Insights from Ware-Pak’s Vice President Matt Kurtis
E-commerce and digital retail are among the fastest-growing industries in 2025 with new brands emerging almost daily offering hot new products consumers want to buy. As e-commerce business continues to grow, fulfillment centers must also evolve or risk being left behind in today’s world of rapidly changing technology and automation. We sat down with Ware-Pak’s Vice President, Matt Kurtis, to discuss the future of e-commerce fulfillment and emerging trends for 2026 and beyond, as well as how Ware-Pak continues to lead the way in investing in technology, creating custom solutions, and continually offering new services that brands want.
Q: How does Ware-Pak plan for long-term growth in a rapidly changing logistics landscape?
MK: We are investing heavily in technology, experimenting with all types of AI, creating a custom approach to our customers, and most importantly, listening to their needs. Our customized solutions set us apart in the industry – we’re not a one-size-fits-all 3PL like many others. Ware-Pak is a partner not a just a vendor; when our customers grow, we grow.
Q: It’s great that you are investing in technology. You mentioned AI, which is a huge buzzword everywhere right now. What types of AI and other technologies are making the biggest impact in fulfillment right now, and how is Ware-Pak incorporating these into its operations?
MK: Currently we are using AI tools to assist in our IT department, which has been a tremendous help in eliminating tedious tasks. We have also used AI to improve our debugging practice, troubleshoot broken code, re-map old coding language to more modern, efficient code, and drastically improve our overall development time. AI is being integrated into our sales and marketing department, which has been very helpful with SEO efforts, content creation, website analytics, and improving our consumer-facing education.
This education is not just about sales and marketing. It’s helping us find the right type of client so we can build mutually beneficial, long-term relationships, and set both businesses up to achieve success together. Ware-Pak is not about chasing dollars, we are about long-term growth, low client and employee turnover, and creating an organization that gets stronger year after year.
We are also currently looking into how our WMS can deliver AI to assist with more efficient workflow in our operations. More efficient workflow means greater results and reduced labor, which in turn reduces costs to our clients.
Q: In the current state of the fulfillment industry, what trends are you watching most closely as VP of Ware-Pak?
MK: One of the first trends, which isn’t necessarily new but has gained a lot of traction over the years, is brands moving from in-house to outsourced fulfillment operations. Brands start doing fulfillment on their own and grow. Next thing they know, they can barely keep up with orders and fulfillment requirements, not to mention customer service, creating new products, marketing, etc. They usually end up in a dire position and their overall customer experience suffers. This is when they start looking for the experts to help, and fast!
One of the most interesting trends as of the last 15 months or so is brands trying to move direct-to-consumer business away from Amazon. What was once a sign of making it to the big commerce world has shifted. Brands are pulling back and attempting more D2C commerce directly from their own website. They can still list products on Amazon using FBM or Seller Fulfilled Prime, but this way, brands maintain full control of their margins and inventory, and most importantly, interact directly with their consumers.
Q: How are these trends affecting your current clients?
MK: We are moving new customers into our warehouse and on-boarding brands faster than ever before because we are getting better at finding solutions. Each new brand moving to Ware-Pak that was performing their own fulfillment provides us with new opportunities for growing our service offerings. Every time we solve a new problem for a new customer, we have also just created a new service for our existing customers, which is beneficial to both Ware-Pak and our clients overall. What once took several weeks is now being done sometimes in days. This allows us to help potential new customers get out of bad-fit situations more quickly, which benefits both new brands and existing customers. Because of our willingness to find and tailor solutions for new customers and add new services, in 2024 nearly all Ware-Pak customers were able to save on fulfillment costs by doing absolutely nothing except be a customer of Ware-Pak. Complacency is the beginning of the end. The best way to see the future is to build something new, learn, develop, and reinvent yourself over and over.
[Ware-Pak’s] customized solutions set us apart in the industry – we’re not a one-size-fits-all 3PL like many others. Ware-Pak is a partner not a just a vendor; when our customers grow, we grow.
Q: With constantly evolving tech, do you think that human decision-making within operations can ever be replaced with technology?
MK: I think at a low level, some human decision-making as it applies to operations can be replaced with technology in the form of automation. When you have simple solutions with parameters for an error, there isn’t much critical thinking required. Human interaction as it is currently can still lead to a poor consumer experience, while automating certain tasks can elevate consumer experience. I see how this could create a lot of efficiency within an organization. The critical thinking comes when deciding what parts of the customer experience can be automated and which ones need to be handled by an actual person, as people generally prefer to work with people and not machines.
Q: Along that same thought, how does Ware-Pak ensure that technology enhances, but doesn’t replace, the operations of your customer service department?
