Consumers want their packages faster, but not every company has the kind of supply chain technology like Amazon or Walmart.
This is, until now. 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, has been at Amazon for nearly 20 years and, for his last decade, has been automating and using machine learning to solve the “core problem,” as he called it: how to ship fast. affordable.
“A lot of technology is required to coordinate all of this around forecasting, moving inventory across the network, and what was promised to the consumer,” Murray told TechCrunch. “All of those pieces need to come together well to get the results of fast and efficient shipping to build a business like Prime.”
Shipium is building that technology stack so that e-commerce retailers can have that layer of supply chain coordination that also enables them to have faster and cheaper shipping. This comes as the global eCommerce logistics market is poised to be valued at over $3 trillion by 2028.
Data modeling is the “secret sauce” of the business. It coordinates previously fragmented and static decisions, collects information on what is the cheapest and fastest shipping method, automates it with machine learning and logic, and can then recommend what will provide the best result for a particular customer. The company, on average, says it can reduce shipping costs by more than 5% and speed up estimated delivery by several days.
The company raised $8 million in seed funding last year, and after that, Murray said demand increased.
“We’ve come up with technology for retailers that have assets, but aren’t leveraging them because they lack technology,” he added. “There have also been external factors, like COVID, and most retailers were in reactive mode to get through it, but going into 2022, e-commerce remains at the next level and everyone is adapting.”
In the last nine months alone, the company has processed almost 10 million shipments and is on track to process more than 50 million shipments by the end of the year. Shipium delivers to all 50 states and covers more than 91% of five-digit ZIP codes.
Today, the company announced $27.5 million in Series A funding led by Insight Partners, which Shipium touts as “the largest venture-backed Series A for a supply chain software startup.” This gives the company a total of $38.7 million in financing since 2019.
Murray intends to ramp up engineering “to deal with the fact that we’re building a nuanced product.” He will also join his sales and marketing teams.
With an industry still quite fragmented in terms of operations, what Shipium is building involves navigating local presence and connecting everyone, including the “billions of new entrants”.
“This is not easy software to build, so we will always be biased towards product and engineering because of that complexity,” he said. “We are also leaning into the uptick in e-commerce as a result of COVID, and it is imperative that we pursue it as soon as possible. Ultimately, we want our platform to be a bridge from legacy technology and a version that is simple and usable by retailers.”