Ware2Go is a nationwide fulfillment network that leverages advanced data science to match available warehouse space and fulfillment services with merchant needs for online order delivery. Integrated solutions for storage, pick, pack, shipping, and inventory are dynamic with connectivity to data-driven optimization tools, giving merchants the visibility and power to scale up and down as operational or value proposition needs change.
To ensure quality, Ware2Go recruits and certifies warehouses in strategic locations, establishing a network of vetted fulfillment partners. This saves merchants from researching providers or making long-term volume and time commitments. It’s all part of UPS’ larger mission to simplify nationwide fulfillment and help growing businesses optimize their logistics to stay competitive, scale, and grow.
BCG Digital Ventures identified the opportunity to leverage UPS’ formidable suite of existing assets to build the world’s largest and most intelligent warehousing and fulfillment network incorporating solutions specific to the needs of business-to-employee (B2E) e-commerce.
By speaking with market participants and analyzing market dynamics, Digital Ventures identified the main pain point for merchants and warehouse operators: merchants need rapid fulfillment capability with proximity to their buyers, but most find regional or even local warehouse options cost-prohibitive.
At the same time, large numbers of local, geo-focused warehouse operators needed to fill their space but had limited sales capabilities. An “on demand”–style platform connecting the two parties was identified as a potentially effective solution, coupled with data science tools enabling optimization decision support.
Ultimately, the north star became simplifying the commerce supply chain so merchants of all sizes can compete and grow.
In August 2017, Digital Ventures ran an innovation sprint with UPS focusing on B2B e-commerce. The innovation phase kicked off with more than 100 high-level concepts. Market research, ethnography, in-market testing, surveys, and other methodologies were conducted.
Narrowing the Candidates
Ten ideas were presented to the venture board, and four candidates were refined into proposals for a second sprint. Further vetting resulted in two opportunities being incubated in December 2017, with the Ware2Go opportunity emerging.
Launching the Venture
A joint multidisciplinary team representing both Digital Ventures and UPS built Ware2Go and launched it as a stand-alone company in July 2018.
The Impact Realized
Leverages warehouse and SKU placement data via NetworkVu and InventoryVu to match warehouses with inventory for the right client outcome
65% of merchants reported an increase of up to 25% in conversion rates when one- to two-day delivery was offered
Of merchants found a fast-shipping promise to be the most effective tactic to increase cart conversion in both B2B and B2C e-commerce
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