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transportation management companies

Let’s say you order a meal through an app. It costs you< 300 bucks and takes ~45 minutes to arrive. You can get the ETA, track the order, pay for it, and rate the experience at the touch of a button. The app (company) knows the status of your delivery, how much you paid (and receives it immediately), and your satisfaction level versus mine . They also know our ordering patterns and tastes and use this information to serve us better food, and experiences, every day. This is true for taxis, restaurants, groceries and carpenters, today, and boy, do we love it!

Now let’s say you ordered something worth 300,000 bucks, fragile, and takes weeks to arrive. Would you expect a similar experience? What if you did this hundred of times, every day?

Would you want more or less information about all of your deliveries?

B2B Logistics is a blackbox — and the costs are huge.

Unfortunately though, this great user experience is restricted to e-commerce deliveries, which barely scratches the surface of global commerce. A majority of global (read: “traditional”) commerce is driven by B2B deliveries that operate with little to no information.

Irrespective of industry or scale, outsourced logistics is hugely fragmented, multi-tiered, and low on tech. This leads to an enormous number of intermediaries between pure demand (shippers) and pure supply (vehicle owners/drivers). Companies are forced to deal with a few dozen entities for each delivery — transporters, brokers, vendors, and partners for the first mile, long-haul, last mile, warehousing, and transshipment. Documents, payments, and information are held in silos, and transacted in, physically.

Physical exchange of Information, Transactions, Communication, Documentation: No visibility over Customer Satisfaction | No standard workflows | No Accountability | No Data (post-transaction) for Decision Making
Irrespective of industry or scale, outsourced logistics is hugely fragmented, multi- tiered and low on tech.

Shockingly, even the world’s largest companies — that have efficient, digital workflows to manage their customers, finances, assets, and employees — coordinate their deliveries using multiple spreadsheets and emails every day. Thousands of reams of paper, litres of ink, and calls and SMSs are invested in tracking, monitoring, reporting, and communicating the progress of each delivery. Yet, tragically, all of this data disappears at the end of every transaction. The consequent lack of (equal access to and analyses of) information makes deliveries inefficient and costly.

Companies of all sizes are weighed down by these costs. Our research showed that proactive supply-chain managers and COOs at pioneering companies all over the world had repeatedly tried solving this problem. Some companies had sponsored in-house products. Others had implemented expensive Transport Management Systems available in the market. These products, some ingenious, had been costly to build, took years to implement, were cumbersome to maintain, and feature-focused to the point that they were often not scalable or user-friendly — at best relegating them to legacy systems that were not very helpful or at worst, making them completely unusable.

This problem is big. In India alone, outsourced logistics rakes up ~US$ 200 Billion every year. Globally, this number is close to 10 Trillion. Assuming inefficiencies account for 2% of top- line, we are looking at a $200 Bn problem (TAM). Developing economies face challenges similar to those in India, under almost identical market structures. Excitingly, that is most of the world.

At Pando, we are digitizing deliveries to optimise transaction costs for companies of all sizes.
To know more contact us

Article By:

Nitin Jayakrishnan

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