Startups in Logistics & Forwarding

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Startups in Logistics & ForwardingBusiness models, investments, challenges

—

March 2016

Agenda1 Business Model Freight Forwarding

2 VC Investments in Transport & Logistics

3 Selected Startups and Business Models

4 What’s next for Freight Forwarders & 3PLs


Freight Broker Startup

Characteristics of freight forwardingBusiness model freight forwarding

Sh

ipp

er

Freight Forwarder

Co

nsi

gn

ee

Carrier / Warehouse / Terminal

calls

quotes

negotiatesquotes

Communication / Touchpoints

Manages / clears customs / keeps visibility

Logistics Services

Delivers

Automates / digitalizes

(Manages / clears customs / keeps visibility)

— Customers and customer touchpoints

— State of the art software and data analytics

— Logistics talent and brain

— Carrier relationship and prices / margins

The traditional freight forwarding business model is increasingly disrupted by technology and startups

Startups and Freight Forwarders increasingly compete for

Freight Forwarding value chain and customer touchpoints

- Trading business as a brokerage function between "Shippers" and "Carriers“ – the carriers’ direct channels currently only account for a small percentage of the market

- Coordinating role in the value chain

- Low margin business

- Complex value chain with diverse stakeholders

Characteristics of Freight Forwarding

- Flexibility

- Visibility

- Volatility

- Costs

- “IT heritage”

Current challenges in Freight Forwarding


— Freight quotes are far more complex and harder to automate than passenger airlines fees as they typically include up to 20 associated fees including trucking fees, ocean liner fees, fuel fees, handling fees, piracy risk fees, seasonal surcharges, hazardous surcharges, port fees etc

— Currently, requesting freight quotes requires extensive human interactions. According to Ocean Audit Inc., this leads to mistakes about 20% of the time, costing $684mn p.a.

— A recent Freightos survey showed that the average quote time for a shippers request was 4 days, while over 50% of the forwarders did not provide a quote at all. Once provided, there was a US$700 pricing span between the lowest and highest price quoted

— At the same time, shippers and logistics customers are increasingly asking for IT supported sales processes and client interaction. While over 90% of shippers view IT capabilities as a necessary expertise of a logistics provider, only 60% of the surveyed shippers are satisfied with its forwarders IT capabilities (“IT GAP”)

— Among the most frequently cited technologies demanded are those that have more execution and transactional-based capabilities and focus around visibility, real-time customer access and the use of web portals and mobile technologies for updates and relevant shipment information

— However, current tools in the transport sector are largely based on individual, ad-hoc IT-tools such as Excel or Access, according to the KPMG Data Analytics Survey

Current state of online freight salesBusiness model freight forwarding

US$ 50

Survey of B2B online sales in freight forwarding*

45%

85%

7 hours

average spot quote sale cost

sales executive time spent on pricing

of forwarders do not have a dedicated quote request wizard

until personal confirmation of salesperson

55% of forwarders did not provide a full quote at all

4 days average quote time

40% difference between lowest and highest price (pricing span of US$700)

*Source: Freightos “State of Online Logistics Sales 2015”(test survey among top 20 freight forwarders in the world) Source: 2016 Third-Party Logistics Study; KPMG Data Analytics Survey

While shippers are demanding stronger IT interactions, forwarding still relies largely on fax machines and Excel

VC Investments in Transport & Logistics



OverviewVC investments in transport & logistics startups reached record volumes in 2015

Yearly VC investments in transport & logistics

4131,270 1,760

5,115

14,328

4970

92

198

302

0

50

100

150

200

250

300

350

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2011 2012 2013 2014 2015

Nu

mb

er o

f Deals

US

$m

n

Funding in Million USD Deals

VC investments in transport & logistics, 2011 - 2015

Travel & Ridesharing

82%

Logistics & Forwarding

18%

Travel & Ridesharing

Uber 7,810

Didi Kuaidi 3,740

Lyft 2,010

Olacabs 1,310

DiDi Dache (merged) 818

Kuaidi Dache (merged) 725

GrabTaxi 690

BlaBlaCar 312

Karhoo 250

Gett 213

Logistics & Forwarding

Instacart 275

Grofers 166

Telogis 141

Postmates 138

Delhivery 125

BigBasket 121

Beequick 110

Teletrac 100

No1 Van 100

Youkeshu 65

Top 10 startups by funding size (US$mn), 2011 - 2015

— Investments in start-ups from the transport and logistics environment in 2015 rose to about US$14bn worldwide

— This figure includes the investments in CarSharing Unicorns who are disrupting traditional markets of established transportation companies

