Capacity LLC is revolutionizing fulfillment with cutting-edge technology and expertise
In today’s fast-paced world of e-commerce, Capacity LLC (Capacity) is a leading 3PL provider prioritizing efficiency and accuracy. As the company celebrates its 25th anniversary, it continues to innovate with state-of-the-art technologies that support and elevate global brands.
Founded in 1999 by university friends, Capacity has grown from a small startup to a comprehensive logistics leader. To learn more about Capacity’s services and how the company evolved to its current success, we speak with Thomas Campbell, Capacity’s co-founder and Chief Strategy Officer.
“My business partner has strong family roots in distribution and went on to pursue a university degree in engineering, which is where he and I first met,” Thomas narrates. “He had the intellectual horsepower to get his ambitious goal up and running, and with the necessary software and finance experience to assist, he asked me to join him in starting this company. Back in 1999, everyone was excited about the concept of virtual business, and we identified the opportunity to innovate within distribution channels. Today, Capacity has grown beyond just the two of us, and there are several core people who have been crucial in the growth and management of the business.”
Capacity’s service portfolio has expanded to meet the evolving needs of business in various sectors. The company now offers business-to-business (B2B) retail fulfilment, e-commerce solutions, quality control, global transportation management, and value-added services like packaging, labeling, and kit or gift box assembly.
“We are truly omnichannel,” Thomas elaborates. “We service both business-to-business, including over 300 large retailers like Target and Sephora in the US and prestigious retailers like Harrods in Europe. At the other end of the spectrum, we service smaller boutique retailers and healthcare offices, as well as delivering direct to consumers. From B2B retail and DTC shipments to e-commerce, EDI, and obsessive onboarding, everything we do is designed to serve our overall mission: to deliver delight for our clients’ customers and make logistics frictionless for their business.”
Strategic partnerships
Capacity’s commitment to client satisfaction extends beyond fulfilment. “In terms of our value-added services, we often complete light assembly such as combining the product and the unit box to bring a product together in a way the clients want to delight their customers,” Thomas explains. “We also arrange transportation for our customers, whether inbound or global, but most of our transport methods are parcel transportation direct to the consumer via numerous parcel carriers. We ship across the globe and utilize truck, air, and ocean freight to best service our customers.
“We work to our retailers’ requirements, and our on-the-ground expertise is a critical asset for any brand considering outsourcing their fulfillment. In the US, for example, where we’re located close to the major commercial zones of Los Angeles and New York City, as well as our Midwest location near Indianapolis, we arrange the pick-up of client merchandise and operate strategic partnerships with certain retailers like Sephora and Ulta, where we collaborate to consolidate truck loads. By ensuring full loads on our trucks, we enhance our sustainability credentials and carriers want to work with us because they’re confident they’re going to get a dense load.”
Embracing technology
Capacity’s journey parallels the rapid technological advancement in the logistics sector. From early adoption of digital systems to cutting-edge AI solutions, the company has consistently stayed ahead of the curve. Thomas reflects: “We started off providing warehouse management systems to allow operators to digitally scan products via a product barcode and move items between scanned locations, and later began handling EDI, which is how most major retailers transact with their vendors; they send the purchase order through an electronic protocol and the customers receive various electronic documents.
“We’ve seen increased demand for digital solutions over the last ten years or so, particularly as labor has become more expensive and companies look to adopt more techniques and technologies to save on labor or refocus labor on value-added tasks. We’ve created picking carts, for example, which can pick up to 300 orders in one go while scanning the product with high levels of accuracy. These items are then packed in accordance with the client’s requirements, combining highly skilled manual work with technology enabled efficiencies.
“More recently, we’ve deployed AI and robotics to replace certain critical steps and alleviate repetitive tasks for our staff,” he adds. “We’ve also partnered with Two Boxes to enable integrated returns processing solutions. Two Boxes understand our business and the importance of efficiency and agility; they have worked with us in our fast-moving commercial partnership as we have adopted their critical technology offering.”
Supporting brands
Capacity’s recent partnership with Japanese trading company Mitsui marks a significant milestone in its growth trajectory. This relationship will focus on long-term value creation and global expansion, positioning Capacity for an exciting future within international logistics.
The business also recently partnered with Prolog Fulfilment, a leading European fulfilment provider based in Nottingham, England. This partnership will enable Capacity to provide its clients with a seamless solution for expansion into the UK and EU markets, allowing brands shipping 50 or more orders per day to these regions to optimize operations and meet local consumer expectations without navigating complex systems or processes.
When it comes to nurturing high-potential brands, Thomas adds: “Whether it’s Bobbi Brown makeup or Hailey Bieber’s latest venture, it’s most rewarding to support some incredible influencer-driven opportunities in their growth from standstill to some of our largest clients.”
As Capacity enters its next quarter-century, it remains committed to innovation. By combining technological expertise with a deep understanding of both established and emerging brands’ needs, Capacity’s current success is sure to continue. “Our mission remains to support small and medium-sized businesses, and with new brands constantly emerging in today’s online world, we’re never short of strategic opportunities,” Thomas concludes.