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.