— In addition, a number of startups with business models in logistics and forwarding (both B2C / last mile and B2B) are entering the market at a fast pace

Source: CB Insights; KPMG Research



Logistics & Forwarding StartupsVC investments in logistics & forwarding can be clustered by business model and customer focus

Yearly VC investments in logistics & forwarding startups List of top VC deals in 2015

VC investments by business model, 2015

330

1,1991,123

684

1,545

3853

63

139197

0

50

100

150

200

250

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2011 2012 2013 2014 2015

Nu

mb

er o

f Deals

US

$m

n

Funding in Million USD Deals

45%

45%

17%

3%

38%

52%

Numberof Deals

Amountraised

Marketplace Transport & Storage

Supply Chain Solutions

VC investments by customer type, 2015 VC investments by region, 2015

40%

40%

55%

52%

5%

8%

Consumer Business Business+Consumer

37%

30%

24%

37%

39%

33%

EMA ASPAC Americas

— The majority of startups funded in 2015 have either a marketplace business model (B2C/C2C or B2B freight brokerage platforms without assets), provide niche transport & storage solutions (B2C/B2B) or offer a special supply chain analytics software

— Despite the strong trend of eCommerce / last mile delivery solutions, over 50% of the funding in logistics startups in 2015 was allocated to B2B business models

— Funding volume is almost evenly allocated across the different regions, although the average funding size is largest in Asia and smaller in Americas and EMA

— USA (29 deals) is the leading nation for startup funding in 2015, followed by India (19) and China (10)

Source: CB Insights; KPMG Research


Investors and Corporate EngagementVC Investments in Transport & Logistics

Rank InvestorsNumber of

deals 1 Y Combinator 92 500 Accelerator 83 TechStars 74 Trinity Ventures 65 Sequoia Capital India 66 Matrix Partners 67 FundersClub 68 Accel Partners 69 Tiger Global Management 510 SV Angel 511 QuestMark Partners 512 Plug and Play Ventures 513 Nexus Venture Partners 514 Kleiner Perkins Caufield & Byers 515 Hyde Park Angels 516 Google Ventures 517 500 Startups 518 Times Internet 419 Tencent 420 Salesforce Ventures 421 OurCrowd.com 422 Matrix Partners China 423 Lightspeed Venture Partners 424 DAG Ventures 425 SAIF Partners 3

Apart from VC investors, Corporates are exploring investment opportunities in freight & logistics startups

Top VC investors in Freight & Logistics, last 5 years Corporate engagement with Freight & Logistics startups

— In 2015, Quantium Solutions (Australia), which is wholly owned by SingPost Group, has invested in HUBBED, a one-stop ecommerce delivery service aggregator.

— Google Ventures invested in transport & logistics startups like Flexport, UBER, Boxbee (on demand storage) or BofferBox (fully acquired by Google in 2012 to compete with Amazon's Locker service and DHL Packstation)

— Amazon founder Jeff Bezos and an Uber cofounder are investors in Convoy, a “Uber for trucking” startup

— Founders Fund (backed by PayPal creator Peter Thiel) invested in Flexport

— Same day delivery startup Liefery was funded by time:matters and Lufthansa

— CMA CGM invested in startup TRAXENS which develops innovative container monitoring, geolocation and multimodal coordination systems

— Kuehne + Nagel, CMA CGM, Hapag-Lloyd, Hamburg Süd, United Arab Shipping Company, MSC and AP Moller-Maersk are investors in the shipping e-platform INTTRA

— UPS is leading a new U$28mn round of funding for the last-mile delivery startup Deliv

— Tianjin Tianhai (HNA Group) will acquire Ingram Micro, which help the logistics sector of HNA Group transform to a supply chain operator and provide one-stop services while improving efficienciesSource: CB Insights; KPMG Research

Selected startups and business models



The freight & logistics startup landscapeStartups covered in this presentation can roughly be clustered by depth of service offering and global reach

Global reach and modes of Transport

Serv

ice o

fferi

ng

Global / Air & SeaRegional / Land Transport

Ind

ivid

ualize

d /

Seg

men

tati

on

Sta

nd

ard

ized

/

Pla

tfo

rmDigital Freight Forwarders

UBER for TruckingFreight Platforms

Digital 3PLs / SCMs



FreightosFreightos automates the routing and pricing of international freight shipments: “it’s like Expedia for Shipping”

Business model and technology

— The Freightos software-as-a-service (SaaS) technology allows logistics companies to manage contracts, and automate and manage the quotation and sales process, from their own website

