In 2021, e-commerce sales reached a new high of $5.2 trillion worldwide, despite disruption and supply chain challenges caused by the COVID-19 pandemic. Moreover, sales are forecast to grow by 56% over the next five years to reach a predicted $8.1 trillion by 2026.
This means that demand for e-commerce fulfillment services will only continue to grow. 3PLs across the country are now faced with the need to keep refining their services and expanding their capacity if they want to continue being leaders in the logistics space.
It’s against this backdrop that Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, has acquired Dotcom Distribution, a provider of omnichannel fulfillment and distribution services specializing in health, beauty, and fashion, as part of its long-term plan to stay at the forefront of supply chain solutions.
As consumers demand ever-faster delivery timeframes, multi-node fulfillment strategies have emerged as a powerful – and increasingly essential – tool to meet customer expectations and prevent shipping costs from spiraling.
Using more than one facility to fulfill and ship orders can seem like overkill to an emerging e-commerce brand. More storage and additional picking space require a more complex fulfillment plan, and far more oversight concerning inventory movements.
Yet putting SKUs closer to your end customers offers some significant advantages, namely being able to access faster, more cost-effective shipping methods. This sets the foundations for more consistent brand experiences, and in turn, higher levels of customer loyalty that safeguard your business against downturns in the marketplace.
And in a post-pandemic world, where brands are acutely aware that unexpected challenges could be right around the corner, multi-node fulfillment provides a streamlined pathway to supply chain resilience:
“When the pandemic took hold back in March-April 2020, we were faced with our online order volumes surging beyond what we would normally handle even during peak season. Ryder E-commerce by Whiplash was able to scale up fulfillment activities at our West Coast location ten-fold within just two weeks, and then scale down just as efficiently when normal patterns resumed in May. Their capacity to meet our newfound needs so quickly has made them an invaluable partner during such a challenging time.”
Robert Hedwall, Manager of Supply Chain and Logistics at SodaStream.
But as multi-node fulfillment grows in popularity, 3PLs are faced with the challenge of finding enough warehouse space to satisfy client demands for strategic, well-resourced fulfillment locations that can scale alongside their business. It’s a race to keep up with demand and continue refining fulfillment workflows with best-in-class technology and expertise, allowing brands to access new markets with confidence.
With the acquisition of Dotcom Distribution, Ryder’s e-commerce and omnichannel fulfillment solutions are now capable of delivering to 100% of the U.S. within two-days and 60% of the U.S. within one day, an impressive feat that reflects its dedication to enhancing its e-commerce fulfillment network.
With the acquisition of Dotcom Distribution, Ryder is building on the success of its prior acquisition of Whiplash in 2021, a leading nationwide provider of omnichannel fulfillment and logistics services that boasted 19 dedicated warehouses totaling nearly seven million square feet of multi-client space. This expansion reflects a new stage of growth for Ryder and its commitment to servicing a greater roster of direct-consumer e-commerce brands.
Thanks to the addition of Dotcom Distribution’s 400,000-square-foot multi-client fulfillment facility in Edison, New Jersey, Ryder is continuing to expand its national footprint and bring in further industry expertise. Their experienced leadership team, including founder and CEO Maria Haggerty and the company’s operations team, totaling approximately 100 full-time employees, will join Ryder to ensure a seamless transition for customers.
“Dotcom Distribution has been doing e-fulfillment since e-commerce was still in its infancy. Maria and her team bring 22 years of knowledge, expertise, and experience in helping customers weather market fluctuations. That’s a big benefit for Ryder,” says Steve Sensing, president of supply chain solutions for Ryder. “This acquisition also affords us the opportunity to expand our e-fulfillment portfolio in new industry verticals in health, beauty, and cosmetics, which is in line with our larger strategy to grow and diversify our portfolio.”
For Dotcom, the acquisition represents a rare opportunity to scale its omnichannel service offerings and maintain an influential position within an increasingly competitive logistics marketplace, opening up new opportunities to access growing brands.
“We chose Ryder for its nearly 90 years of logistics expertise, its sophisticated fulfillment, distribution, and transportation network, and commitment to staying at the forefront of innovation – all of which deliver the speed-to-market, scalability, and elevated brand experience that our customers expect,” says Haggerty.
As e-commerce continues to grow, decentralized order fulfillment strategies hold the key to rapid scaling and maintaining a competitive advantage within the complex retail environment. Brands with a focus on sustainable growth and providing memorable brand experiences will benefit from a nationwide footprint of facilities that put state-of-the-art technology, value-added fulfillment services, and decades of expertise at their disposal.
Thanks to Ryder’s recent acquisition, customers can feel confident that their fulfillment operation has the potential to tap into an even larger network to meet demand and experiment with new workflows that maximize efficiency and cost savings. With 25 facilities located across the United States from coast to coast, Ryder is continuing to invest in its supply chain and bringing sophisticated fulfillment, distribution, and transportation services to emerging and established brands alike.
“We look forward to welcoming Dotcom Distribution’s customers into the Ryder family of brands and capitalizing on the synergies created with the acquisition, as well as the improved scalability, flexibility, and speed-to-market that our omnichannel and e-commerce fulfillment technology delivers,” says Jeff Wolpov, senior vice president of Ryder E-commerce by Whiplash.