Logistics and delivery startup Pandion is a technology-first transportation provider designed for the modern challenges of online retail and tailor-made for e-commerce. As the shift to online retail accelerates at a pace nearly as fast as consumers expect their packages to be delivered, leading e-commerce companies like Amazon and Walmart have built their own internal fulfillment networks to serve customers and meet delivery needs and expectations. What Pandion hopes to do is bring that level of service and provide best-in-class fulfillment operations to the rest of the retail industry.
Founded by Scott Ruffin, whose resume includes over 20 years of experience in logistics, including as a captain the U.S. Marine Corps, as the founder and lead of Amazon’s own Amazon Air program, and most recently as vice president and head of Walmart’s e-commerce and transportation operations division; Pandion’s team also includes leading delivery and supply chain management executives from FedEx, Macy’s, Accenture, and Deloitte. Needless to say, they aren’t messing around.
The inspiration for Pandion came from the recognition by Scott and his founding team that the current logistics framework is too brittle to support the current volume of fulfillment needs. The business proposition of online retail was not being supported by its current operational infrastructure, as small parcel networks designed in the 1980’s were consistently being overloaded by the demands of digital-first shoppers. Pandion was created to solve the problems for smaller retailers of delayed packages, missed deliveries and poor customer experiences, especially during peak seasons.
In order to patch these gaps, Pandion’s next-generation delivery management system deploys new technologies like machine learning to avoid shipping delays and optimize delivery networks in order to deliver a high performing one-day and two-day delivery experience. The purpose-build solution offers a long-term scalable fix for capacity problems particularly during peak periods by adjusting to needs more rapidly than traditional operators like FedEx or UPS. For example, the software might flag a warehouse that’s shut down due to a Covid-19 outbreak or weather event. Pandion can then divert the packages to another site, increasing the likelihood that they’re delivered on time.
Pandion, which just emerged from stealth mode last year, has raised a total of $34.9M in funding over 2 rounds. The company aims to operate 20 sorting centers, which are designed to cut down on shipping times by organizing packages and bundling them by ZIP code before loading them onto trucks for transport to a last-mile delivery station, within the next three to four years.
This article originally appeared in the PSFK report, Building Next Generation Fulfillment Operations.