The logistics sector is experiencing rapid technological advancement, leading to the emergence of numerous innovative companies. ShipnGro spotlights some of the most promising new players in the field.
Technological disruption is now commonplace, and the ongoing emergence of new technologies will continue to reshape how we live and conduct business. This holds true for the logistics industry, where a surge of exciting and innovative logistics start-ups is fueling a dynamic B2B logistics community. In 2021, this makes it a particularly compelling area to be involved in.
Numerous new businesses are emerging to tackle the challenges encountered by international logistics customers. ShipnGro.com has been addressing these challenges since 2005 by offering and streamlining freight forwarding services and leveraging digital document technology, such as ShipnGro’ advanced smart document service.
However, we are not the only company providing exceptional new logistics technology. Therefore, this article will highlight several businesses with the potential to become future industry leaders.
The Imperative of Innovation
As a leading provider of intelligent logistics solutions, we at ShipnGro recognize the critical importance of continuous innovation to facilitate the seamless flow of global trade. By investing in cutting-edge logistics technology for the supply chain, ShipnGro, along with similar organizations, can support the transition to a post-COVID world and a resurgence of global economic growth.
Sustained digital transformation is essential for enhancing the intelligence of supply chains and preparing them for the increasing volume of online commerce. This is all vital for helping to improve living standards worldwide and accelerating global recovery from the COVID-19 pandemic.
With these goals in mind, we have selected the following innovative companies, recognized as some of the most notable emerging entities in logistics technology and the B2B logistics start-up arena.
Cogniac
Our first featured start-up logistics company is Cogniac, which utilizes artificial intelligence (AI) in logistics to enhance supply chain management. Founded in 2015 by Amy Wang and Bill Kish, the company’s AI machine vision helps reduce errors and accelerate the delivery process through automated cargo identification. Cogniac employs “advanced Optical Character Recognition (OCR) models” to automatically recognize handwritten or typed characters—for example, on “shipping containers where ID numbers are written across corrugated panels to parcels moving at high speed within a sorting facility”. The potential of this technology for intelligent warehouse and inventory management in the logistics sector is evident.
FLEXE
Another noteworthy logistics technology company is FLEXE, an on-demand warehousing solution that provides retailers with quick access to cost-effective warehousing via an online marketplace. Established in 2013 by Francis Duong, Edmond Yue, and Karl Siebrecht, FLEXE has experienced a significant surge in demand for warehousing in North America, driven by the e-commerce boom during the COVID-19 pandemic. Consequently, the company recently secured $80 million in funding to support further expansion. FLEXE's technology delivers a more centralized view of the supply chain, giving customers enhanced control and visibility across their warehouse network. Furthermore, its transaction-based model allows access to services without requiring long-term contracts or leases.
Attabotics
Drawing inspiration from the natural structures of ant colonies, Calgary-based Attabotics employs robotics to optimize warehouse operations and enhance supply chain intelligence. This B2B logistics start-up replaces traditional fulfillment center layouts with patented storage structures and innovative robotics that maximize both horizontal and vertical space, potentially reducing a company’s warehouse footprint by up to 85%. In the past year, Attabotics raised $50 million to invest in the development and commercialization of its technology.
Deliverr
The logistics technology company Deliverr aims to transform the logistics industry into a more intelligent, asset-light network, enabling online sellers to offer transparent delivery timeframes backed by reliable and affordable logistics services. The company collaborates with leading e-commerce businesses, including Walmart, eBay, Amazon, Shopify, Wish, and BigCommerce. Deliverr recently secured $170 million to advance its ambition of becoming a viable alternative to Amazon Prime, demonstrating its significant aspirations.
RPA Labs
Founded in 2019, RPA Labs is a B2B logistics start-up specializing in artificial intelligence for logistics and supply chain applications. The company recently received investment from within the supply chain industry. RPA Labs offers robotic process automation (RPA) solutions for companies “buried in emails, documents, and inefficient processes.” Its AI solution uses machine learning to create an action list by observing users’ workflows, understanding their processes, and interacting with existing technology and applications. RPA Labs states that its "ready built and ready to go" solutions can be further customized for logistics and the supply chain. The company aims to deliver a faster customer experience, reduce per-shipment costs, and eliminate labor-intensive, mundane tasks.
STORD
STORD is a B2B logistics start-up that provides a cloud-based supply chain solution designed to allow companies to manage and optimize inventory and orders across their global logistics network, while also serving as a central collaboration platform. STORD operates a leading omnichannel logistics network in North America, offering end-to-end logistics services with pay-as-you-go pricing and “infinite scalability.” The start-up is currently raising capital to help retailers using its platform deliver products more rapidly and efficiently than with their current infrastructure.
Hive
German start-up logistics company Hive focuses on addressing the warehousing needs of e-commerce companies, particularly where capacity is scarce. Hive also handles pick-ups, packaging, and shipping, and maintains strong connections with platforms like Woocommerce and Shopify. Positioning itself as ‘logistics for the new age,’ Hive assists in digitizing the supply chain and developing advanced solutions for its clientele.
Cubbo
Launched in December, the B2B logistics startup Cubbo is facilitating the shift of trade to online channels in emerging Latin American markets by converting distressed real estate assets into micro-fulfillment centers, catering to the needs of online retail. Cubbo is currently operational in Colombia and Mexico, with plans to expand to additional cities in the region.
Shipium
Start-up logistics company Shipium, founded by Jason Murray and Mac Brown in 2019, aims to enable enhanced end-to-end logistics. Similar to Deliverr, Shipium helps e-commerce companies provide free and rapid shipping using advanced supply chain technology. Built by veterans from Amazon and Zulily, Shipium assists online retailers in connecting existing front-end systems with back-end operations to decrease costs, enhance the customer experience, and streamline operational complexity.
Transmetrics
Bulgarian B2B logistics start-up Transmetrics specializes in transport planning, utilizing artificial intelligence for logistics and supply chain optimization. Its platform provides highly accurate analysis, modeling, and prediction of transport flows. Last year, the company received a €1.7 million grant from the EU’s European Innovation Council Accelerator program, distinguishing itself as one of 75 projects selected from over 1,800 applications. Transmetrics intends to offer its technology via a software-as-a-service (SaaS) monthly subscription. Preliminary trials have demonstrated transport cost savings exceeding 20% in an industry characterized by narrow profit margins. The technology can also contribute to reducing unnecessary carbon emissions by optimizing asset utilization in transport.
Why Innovation is Essential in the Logistics Industry
The COVID-19 pandemic has highlighted the critical role of logistics and supply chains in ensuring the uninterrupted movement of cargo and goods globally.
As an industry, we must persist in innovating and investing in next-generation solutions to maintain the flow of trade. Investments across the supply chain will aid in resolving numerous challenges confronting the world today, from transporting vaccines to distributing food. By creating smarter and more efficient supply chains, we can help foster greater prosperity for people worldwide, especially in developing markets, and collectively build a cleaner future. This is a challenge that ShipnGro is eager to embrace.
If you are seeking reliable, innovative partners, we invite you to explore the world's largest directory of freight forwarders and logistics companies, freely accessible on ShipnGro.com.