UPS rolls out on-demand U.S. fulfillment network geared towards B2B e-commerce

Global transportation and logistics bellwether UPS announced today it has rolled out a new technology company and digital platform focused on matching available warehouse space and fulfillment services geared towards merchants shipping online orders to their customers quickly.

Entitled Ware2Go, UPS said that this new offering leverages its various custom e-commerce solutions for both small- and medium-sized shippers.

“Ware2Go uses innovative online technology to match excess warehouse and fulfillment capacity with merchant demand to provide transparent inventory, order fulfillment and final delivery,” said Scott Price, Chief Transformation and Strategy Officer, in a statement. “We’re solving for two major problems: speed to market and efficient warehousing.”

A UPS spokeswoman told LM there were various drivers that led to the rollout of Ware2Go, specifically what she called a void in the B2B e-commerce market.

“Small and mid-sized businesses often cannot afford to buy multiple distribution centers and warehouses often have unused capacity but cannot go looking for customers across the country,” she said. “UPS has a phenomenal opportunity to help this underserved market (connecting SMBs with Warehouse space and a full suite of delivery services) – there’s a $26 billion market for on-demand warehouse space.”

UPS initially started the process for rolling out Ware2Go earlier this year with the help of BCG Digital Ventures, a company that specializes in co-creation and incubation of new opportunities for large companies.

The types of merchants using Ware2Go, according to UPS, are those selling online mainly to other businesses and need fast, consistent, time-in-transit for shipments, and have few distribution centers and could benefit from additional warehouse space for rent in different parts of the United States.

What’s more, the introduction of Ware2Go comes at a time when various research reports have pointed to how going back to the end of the recession warehouse space demand has exceeded available supply. And UPS noted that rate growth in tandem with e-commerce growth, has resulted in a shifting from large centralized sites to localized facilities across several major markets.

When asked what the biggest benefits of Ware2Go are for UPS customers, the spokeswoman cited speed to market and warehouse efficiency.

“Merchants who aren’t big enough to open multiple distribution centers still need to get their merchandise to their customers quickly,” she said. “At the same time, warehouses throughout the country have extra capacity and are seeking new customers to fill their space. Ware2Go provides the platform to match merchants to warehouse and fulfillment providers and provide an end-to-end order to delivery experience. Customers can quickly and routinely position inventory in locations where they need to serve their customers. They only buy warehousing and fulfillment space as they need it.”

The spokeswoman added that Ware2Go represents a new approach by UPS to match the need for warehouse space and on-demand fulfillment services.

“With Ware2Go customers can now take advantage of much more flexibility and efficiency with no minimums or long-term commitments,” she said. “This puts UPS in the position of matchmaker, connecting business with under-utilized warehouse space and a full suite of services. It’s a turnkey opportunity for B2B e-commerce.”