We're A Cloud-Based Warehouse Management Company That Witnessed A 500% Revenue Growth From Last Year

Published: May 19th, 2023
Thomas Kircheis
Founder, PULPO WMS
2
Founders
23
Employees
PULPO WMS
from Düsseldorf, Germany
started May 2016
2
Founders
23
Employees
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Hello! Who are you and what business did you start?

Hello, I am Thomas Kricheis, founder and CEO of PULPO WMS, a cloud-based warehouse management system that streamlines and optimizes warehouse operations for businesses of all sizes.

Around the world, the vast majority of warehouses today are run with paper-based processes. This creates enormous inefficiencies and errors and, in combination with the lack of warehouse employees, negatively affects a company’s growth.

Our flagship product, PULPO WMS, offers features such as real-time inventory management, order fulfillment, tracking, analytics, and reporting tools. Our customers are primarily e-commerce businesses, third-party logistics providers like fulfillers and 3PLs, and manufacturers who need to efficiently manage their inventory and warehouse operations.

Since our launch in 2017, PULPO WMS has experienced rapid growth, expanding our customer base and revenue by more than 500% last year alone. Our success is a result of our commitment to providing a user-friendly, customizable, and scalable solution that meets each of our clients' unique needs.

At PULPO WMS, we believe that every business should have access to a high-quality warehouse management system that can help them streamline their operations and grow their business. Our mission is to continue innovating and providing our clients the best possible service.

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What's your backstory and how did you come up with the idea?

Before starting this business, I worked as an IT consultant with experience in larger enterprises. During my time working in logistics, I was shocked to discover the low level of digitization in warehouses, where more than 90% of businesses still rely on pen and paper to fulfill their orders.

This realization inspired us to develop a solution that would help businesses improve their warehouse management practices through automation and digitization.

My co-founder, who was running a wholesale business with an e-commerce arm at the time, had the opportunity to benchmark all relevant solutions in the market. Together, we discovered that there was (and still to this day is) no clear leader with relevant market share in the warehouse management software market and, more importantly, no true SaaS solution with a multi-tenant SaaS architecture and a well-defined open API.

This lack of innovation and accessibility to modern technology in the industry was the "aha" moment that led to the creation of PULPO WMS. We knew we had the expertise and experience to develop a user-friendly, customizable, and scalable solution that would meet the unique needs of businesses of all sizes.

We conducted thorough market research to validate our idea, spoke with potential customers, and analyzed industry trends. We found a strong demand for a cloud-based warehouse management system that was affordable, flexible, and easy to use.

Something that was very important to me from the beginning was creating a solution that provides a measurable return for a customer. If a customer pays $1 to PULPO, he must be able to receive >$1 in return bottom line.

Despite the risk of leaving our stable and well-paid jobs, my co-founder and I decided to quit and focus on PULPO WMS full-time. This decision has paid off, and we are proud to have created a solution that helps businesses of all sizes streamline their warehouse operations, reduce costs, and improve their bottom line.

Take us through the process of building the first version of your product.

One advantage we had when building the first version of PULPO WMS was that my co-founder and I had run warehouses with complex processes, which gave us valuable experience in designing features that could handle different types of products, such as serial number products and lot number products with expiration dates, along with specific rules regarding their warehousing.

We also had experience in both the B2B context of moving larger volumes of products and as B2C merchants, which gave us insight into the need to process a large number of smaller orders as efficiently as possible.

All of this experience and knowledge went into defining an optimal feature set with many configuration options for a large number of use cases. We wanted to ensure that PULPO WMS could handle each of our clients' unique needs, whether they were a small e-commerce business or a large third-party logistics provider.

Below are some of the core features we developed and their respective use cases:

Multi-Order Picking: PULPO WMS supports different types of multi-order picking, including batch and cluster picking, to increase efficiency and reduce the time spent on order fulfillment.

Batch Picking: This method involves grouping orders with similar items, allowing warehouse staff to pick multiple items simultaneously.

Cluster Picking: In this approach, orders are grouped based on locations within a designated area, streamlining the picking process. Both methods significantly improve warehouse productivity and are particularly useful for e-commerce businesses and third-party logistics providers that handle a high volume of orders daily.

Split Picking for Large Orders: For large orders that require multiple pickers, PULPO WMS offers split-picking functionality. This feature enables the system to divide a single order into smaller, manageable parts, allowing multiple pickers to simultaneously work on the same order. This ensures efficient order processing and faster fulfillment times.

