Izzy Rosenzweig has been a veteran of the DTC industry for over 10 years. As CEO of Portless, Izzy aims to revolutionize the industry by massively improving DTC’s cash flow and profit margins through direct fulfillment.

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Guest Resources

Portless – Skip the ship, unlock cash flow, and scale faster. Connect with Izzy by visiting the website!

3 Value Bombs

1) In this new DTC model, you can turn inventory to cash in days. You can reduce your risk and inventory. If something does well, you ramp up production – and container costs don’t even exist in this model.

2) Cross-border fulfillment will change the game for thousands of DTC brands and not only allow them to service their customers the way they did yesterday, but to run it with way better cash flow.

3) Play different games. Think outside the box. Your consumers love your brand, and by leaning into these opportunities, everyone running DTC Brands can be extremely successful.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: How Direct Shipping and Supply Chains can Massively Increase Cash Flow and Profit Margin

[1:01] – Pre Roll Sponsors

[1:32] – Izzy shares something that he believes about becoming successful that most people disagree with.

A lot of people have taken the approach that every part of their success or failure is 100% in their control. Taking that mindset could be hard on your mental health.
You’ve got to give all your effort, but if it doesn’t work, maybe it’s not meant to be and there’s a bigger door down the road.

[3:00] – Izzy’s origin story.

His family has been in manufacturing for over 50 years.
When the 1980s came and containers became industrialized, it became very efficient to move product from other countries around the world to the US and other markets. When that happened, most factories went bankrupt.
As he was growing up, he saw how the supply chain totally disrupted a market that was so stable for so long.
The evolution of cross-border logistics is going to disrupt another industry, and this time it’s going to be e-commerce and direct to consumer businesses.

[4:54] – The huge problem with shipping containers and why direct-to-consumer companies are using them without investigating other options.

Containers is the new modern supply chain to do business across the world, and even till today, you need containers if you have a physical retail store.
If you think about containers, you’re getting great prices on your cost of goods, but you’re buying them months ahead of time because it takes 60 days to land in the port. That means you have cash stuck in inventory. It’s dead cash.
For direct-to-consumer, instead of waiting 60 days, the day your factories are done in production, you could have your product in a warehouse two days later, ready to ship to your customer with a fully local experience.
In this new DTC model, you could turn inventory to cash in days. You could reduce your risk and inventory. If something does well, you ramp up production.

[8:21] – How is this DTC model possible?

They’re putting thousands and thousands of packages on planes every single day.
They then inject it to the state’s USPS distribution centers, which means it’s only a day or two away from delivery.
In the DTC Model, they buy the space on the plane and inject it into the main distribution center hubs as close to your customers as possible, which cuts time across the board.

[10:15] – A timeout to thank our sponsors!

HubSpot: Put your sales team on the fast track to winning Q4 with Sales Hub! Learn more at HubSpot.com/sales!
Belay: Don’t be the bottleneck to your organization’s growth! Schedule a free delegation consultation with Belay! Text FIRE to 55123 to schedule your delegation consultation today!
HelloFresh: America’s #1 Meal Kit! See for yourself: visit HelloFresh.com/50eof and use code 50eof for 50% off plus free shipping!

[13:35] – Izzy going all-in in Portless.

In the 2019-2020 days, cash was free. Nobody had a problem putting money in inventory.
In 2021, money mattered all of a sudden – margins, gross margin, cash flow. Who cares how successful you are if you don’t have cash to run operations?

[17:02] – How cross-border fulfillment is going to change the future.

DTC is a very heavy cash flow business.
Cross-border fulfillment will change the game for thousands of DTC brands

[18:35] – Izzy’s key takeaway and call to action.

DTC is not going anywhere. You built a brand. Your consumers love it. It’s not only supply chain, it’s marketing. You can find your edge.
Play different games. Think outside the box.
Portless – Skip the ship, unlock cash flow, and scale faster. Connect with Izzy by visiting the website!

[19:27] – Thank you to our Sponsors!

HubSpot: Put your sales team on the fast track to winning Q4 with Sales Hub! Learn more at HubSpot.com/sales!
Belay: Don’t be the bottleneck to your organization’s growth! Schedule a free delegation consultation with Belay! Text FIRE to 55123 to schedule your delegation consultation today!
HelloFresh: America’s #1 Meal Kit! See for yourself: visit HelloFresh.com/50eof and use code 50eof for 50% off plus free shipping!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

How Direct Shipping and Supply Chains can Massively Increase Cash Flow and Profit Margin with Izzy Rosenzweig

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