— Freight vendors on the Freightos Network can easily share rates and tariffs, allowing their salespeople, agents and even customers to instantly generate even the most complex freight quotes in seconds, right from their internet browser

— The team has built a sophisticated pricing and routing platform for logistics, layered on top of a next-generation B2B transaction engine known as TradeOS

— By using the platform, freight quotes can take place in real time, rather than the status quo of days. To date, over 4mn instant freight quotes have been generated

— Freightos has developed a method that allows users to upload contracts and other data to an online reader that can handle the Excel and PDF files shippers and customers usually use. The system also incorporates data regarding fees, requirements, legal issues, penalties for late delivery, ship location and availability, weather data and price schedules from shippers, ship owners

— The startup also uses JProfiler, a cloud-based analysis system that extracts data from different format databases and inserts it into a single format

HQ Jerusalem, Israel

Founder Zvi Schreiber

Founded 2012

Total Equity Funding

US$ 36.3mn in 5 rounds from 8 investors

Investors

- Aleph

- Annox Capital

- Israel Cleantech Ventures (ICV)

- Koralmond Venture

- MSR Capital

- OurCrowd

- Sadara Ventures

- Zvi Schreiber

Last Funding US$ 14mn, Series B on September 9, 2015

Selected clients

Ceva, CP World, Apex Logistics, Hellmann, Marks & Spencer, Sysco

Offices6 offices in North America, Europe, Middle East and Asia

Employees 105

Key facts

Source: Crunchbase; Company Website; KPMG Research



FlexportFlexport is a licensed customs brokerage and freight forwarder built around a web application

Business model

— Flexport provides a web-based app that offers real-time visibility of shipments with experienced logistics and customs experts available to help at every step of the way

— Flexport offers services in air freight, ocean freight, trucking, warehouse & fulfillment, customs brokerage, and cargo insurance

— The startup is looking for reliable freight forwarding partners, specifically looking for ocean FCL/LCL, air freight, trucking and fulfillment

— “Think of us as your global logistics control tower in the cloud. When you book with Flexport you gain access to a global network of logistics service providers, beautiful supply chain visualizations, easy-to-use software, and industry experts on-call. Our web app allows you to request and book shipments, track all your global freight movements in real-time, manage product data, visualize your supply chain, view analytics, and more”

— Flexport is not using software to automate the entirety of the supply chain. It is a fully-licensed freight forwarder where people manage clients’ freight movements with dedicated teams that take end-to-end responsibility for the success of every client, including a licensed customs broker, logistics manager, and operations coordinators

HQ San Francisco, USA

Founder Ryan Petersen

Founded 2013



Investors (selected)

- Bloomberg Beta

- Ceyuan Ventures

- Felicis Ventures

- Fenway Summer Ventures

- First Round

- Founders Fund (PayPal Founder)

- Initialized Capital

- Susa Ventures

- A-Grade Investments

- Acequia Capital

- BoxGroup

- Cherubic Ventures

- Fuel Capital

- GV (Google)

- Winklevoss

- Y Combinator

Last Funding US$ 20mn, Series A on August 6, 2015

Selected clients

Bellabeat, Ring, RP & Associates

Offices San Francisco, Amsterdam, Hong Kong

Employees n/a

Key facts




INTTRA is the world´s largest ocean freight e-commerce platform

Business model

HQ Parsippany, USA

FounderMaersk Line, Mediterranean Shipping Co., CMA CGM, Hamburg Süd, Hapag-Lloyd, United Arab Shipping Co.

Founded 2000


US$ 39.5mn in 2 rounds from 1 investor


- ABS Capital Partners

Last Funding US$ 9.5mn, Venture on July 1, 2015

Selected clients

ECU Line, Safmarine, CMA CGM, Terra Nova

OfficesParsippany (HQ), Mumbai, Copenhagen, Hong Kong, Miramar, Singapore, Shanghai

Employees 101-250

Key facts

INTTRA

— INTTRA is ocean shipping’s leading e-marketplace where companies go to ship efficiently and gain insights to grow

— The business is backed by a network of 50 carriers and the world´s largest network of ocean shippers

— Underlying INTTRA’s solution is industry leading, transaction processing and analytics technology that consistently delivers high availability, highly secure and lightning fast systems

— INTTRA offers solutions for freight forwarders, shippers, carriers and NVOCCs in terms of shipping management (ocean schedules, cargo insurance, booking or container tracking), document conversation, SOLAS VGM, regulatory compliance as well as billing and invoicing

— Its Marketplace Decision Support allows shippers and customers to measure response time and other shipping efficiency standards

