Shipware, a company which specializes in shipping strategy and auditing, has weathered the coronavirus headwinds and anticipates steady growth over the next several years.
Founded in 2005 with a couple of guys (working out of a garage), the San Diego company is headquartered in Rancho Bernado, has grown its local headcount, and now services large clients around the globe.
Shipware makes a suite of software tools for online businesses, allowing them to reduce their shipping costs. Its solution also helps clients in other verticals beyond e-commerce including life sciences, biotechnology, pharmaceutical manufacturing, and automotive, among others.
Providing both expertise and technology, Shipware claims it helps businesses reduce parcel and less-than-truckload (LTL) shipping costs by as much as 30%. It does this by performing weekly audits on carrier invoices to recover refunds on all billing errors.
The COVID-19 pandemic — and the rapid adoption of online shopping — has driven Shipware’s growth even further, said Trevor Outman, Shipware’s CEO.
“No one’s going to the mall or retail stores to shop, everyone’s now shopping online where you receive everything on your doorstep versus a few years ago,” said Outman. “What was expected to continue to shift in the world of big commerce over the next 10 years, the pandemic forced it to happen in a couple of months.”
Due to the coronavirus, FedEx and UPS have more volume than it ever had before. On top of that, shippers are pushing out more packages than ever anticipated before, due to consumer buying habits which have shifted predominately to shopping online.
The company has seen a 60% percent increase in sales growth year over year with expectations to continue into the subsequent years.
Responding to The Pandemic
Uncertain about the future at the outset of the pandemic, Outman decided to take 10% payroll reduction across the board, as well as cut his own pay to zero, promising his staff his salary would stay that way until everyone was back to 100%.
Fast forward, only two months after they cut salaries, Outman and the entire staff are back to their regular pay, with some even getting raises for their outstanding sacrifice. Outman said he couldn’t be more proud of his team who rallied together throughout the duration of the pandemic.
“It was a rallying cry, in the midst of uncertainty. The one thing that was certain, was that we’re in this together and we’re going to get through this together,” said Outman. “People were more motivated than ever before, I saw incredible tenacity, drive and determination resolve coming from my team.”
As a result of the company’s hard-earned effort, they are now growing its team to support the growing business line. Shipware plans to grow its headcount from 50 to 70 employees in San Diego over the next few years.
Fast Growing Company
Shipware has been profitable since its early days and has achieved this without raising money from investors.
Closing out this year, the company will bring in roughly $23 million in annual revenues, Outman added that the goal is to raise that number to $50 million.
“In terms of the future, we’re not slowing down. It really feels like we’ve just started,” said Outman. “There’s a lot of momentum right now and it’s a really exciting time for Shipware. This will be a foundational year as we continue into 2021.”
Shipware plans to continue to execute along an organic growth trajectory despite investment and merger interest from other organizations. At its San Diego office, Shipware currently employs 50.
Shipware is also identified as one of America’s and San Diego’s fastest growing private companies. In 2019, Shipware was awarded as the 16th Fastest Growing Company in San Diego and in 2020, 15th Best Places to Work by The San Diego Business Journal.