OPERATIONS

UPS subsidiary ups SMB offerings in struggle against Amazon

BY Dan Berthiaume

The nationwide on-demand fulfillment platform Ware2Go is putting more power in the hands of its small-to-midsized business (SMB) users.

Ware2Go, a subsidiary of UPS that enables one-to-two-day shipping across the US, is releasing a new suite of self-service supply chain optimization tools aimed at SMBs. The self-service integrated toolset includes a demand forecasting module that combines macroeconomic factors with seasonal trends and historical sales data to more accurately project order volumes, as well as a warehouse network optimization module that identifies optimal warehouse placements based on historical and projected customer demand.

Other new self-service tools include an inventory-level optimization module and service-level performance insights that provide access to supply chain data such as real-time inventory levels, SKU velocity, order trends, fulfillment accuracy, and delivery speed.

“We are leveling the playing field by providing businesses of all sizes visibility and operational insights to guide decisions and optimize their supply chains,” said Patrick Cadic, VP of sales & marketing for Ware2Go. “By putting our customers in control of their fulfillment processes, we’re helping them improve their distribution networks, compete at scale and grow their businesses.”

Ware2Go is attempting to make delivery easier for SMBs as Amazon is increasingly establishing itself as a direct-to-consumer shipper for SMB third-party sellers on Amazon Marketplace. According to Amazon, it has launched 150 tools and services for small businesses so far in 2019, including a Target Inventory Levels tool designed to help selling partners obtain better insights into their fulfillment by Amazon (FBA) managed inventory. Achieving suggested inventory levels increases one-day delivery eligibility and qualifies selling partners for lower storage fees.

In addition, according to a recent report from TJI Research, a service known as “Amazon Shipping” is bypassing Amazon fulfillment centers entirely. Select Amazon sellers can directly print Amazon shipping labels from their dashboards, with Amazon picking up packages every weekday and delivering them to domestic consumers seven days a week.

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