Inventory Management: PULPO WMS offers real-time inventory tracking, enabling users to monitor stock levels and movements across multiple warehouses. This feature is crucial for businesses of all sizes, as it helps to prevent stockouts and overstocking, optimize stock rotation, and streamline the entire inventory management process.

Advanced Analytics and Reporting: PULPO WMS provides users with a comprehensive suite of analytics and reporting tools, offering insights into warehouse performance, stock levels, and order processing. These data-driven insights help businesses make informed decisions, optimize their operations, and drive growth.

Integration with Existing Systems: PULPO WMS can seamlessly integrate with various e-commerce platforms, ERP systems, and shipping carriers, ensuring a smooth flow of data between different systems. This feature is vital for businesses seeking to streamline their operations and minimize manual data entry.

In addition to designing the software features, we also had to ensure that the software was scalable, secure, and reliable. We implemented a modular architecture that could handle multiple warehouses and integrate with other business systems, such as ERP and CRM. We settled on the technology used for extremely performant systems like VISA, Mastercard, Whatsapp, or Pinterest.

We focused on building a scalable, secure, and reliable software infrastructure by implementing a multi-tenant SaaS (Software as a Service) architecture, which allows multiple users to access the system securely and simultaneously while still maintaining separate and isolated data. This architecture is efficient and cost-effective, as it enables sharing of resources and infrastructure across multiple clients.

One of the biggest lessons we learned from starting and launching PULPO WMS was the importance of having a clear and focused value proposition.

To achieve this, we chose to use Erlang and Elixir as the programming languages for our system. Erlang and Elixir are known for their high concurrency, fault tolerance, and real-time processing capabilities. These languages have been used to build extremely performant systems for major companies like VISA, Mastercard, WhatsApp, and Pinterest.

PULPO WMS runs on the Amazon Web Services (AWS) cloud platform, offering services to ensure high availability, scalability, and security. AWS allows PULPO WMS to leverage a global infrastructure that can seamlessly scale up or down based on demand, ensuring optimal performance at all times.

The modular architecture of PULPO WMS allows it to handle multiple warehouses and easily integrate with other business systems, such as ERP (Enterprise Resource Planning) and E-Commerce systems. This modularity and flexibility enable PULPO WMS to adapt to the unique requirements of many clients and support their growth over time.

In addition to the web-based platform, PULPO WMS also offers a native mobile application built using React Native. This mobile app provides a user-friendly interface, enabling warehouse staff to access key features and functionalities on the go, improving overall efficiency and productivity. React Native is known for its ability to deliver high-quality, cross-platform applications, ensuring a seamless experience for users across various devices.

Describe the process of launching the business.

Launching PULPO WMS was an exciting but challenging process that required careful planning and execution. To finance the business, we invested all of our personal savings and were fortunate to win a grant that helped us build the first version of PULPO WMS.

We also secured some angel investments from a few early supporters who believed in our vision and saw the potential of our product.

Warehouse processes are critical to every company, and it was extremely challenging to win over the first customers without references, but we were patient and persistent. We continued refining our product and marketing strategies, focusing on building a strong brand and reputation within the logistics and e-commerce industries.

When PULPO WMS first launched, we acquired our initial customers primarily through organic search. Many modern e-commerce and quick-commerce companies were actively seeking a more advanced and adaptable warehouse management system to meet their growing needs.

These businesses discovered PULPO WMS by searching for a modern WMS solution online, and the system's innovative features and flexible architecture made it an attractive option for them. As a result, we quickly gained traction in the market, helping it establish a strong customer base right from the beginning.

One of the biggest lessons we learned from starting and launching PULPO WMS was the importance of having a clear and focused value proposition. WMS, in general, is still sold with high upfront costs and long implementation projects that can take weeks or months.

We had to refine our messaging and positioning to ensure that we were effectively communicating the unique benefits of our product to potential customers: Creating the fastest ROI and taking the warehouse live within a few days without having to stop warehouse operations.

To effectively communicate the unique benefits of our product to potential customers, we focused on listening to the needs and challenges of our clients and understanding their requirements better. By engaging with customers and conducting thorough market research, we identified two key value propositions resonating with our target audience: delivering the fastest ROI (Return on Investment) and enabling warehouses to go live within a few days without interrupting warehouse operations.

