DC Velocity - May 2019

20 DC VELOCITY MAY 2019 www.dcvelocity.com newsworthy

Rakuten acquires pair of Salt Lake City firms to
boost e-comm capabilities

Third-party logistics service provider (3PL) Rakuten Super Logistics (RSL) has acquired the e-commerce solutions firms FirstMile and IFS360, adding them to a fast-growing portfolio that spans 11 fulfillment centers providing two-day delivery throughout most of the U.S. Terms of the deal were not disclosed.

Both based in Salt Lake City, the two sister firms provide e-commerce solutions, including warehousing, fulfillment, and shipping. FirstMile is an e-commerce logistics company that offers retailers delivery solutions ranging from economical ground routing to expedited, same-day, and next-day deliveries. Meanwhile, IFS360 is an integrated fulfillment operation, offering services that include receiving, returns management, shipping, kitting, and subscriptions box campaign management.

According to RSL, buying IFS360 gives it immediate
access to the Salt Lake City market, while FirstMile offers
an opportunity for RSL clients to use its transportation
network, infrastructure, and experience. “The acquisitions
will position RSL well in a strategic
regional market, while offering our
clients greater access and choices for growing their business,
competing, and delivering an improved customer experi-
ence,” RSL CEO Michael Manzione said in a release.

RSL, which is the U.S.-based order-fulfillment arm of the giant Japanese e-commerce marketplace Rakuten Inc., says its nationwide network of fulfillment centers allows e-commerce retailers to cut their shipping costs, improve order accuracy, reduce shipping times, and increase customer satisfaction. RSL has integrated its technology and cloud-based fulfillment platforms with e-commerce platforms such as Rakuten.com, Shopify, Amazon, Magento, Walmart Marketplace, and eBay.

In addition to its recent acquisitions, Rakuten has been investing in warehouse automation, including the deployment of 100 picking robots from warehouse automation startup inVia Robotics Inc. at Rakuten’s Las Vegas fulfillment center.

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