Third-Party Logistics is a two-sided coin of technology and geography. In today’s market, the 3PLs that succeed are those that have the integrated systems for seamless order flow and the global footprint that allows those orders to reach customers in a cost-effective, timely manner. As 3PLs expand to meet this mission, strategic acquisitions and partnerships are a key part of development.

Acquisitions Lead to Advanced Offerings

At the start of 2022, established 3PLs ShipMonk and Ruby Has Fulfillment merged into one ultimate 3PL. As both companies had a strong foundation in technology, the partnership leads to a wider array of integrations and services in areas such as:

• Shopping Carts and Marketplaces that empower brands with stronger eCommerce platforms and flexible cloud solutions designed to foster faster innovation and growth. 

• A Powerful, Unified Software Platform that thoroughly integrates with inventory and order management systems while allowing clients full transparency of the fulfillment process and control over their merchandise.  

• Pick and Pack Systems that combine the hands-on experience of 3PL fulfillment experts and distribution staff with state-of-the-art robotics that ensure orders are packed accurately, quickly, and with care according to our six quality control checks.
  

•  Time-Saving Automation that makes returns, customer service, analytics, and high-caliber data software easily digestible and actionable.

These are just a few types of advanced, technology-backed offerings that get stronger when established fulfillment companies combine to form the ultimate 3PL. On its own, for years ShipMonk has been known for its award-winning fulfillment and warehouse management software that syncs with over 75 eCommerce shopping carts, marketplaces, and solution providers. Meanwhile, Ruby Has was an established logistics company known for a vast partner network, artillery of automation technology, and seamless API integrations. With the acquisition, suddenly you have two great 3PLs coming together to form a mega entity like when you combine different toy mech pieces to create a more epic Transformer. Only instead of a toy robot that can more easily knock down building-block towers, we end up with a logistics company primed to serve growing eCommerce brands with the best technology and services the industry has to offer.

Partners Leave Bigger Footprints

“Man on the Ground” – a reference to having a point person physically at a location where the action is happening as opposed to observing or directing from a distance.

In terms of building a better 3PL, having a “Man on the Ground” mindset means increasing the ability to effectively and swiftly get customers their merchandise by having a physical presence in strategic locations across the globe. When 3PLs with fine-tuned systems partner up, they are able to open doors for clients in terms of reduced delivery times due to geographic advantages related to overcoming border barriers and adapting quickly to meet needs and beat obstacles.

1.) Overcoming Border Barriers

Purchasing online is simple as long as you have a strong Wi-Fi signal and valid credit card. However, as brands attempt to grow their business internationally, oftentimes crossing borders for delivery of goods can bring huge problems. Hurdles include:

• Expensive shipping rates
• Lengthy delivery times
• Local language differences
• Currency exchange rates
• Tax / duty / tariff implications
• Clearing customs
• Fraud and security monitoring
• International returns challenges

Working with a third-party logistics provider that has a physical presence in foreign countries and access to international supply chains gives brands a chance at overcoming these hurdles in a cost and time efficient manner. ShipMonk merging with Ruby Has created a 3PL network of 10 strategic locations worldwide. That is a lot of “Man on the Ground” power, which provides clients with reliable methods for storing, protecting, handling, and shipping their goods to customers. 

2.) Adapting Quickly to Meet Needs and Beat Obstacles

Having the wider footprint that results when 3PLs band together also allows fulfillment providers to adapt more rapidly during difficult times so their clients are still taken care of and can continue to grow. Consider the worldwide shipping crises that initially impacted companies during the onset of Covid, and that still plague different geographies in the aftermath. Covid was met with the dual perfect storm of a huge influx of eCommerce orders paired with the logistics nightmare of inventory shortages, disrupted supply chains, and shipping backlogs. Having strategic locations across the globe is the vital element that helped innovative 3PLs continue meeting their clients’ needs during this time. Acquiring and partnering with each other became a means for said 3PLs to allow clients to grow even further.

Evolving and Expanding

In the last two years, ShipMonk moved into a 332,000 sq. ft. California fulfillment center, expanded its Pennsylvania location to a 260,000 sq. ft. facility, and grew its international presence by acquiring a 120,000 sq. ft. location in Mexico. Meanwhile, Ruby Has Fulfillment (now a ShipMonk company) acquired a distribution center in Kentucky, expanded into a brand-new Las Vegas distribution center that was triple the size of the company’s previous Nevada location, doubled its international footprint in Canada while adding a facility in the UK to support merchants with an expanding customer base in Europe. 

The individual choices of these two 3PLs to acquire new locations and expand into other countries was based on the desire to continue evolving to meet customer needs and eCommerce thresholds. The companies’ decisions to merge into one ultimate 3PL this year only enhances their ability to do that under the ShipMonk name, allowing clients to stress and grow more.

Perfecting the Power of Partnership

The key to being a successful brand is no different than the key to being a successful 3PL. You have to keep an eye on the future and be ready to adapt and pivot every step of the way. Since being founded in 2014, ShipMonk has been a forward-thinking fulfillment partner dedicated to thriving in the present and striving for a stronger tomorrow. This is part of the vital lifeblood of our business, as it is for any eCommerce brand intending to grow in a market that is evolving and expanding at an incredible rate.

Through 2020 eCommerce sales grew by 18.1% in North America and 16.5% worldwide (eMarketer). In the US alone, in 2021 eCommerce amounted to $469.2 billion, an increase from $431.6 billion in 2020 (Statista). And US retail eCommerce sales are predicted to grow 16.1%, reaching $1.06 trillion in 2022 while B2B eCommerce sales are forecast to increase 12% and reach $1.77 trillion (Insider Intelligence forecast).

In order to keep up with and get ahead of this fast-paced eCommerce curve, smart partnerships and acquisitions are a must for the competitive 3PL. ShipMonk’s acquisition of Ruby Has increased our supply network and logistics strength, thus increasing our clients’ growth potential. And this is only the beginning. Growth is not a to-do that can ever be marked complete on a checklist; it is an ongoing initiative. If you’re a business owner you know that, and we’re right there with you. We—like all other thriving 3PLs in the game—will continue to partner with and acquire logistics entities that offer advantageous results in terms of the pivotal factors of technology and geography. We strive to be the guide in the “hero’s journey” for all our clients.

Our 2022 3PL vision is “To become the most innovative and trusted tech fulfillment provider with facilities and solutions around the globe, partnering with the fastest-growing brands and helping them scale through best-in-class fulfillment and software.” But like any hero story, efforts pack a greater punch when you bring in the right heroic teammates. Together, we can combine our powers to take on greater challenges and form the ultimate 3PL.