3PL Central, a leader in cloud-based Warehouse Management Systems (WMS) built to meet the unique needs of third-party logistics (3PL) warehouses, has acquired Skubana, a leading inventory management system and ecommerce operations platform. With this acquisition, 3PL Central expands its supply chain technology offering to include intelligent order routing and inventory management to create one of the first software solutions to deliver an integrated fulfillment solution from the shopping cart to the warehouse floor.
The combined company aims to fill an important gap in the ecommerce and omnichannel ecosystem. Traditional software solutions track order and inventory status with limited ability to decrease costs or accelerate the delivery of goods to consumers. Third-party logistics and supply chain companies are adept at physically moving goods through the supply chain but, often, do not offer the level of visibility and control expected by modern ecommerce companies.
The combination of Skubana’s intelligent order orchestration with 3PL Central’s extensive network of warehouses offering ecommerce fulfillment and retail replenishment is expected to open a new chapter in software, allowing companies to have the inventory they need, where they need it, when they need it.
“There are two things that we find obvious in today’s economy: first, ecommerce is the wave of the future and any company that wants to build a successful ecommerce fulfillment solution will have to do so based on the capabilities of a dynamic new class of third-party logistics companies,” said Andy Lloyd, CEO of 3PL Central. “Second, we’ve moved beyond the world where any company can build their own fulfillment infrastructure, whether it be physical warehouse space or the software to support it. We’re building the software infrastructure that enables retailers and manufacturers to serve the ever-increasing needs of their consumers by tapping into the increasingly sophisticated capabilities of the 3PLs running 3PL Warehouse Manager.”
Lloyd continued, “Unlike the recent entries to the market, we believe that supply chain success starts on the warehouse floor. But we also recognize that getting smarter about the things that happen before the warehouse drive commercial success. From any sales channel, whether it be shopping cart or marketplace, our aim is to provide connected solutions that empower brands and retailers to fulfill orders cheaper and faster by leveraging our new intelligent network, powered by Skubana.”
“This past year, we saw dramatic changes in buying behavior that we expect will forever change the consumer expectations and the ecommerce landscape,” said Chad Rubin, CEO and co-founder of Skubana. “As a result, we’re seeing a unique convergence from the ecommerce merchant to the fulfillment and distribution partner, requiring a closer understanding of consumer behaviors, shipment locations, inventory availability, and geographic centers. That’s why joining Skubana and 3PL Central just makes sense.”
The acquisition of Skubana significantly enhances 3PL Central’s technology offering and opens up a broader market reach to organizations involved in omnichannel sales and fulfilment. The acquisition comes during a time of accelerating growth for 3PL Central after a year of unparalleled ecommerce order volume increases through its WMS of nearly 46%. 3PL Central has already seen approximately 63% YoY growth in order volume through the first quarter, with continued expectations for growth. The company also plans to grow its employee base by more than 30% in the coming year.
“The combination of Skubana and 3PL Central is an exciting development in the evolving world of ecommerce fulfillment,” said Tim Werkley, CEO of Swan Packaging Fulfillment, a direct-to-consumer ecommerce fulfillment 3PL established in 1986 with facilities in New Jersey and California. “Incorporating Skubana’s intelligent order management and channel aggregation with the existing powerful WMS in 3PL Central will allow third-party logistics companies like Swan to offer smarter solutions that will decrease costs and reduce delivery times. I expect that it will be a win for 3PLs, a win for our ecommerce clients and, ultimately, a win for consumers.”
The announcement comes shortly after Mainsail Partners’ additional capital investment in the company and reinforces 3PL Central’s aggressive growth objectives.
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