UPS announced on Tuesday (Aug 28) that a new technology company was being rolled out by them across the United States. Known as Ware2Go, the digital platform will focus on matching available warehouse space and fulfillment services geared towards merchants shipping online orders to their customers quickly.
According to UPS, this new offering leverages its various custom e-commerce solutions for both small- and medium-sized shippers.
“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,” said Scott Price, Chief Transformation and Strategy Officer, in an article published.
“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 (S$35b) market for on-demand warehouse space.”
Merchants who are likely to use Ware2Go, are those business to business (B2B) online sellers who 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 US.
The biggest benefits of Ware2Go will be 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,” Price 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.”
“With Ware2Go customers can now take advantage of much more flexibility and efficiency with no minimums or long-term commitments,” she continued. “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.”