ations. Company leaders
began to worry that rising
volumes would overtax the
capabilities of the startup’s
seven-person staff. They
were also growing increasingly concerned about the
company’s ability to meet clients’ service expectations. At
the time, Holistic Hound was serving the entire country
from a single warehouse in California. Shipments to East
Coast customers were taking four to five business days—far
longer than the one- to two-day transit times offered by
competitors using local DCs.
It was clear the company needed help with fulfillment. So
in December 2018, the firm contracted with Atlanta-based
Ware2Go, a division of UPS Inc. that provides on-demand warehousing and third-party logistics (3PL) services,
Holistic Hound Co-Founder and CFO Duncan Schmidt
said in an email.
By March 2019, Ware2Go had replaced the single California
warehouse with facilities in Utah and Pennsylvania, and
positioned inventory near both coasts, keeping stock as
close to end-customers as possible. Ware2Go now manages
all business-to-business (B2B) pick, pack, and shipping
operations on Holistic Hound’s behalf.
FASTER SERVICE, LOWER COSTS
As for how it’s all working out, company leaders say they’re
pleased with the results. According to Schmidt, the new
approach has enabled Holistic Hound to provide one- to
two-day service to more than 70% of its customers—up
from just 30%. At the same time, it has produced a 30%
reduction in shipping expenses—primarily by cutting the
distance shipments travel. Those savings have offset the
cost of adding a second warehouse to Holistic Hound’s
network and also kept it from having to hire additional
fulfillment employees, he said.
Instead, the firm has invested in its manufacturing
operations, driving growth through new partners and
sales channels, and expanding its product line, Schmidt
said. Holistic Hound is planning to roll out new products
in 2020 and is also looking at opening a third fulfillment
center this year to expand two-day delivery service to 99%
of its customer base.
So as you celebrate the Fourth of July this summer, take
a moment to notice if your four-legged neighbors seem
quieter than usual. If so, you may have Holistic Hound—
and the speedy service provided by its fulfillment partner,
Ware2Go—to thank. ;
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Release the hounds
California supplier of CBD-based supplements for dogs turns to an on-
demand warehousing provider to boost service to customers nationwide.
MOST AMERICANS SEE THE FOURTH OF JULY AS A
chance to enjoy a barbecue and watch fireworks. Pet owners, however, know there’s a dark side to the holiday, as the
noise from exploding fireworks can be terrifying for dogs,
turning them into barking, incontinent messes.
One Berkeley, California-based startup says it has found
a solution in legalized marijuana. In 2016, the company,
Holistic Hound, launched a line of supplements and chews
containing ingredients such as cannabidiol (CBD) and
cannabigerol (CBG), as well as other natural remedies such
as hemp and mushrooms. Although the treatment might
sound unorthodox, early results indicate that “high” dogs
cope better with loud noise as well as chronic pain, according to the company, online pet forums, and even a trial of a
similar product by this reporter on his own dog.
As word got out, sales soared. By late 2018, the small firm
was supplying CBD products to more than 1,800 wholesalers and pet stores nationwide. But as is often the case, the
growth was putting a strain on the firm’s back-end oper-
