostering a true partnership. By openly discussing desired outcomes, we can generate creative strategies to achieve them.

For instance, we worked with a partner across multiple sites who had a specific dollar target for end-to-end order fulfillment. To help them meet their last-mile cost goal, we implemented three different air skip and zone skip lines, and collaborated with three regional carriers. This collaboration, driven by their openness about cost targets, resulted in significant cost savings amounting to millions per year.

Being authentic and consistent in our approach is essential to overcoming challenges and driving positive outcomes for our partners.

You are a person of significant influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

If I had the opportunity to start a movement that would bring the most amount of good to the most amount of people, it would focus on nurturing and supporting young entrepreneurs. I have personally witnessed the immense impact that entrepreneurship can have, both economically and professionally. By providing consistent and accessible support to promising young entrepreneurs, we can achieve remarkable outcomes and create a brighter future for all.

How can our readers further follow your work online?

Readers can connect with me on LinkedIn and follow our news and updates here.

I want to thank you so much for your time and for sharing your expertise with us. I wish you continued success!