Taking risks can get a bad rap — until someone proves the skeptics wrong. Just look at what’s happening across the industry, last mile delivery and beyond, this week. OneRail continues to take more risks to solve last mile delivery problems as the company recently raised $42 million in a series C. In addition to this news, Ulta Beauty scrapped the traditional warehouse playbook for nimble, tech-powered centers half the size, and their efficiency is soaring. Your fellow wholesalers are reading similar tea leaves, pulling back inventory for the first time since spring in a clear market pivot. Peak season is here with a modest 3% forecast and a late November crunch — but the real story is how shippers adapt. Even Grove Collaborative threw conventional wisdom out the window, ditching retail partnerships to go all-in on direct sales (with surprising results). And speaking of comebacks, everyone who wrote off JIT during the pandemic might want to see 2024’s numbers. Let’s get into what’s working, what isn’t and what it means.
OneRail Secures $42 Million Series C Funding to Drive Growth & More
As reported in TechCrunch, OneRail secures another round of funding, with their C round, securing $42 million dollars led by Aliment Capital. This investment comes during a challenging funding environment where logistics funding has plunged 90% over the past 2 years, according to a recent McKinsey report. Last-mile delivery continues to be a significant hurdle for many companies, with nearly 90% of retailers facing challenges due to technical issues and high costs. Addressing this pain point, Bill and Lisa Catania founded OneRail in 2018 to streamline the final step of the delivery process. OneRail’s platform optimizes orders by automatically selecting shipping modes and carrier networks based on order data and historical performance. Connected to a vast network of drivers and logistics companies, it offers unified data and a single interface for managing last-mile fulfillment. With rapid growth—including a 254% revenue increase since November 2022 and the recent acquisition of inventory management company Orderbot—OneRail now handles over 250,000 deliveries daily for around 50 brands across more than 400 cities in the U.S. and Canada. This raise of $42 million in a Series C funding round, brings OneRail’s total funding to approximately $109 million to further enhance its platform and expand its team.
Ulta Beauty’s Bold Bet on Market Fulfillment Centers Pays Off
Most retailers build massive warehouses that sit half-empty outside peak season. Ulta Beauty looked at that standard playbook and threw it out the window. “We don’t want to just build a one-size-fits-all network,” Chief Supply Chain Officer Erik Lopez explains. So, instead, his team opted for a nimbler strategy: Smaller market fulfillment centers (MFCs) strategically placed closer to stores and customers.
Right-Sized Facilities Drive Speed & Efficiency
The numbers tell the story — while Ulta’s regional distribution centers sprawl across 650,000 square feet, their MFCs pack a mighty punch in just 300,000 square feet. Each MFC handles up to 120 stores and 25,000 daily e-commerce orders. The secret? Smart tech, like wire-guided equipment that new workers can easily use and Very Narrow Aisle racking to maximize every square foot for fulfillment optimization.
Regional Centers Get a Tech Makeover
Ulta Beauty is modernizing its Dallas, Fresno and Greenwood hubs with smart automation and what COO Lopez calls “the brains of our facilities” — advanced warehouse software. The network is growing, too, with a fourth hub planned for Chambersburg, PA, in 2026. Two micro-fulfillment centers already serve customers from Greer, S.C., and Bolingbrook, Ill., with a Pacific Northwest location coming in 2027. At the heart of it all, Jacksonville’s rapid fulfillment center processes 25,000 daily orders — proof that Ulta prioritizes speed over size.
Wholesale Inventories Drop First Time in 6 Months: What Smart Shippers Need to Know
Wholesaler inventory levels dropped 0.2% in September — their first dip since spring. While such a fractional move, on the surface, may not seem like much, this pullback matters, and here’s why.
Playing It Safe: Why Shippers Are Holding Their Cards Close
Smart money says you’re not alone if you’ve kept inventory lean. The numbers tell the story — wholesale inventories grew just 0.3% over the past year, way down from the usual 4-6% yearly jumps we see in stronger markets. High interest rates put the brakes on key sectors like auto and housing, leading many shippers to wait for clearer economic signals before ramping up production.
The Balancing Act: Sales Growth vs. Warehouse Space
While wholesale sales rose 0.3% in September, the inventory-to-sales ratio dipped slightly to 1.34 months from 1.35 — right around historical averages. In other words, most companies maintain 40 days of stock — a prudent approach as inventory pullbacks reduced Q3 GDP growth by 0.2 points. The takeaway for your business: Maintain smart inventory control while keeping enough buffer for opportunities until economic growth strengthens beyond its current 2.8% pace.
Holiday Sales Forecast: Belt-Tightening Shoppers Push Growth Below Long-Term Trends
The hard data paints a clear picture — holiday sales growth looks set to hit around 3% this year, falling short of last year’s 4.7% and well under the 10-year average of 5.3%. S&P Global Ratings’ latest report suggests we’re heading into a peak season when smart pricing and strategic shipping will matter more than ever.
Late Thanksgiving Crunch Creates Premium Shipping Window
The calendar works against us this year — a late November 29th Black Friday means five fewer shopping days in the traditional holiday window. Many retailers started their promotional push in October, with major players like Amazon, Walmart, Target and Best Buy rolling out deals six weeks before Black Friday. Sure, Black Friday through Cyber Monday sales could still break records at $75 billion. However, shippers should prepare for compressed delivery timelines and concentrated demand spikes.