— The company also offers value-added services like data feeds and shipment reports or consulting services

— INTTRA is currently looking for small logistics deals, ideal targets are those involved with analyzing ocean-based data and post-transaction

— INTTRA recently unveiled its so-called “eVGM” tool, aimed at helping shippers to comply with the new IMO container weight regulationsSource: Crunchbase; Company Website; KPMG Research



cargomaticUBER for Trucking

Business model

— Cargomatic connects shippers and carriers in the truck space through web and mobile apps which gives the company the edge in an industry that still relies on phone calls, fax machine or email

— Cargomatic promises to solve the essential problems of the current LTL industry. Truckers can´t market extra space on their trucks in real time and lose too much time coordinating shipments via traditional devices. The business model aims at reducing deadhead miles and enabling shippers and carriers to coordinate shipments easily and efficient

— The startup is currently active in the areas of Los Angeles, New York and San Francisco

— Cargomatic gives shippers access to LTL, full truckload and drayage service, in turn carriers get access to new shipments

— By using Cargomatic shippers can easily track their freight by GPS and receive instant PODs, carriers can track their trucks precisely and get paid quickly.

— Both parties are enabled to track the whole process in real-time and access via mobile devices

HQ Venice, USA

FounderMartin Hendleman, Jonathan Kessler, Brett Parker

Founded 2013




- Nicolas Berggruen

- Canaan Partners

- Fritz Lanman

- Hank Vigil

- Jason Finger

- Justin Mateen

- Kevin Valsi

- Volvo GroupVenture Capital

- Winklevoss Capital

- Morado VenturePartners

- QueensBridgeVenture Partners

- Sherpa Capital

- Structure Capital

Last Funding US$ 8mn, Series A on January 29, 2015

Selected clients

Signal Brands, Glova Link, boxed.com, Exclusive Industries

Offices Venice, New York

Employees 7

Key facts




Amber RoadAmber Road is a provider of on-demand global trade management software and solutions

Business model

— Amber Road is the world´s leading provider of on-demand Global Trade Management (GTM) software and solutions

— The company helps organizations to comply with country-specific trade regulations and to plan, execute and track their global trade activities which enables goods to flow unimpeded across international borders in an efficient, compliant and profitable way

— The GTM software automates all processes of import and export tracking, global supply chain and trade management

— Heart of Amber Road is Global Knowledge, the most comprehensive international trade database which compiles all relevant information, laws and rules of international trade

— The software is provided over an on-demand platform making all the information accessible in a comprehensive database structure – cloud based usage enables clients to access the software from all over the world at any time

— Amber Road products and solutions are provided for a broad range of industries – textile, chemicals, machinery, financial services, education, retail & wholesale, technology, consumer goods, life science and logistics

HQ East Rutherford, USA

Founder James Preuninger

Founded 1990


US$ 6.7mn in 1 round from 3 investors


- Cross Atlantic Capital Partners

- Megunticook Fund

- NJTC Venture Fund

Last FundingIPO on March 21, 2014 (current market cap: US$112mn)

Selected clients

Air Products, Cisco, Pfizer, McDonalds, Dell, Siemens, UPS, TNT

OfficesMcLean (VA), East Rutherford, Cary, Bangalore, Munich

Employees 547

Key facts




iContainersiContainers offers online comparison of freight rates, booking and tracking services

Business model

— iContainers aggregates private freight rates for more than 100,000 trade routes to more than 300 destinations globally

— In 2013 the company expanded and opened a subsidiary in Miami as 20% of revenues come from the Americas

— It is the first on-line freight forwarder offering 24x7 export service through an easy, quick and inexpensive website

— The comparison search engine enables companies to select the best price for shipping goods abroad – after having chosen a supplier the platform provides the client with all information and documents for shipping as well as tracking possibilities

— iContainers is an Ocean Transportation Intermediary (OTI), Ocean Freight Forwarder, a Non-Vessel-Operating Common Carrier (NVOCC), registered, licensed, and bonded at the Federal Maritime Commission (FMC), member of the World Cargo alliance (WCA), the Federación Española de Asociaciones de EmpresasTransitarias (FEITA), and the Asociación de TransitariosInternacionales de Barcelona (ATEIA).

— iContainers offers CFR and CIF services, picking up the goods at the customer's warehouse till the delivery at the port of destination.