MK: Whether you are a fan of AI or not, it will be a brilliant technology and it will take over many tasks. That said, AI cannot replace human engagement, emotion, or decision-making as you mentioned in your last question. Would AI ever be able to say, “Wow, this brand has really had a run of bad luck for all sorts of various reasons, even unrelated to their fulfillment. I think we need to go the extra mile here and give them a boost?” No, that will not be happening. No matter how robust it becomes, AI will never be able to be empathetic to brands about their current pain points, their previous experiences, their future needs and most importantly, what they are truly feeling and what they need emotionally. Humans will continue to face this problem; thankfully there are many with this specific trait and they can be very good at it.
Q: What is your prediction on what the fulfillment industry will look like five years from now? How is Ware-Pak preparing today for what clients will need tomorrow?
MK: To be clear, I really think that five years out at this day and age is difficult to identify. Technology is officially growing at paces never seen before, and I believe this will continue exponentially over the next five years. I believe overall you will see a lot of consolidation within the industry over the next five years which will change the overall industry.
That said, I foresee there being 3 primary markets in the fulfillment industry.
- The first is nearly fully automated facilities; I would refer to them more as a cookie-cutter style fulfillment operation. There is no real flexibility, orders go in and ship out in one fashion and brands will have to adhere to the services offered and specific guidelines, and that’s it.
- The second will be more of an Amazon/Distributor style fulfillment operation. Again, this model will offer a more off-the-shelf operation that brands will have to adhere to. In this market, I foresee products being able to be sold together from different companies much like how you shop on Amazon. I also foresee Amazon continuing to grow into the overall fulfillment market. They are a huge player in today’s e-commerce world and that just isn’t going away any time soon.
- The third is a Ware-Pak type model. I see a hybrid of AI and automation with a tailored service where brands can keep and maintain their identity. I see this model promoting what makes each business successful so they can maintain their brand, customer experience, and have many service options available to meet their needs.
All of these will offer pros and cons, and brands will need to identify what is best for their overall needs.
Q: What excites you the most, personally, about where the industry is headed?
MK: I think this is an industry set up for continued growth for a very long time. I also think there will be a new wave of small business popping up with a lean business model and one that leverages technologies. I personally feel we are on the cusp of a modern industrial revolution that will be fed by technology and AI. I think it will be an excellent opportunity for companies to seize the moment and create unique business that will be great for consumers and the economy.
Q: What is one lesson you’ve learned in your time at Ware-Pak that you think every logistics leader should know?
MK: Always expect the unexpected. Nearly every new customer move-in is unique in some way, there are always unforeseen challenges. The important thing to remember is to work together, listen to the needs of the customer and develop a plan that will work well for all parties. This will strengthen your relationship more than if you had an effortless and near “perfectly expected” move-in. Many times, you will also find that you end up creating new services and new solutions because of this. This is also true for the day-to-day operations; every day in this industry you start over. There will always be another rush, a new situation after you’ve been convinced you’ve seen it all, and it truly keeps you on your toes.
Q: What advice would you give to any new brands or startups that are preparing to outsource fulfillment for the first time?
MK: You really need to do your homework. In 2025 there are an estimated 72,235 third-party logistic companies in the U.S. alone – that’s an average of nearly 1,500 per state. At any given location in the U.S., you can essentially throw a rock and bounce it off the wall of a 3PL. This is great for brands to have so many options, but it also means that you really need to understand what you’re looking for. Not all 3PLs are created equal by any means. You need to ask yourself, where is my business right now, and what do I want my business to look like in the future? What solutions do you need to get there?
You also need to understand their KPI’s and make sure they are suitable for your needs. Is their location in a great spot for your consumers? Here are some of my favorite questions brands should ask potential 3PLs that I feel are often overlooked:
- What is the turnover of your employees?
- What is the average tenure of customers?
- Is the business financially stable? Is it owned by private equity?
- Is the business under any open litigation?
If they can’t take care of their employees long-term, they probably also won’t take care of your account in the long-term. If their average customer tenure is less than 3 years, that is a bad sign. Financial stability is huge; I have seen so many companies go out of business, leaving their clients high and dry to figure out what to do with very little time to plan. Private equity? Be cautious, as there is one primary goal of PE-owned business. Litigation can certainly be a red flag. Check Google and other relevant sites for actual reviews from customers, freight drivers, and employees – how are all of these people treated?
Contact Ware-Pak’s sales team directly to learn more about outsourcing fulfillment at sales@ware-pak.com. Or, check out our other recent blog post, “An E-Commerce Success Story” about how we helped an artist protect his brand and margins by partnering with Ware-Pak.