How an Ecomm Company Setup 2-Day Delivery for 98% of the US: Case Study

If anyone knows about dynamic warehousing, it’s Kinimatic.

I sat down with Mike Coers, SVP at Kinimatic, to learn about how they helped an overseas brand launch fulfillment in the US - in just 45 days.

They started with a bi-coastal network, are now adding a third DC, and will soon reach 98% two-day delivery coverage across the U.S.

If you’re evaluating 4PLs or expanding fulfillment, this Q&A breaks down exactly how they did it.

Let’s dive in 👇

Table of Contents

1. Introduction to the Case Study

2. Designing the Solution

3. Implementation Timeline

4. Challenges and Learnings

5. About Kinimatic

Connect with Kinimatic on LinkedIn and their website.

This conversation has been edited for length and clarity. If you're short on time, skip to the TL;DR section for key takeaways & action steps.

1. Introduction to the Case Study

What products does the customer sell?

MC: Before diving into the case study, it’s important to explain what Kinimatic does. We’ve built a tech platform that sits between all the critical systems in the supply chain—Warehouse Management Systems (WMS), Enterprise Resource Planning (ERP) tools, and e-commerce marketplaces—centralizing everything into a single control tower.

Once a company integrates with us, they gain access to over 100 million square feet of warehousing space across the U.S., covering cold chain, high-flow e-commerce, drayage, transloading, and port locations. We offer the flexibility companies need to scale without long-term commitments.

In this case, the customer is an Australian company that manufactures pool vacuums. They were launching in the U.S. with both B2B and direct-to-consumer (D2C) channels. They faced typical expansion challenges—deciding who to partner with, where to set up distribution, and whether to use a third-party logistics provider (3PL) or build their own sites. That’s where we stepped in.

What were their initial requirements for distribution and fulfillment?

MC: Initially, they planned to launch a single distribution center (DC) in California because their ocean containers were coming through the Port of Long Beach. They were considering either setting up their own site or using a 3PL in California.

When they came to us, they were still figuring out their long-term U.S. distribution footprint. They had a D2C website, B2B relationships, and were routing a lot of sales through Amazon Fulfillment and retail partners.

Instead of just meeting their initial requirements, we challenged them with a broader question: What if we could give you more? We proposed a bi-coastal distribution strategy—giving them a footprint on both coasts with minimal additional effort or capital expenditure (CapEx). This approach allowed them to stand up a multi-DC network in months rather than years, completely transforming their expansion plan.

2. Designing the Solution

Why was a bi-coastal approach the right move?

MC: The traditional approach would have been to start in one location (California) and expand slowly. That could take years. By setting up two distribution centers at once—one in California and one in Florida—we provided:

• Faster delivery speeds by reducing transit times on both coasts.

• Lower transportation costs by positioning products closer to customers.

• Diversified supply chain risk with multiple port entry points, minimizing exposure to macroeconomic risks like port congestion, tariffs, and geopolitical issues.

This setup gave them instant scalability without locking into long-term leases or building their own facilities.

Were they targeting a specific region, or was this designed for national coverage?

MC: Initially, they didn’t have strict requirements for national coverage. They were just getting started. But we helped future-proof their network by analyzing their potential needs.

The first two locations—California and Florida—offered strong East and West Coast coverage. To truly compete with top-tier fulfillment models, we’re adding a third DC in Kansas. This third location is a game-changer, extending their two-day delivery coverage to 97-98% of the U.S..

How was the distribution model designed?

MC: We considered several factors:

• Port locations: Where is inventory entering the U.S.?

• Customer demand concentration: Where are their key customers located?

• Delivery speed goals: What experience do they want to provide?

• Scalability: Can they adjust their network quickly as demand grows?

We knew that three locations—California, Florida, and Kansas—would give them near-complete U.S. coverage for two-day delivery. What makes our model unique is its flexibility. As their business evolves, we can adjust their distribution footprint in real time, optimizing costs and delivery performance.

Why was forward deploying nine months of inventory necessary?

MC: With today’s geopolitical landscape, companies are cautious about tariffs and trade policies. A new administration can create uncertainty around costs. Our client wasn’t alone—many companies were asking: “How do we get ahead of potential tariffs and avoid overpaying?”

They initially thought they needed to lease their own facility. But we had the capacity in our network. We told them:

“You don’t need a new lease. You can forward deploy inventory within the Kinimatic network—immediately.”

That completely changed their approach. Instead of signing a long-term lease in California with high square footage costs, they used our flexible, pre-integrated network. We distributed their inventory across multiple locations without additional CapEx.

How does geopolitical uncertainty impact supply chain planning?

