[#256] Supply Chain in Numbers - Oct 28, 2024
Paccurate raises $8.1M, Amazon newest FC has 10x robots, 5 to 7% reduction in next-day parcels, Descartes acquired Sellercloud for $130M, Port of Long Beach exported 913,873 TEUs
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant numbers from the supply chain world. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
$8.1 million Series A
Paccurate, the packing intelligence platform for parcel shippers, announced the closing of an $8.1 million Series A funding. As e-commerce continues to grow and pressure mounts for companies to reduce shipping costs and hit environmental, social, and governance (ESG) goals, Paccurate’s patented technology enables smarter packing decisions for businesses that both lower costs and enhance sustainability efforts. Using the packing intelligence platform, companies like Daily Harvest, Our Place, and Barrett Distribution Centers have reduced Scope-3 emissions, seen up to a 15% reduction in shipping costs, and cut corrugate usage by 14%. Paccurate’s patented technology includes a lightweight API that suggests the optimal packing solution for every shipment. Shippers can also leverage PacSimulate, a powerful analysis tool that identifies ideal carton mixes or other packaging types and measures the impact of changes to warehouse automation. [MMH]
10x robots and 8 models
Amazon says its newest fulfillment center, located in Shreveport, Louisiana, uses 10 times more robots than previous warehouse designs and relies on artificial intelligence to direct the eight different models deployed in its bustling operation. The Shreveport site spans five floors and over 3 million square feet — equivalent to 55 football fields — making it one of Amazon’s largest sites. It will employ 2,500 employees once it’s fully ramped up. It relies on eight different types of robots. [DC Velocity]
5 to 7% reduction in next-day parcel
Demand for expedited shipping has fallen every year since 2021. At UPS, the average daily volume for domestic next-day air services fell 7.1% in its most recent quarter compared with the prior year. At FedEx, priority packages were down 5% last quarter. Meanwhile, the companies say cheaper shipping options are growing in many markets. More people are switching to slower delivery options to save money, and profits at FedEx Corp. and United Parcel Service Inc. are getting squeezed. Early signals suggest that the holiday gift-buying season — the busiest time for shippers — won’t bring a turnabout. Shoppers are buying presents earlier than ever this year to save money on shipping, according to a recent survey of more than 1,300 consumers in North America and the UK by project44. [Project 44]
$130 million acquisition
The Canadian logistics network platform provider Descartes added another acquisition to the dozens of deals it has made in recent years, announcing that it has bought Sellercloud, a provider of omnichannel e-commerce solutions, for about $130 million. New Jersey-based Sellercloud says it provides merchants with software to sell products on multiple marketplaces from a combined catalog, thus controlling their inventory and fulfillment from a single platform. The company’s clients are small and mid-market retailers, distributors, wholesalers, and manufacturers. Ontario-based Descartes paid $110 million upfront to acquire the firm and could pay up to $20 million if Sellercloud hits certain revenue targets in coming quarters. The purchase follows Descartes’ move last month to buy the carrier fraud and cargo theft prevention firm MyCarrierPortal for $24 million, which marked its 30th acquisition since 2016. [DC Velocity]
913,873 TEUs
The Port of Long Beach in California just logged its busiest-ever September, moving 829,499 20-foot equivalent units, narrowly beating out the previous record by a mere 70 cans. Imports were up 2 percent, while exports were down 12.8 percent. August was a massive month for Long Beach, the busiest in its 113-year history, with 913,873 TEUs moving through the port. Lots of that resulted from retailers rushing their goods through in an attempt to avoid an East Coast ports strike and ahead of potentially catastrophic tariff hikes next year. [NumLock]