It’s almost impossible these days for an innovative business model to stay in stealth mode. Yet somehow, for more than seven years, Philadelphia-based goPuff did just that.
But now, with about 250 micro-fulfilment centers across the US and a $350 million acquisition under its belt, the company—which delivers everything from cleaning and home products, over-the-counter medications, baby and pet products, and food and drinks—is making a name for itself. With a uniquely vertically integrated model, goPuff owns its entire supply chain, including inventory. Consequently, the vast majority of goPuff’s revenue and profit comes from the price and margin of each item—delivered to customers in about 30 minutes—not from the modest ($1.95) delivery fee it charges.
With financial responsibility and sustainability a key focus from the start, goPuff recently received a fifth round of funding and is now valued at almost $4 billion. In November 2020, goPuff agreed to acquire BevMo—an alcoholic beverage chain with 160-plus stores in California, Washington, Oregon, and Arizona—with which it plans to integrate its innovative fulfillment and distribution tech platform.
Prior to 2017, however, goPuff relied on QuickBooks to run its financials, hardly a robust enough platform to support the company’s aggressive growth plans.
It's really important for us that we have one single source of the truth across our enterprise, and that means making sure that our front end and our back end are fully integrated. When we think about a big acquisition such as BevMo! that is strategic for us, we want to make sure that we are optimizing the value there. Oracle is going to be a key partner to us in that.
With Oracle’s suite approach, integration of the company’s inventory, purchasing, supply chain, and performance management processes is seamless.
CFO Josh Burke emphasizes how much goPuff relies on the data generated by its Oracle Cloud ERP application to make more-informed, faster decisions.
“It makes us more comfortable taking larger risks because we know that the underlying data is accurate,” he says. “I don't view ERP as a cost center at all. It's almost like the foundation of a house: You need to have a really good foundation to be able to build the house of your dreams. That all starts and ends with our first-class Oracle Cloud ERP application.”
As a technology company itself, goPuff also wanted to ensure that its world-class tech engineers are focused on improving customer experiences, not on managing, patching, and upgrading the back-end financial and supply chain systems. “Oracle manages all that for us, which makes our lives much easier,” Burke says.
Looking ahead, the fact that Oracle Cloud applications work seamlessly with one another and with third-party applications makes integration of the BevMo acquisition less daunting, helping goPuff further scale its business. “Oracle will be at the center of what we're thinking about in terms of future acquisitions,” Burke says.
Oracle is the pro at making sure that the system stays up, is operating effectively and securely, and delivers the latest improvements, enabling our technology teams to focus on driving customer enhancements.