Dive Brief:
- Ship Essential aims to roll out same-day delivery and fulfillment services in Los Angeles soon, Founder David Sitt told Supply Chain Dive.
- The Brooklyn, New York, 3PL is preparing to launch its fulfillment operations in the West Coast city before the end of April, Sitt said. The same-day delivery services will come via its subsidiary Carry, an acquisition it announced in March.
- "We target New York ZIP codes right now," Sitt said of Carry's operations. "The goal is to open up in LA alongside or soon after opening up a facility over there."
Dive Insight:
Ship Essential has grown since its founding in 2020, and it can now handle 15,000 orders in a day without operational strains, Sitt said.
"We've learned how to scale up and our team has really grown to be able to handle volume jumps like that," Sitt said.
Now, it's prepared to process volume far from its home in Brooklyn. Ship Essential handled about $60 million in order value last year, and it aims to more than double that figure in 2024 with its expansion into Los Angeles, Sitt said.
"I think being on the East Coast and West Coast is going to give us a lot more opportunities," Sitt said.
Carry should also provide Ship Essential with more opportunities, as Sitt said the delivery provider will help it stand out in a saturated 3PL market. Carry's unique fulfillment approach involves picking up orders — including from Ship Essential's Brooklyn facility — sorting those orders in vans and exchanging them with last-mile delivery drivers at strategic locations.
Carry handles a couple hundred orders a day on average, Sitt said. It offers rates of $4.95 per delivery if monthly minimums are met.
Prior to the acquisition, Ship Essential had been one of Carry's largest customers.
"I think it was just a matter of time until an acquisition was going to happen," Sitt said.
