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WARE2GO

WARE2GO

Everything in Its Place

WARE2GO

Everything in Its Place

Bold thinking has transformed countless industries in recent years with online platforms that unite buyers and sellers who might not otherwise have found each other. Consider changes in personal mobility and travel, for example, where for many consumers, services like Uber and Airbnb have taken the place of taxicabs and hotels.

Ware2Go, UPS’s newest startup, applies this approach in an unexpected way, matching available warehouse space and fulfillment services with merchants who need to get online orders to customers fast. The platform solves a number of problems for merchants and warehouse owners alike. Ware2Go primarily targets small and medium businesses, who often fulfill their products out of just one location. They struggle to get their merchandise to customers further out from their distribution centers without dramatically increasing cost or transit time.

Ware2Go not only allows merchants to position products closer to their customers, but does so without requiring volume or time commitments, upfront costs, or long-term contracts, making it easy to add inventory at any time. Merchants only pay for the storage space they occupy, allowing them to flex up or down and more easily align to business fluctuations.

For warehouse managers, Ware2Go provides a new source of customers and revenue without increasing workload. As the Ware2Go team targets and certifies warehouse space, focusing on warehouses that already provide fulfillment services, the team ensures the providers can meet Ware2Go’s performance, quality, and security standards. Bringing on a new customer can be a significant effort for these warehouses. Ware2Go streamlines some of their most time-intensive tasks, such as finding customers and managing relationships, with its cloud-based platform.

A company is born

The innovation process that led to Ware2Go is a perfect illustration of UPS’s transformation journey, touching several of our Strategic Growth Imperatives. In 2017, a small group of UPS employees set out to “think like a startup,” looking at how the business-to-business e-commerce market was exploding and identifying areas within that space that UPS could tap into. One pain point identified was that demand for warehouse space outpaced supply. Small businesses need the benefits of distributed inventory systems to keep up with the demands of e-commerce. The traditional long-term agreements and rate plans were out of reach for many small businesses—and finding warehouse space at competitive rates was challenging. Together, these challenges were a bottleneck to the success of small businesses.

The team suspected that unused warehouse capacity was available—merchants simply didn’t have an easy way to find it. Much like Coyote Logistics allows customers to transport goods using unused freight capacity, team members saw the need for a solution that would help merchants get products to customers while making more efficient use of warehouse space.

UPSers pitched Ware2Go, as well as other promising business concepts, to the UPS Venture Board, a small group of cross-functional senior executives. Ware2Go stood out from the rest, and the full UPS management committee gave the go-ahead in early 2018. A dedicated team of UPS employees worked with BCG Digital Ventures to design and build the business from the ground up, launching commercial operations less than six months later.

How Ware2Go Gets Packages
Where They Belong

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Upload

Merchants provide details about their products using a standard form.

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Match

Merchants are instantly matched with a Ware2Go-certified warehouse that meets their needs.

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Receive and Ship

Goods are sent to the warehouse to build inventory. After a sale, they are sent to customers with two-day shipping.

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Monitor

Merchants can view order status from a convenient dashboard. Ware2Go manages communication and invoicing.

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Helping small businesses grow

Now, both merchants and warehouses can go online and join the platform in minutes. After sharing details about their products, orders, space requirements, and delivery needs, they can start managing inventory and orders across the Ware2Go network. Merchants can see their inventory levels in real time, while Ware2Go handles communication and invoicing on warehouses’ behalf. Ware2Go also provides same day order fulfillment and standard delivery in two days or less to satisfy the requirements of the most prominent e-commerce marketplaces - giving small businesses national reach.

Ware2Go combines startup-level agility with the scale and scope of the UPS® network. And therein is the most important aspect of what Ware2Go provides. “Supply chain and logistics are complex issues,” says Linda Shepherd West, Director of Marketing Research and part of the Ware2Go team. “And it’s not why most small business owners went into business to begin with. The more we can step in and provide expertise and make these tasks more seamless for them, the more time they will have to do what they love. That’s an exciting opportunity for UPS.”

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