Incomplete Orders, Errors & Delays, The Reasons Why, and the BIG PLAN to FIX IT:

[Adam]

Friends, the last three weeks, even six months, we have had absolutely awful turnaround times.  Our shipping has never been so slow, and I'd like to explain why.

 

Back in October of 2013, we decided to use a 3rd Party Logistics company (3PL) in Aurora, Colorado to fill our orders.  Reason:  We are not good at getting hundreds of orders out during promotions, new product releases, etc.  They have hundreds of employees, and could move people to our shipping lanes when business was crazy.  Then, when it was calm, like mid-winter, we would not have to be paying people to sweep the floors, every 20 minutes, for months.

 

I very wrongly believed that freeing up our team to develop products, focus on videos, sales, and marketing would grow our business.  Hindsight is 20-20, but boy, this was a miss by a million miles!

 

We also believed that having multiple shipping centers across the USA would help us.  Well it would have, but that's later in the story.

 

Well, I couldn't have dreamed that this decision would have been so completely terrible.  First, back in October, as we made the switch, we gave up something incredibly important:  EXCELLENT LAST MINUTE Customer Service.  You wanted to add-on to, or change you order before it shipped, but the big company, 1M square feet, couldn't be that quick.

 

It went downhill from there, quick.  The shipping errors, and then we realized a very dangerous trend:  The 3PL actually profited from us not having everything in stock.

 

Here is an example:  4 pallets of In & Out Spray are delivered to a dock, near our shipping lanes. The 3PL only 'intakes' pallets or shipments in the late afternoon.   We have 40 orders that come in that day, and 13 orders in the system that have In & Out Spray as a back-order.  Does the company make an exception, intake the pallets of In & Out, and fill the orders?

 

No.  They actually prefer to ship all orders incomplete.  Then, brought in the In & Out Spray 100 feet, to our zone, opened it, stocked the shelves, and shipped all the new and old back-ordered In & Out Spray the following day.  Why?  They get paid per order, per product touch, and per box shipped.  Make sense?  No, it makes $dollars$ for the 3PL!

 

It happened daily, and we even had one of our own on the ground there, Flaco, who wanted to poke his eyeballs out on a daily basis!  Poor dude nearly lost faith, but we pulled out, finally, 6 months later, finished the "Buh Bye" to the 3PL last week. 

 

Talk about a lesson in business?  Why didn't I read the Zappos book earlier, and let the part where the 3PL nearly put them out of business?  Hindsight is 20-20.....

[91maroz]

I wondered why my order hasn't shipped yet. Good luck with the changes!

[Adam]

Well, our customers are spread across this fantastic country exactly as the population of the country.   65% of our customers are east of the Mississippi.  30% are west of the Colorado River.   We are based in Louisville, Colorado, close to just over 5% of our customers. 

 

With the expansion and success of Amazon, and especially Amazon Prime, people's expectations from an e-commerce business has shifted.   Amazon, who ships nearly everything in our household to us, and much of America, will get basically anything you can think of, to your doorstep in 2 days, or less, for a $100/yr Prime Membership.

 

We need to get your order to you in TWO DAYS.  Period.  So.....

 

THE PLAN:

 

We opened a new distribution center early this month in Sparks, Nevada.  It's location is excellent to reach the Pacific Northwest, and the Southern tip of San Diego, both in 2 business days via inexpensive yet excellent FedEx Ground Shipping.  Our new center has an amazing team, and tonight, as I write this, literally half of our staff are there, working 14-16 hours per day getting us caught up on orders. 

 

See, during the switch over, we launched a new Tire Shine, a Father's Day Promo, and those hit well.  We were caught off-guard, and got buried, with over 1,500 orders in 4 days.  Wow, thank you!  Still, we were screwed, and now, half of our staff is sleeping at the Grand Sierra in Reno until Tuesday, when we hope to be caught up 100%.

 

Now, that's great news for those of you who live on the West Coast.  In 2 days, your goods will be on your doorstep......However, what about the rest of you, the majority who live on in the East?  By the end of July, we will have the East Coast Distribution center fully operational.  We are considering locations now, based on where our awesome team members want to relocate.   At this point, it's between PA and TN.  Either way, our East Coast Customers will be loving the 2-day turnaround time that it takes to receive an order.

 

We will certainly keep shipping from Colorado, but from OUR warehouse, in the meantime.  The great thing about having these three distribution centers:  The shipping costs, which we subsidize, or pay completely on orders over $95, will be cut by 35-40%.  That means we can offer better service, quicker turnaround times, and get you your goods by the weekend, when you plan to shine your rides!

[LFairbanks]

I vote PA.  Then you can put Rich to work and his wife will thank you....

