MasonHub Inc., a venture-backed omnichannel fulfillment technology and services company, opens its headquarters and first distribution center in Los Angeles’ Inland Empire.
Founded in 2018 by chief executive officer and Stanford business school graduate, Donny Salazar, MasonHub poses $6.5 million in seed funding led by Canvas Ventures and clients such as Carbon38, as well as 11 Honoré, both headquartered in Los Angeles.
The decision to open a nearly 100,000-square-foot fulfillment center in Los Angeles comes with the intention “to disrupt” the $194.2 billion industry for third-party logistics in the U.S., according to IBIS World statistics for 2019.
“We’re making logistics sexy,” Salazar said to WWD, highlighting the typical challenge in recruiting talent for a sector long-perceived as “stodgy and old school.” At MasonHub, technology, as well as operations, are a priority — piquing the curiosity of talent such as its chief technology officer, who came from Gilt to work on buildouts like the double-entry inventory management system, among other proprietary solutions.
As e-commerce progressed, Salazar argued no real fulfillment leader emerged — leaving a gap of opportunity. Salazar’s background is in retail operations, counting more than 15 years of experience leading and growing teams for companies such as Flight Club, Chloe+Isabel and Gilt Groupe, growing the company from $10 million to over half a billion dollars.
Specifically, the “white space” MasonHub is aiming to fill is that of truly modern fulfillment, but doing so while speaking the language of the retailer — whose needs span wholesale, store-to-store fulfillment and direct/to-consumer needs.
“If big-box retailers don’t innovate and learn how to service customers across multiple channels, they aren’t going to survive,” Salazar said on the predicted trajectory of the retail landscape. He cites advantage in MasonHub’s anticipated addition of fulfillment centers across the U.S., whereby retailers can tap real-time data to deploy two-day shipping, for example, and to ascertain the routing of inventory, so it’s all as transparent and efficient as possible.
As for its clients, Katie Warner Johnson, chief executive officer of Carbon38, said MasonHub “enables us to be ultra-responsive to our customers’ needs and fulfill their orders as quickly as possible.”
Bolstered by its proprietary software for omnichannel inventory and order management, “high-touch” client support system and “user-friendly” customer dashboard, MasonHub aims to “solve the problems that are breaking brick-and-mortar.”