Stord adds last mile delivery optimization with Stord Parcel

In what has already been a busy year of innovation and advancement, cloud supply chain company Stord has added another tool to its growing service offering. Stord Parcel is a carrier independent last mile delivery solution that uses advanced modeling to select the most efficient and cost effective carrier and service level for each package.

Stord, which counts numerous direct-to-consumer and omnichannel brands among its customers, is adding the solution to provide a single point of contact for access to discounted negotiated carrier rates from a network of regional, national and international carriers.

“Today, most brands set simple rules for service level selection based on standard carrier guidelines, which means they often choose a more expensive service level to ensure on-time delivery,” said Sean Henry, CEO and co-founder of Stord. which ranked 25th on Tuesday’s Deloitte Technology Fast 500 of the nation’s fastest growing technology companies. “With Stord Parcel, brand operators can be confident that their parcel program is truly optimized based on real, historical performance data, not rough guidelines.”

Stord strives to become a port-to-porch solution provider and now offers technology and capacity solutions in cold chain, warehousing, ports, fulfillment and now the last mile.

According to Stord, Stord Parcel evaluates the unique characteristics of each package as well as the actual delivery performance in real-time and recommends the most efficient and cost-effective way to ship that package within the required delivery promise window, even in situations where the level of service may have a longer delivery estimate.

Watch: Stord CEO Sean Henry on building a business

“Too many of today’s brands devote significant resources to managing carrier relationships and implementing rules-based engines to rank stores and meet carrier delivery estimates,” Henry noted in a LinkedIn post announcing the service.

The company said businesses using Stord Parcel can achieve savings of 12% to 15% on parcel spend. Combined with a 5% to 12% reduction when adding additional fulfillment locations offered through Stord, brands could reduce their spend by up to $2 per shipment while still meeting consumer delivery expectations.

Stord Parcel will be launched by the end of this year and in the first quarter of 2023.

Busy like a bee

Stord has been busy in 2022 scaling its business amid a tight storage space market.

In August, Stord announced the addition of drayage, temperature controlled fulfillment, custom packaging and e-commerce returns solutions to its Stord One Commerce platform, and the appointment of Tom Barone as President and COO.

The new Stord One Commerce addition includes warehousing and fulfillment, compliance preparation for retailers, and value-added services like kitting and labeling.

Stord One Commerce enables brands to bring their diverse logistics technologies together across providers, eliminating siled data and additional software implementations. According to Stord, the tech solution serves as a “digital glue” that acts as a control tower, connecting all elements of a brand’s supply chain.

Barone joined the company from CommerceHub, where he was most recently Chief Revenue Officer. He has more than 20 years of experience in e-commerce with a focus on technology and supply chain.

In July, Stord announced a partnership with Fresh Del Monte, freeing up excess space in Fresh Del Monte’s 22 US cold stores for Stord customers. Last fall, chilled and frozen groceries accounted for 9% and 13%, respectively, of total e-commerce grocery sales. Henry told Modern Shipper at the time that Stord customers could use some of Fresh Del Monte’s logistics capabilities under the agreement.

Stord also announced this year an additional 780,000 square feet of combined warehouse space in Las Vegas and Reno, Nevada, and in New Haven, Connecticut. The markets are part of Stord’s six-node first-party fulfillment network, which also includes Atlanta, Chicago and Dallas. Together with more than 1,000 partner facilities, Stord is able to reach 99% of US consumers in two days or less via ground shipping.

In May, Stord announced it had closed a $210 million Series D funding round with a final installment of $120 million. The first part of the round, $90 million, was announced in September 2021. The May funding was led by Franklin Templeton. The entire Series D included participation from new investors Sozo Ventures, Strike Capital and 137 Ventures, as well as existing investors Kleiner Perkins, Founders Fund, Bond, Susa Ventures, Dynamo Ventures, Lux Capital and Salesforce Ventures.

Click here for more articles by Brian Straight.

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