D&H Acquires Fulfillment.com In Third-Party Logistics Play

While Fulfillment.com has a strong business-to-consumer focus, D&H says it expects that company’s technology to improve its channel and vendor partners’ reseller and direct to consumer supply channels.

D&H Tuesday said it has acquired Fulfillment.com, a provider of technology for e-commerce fulfillment, in a move it said will expand the IT distribution giant’s Scale third-party logistics and supply chain services business.

Savannah, Ga.-based Fulfillment.com is a top provider of e-commerce fulfillment services to high-volume multi-channel and omni-channel internet retailers worldwide, and claims to ship millions of business-to-business (B2B) and business-to-consumer (B2C) orders to over 150 countries.

The company has four fulfillment centers in the U.S. and one each in Canada, the U.K., the Netherlands, and Australia. In the U.S., it claims it can make one-day to two-day delivery to 99.97 percent of the continental U.S. population and can make next-day delivery by ground to 69 percent of the continental U.S. population.

[Related: D&H Makes Midmarket/Enterprise Gains Versus Larger Competitors With Sales Up 27 Percent To Nearly $7B]

D&H is not a company known for acquiring other companies, but instead prefers to grow organically. The company has not publicly discussed acquisitions prior to Tuesday’s move to acquire Fulfillment.com.

D&H Scale is an in-house supply chain management organization that offers end-to-end B2B and B2C commerce capabilities. According to D&H, Scale helps businesses manage their supply chain experiences across multiple channels with customized services around third-party logistics and unified commerce. It serves its business clients direct customers and reseller communities with what it calls their “always in stock” inventory.

D&H said Scale powers its $6-billion technology distribution across the U.S. and Canada with 2.2 million square feet of logistics capacity and six North American distribution centers. Scale processes 31 million units yearly, and serves over 300 brands.

Fulfillment.com’s has a very strong B2C focus, with nearly 50 percent of the products it handles focused on health and beauty, the company said.

D&H, in an emailed response to a CRN request for further information, said the acquisition of Fulfillment.com is focused on expanding the capabilities of D&H’s Scale business and strengthening the distributor’s ecommerce fulfillment and third-party logistics operations. It is independent of D&H’s core technology distribution strategy and does not involve changes to channel programs, partner engagement models, or distribution operations.

Despite Fulfillment.com’s focus on B2C, the company in an on-site statement on the acquisition said that its technology will be a boon to D&H’s channel partner community.

For channel partners, the acquisition will lead to enhanced third-party logistics capabilities, expanded direct-to-consumer fulfillment, an improved global e-commerce infrastructure, and advanced technology-driven logistics.

Shaun Sinden, vice president of Scale, said in a statement, “Our vision for SCALE has always been to deliver high-performance, technology-driven logistics for the brands shaping the future of commerce. By integrating Fulfillment.com’s expertise and unified platform with our operational investments and employee-owned culture, we're building a logistics ecosystem in which our partners can accelerate, innovate, and compete globally.”