LA logistics firm Gently is decentralizing the US supply chain one nano-fulfillment center at a time.
With natural disasters, political instability, and net-zero targets causing companies to rethink their supply chains, it’s now in the best interest of business leaders, customers, and the wider community to bring goods closer to consumers. In the wake of the launch of Gently, co-founder Elian Pres-Gurwits argues that nano-fulfillment centers offer the best solution.
“New companies want to cut costs, they want to keep customers happy, and they want to grow. But our current outdated logistics network is holding them back,” he tells The CEO Magazine.
“I believe nano-fulfillment centers are the future of logistics and last-mile delivery. With a decentralized supply chain, businesses can put their best foot forward.”
While supply chain decentralization is a term that has been around for many years, nano-fulfillment centers are a relatively new concept. The technology only recently came into the spotlight following the pandemic, as the move away from centralization has become more profound.
Gently is one of the leading companies that have capitalized on the trend, having kicked off in the US following their first delivery in LA at the start of April.
For Pres-Gurwits and his co-founder Anas Aljumaily, the aim is to completely transform the efficiency and resiliency of the e-commerce and logistics space, after their experience scaling businesses helped them identify major pitfalls in the supply chain.
Notably, Pres-Gurwits has served as President of the international beauty subscription service Glossybox, which he helped scale, while Aljumaily has been an early investor in six unicorns, including Form Energy, Discord, and Skillz.
“Speed and stability have become everything in modern e-commerce,” Pres-Gurwits explains. “By distributing our nano-fulfillment centers across local neighborhoods, we can store inventories closer to local businesses and reduce the time it takes for deliveries to reach the consumer. Doing so, we not only support these companies but also provide job security and long-term certainty for those in last-mile delivery.”
Throughout the service they provide, Gently have set out to be as environmentally conscious as possible. Reducing unnecessary travel and emissions from longer journeys is just one part of that process. They’re also aiming to play a part in the green vehicle revolution, with their delivery vehicle fleet operating 100% electronically.
But while Gently aspires to be eco-friendly end-to-end, Pres-Gurwits suggests that the most crucial aspect of the company’s activities is how it utilizes AI.
“Without AI, a distributed supply chain would not work. The whole point is to make logistics as streamlined as possible for businesses and their customers to reduce any chance of risk – smart systems are essential to achieving this.”
“By leveraging data from retailers, consumer behavior, and third parties, our nano fulfillment centers can predict demand spikes and supply shortages to effectively manage inventory levels and ensure that operations are always optimal.”
With e-commerce giants such as Amazon dominating the logistics scene – set to be worth over $1 trillion by 2030 – the biggest question that springs to mind is how Gently aims to compete. However, Pres-Gurwits says this couldn’t be further from the case.
“Gently isn’t a marketplace. Gently is a platform for companies to operate independently. Too often, companies are at the mercy of major e-commerce platforms, tech giants, and legacy delivery companies – we aspire to change that.”
“For small businesses, which make up 99.9% of the US economy, it’s critical for their growth that they build strong brand equity from their inception, rather than risk damaging it. If these companies surrender their operations to a major e-commerce firm, they not only jeopardize their identity and autonomy but also the critical connections to their local communities.”
While Gently is just starting to level the playing field for small businesses, Pres-Gurwits is confident about the company’s ambitious expansion plans.
“Since our first delivery in April, we’ve been steadily expanding the business. New hires are soon set to come on board while plans are in place to introduce more fulfillment centers across multiple locations.”
“LA is just the beginning. Eventually, we hope to have decentralized the entire US supply chain by 2040.”