New entrants offering innovative digital platforms on the IoT, such as Convoy, Flexport, Freigthos and UShip, are reshaping the freight business. What they all have in common is the desire to match the supply and demand for transport services by means of a marketplace, via an online portal. Even though these newcomers are not yet known to many logistics companies, they
are already changing the sector and, backed by considerable
financial resources, are radically disrupting the existing landscape.
These new digital competitors are breaking into the highly competitive logistics market from an entirely different direction. The goal is to network all parties involved in a supply chain –from the consignor, forwarding agent, shipper, dispatcher and driver through to the consignee – using an integrated information system. By combining, for example, information about the truck, trailer, superstructure, driver, order and product, the transportation and handling process is being significantly improved.
In the medium term, the entire logistics supply chain – from suppliers, purchasing, producers, warehousing, commissioning, distribution, logistics and trading to the end-customer – is to be monitored and optimized in real time.
The logistics industry is being significantly transformed by digitalization. This is due to its many inefficiencies resulting from a large number of key players along the value chain and the intermittent exchange of information. Startups, digitalized logistics companies and automotive manufacturers are trying to address these inefficiencies and make life easier for established logistics companies through digital solutions and business models. However, everything comes at a price: will these solutions be worthwhile and if so, who for? Not all of the players can be at the top of the value chain and pocket the lion’s share. This privilege will be reserved for a few players only. In most cases, monopoly-like structures have become established because customers do not want to run around in different marketplaces.
With a “Google” culture into the logistics market
With Saloodo!, DHL has created a digital marketplace for its logistics services that combines the best of both worlds: the speed and flexibility of a digital startup and the logistics expertise and capabilities of a market leader. The aim of this startup is to secure market leadership in the freight business through an innovative digital platform. Saloodo! has developed its own culture, which is much more interested in the “Googles” or “Facebooks” than in a logistics company.
Published: November 2017