To achieve this refined messaging and positioning, we took the following steps:

Customer Feedback: We gathered feedback from existing customers to better comprehend their pain points, experiences, and expectations. This valuable information allowed us to fine-tune our features and services to address these concerns effectively.

Market Analysis: By examining industry trends, competitors, and emerging opportunities, we were able to better understand the market landscape and identify the unique selling points that set our product apart from others in the market.

Tailored Messaging: We crafted our marketing messages to emphasize the fast ROI and seamless implementation process. We highlighted how our solution could be deployed quickly without disrupting warehouse operations, allowing businesses to reap the benefits of a modern WMS in just a few days.

Targeted Marketing Channels: We utilized targeted marketing channels to reach potential customers actively searching for a modern WMS solution. By focusing on these channels, we could ensure that our messaging reaches the right audience at the right time, increasing the likelihood of conversion.

Ongoing Optimization: We continued to iterate and improve our messaging and positioning based on customer feedback and market changes. This ongoing optimization allowed us to stay ahead of the competition and consistently deliver value to our customers.

By refining our messaging and positioning, we successfully communicated the unique benefits of our product to potential customers.

Another lesson we learned was the importance of building a strong team and company culture. We invested heavily in hiring talented and dedicated team members who shared our vision and values, and we made sure to foster a positive and supportive work environment.

Our hiring approach revolves around finding talented and dedicated individuals who share our vision and values. Building a strong team and company culture is crucial to our success. To achieve this, we have adopted several strategies to help us hire great talent:

Clear Job Descriptions: We ensure that our job descriptions are clear and concise, accurately reflecting the responsibilities and requirements of each role. This helps us attract candidates with the right skill sets who are genuinely interested in contributing to our mission.

Emphasis on Cultural Fit: While technical skills are essential, we prioritize finding candidates who align with our company culture and values. During the interview process, we assess not only the candidate's skills and experience but also their attitude, work ethic, and compatibility with our team.

Employee Referrals: We encourage our current team members to refer qualified candidates from their networks. This often results in higher-quality applicants pre-vetted by our employees and are more likely to fit well within our company culture.

Comprehensive Interview Process: We have implemented a thorough interview process, which may include multiple rounds of interviews, practical assessments, and reference checks. This comprehensive approach helps us evaluate candidates holistically and identify the best fit for our team.

Competitive Compensation and Benefits: To attract and retain top talent, we offer competitive compensation packages and benefits, including professional growth and development opportunities.

Fostering a Positive Work Environment: Creating a supportive and inclusive work environment is essential to retaining great talent. We encourage open communication, collaboration, and continuous learning among team members, fostering camaraderie and shared purpose.

By focusing on these strategies, we have been able to build a strong and dedicated team.

Since launch, what has worked to attract and retain customers?

One of our main differentiators in attracting and retaining customers has been the fact that we have the most modern solution in the market. Our customers are attracted to the ease of use of our native app, which allows warehouse employees to learn to process orders in only one day. We also offer integrations with leading e-commerce platforms like Shopify, Magento, WooCommerce, PrestaShop, and many more.

Additionally, our growing number of integrations with ERPs has helped us attract larger enterprise clients who require more complex solutions.

At PULPO WMS, our vision is to be the most widely adopted WMS worldwide. To achieve this, we have invested heavily in creating a world-class API that helps other systems integrate with PULPO WMS.

We believe in a best-of-breed approach to enterprise software and are 100% focused only on warehouse management. We believe our customers should have the freedom to choose the best ERP, e-commerce platform, and CRM for their needs and integrate those solutions with PULPO WMS. We have customers all over the world, and they themselves have often integrated their local systems to PULPO.

In terms of marketing and traffic efforts, we have focused heavily on SEO and content marketing to drive organic traffic to our website. We see an increase of interest in merchants looking for a Shopify warehouse management solution, for example. We regularly attend industry conferences and events to network and build relationships with potential customers and partners.

To bring existing customers back into the conversation, our Ops team offers exceptional customer support and regularly releases new features and updates based on our customer’s feedback. We also offer ongoing training and support to help our customers get the most out of our software.

How are you doing today and what does the future look like?

At PULPO WMS, we are excited about the future and our growth potential. We are currently growing fast internationally, with a presence in five continents. We are proud to support some of the fastest-growing e-commerce companies and startups around the world, including Emma Sleep in Europe and Wasoko in Africa. We also have customers in LATAM and Asia.

One of the things we are most proud of is our high customer retention rate. Our software is very sticky, and according to extensive studies, we estimate that customers will use our software for an average of 10 years. This speaks to the value we provide to our clients and the strength of our product.

