e-Stamp tries e-logistics

By Staff -- Modern Materials Handling, 1/1/2001

Buying postage over the Internet seemed like a great Web idea, until sales proved otherwise. E-Stamp Corp., (Mountain View, Calif.) a leading provider of secure Internet-based transactions, worked for 5 years to be the first company approved by the Post Office to sell postage over the Internet. Now, since that business plan didn't work as expected, the company has shifted its focus to Web-based shipping and logistics solutions.

Making the move took most of 2000 and is now complete. The decision to move into Web-hosted software solutions was made in the first quarter. In the second quarter it acquired two companies in the new arena. Automated Logistics Corp. (Silicon Valley, Calif.) focuses on systems integration and implementation in the enterprise shipping market. Infinity Logistics Corp. (Silicon Valley, Calif.) provides advanced e-commerce and supply chain solutions.

Automated Logistics has a successful track record in enterprise shipping and supply chain management. They also bring an established base of more than 200 customers, including Sony, Oracle and Philips.

Infinity brings to E-Stamp an enterprise shipping solution, DigitalShipper.com, that integrates UPS, RPS, FedEx, USPS, and most major small package and freight carriers into one Web site that compares shipping rates and delivery schedules.

Another Infinity product is e-Warehouse, a warehouse management system with receiving, inventory, reporting, and shipping functionality.

Bo Ewald, president and chief executive of E-Stamp, says there is a big advantage with e-Warehouse because it "enables people who use the Web to keep track of what's going on with their business."

With these acquisitions, E-Stamp became positioned to help customers use the Web to streamline their critical business processes from inventory management to warehousing and delivery.

In the third quarter, 40% of the company's revenue was coming from the shipping and logistics business, says Ewald. As a result, the company has now moved away from its stamp business. As part of the shift, E-Stamp has pared its staff 30%, and plans to rename the company. For more information, visit www.e-stamp.com .