MC: Supply chains are facing constant disruptions—tariffs, port strikes, extreme weather. Last year, there were 37 major incidents, up from 17 the year before. Companies need the ability to pivot within a 3-6 month cycle, or they risk falling behind.

Kinimatic offers built-in flexibility. If a region is at risk—due to geopolitical issues, natural disasters—we can shift inventory proactively. We’ve seen this play out during hurricane season in the Southeast, where rigid networks couldn’t adapt. Our clients, however, had contingency options ready to maintain continuity.

3. Implementation Timeline

Are you only handling their warehousing, or are you also managing transportation?

MC: We handle everything from port to doorstep. Our strength lies in end-to-end supply chain execution, including:

• Transloading and drayage (moving goods from ports to warehouses).

• Freight and last-mile logistics (delivering products from warehouses to customers).

• A centralized control tower (WareView) that integrates all these elements seamlessly.

Instead of just offering software or warehousing, we provide a comprehensive logistics solution, allowing companies to scale quickly and cost-effectively without managing the complexities themselves.

How long did implementation take?

MC: In this case, we started in September and had the first containers hitting the dock by mid-November. Integration into WareView was completed two weeks after that. So, in about two to two-and-a-half months, they were fully operational.

The timeline breaks down into:

• 3-4 weeks to finalize the warehouse network.

• 3-6 weeks to integrate the client’s software systems with ours.

Do clients typically visit warehouses before launching a project?

MC: It depends. Some clients prefer to visit the sites in person, and we encourage it. Site visits build confidence in the facility and operations. It’s a chance to connect face-to-face in a business that’s still relationship-driven.

Once they’ve worked with us and trust is established, they’re more open to site selection without physical visits. But initially, it’s crucial to see the operations firsthand.

4. Challenges and Learnings

Were there any surprises or lessons learned from this project?

MC: Honestly, this project went smoothly. One challenge we faced was the unique requirements for the client’s inventory—compressed gas and batteries, which require specific certifications. Finding the right facilities was key.

Overall, it reinforced the importance of a network with diverse capabilities. It allows us to say “yes” more often than “no,” which is something I’m proud of at Kinimatic.

Were there any bottlenecks in the supply chain?

MC: The main improvement was in final mile delivery costs. Initially, their plan would’ve put most deliveries in Zone 6 and Zone 8, the most expensive zones. By expanding to multiple DCs, we reduced this to Zone 4 and Zone 5, saving them 20-25% on final mile costs.

For their Fulfillment by Amazon (FBA) shipments, our network made a big difference. Many companies can’t afford premium FBA tiers. By having inventory spread across multiple DCs, we reduced those costs significantly.

How do you address concerns about relationship management in a distributed network?

MC: That’s a common concern. People often think they’re adding an extra layer between themselves and their products.

When companies evaluate their options, they consider: Do I build my own site? Outsource to a 3PL? Or use a distributed network? Traditionally, a direct 3PL relationship offers more control, but you’re locked into one provider, one integration, and one footprint. If you need to shift locations, you end up juggling multiple systems and relationships.

With Kinimatic, we simplify everything. We offer:

• One contract, one integration, one point of contact.

• A managed network where we handle all the relationships.

• Full transparency—clients have complete access to their inventory and can engage with the teams on the ground.

If something goes wrong—pricing changes, operational issues, or the need to pivot—we handle it. Instead of weeks of negotiation, we can shift them to a new facility in a matter of weeks, with zero effort on their end. This flexibility is why more companies are turning to a 4PL model like ours.

5. About Kinimatic

How do you optimize network design for clients?

MC: We’ve built tools that allow us to map a client’s destination zip codes and overlay them with existing and potential origin points. This helps us identify the most optimal distribution footprint for their needs.

That said, after years of doing this, we know where the “triangles of success” are for distribution points. The process is streamlined because we already understand the best locations for different requirements. Our system allows us to provide clear feedback on how to optimize their network and scale effectively.

How does your platform prioritize the user experience?

MC: That’s a key focus for us. Most supply chain platforms are designed for operators—the people working in warehouses or managing transportation. But we’re building WareView for supply chain planners—the people who need to manage the whole system.

By focusing on user experience, we aim to provide clients with better insights and feedback, so they can make informed decisions about their supply chains. The ultimate goal is to give them a clear view of the entire chessboard and help them make smarter moves.

Are you planning to enhance your capabilities in areas like transportation management?

MC: We’re still a few months away from rolling out final-mile transportation management system (TMS) optimization and parcel optimization features. While we’re already integrated with systems that handle final-mile logistics, we’re working on bringing even more visibility and control into that process.

The exciting part is the data. By collecting information from factory to doorstep, we’ll be able to use predictive analytics to give clients proactive advice. For example, if we see them scaling rapidly, we can help them plan their next steps in real-time. That’s where this gets really fun.