[AZGTO]

It's really stand up of you to make an honest post like this. I've been a fan of your product for years and one of the things that got me addicted was the amazing customer service. I can't wait to see how everything works out with these new centers and it's unreal that other company did that crap!

[Adam]

So, the final part of this three-post thread, is to give an apology.  Never in a million years would I have thought this 3PL would have been such a terrible program.  Never would I have thought they would have hurt our customer service, and created delays in getting your orders into your hands, complete.

 

I should have moved faster to undo the situation, but made some heavy and big decisions during that time, including promoting a great employee to a role that was not right for him.  We sublet the majority of our warehouse to one of our neighboring businesses.  And, I basically felt that moving our family back to Southern California, where I grew up, and most of my and my wife's family lives, was a good idea. (Third baby came along, no family within 1,100 miles of Colorado....etc...) 

 

I was on an airplane every other week, then every week, then all week....you get where this is going, and my wife was about to check into the looney bin!  Thank GOD we only rented a house, and were able to move back to Colorado 2 months ago.  Family visits us here again, and they LOVE it here!  (So do we, and so do our kids, truthfully.)

 

Friends, I stand humbled, corrected, and can't apologize to you, our loyal customer, enough.

 

At the same time, I cannot thank you enough for sticking with us through this painful transition, and with a smile.

 

We have apologized in emails, offered free goods, expedited shipping, and everything else to keep you coming back.

 

Well, you are coming back, thank you.  After the worst winter in a decade or more, after a major lesson in decision making, after loosing a few great team members after putting them in the wrong roles, and after a failed return to the homeland, WE ARE BACK!

 

First, and foremost, our family made it through.  Stupid stuff like this can cause a marriage and family to crumble, and we made it. Second, our team stuck with us, have grown, helped us make it through these crazy times, and our sales went from way off, to way up. 

 

Thank you.  I'm honored to have earned your business, and feel free to bring on the, "I told you so's," as many of you disapproved of some or all of these decisions.  You were right. 

 

Sincerely,

 

Adam Pitale

Founder, Chief Detailer, now with a PhD in humility. 

[LFairbanks]

Thanks for sharing the reasons "why".  A lot of us noticed something wasn't right, and are appreciative of you sharing the behind the scenes issues.  Hopefully everything works out.  At least you were able to realize that it wasn't working instead of the being boss that sits behind the desk and has his head in the sand and wonders what is going on.

[69supersport396]

Thanks Adam!

 

As long as my cars shine brighter than everyone else's, I'm sticking around.

[Rich]

Well, if I ever met a more humble man than you, I didn't know it.  As with everything, you are open and honest and up front.  Very admirable.

 

My vote goes to PA, and if you ever have a chance to look at our area, boy could we use some kind of business here. Steel mills gone, mines gone, and the town is dying. Plus if you come somewhere close to me, I could keep an eye on these young bucks so they don't walk out with the store!  And the wife can keep an eye on me!! 

 

Thanks for the heads up Adam.  Best of luck. 

[AmyAtAdamsAustralia]

Here Here! Thanks for sharing. As a relative new distributor, from the time I came on board to a few months ago, we definitely felt something was off. Glad to hear we are back on track, can't wait to see the new service and new products down the line!

 

Best of luck with the transition if there is anything we can do to help let me know.

[chas]

Adam, point blank, your honesty and care for your customers and ability to communicate clearly with us about the business and why decisions are made is why I come back time and time again.  I am by no means trying to be fanboy here, but you just don't receive this level of honesty and compassion anywhere else, nevertheless from the company owner.

 

Businesses grow, flux, contract, expand, evolve, etc.  Adam's was clearly in that stage and I am glad its on a solid path again.  If there is one thing I have learned from my MBA program its that it takes trials and tribulations for a company to hone in on a path.  You would be hard pressed to find any successful company that didn't experience similar events.

 

PA and TN are great places, wife and I have considered moving to TN for some time, great state.

[camaro2ssblack]

One word.

 

Tennessee.

[GXPaycheck]

I vote North Carolina! I-95 is right here for north-south stuff and plenty of airports for shipping. TN is my second choice.

 

Sorry to hear about the growing pains, but you handled it well and are recovering. Taking care of your people, employees and customers, is what makes a company great! I wish my company could figure that out.

[Gen9Rolla]

PA!

[icantdrive55]

Thanks for sharing the reasons "why".  A lot of us noticed something wasn't right, and are appreciative of you sharing the behind the scenes issues.  Hopefully everything works out.  At least you were able to realize that it wasn't working instead of the being boss that sits behind the desk and has his head in the sand and wonders what is going on.

