Consumers want their parcel faster, but not every company has the kind of supply chain technology like Amazon or Walmart.
This is, so far. Shipium was founded in 2019 by a group of former Amazon Prime and Zulily supply chain builders. In particular, Jason Murray, co-founder and CEO, spent nearly 20 years at Amazon, and during his last decade, he automated and used machine learning to solve the “Prime problem”, as he called it – how fast shipping is possible. to make affordable.
“It takes a huge tech stack to coordinate all of this around forecasting, inventory movement across the network, and what’s promised to consumers,” Murray told MovieUpdates. “All those parts need to be well coordinated to get the results for fast and efficient shipping to build a business like Prime.”
Shipium is building that tech stack so ecommerce retailers can have that supply chain coordination layer that allows them to have fast and cheaper shipping as well. This is because the global e-commerce logistics market is expected to exceed $3 trillion by 2028.
Data modeling is the company’s “secret sauce.” It coordinates previously fragmented and static decisions, collects information about the cheapest and fastest shipping method, automates it with machine learning and logic, and can then recommend what will deliver the best outcome for a given customer. The company says it can cut shipping costs by more than 5% on average and speed up estimated delivery by several days.
The company raised $8 million in seed funding last year, and after that, Murray said demand was increasing.
“We’ve come up with technology for retailers who have assets but aren’t utilizing them because they lack technology,” he added. “There have also been external factors, such as COVID, and most retailers have been in reactive mode to get through it, but in 2022, e-commerce is sticking to this next level and everyone is adapting.”
In just the past nine months, the company has processed nearly 10 million shipments and is on track to process more than 50 million shipments by the end of the year. Shipium delivers in all 50 states and covers more than 91% of the five digital zip codes.
Today, the company announced $27.5 million in Series A funding led by Insight Partners, which touts Shipium as “the largest venture-backed Series A for a supply chain software startup.” This gives the company a total of $38.7 million in funding as of 2019.
Murray plans to ramp up the engineering “to cope with the fact that we are building a nuanced product.” He will also strengthen his sales and marketing teams.
With an industry still quite fragmented in terms of operations, Shipium involves navigating the local presence and connecting everyone, including the “bazillion new carriers out there”.
“This is not an easy software to build, so we will always be biased towards product and engineering because of that complexity,” he said. “We’re also relying on the pick-up in e-commerce as a result of COVID, and it’s just imperative that we get behind it as soon as possible. Ultimately, we want our platform to bridge the gap between legacy technology and a version that is simple and usable for retailers.”