Amware Fulfillment, a provider of both direct-to-consumer and business-to-business fulfillment technology and services, is expanding its DTC capabilities with the acquisition of Moulton Logistics, a firm that has long specialized in serving the fulfillment needs of online and TV merchants.
“Amware customers will benefit from an expanded facility network, greater volume leverage with carriers to lower parcel shipping rates, and access to the significant operational expertise of the Moulton team, which has focused on [business-to-consumer] fulfillment services since 1968,” says Harry Drajpuch, CEO of Amware.
Amware also sees Moulton’s expertise as crucial to handling the pandemic-spiked demand for the fulfillment of orders placed by consumers shopping at home via online and TV merchants, Drajpuch says.
“The Moulton Logistics name is synonymous with direct response TV fulfillment for products sold via TV commercials and shop-at-home shows,” he says. “Amware is excited to participate in this new channel, particularly at a time when more people are ordering online and in response to TV promotions.”
Amware did not disclose what it has agreed to pay for Moulton or other terms of the deal.
Order volume up 50%
Drajpuch says Amware’s recent order volume is up 50% year over year, and he expects its growth driven by ecommerce to continue. “Even with people heading back to stores in 2021, we believe online buying will remain strong through the year,” he says. “Our concern is less about consumers returning to stores and more about the economy in general and whether buyer confidence will remain high. But we’re certainly confident that we’ll continue to grow, and we’re looking to leverage technology to handle the increased volume through 2021.”
Moulton adds 500,000 square feet of space across four fulfillment centers—three in Los Angeles and one in South Brunswick, New Jersey—bringing Amware’s total number of centers to 15. This will enable Amware to provide one- or two-day ground delivery to 95% of the U.S. population, Amware says. Moulton also provides related services, including the forwarding of online orders to manufacturers and wholesalers that drop-ship orders to consumers; bulk shipping from suppliers to national retailers; and shipping orders for sellers on Amazon.com according to Fulfillment by Amazon specifications.
Going forward, Drajpuch says, Amware is planning to invest in technology designed to expedite order processing, such as automated carton erectors and sealers, that complement its warehouse management system and “voice-pick” devices that help warehouse workers more efficiently pick and pack inventory for fulfilling orders. In addition, Amware is considering using regional carriers to cut the costs of its customers’ parcel deliveries, and it will work more with Moulton’s pre-order services such as customer credit checks, he adds.
Moulton’s services complement Amware’s mix of B2B and B2C services, including Amware’s specialty in providing order fulfillment for multilevel marketing organizations that sell their products through networks of independent sales agents.
‘Looking hard at B2B sales’
A number of Amware’s customers “are looking hard at B2B sales,” including to retailers, and Amware advises them on how to meet retailers’ requirements for building pallets, setting labels, and sending advanced shipping notices, Drajpuch says.
In addition to retailers, Amware serves companies involved in industrial products and raw materials and has experience in handling logistics for hazardous chemicals, the company says.
The acquisition of Moulton was financed by Rotunda Capital Partners, Amware’s majority owner. Rotunda says it invests equity capital in family/found-run businesses involved in logistics, distribution, and financial and business services.
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