 

I totally agree with LF and all other supporting posts.  Kudos to you Adam, having the integrity to recognize and correct the problem(s), AND to take time to offer a clear explanation and humble apology.

 

I continue to promote Adam's Polishes at every opportunity - my cars do the 'talking' on my behalf.

 

Thanks for 'righting the ship'.  I'm still hooked and looking forward to seeing a east coast distribution center in PA (hopefully).

 

Mike

[CTFocusST]

Thanks for the insight glad to see things are getting back on track.  I hope the east coast center ends up in PA

[Team Adam's]

Thanks to all of you for your understanding and your patience with us, it's MASSIVELY appreciated, more than you know!!

[Feets31]

Thanks for the explanation.    Indiana is very friendly to businesses, but that would mean I would have to pay taxes up front, so Tennessee or Pennsylvania is fine.  

[pocket5s]

I'm really glad I just read this. My second order ever took almost a week to ship. My new order is about the same timeline. It is frustrating, but this helps. if it weren't for you guys "making it right" on my first order, I never would have come back, regardless of much I liked the product.

 

I am also very glad you mentioned the Zappos book. I worked for them for a time (in software) and EVERY ONE of their employees takes their customer service training and spends 40 hours on the phones as customer service reps. It really opens your eyes to what real service is about. They do it right, hands down.

 

I feel sorry for your service reps who have to reply to all the emails and phone calls. 

[Feets31]

My son is a business major and I got him the Zappos book to read.  I may have to borrow it.  

[Kingsford]

Should open a shipping center around where I live. Plenty of empty warehouses around here! Our East Gate Industrial Park is practically a Warehouse Ghost Town.

 

http://www.eastgateindustrial.com/

 

Only thing really out there is a FedEx shipping hub.

 

This place could definitely use all the business it can get. We are looking to lay off 20 Sheriff's Officers out of 50 in the county...

Edited June 19, 2014 by Kingsford

[psalonis]

Adam,

Thanks for giving us a peek behind the curtain... as well as your vision. It stinks that you had to go through what you did.

 

I'm an absolute Amazon Prime junkie and you're right, it has changed my expectation of what e-commerce should be.  Quick shipping/delivery is the new normal.

 

I'm a relatively new Adam's customer (and new to detailing) and was initially a bit put off by some of my early experiences.  For example a $300 order that was fully charged to my card but only partially filled....it actually took just over a month for me to receive all the items, across 3 or 4 shipments I think.

 

Adams has some great products, products worth waiting for apparently    but what really saved me as a customer are your people, your team.  The front line customer support could not have been any better during this difficult time.  I've spoken to both Ashley and Benjamin....usually Benjamin.  Ben's upbeat and friendly personality together with the thorough and honest explanation of what had happened was genuine.  I never felt like I was getting the run-around.  His pursuit of customer satisfaction is amazing.   I'll give you an example:  I called one evening after work but received voice-mail. Apparently everyone was busy helping other customers.  I chose not to leave a message, figuring I would just call back later.    Well Ben called ME!  He picked up my number from caller ID and called me back.  He said he saw that I had called and wanted to make sure that I was taken care of.  He personally saw to it that my backorder / shipping mix up / missing items got squared away.  Thank you Ben!

 

Adam, please recognize Ben for a job well done throughout your time with and transition away from 3PL.

Without team players like Ben and Ashley I'm not sure I'd still be an Adams customer.

 

Great products at fair prices + Outstanding customer service = a positive experience.  One that generates loyal customers.

 

Kudos Adams!

 

I also LOVE that you don't have an overly large or confusing catalog of products.  Together with your videos, it's clear and easy to understand what products to use when.

 

Oh, and another vote for your east coast DC to be in PA!

 

Patiently waiting for a 4th of July Sale  ,

Pat in PA

[DaveVY]

Wow, love the courage it takes to be open and humble about the challenges and mistakes and what you are doing to fix it. The honesty, customer service and personal touch of what Adam has created is the reason I am loyal to the company.

 

My vote would be for TN as it would be in a warmer climate for winter shipments to the south. A little less impacted by typical winter weather patterns.

 

If the long range plan is to have both a NE and a SE shipping location then PA would be a better choice now as Atlanta could be added later as a good SE hub. Not sure a hub in PA would serve the Florida area well with 2 day ground service.

[Bryanl]

Classy - I feel your pain - seems it will all be good soon.

Small price to pay for your great products

[CMDChase]

Adam, you are truly a gentleman. I appreciate your honesty and openness. I may not use as many products as others but what I do use are exclusively Adams. You have a customer for life. It is an honor for me to have you included in my list of friends. Incidentally, I hear plenty of warehouses in the Lehgh Valley in eastern PA calling your name. Good luck, Buddy. I'm sure you will make the right choice.