Every day we are introduced to small companies with innovative business models, capable of shaking up traditional markets dominated by large companies. In this same blog, I even wrote about companies like Starship, Shyp and What3Words, some of the many startups that have emerged to change the way logistics are done. But why is it that so many startups have emerged in this segment?
First, it is up to us to define what a startup is, as the concept is not always clear to everyone who uses the term. According to Yuri Gitahy, founder of Accelerator, a startup can be understood as a group of people looking for a repeatable and scalable business model, working under conditions of extreme uncertainty. This type of company is characterized by low maintenance costs while having the ability to grow quickly and generate ever-increasing profits. In general, startups are more frequent on the Internet due to the lower costs of creating a software company and the ease that the web brings to expand the business and sell on a potentially unlimited scale.
Currently, more than 350 startups related to supply chain management are listed on the Angel list, a website created with the aim of strengthening communication between investors and entrepreneurs. This expressive number can be explained by the numerous opportunities for improvement existing in the logistics and supply chain management market: it is a sector that is increasingly under pressure, either to reduce costs due to reduced margins, or to be faster , meeting the increasingly urgent needs of customers.
To reduce the great inefficiencies characteristic of the sector, many companies have been betting on technology. And one formula in particular has been repeated: small companies develop innovative solutions, quickly scale, and then are acquired by much larger companies. No wonder the logistics and transportation industry saw a 100% increase in funding last year: from $7B in 2014 to $14B in 2015.
Recently valued at around $68 billion, Uber has become the biggest private startup of all time and possibly the biggest success story of companies of its kind in the logistics sector. Trying to achieve the same success, numerous startups were created to deal with efficiencies related to transport freight management, container development, end-to-end deliveries, fleet management and warehousing contracting, among others. Application development, analysis of large masses of data (Big data) and automation has been the path chosen by most startups for this.
Figure 1 – Examples of logistics startups
Source: medium.com
O XXII International Supply Chain Forum which will take place between the 4th and 6th of October, will have as one of its verticals the theme Startups: Entrepreneurship and Innovation in Logistics & Supply Chain, whose objective is to discuss best practices and the most relevant aspects for introducing new business models. Among the various sessions, it will be possible to attend debates with experts, founders and managers of some of the most successful logistics startups operating in Brazil, such as Truckpad, Visilog, eStoks, Seen Technology and Intelipost. For those interested in the subject, quite an opportunity!
References
<http://www.supplychaindive.com/news/logistics-startups-acquisitions-technology-apps/425439/>
<http://exame.abril.com.br/pme/noticias/o-que-e-uma-startup>
<https://www.statista.com/statistics/407888/ranking-of-highest-valued-startup-companies-worldwide/>
<https://jonathanwichmann.com/my-lists/list-the-most-promising-start-ups-in-logistics/>
Fernanda Monteiro
More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.