How does your system integrate with partners’ existing tech?

MC: Unlike some platforms that impose their tech on warehouses, we trust our partners to use their own systems. We integrate directly with their warehouse management systems (WMS), ERPs, and other tools, so they can continue working within the ecosystem they’re familiar with.

Our platform acts as a control tower, consolidating data from over 400 integrations into a single dashboard. This approach eliminates the need for operational changes within the warehouses, while still giving clients full visibility and control over their supply chain.

What’s next for Kinimatic?

MC: We’re excited to keep growing and showing the industry that there’s a better way to scale supply chains. Forums like this are a great way to share use cases and highlight what’s possible. Our goal is to continue helping brands see that they don’t have to figure everything out on their own.

We offer both an amazing tech platform that centralizes control and the execution capabilities to make supply chains faster, more efficient, and more agile. As we keep refining our offerings, the combination of data, analytics, and execution will only get stronger.

My Top Takeaways & Action Steps

A bi-coastal, tech-integrated fulfillment network might sound complex—but for companies expanding into the U.S., it’s becoming a faster, lower-risk alternative to traditional warehousing.

Here are key lessons from this case study that can help you optimize your distribution strategy and cut costs without sacrificing flexibility.

Don’t Get Stuck in the “One Warehouse First” Trap

The Problem: Many brands entering new markets default to a single fulfillment center near their primary entry point—whether it’s a key port, a major distribution hub, or a central location. 

While this may seem like the simplest option, it often leads to higher shipping costs, slower delivery times, and logistical bottlenecks as demand grows.

A Smarter Approach: Instead of committing to one location and expanding slowly, brands can start with multiple fulfillment centers from day one. This approach provides:

• Faster delivery times across a wider region.

• Lower transportation costs by reducing long-haul final-mile deliveries.

• Built-in redundancy in case of supply chain disruptions.

Try This Instead: Before committing to a single fulfillment hub, run a network analysis based on where your customers are and where your shipments originate. A distributed fulfillment strategy may deliver better results from the start.

Expansion Doesn’t Have to Mean Massive Upfront Costs

The Hesitation: Many companies assume scaling their fulfillment network requires major CapEx investments—leasing warehouses, hiring teams, setting up infrastructure.

What This Case Study Proved: Companies can scale without the usual fixed costs by leveraging existing fulfillment networks. This allows you to:

• Add warehouse capacity in weeks instead of months.

• Avoid long-term lease commitments in uncertain markets.

• Move inventory dynamically based on customer demand.

The Big Takeaway: Expansion doesn’t have to mean buying more real estate—it can mean tapping into a flexible fulfillment network.

Why Forward-Deploying Inventory Isn’t Just for Peak Season

What Happened: The brand in this case study needed to move inventory quickly into a new market—but with economic uncertainty and potential cost increases, they also needed to store large quantities without committing to new warehouse leases.

The Solution: Instead of signing a new lease, they used an existing fulfillment network to distribute inventory across multiple locations. This provided:

• A way to hedge against unexpected cost increases (tariffs, supply chain disruptions, local economic shifts).

• The flexibility to reposition stock dynamically as demand evolved.

• Faster fulfillment speeds without additional infrastructure investments.

The Lesson: Forward-deploying inventory isn’t just for peak seasons or holiday surges—it’s a proactive strategy that protects against economic and supply chain volatility.

Managing a Distributed Network Without Losing Control

The Concern: “If I don’t own the warehouse, do I lose visibility and control?”

The Reality: A 4PL model (where a logistics provider manages multiple fulfillment relationships) can simplify operations rather than add complexity. This model provides:

• One contract, one integration, one dashboard for all fulfillment locations.

• Direct access to inventory data and warehouse teams.

• The ability to quickly pivot if costs, regulations, or customer demand change.

How to Make It Work:

• Define your non-negotiables. What do you need from your fulfillment network in terms of speed, cost, and service levels?

• Ensure full visibility. Your logistics partner should provide real-time data on inventory movement, carrier performance, and cost fluctuations.

• Keep flexibility top of mind. Long-term leases limit your ability to pivot when market conditions shift.

The Bottom Line: Build for Agility, Not Just Efficiency

What worked five years ago—long-term 3PL contracts, fixed distribution hubs, and static fulfillment models—is starting to break down.

The companies succeeding today are those that:

• Prioritize flexibility over fixed infrastructure.

• Design for future demand, not just current sales.

• Leverage networks instead of building everything themselves.

One Small Step to Take Today

Run a network cost analysis. Map where your customers are and how much you're spending to reach them. If you’re relying too much on long-distance final-mile deliveries, it might be time to rethink your fulfillment model.