An e-commerce logistics firm positions itself for rapid growth

By Verne Harnish

ePost Global, based in Orange County, Calif., handles international shipments for large brands across the country. Founded in 2003, the company was sold to R.R. Donnelley and repurchased by original co-founders in 2020 with the help of a private equity firm Kintsugi Capital Partners. 

At a time headlines are filled with news on tariffs, ePost Global is known for its technology to facilitate cross-border commerce and has built a reputation for deep international shipping experience.

“We stay as close as we can to industry organizations we’re part of,” says Co-Founder and Co-President Kelly Martinez. “We’re well-versed on the downstream effects of what government does and how that could affect cross-border commerce. Our strength is leveraging a variety of routes across regions and geographies to mitigate some of the geopolitical, climate-related and final-mile, carrier-related risks outside our control.”  

Martinez and Co-Founder and Co-President Fabrizio Pep Alvear began working with Scaling Up Certified Coach Jill Belconis in May 2022. At the time, the company was bringing in approximately $200 million in revenue, with about 135 employees. This year it expects $240 million, with triple the profits and 150 employees.  “They demonstrate exceptional leadership, operating with speed, agility, and a forward-thinking mindset,” says Belconis. “They are committed to continuous learning and improvement.”

Here’s how they achieved rapid progress.

Aligning a leadership team  
Soon after the re-purchasing the business, the newly assembled executive team—comprised of individuals from Kintsugi Capital, Martinez and Alvear—realized the group needed to gel quickly to execute the company’s aspirational objectives.  They agreed it would be beneficial to bring in a coach to make sure everyone was aligned. 

“We needed someone who could help us understand the team dynamic, where people’s strengths are, and help us work better as a cohesive team,” says Alvear. “Then we could apply some of those skills and learnings to our new team members.” 

As it prepared for growth, the company hired a head of information technology and repositioned several team members in jobs that were a better fit for them. The IT role was particularly crucial, given that ePost is an asset-light organization that uses its proprietary technology to connect a network of shipping providers instead of relying on company-owned delivery trucks. For that role, the leadership team tapped someone in their network, whom they knew had the needed experience in logistics. 

“Our technology is an important piece of how we operate and how we stay competitive in the space,” says Alvear.

Staying close to industry sources  

ePost Global initially set a Big Hairy Audacious Goal (BHAG) that every international shipment should start with ePost Global. Realizing that might be too amorphous, the company revised it to “Process 200 million cumulative parcels by 2030.”  

“It is a little ambitious because annually we are a little shy of 20 million parcels,” says Martinez. “So, it’s something we can grow toward.”  

To motivate the team, the company developed core values, such as “Strive to be our customers’ ideal partner” and “Create an environment that encourages innovative thinking,” shared in this video.

The leadership team also set quarterly Rocks, or goals, committing to targets at the company level. It then developed Rocks for all departments. “That allowed us to break down our initiatives into more manageable milestones each quarter,” says Alvear. “Also, by sharing the quarterly ROCKS we have been able to better communicate the company objectives and empower our department leaders to focus their teams on priorities that directly support the overall company goals. This shift in communication has given our team more clarity and helped them better impact the organization through their area of expertise.”

Betting on automation  
To improve execution, ePost Global invested in automated technology for its facilities. “It made a big difference in terms of how productive our facilities were and helped drive efficiencies that led to the exponential profit growth,” says Alvear.

Caption: Pep Alvear, co-president

Staying on top of cash  
ePost Global had significantly aged receivables when the current owners acquired it. The company put more formalized procedures in place for collections and to identify red flags in onboarding new customers. “There are enough checkpoints in place so the right people—who can escalate accordingly—are aware,” says Martinez.  

To allow its accounts payable and accounts receivable teams to scale, the company has introduced digital solutions that offer new processes and procedures for reviewing and approving invoices and receiving payment. The company is also working with a partner to achieve better predictability in its exposure across key currencies.

Steps like these helped to improve the cash conversion cycle. This year, the company’s accounts receivable are over 85% current, up from 60% three years ago, Martinez says. Even with interest rates increasing, the company has a revolving balance that’s close to zero. “It’s made a significant impact on cash flow and enabled us to feel more confident about continuing to reinvest into the business,” she says.

With the right systems in place to scale, ePost Global seems well-poised to make the most of market demand—and continue scaling up.