In terms of growth, we are currently growing by more than 300%. We believe this growth rate will continue as we expand our presence in new markets and innovate and improve our software. We have ambitious plans and are excited to see what the next few years will bring.

Through starting the business, have you learned anything particularly helpful or advantageous?

Starting PULPO WMS has taught us many valuable lessons that have helped us build and grow our business. One of the most advantageous things we did early on was to create a remote culture years before it became necessary due to the pandemic. This has allowed us to tap into an international talent pool and retain our employees, even during the pandemic. Our team is excited about building a revolutionary product that is ten times better than anything else in the warehouse software world, and this motivation drives us forward.

In terms of good decisions, we made a strategic choice to invest in a top multi-tenant architecture from the beginning. This has allowed us to avoid the need for re-platforming after one or two investment rounds, which is a common issue for many startups. By investing in a solid infrastructure from the outset, we were able to focus on building a strong product and growing our business rather than worrying about technical debt and other issues.

We also learned that it is important to stay focused on our core product and not get distracted by other opportunities or areas. By remaining committed to our vision of being the most widely adopted WMS worldwide, we have been able to build a strong brand and reputation within the logistics and e-commerce industries.

Finally, we have learned the importance of staying agile and adapting quickly to changing market conditions and customer needs. By being open to feedback and continually improving our product, we have stayed ahead of the competition and maintained our position as a leader in the warehouse management software space.

What platform/tools do you use for your business?

At PULPO WMS, we use a variety of online tools and platforms to help us run and grow our business. One of our favorite tools is Hubspot, which we use as both a CRM and a CMS. Hubspot allows us to manage customer relationships, track leads, and create and publish content on our website and blog. It also integrates with other tools, like Google Analytics and Zapier, which helps streamline our workflows.

We also use Jira and Confluence for project management and collaboration. Jira allows us to track and manage our development tasks, while Confluence serves as our internal wiki for documentation and knowledge sharing. Both tools have been instrumental in helping us stay organized and work efficiently as a team.

What have been the most influential books, podcasts, or other resources?

There have been a number of books and resources that have been influential in shaping our business and our approach to growth and innovation. One book that stands out is "Behind the Cloud" by Marc Benioff, the founder of Salesforce. The book provides a firsthand account of how Salesforce grew from a small startup to a billion-dollar company and is full of practical insights and advice on building and scaling a successful business. We also see the WMS market quite similar to the CRM market when Salesforce started: a big white space for a scalable SaaS solution.

Another book that has been influential for us is "Scaling Up" by Verne Harnish. This book provides a comprehensive framework for growing and scaling a business, covering everything from strategy and execution to leadership and culture. It has helped us to stay focused on our goals and maintain a clear vision for our company's growth and development.

In terms of podcasts, we have found the "Masters of Scale" podcast with Reid Hoffman to be particularly valuable. The podcast features interviews with some of the world's most successful entrepreneurs and business leaders and provides insights and advice on how to grow and scale a business. The podcast has helped us to stay inspired and motivated and has given us new ideas and strategies for taking our business to the next level.

Advice for other entrepreneurs who want to get started or are just starting out?

As entrepreneurs who have started and grown our own businesses, we have learned a lot. Our top tip for aspiring entrepreneurs is to find a problem or challenge you are passionate about solving and dive deep into understanding the needs and requirements of your users.

This means getting your hands dirty and experiencing the life of the users first-hand. By doing this, you can gain invaluable insights and knowledge to help you build better products and services that make the world better.

Something that was very important to me from the beginning was creating a solution that provides a measurable return for a customer. If a customer pays $1 to PULPO, he must be able to receive >$1 in return bottom line. I would not have found that in some social-media apps.

One mistake we often see entrepreneurs making is trying to do too much too soon. It is important to focus on your core product or service and get it right before trying to expand into new areas or markets. It is also essential to stay focused on your vision and goals and not get distracted by shiny new objects or opportunities that may not align with your long-term objectives.

Finally, we would encourage aspiring entrepreneurs to stay inspired and motivated, despite challenges and setbacks. Starting a business is not easy but can be incredibly rewarding and fulfilling. By staying focused on your goals and working hard to build a great product or service, you can make a real difference in the world and achieve your dreams.

Where can we go to learn more?

Feel free to reach out to us through any of these channels if you have any questions or comments. We'd love to hear from you!