Chain Reaction: Kate Klemmer Terry of Outerspace on Navigating Consumer Needs and Demand Spikes
Andre Claudio
4 min read
Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Kate Klemmer Terry, chief commercial officer at Outerspace, discusses how the third-party logistics (3PL) company helps streamline operations and improve flexibility throughout the supply chain.
Kate Klemmer Terry, Chief Commercial Officer, Outerspace
Outerspace’s clients include mid- to high-end e-commerce brands across fashion, beauty, luggage, premium pet accessories and more that are looking for a collaborative partnership with their 3PL. We’re proud to work with amazing brands like State Bags, Hill House Home and Ogee.
We help high-growth consumer brands elevate the post-purchase experience—from personalized touches to premium unboxing and seamless returns. We have seen firsthand how important this is to maintaining brand integrity, confirmed by our first-ever data report, “The State of Brand Loyalty: How the Post-Purchase Experience Influences Online Shopping,” which explores what transforms casual shoppers into loyal customers and how logistics partners play a crucial role in this journey.
What are the main things brands and retailers could do (or stop doing) right now that would immediately improve logistics?
Brands should stop feeling pressured to offer free or ultra-fast shipping, especially for premium goods. Data shows these perks aren’t as critical as they may seem; consumers are generally willing to wait five to seven business days for non-essential items like home decor (30 percent), jewelry (29.7 percent) and apparel (25 percent). Instead, they should focus on creating a thoughtful, brand-centric approach that resonates with their audience. While fast shipping matters, it’s just one piece of a much bigger puzzle when it comes to customer satisfaction.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
With how consumers discover products today—especially through social media platforms like TikTok and Instagram—brands are always at risk of a viral moment, which can lead to thousands of orders overnight.
It’s exciting, but also a massive challenge if your logistics aren’t set up for it. We collaborate with brands to ensure their inventory systems are flexible and scalable. Given the nature of today’s sales dynamics, brands might find themselves sitting on inventory for weeks or months, only to suddenly face the need to fulfill 100,000 orders in a very short time. We employ a rapid turnaround process known as “drop zone warehousing,” where products come in, are taken off containers and placed into temporary locations. Scaling to spikes is also about labor management, not just drop zones. We maintain a strong base of full-time employees, which provides experienced talent that can flex as needed. By cross-training teams across various brand processes, we ensure we’re always prepared to handle surges effectively without compromising quality.
What area of logistics isn’t receiving the industry attention it deserves?
Shipping costs are still a major pain point for brands, representing 65-70 percent of fulfillment fees—and even more when returns are included. With major carriers planning changes to boost profitability, the future of free shipping and returns is uncertain. Since 57 percent of consumers say easy returns are key to repeat purchases, brands may need to adjust pricing to cover these rising costs. Slowing ship speeds and tightening criteria for free shipping and returns can help, but major carriers still have a stronghold in pricing. Partnering with a 3PL that offers negotiated rates and rate shopping is crucial for brands when it comes to improving margins and keeping shipping options flexible.
What is your company doing to make the movement of goods more sustainable?
Sustainability is always top of mind, and we’re always pushing to make our processes eco-friendlier. A big focus for us is improving the returns process. With more consumers shopping online, returns have become a massive part of logistics and a pain point for brands.
We’ve designed a high-touch returns system that aims to refurbish and reintegrate 97 percent of returned products back into inventory, ensuring they don’t go to waste. For unsold inventory, we do everything possible to recycle or repurpose them. Our goal is to keep these items in circulation and out of landfills.
Are you optimistic about the state of supply chains in the next few years?
Yes, I’m very optimistic. We’re seeing real advancements in technology across the industry, from machine learning and automation to real-time data analytics. Now that we’re moving more into a post-pandemic era, we’re gaining a clearer understanding of consumer needs and preferences. The haze that once clouded data around what customers truly want is lifting, allowing brands to make more informed decisions. This newfound clarity is vital for creating more resilient and responsive supply chains that can adapt to ever-changing market demands. As businesses continue to integrate these technologies and insights, I believe we’ll see the emergence of more agile, efficient and customer-centric supply chains.