Value-Focused Retailers Lead While Others Feel the Squeeze
The winners and losers this season tell an important story. Value retailers targeting middle — and higher-income shoppers stand to outperform, while consumer electronics and home furnishings face tougher sledding. Some retailers have serious skin in the game — Victoria’s Secret generated 90% of operating profit in Q4, while Macy’s pulled in 65%. These high-stakes players will likely maintain aggressive promotional calendars through the season, demanding reliable shipping to meet customer expectations despite margin pressures.
Last Mile Delivery Comes to the Flexe “Logistics Leader” Podcast Featuring OneRail CEO, Bill Catania
The latest episode of the “Logistics Leader” podcast brings together Bill Catania, CEO of OneRail, and Nate Skiver, Founder of LPF Spend Management, to dig into the future of last mile delivery. As retailers scramble to adapt their strategies to meet the surging consumer demand for same-day and next-day delivery services, the discussion couldn’t be more timely. The conversation bridges Skiver’s insights on industry needs and consumer expectations with Catania’s innovative solutions at OneRail, particularly on how technology can help retailers overcome the complex challenges of implementing reliable same-day delivery operations.
The Vision Behind OneRail’s Network of Networks
“I realized this (last mile delivery) ecosystem needs an entire operating system. Some entrepreneurs are afraid to say the “P” word,” Catania said on the podcast. “I love it. It means you recognize you have a problem, are critical of your solution, and are doing what you think is right. I realized there are already a lot of great platforms like Bungii and GoShare. I don’t need to build a platform, but a network of networks and orchestrate all that last mile capacity (on the market).”
Balancing Supply and Demand in Same-Day Delivery
“For example, Lowe’s already had a next-day program for a long time with their own fleet,” Catania added. “For Same Day, it’s been a lot more complicated. You basically have to match supply and demand simultaneously because if demand, meaning Lowe’s shipping volume outpaces the ability to get couriers, you have a gap and upset customers. If you outpace supply with too many couriers, without demand, the couriers have better things to do. At the end of the day, there has to be this up and down of supply and demand, and that’s what we do. We crowdsource demand from our shippers and then match it with supply where we’ve aggregated carriers. We are responsible for the Rate Card and the SLA and deal with the exceptions.”
Listen to the Full “Logistics Leader” Podcast.
Grove Makes Bold Move Back to DTC Roots, Leaving Retail Stores Behind
Physical retail stores caused Grove Collaborative more headaches than sales, with brick-and-mortar partnerships accounting for only 4% of their business while losing money. The sustainability-focused brand learned the hard way that stocking shelves at Target, Kohl’s, Walmart and others since 2021 wasn’t the golden ticket many direct-to-consumer brands chase after.
Pure DTC Play Aims to Rebuild Customer Connections
Grove CEO Jeff Yurcisin stands firm on refocusing entirely on direct customer relationships rather than chasing an omnichannel presence. The numbers tell the story — retail partnerships dragged down growth by 300-330 basis points in Q3 compared to Q2. While Grove faces some near-term DTC challenges, with total orders down 22.8% and active customers dropping 30.4% year-over-year due to reduced ad spend, they’re betting big on rebuilding those direct connections.
Financial Health Improves Despite Revenue Dips
The laser focus on efficiency seems to be paying off where it counts. Despite Q3 revenue falling 22% year-over-year and gross margins tightening to 53%, Grove slashed their net losses to $1.3 million — down dramatically from $10 million last year. A fresh $15 million investment from Volition Capital also allowed them to make a $42 million debt payment, with plans to clear their remaining $30 million term debt, leaving just $7.5 million in asset-based loans. Time will tell if getting back to DTC basics is just what the doctor ordered for Grove’s long-term survival.
JIT Lives On: Peak Season Returns with Surprising Strength in 2024
Remember when everyone declared JIT dead during the supply chain chaos of 2020-2021? The obituary turned out premature. After watching inventory levels swing wildly from desperate shortages to painful overstock, shippers who stuck with JIT principles through the turbulence now see their patience paying off.
Traditional Peak Season Makes a Comeback?
The August 2024 Logistics Managers’ Index reveals inventory levels hitting 55.7 after three months of decline, marking a decisive return to normal seasonal patterns. Upstream companies posted 59.4 growth, while retailers maintained lean operations at 46.3.
JIT’s Positive Outlook for 2025
Logistics managers predict inventory levels will expand to 61.0 over the next 12 months, led by upstream providers at 63.8, while retailers plan to stay lean at 51.7. The strategy makes sense — retailers keep minimal stock and depend on fast replenishment, while distribution partners hold inventory upstream, ready to deploy. Adding fuel to the fire, the Fed’s planned rate cuts could unleash pent-up manufacturing demand and create ripe conditions for JIT to shine.
Last Mile, Lasting Impact: Why Smart Shippers Trust OneRail
While industry giants scramble to downsize warehouses and streamline operations, leading last mile delivery companies are proving that precision beats pure size every time. So, if you’re ready to join the revolution of right-sized last mile logistics that actually deliver results, OneRail has solutions that fit perfectly into your playbook:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