HQ Barcelona, Spain

Founder Iván Tintoré, Carlos Hernandez

Founded 2007




- Compass Private Equity

- Kibo Ventures

- Octapris Investments

- VitaminaK

- Yago Arbeloa

- Grupo Romeu

Last Funding US$ 1.4mn, Series B on April 23, 2015

Selected clients

n/a

Offices Barcelona, Miami

Employees 30

Key facts




TransportecaOnline booking portal where forwarders can sell services to a global audience of customers

Business model

— Transporteca was founded by executives from the logistics industry with the goal of improving buying experience for companies in search of transportation solutions

— Founder Morten Laerkholm spent more than 12 years with A.P. Moeller and has held a various number of executive positions within the logistics arm of the group

— The startup offers an online booking portal where customers can find and compare available transportation options in line with their requirements

— Key customers are small and medium-sized businesses that might have a more difficult access to a broad and global range of freight forwarders and agreeing on transparent and competitive prices

— Freight forwarders also benefit from the platform as they get access to a vast client base in regions where they might not have direct access to clients in form of own sales agents

— The platform makes the process time-saving and transparent by allowing instant booking and quick online payment

HQ Wanchai, Hong Kong

Founder Morten Laerkholm

Founded 2012


No known funding


- n/a

Last Funding n/a

Selected clients

n/a

Offices Copenhagen

Employees 1-10

Key facts




FreightquoteLeading provider of web-based freight transportation management services

Business model

— Freightquote is the largest online shopping provider of freight shipping solutions and delivers services for LTL, truckload, expedited LTL and intermodal services to a large and diverse customer base

— Last year the company was acquired by C.H. Robinson which is one of the global leaders in third party logistics

— Freightquote provides a huge number of instant freight quotes for different shipping forms

— For users of the platform all the quotes are provided for free

— The company co-operates with carriers like FedEx Freight, Reddaway, Roadrunner or New Penn

— After the client has provided the platform with the individual shipment information, Freightquote automates the entire shipping process – the company creates the bill of lading, dispatches, tracks and allows for customization of shipping solution to meet specific logistics requirements

— Freightquote has grown through selected acquisitions in the past. It acquired Twin Modal (2005) and Rockwell Transportation (2007)

— In 2014 annual revenues surpassed US$ 600mn

HQ Lenexa, USA

Founder Tim Barton

Founded 1998


n/a


n/a

Last FundingAcquired by C.H. Robinson in 2015 for US$ 365mn

Selected clients

n/a

Offices Kansas City, Minneapolis

Employees >1,000

Key facts




OlymTech / CargoPMLeader in cloud-based IT solutions for the freight and logistics industry

Business model

— In 2002 a group of IT and logistics experts from the Silicon Valley and China set up OlymTech with the mission to transform the industry by cloud-services

— It is one of the fastest growing internet companies in China and the leader in cloud-based solutions and a vertical business platform for international freight forwarders

— Currently more than 1,500 top-tier forwarders and 150,000 clients use the network

— CargoPM is an online marketplace that enables users to collaborate and fulfill transaction together with their clients on one single platform

— The platform is backed by CargoGM solutions, a suite of O2O services acting as a virtual general manager to help with the transformation of logistics into the digital age

— OlymTech names three fundamental reasons that make the company partner of choice within the logistics space: a superior technology platform, a large and active community and the fusion of financial and IT capabilities to link the two key engines of logistics in a single place

— At its launch in May 2015 CargoPM had a initial range of 250 top-tier forwarders plus more than 200 forwarders joining as international members from S.E. Asia, the Middle East, South America and Africa

HQ Cupertino, USA

Founder Jeff Xi, Ken Chen

Founded 2002


n/a


- TTGG

- Langshen Investment

- IDG Capital

- Matrix Ventures

- Yunqi Ventures

Last Funding n/a

Selected clients

More than 40,000 active users

OfficesCupertino (USA), Ningbo (China), Shanghai (China)

Employees n/a

Key facts




WEFTTracking and predictive analytics to optimize supply chain management

Business model

— Weft is a provider of intelligent asset tracking and analytics offering clients real-time supply chain visibility

— Today only 77,000 containers of around 20 million containers are actively tracked, however the number shall expand quickly

— Through the Weft platform, which integrates with Weft and other sensors and with several ERP and CRM systems users can log in to the platform and get the current status of their containers

— Customers can set up alerts for out-of-bounds conditions like location, temperature, moisture and other parameters

— Weft uses predictive analytics to combine current freight information and historical data to identify bottlenecks or cautious situations along the route

— Alerts inform clients and allow reactions before problem eventually occur which increases the likelihood that the freight can be delivered on-time.

— Weft is distributed by ERP providers, telecommunication companies as well as shipping and logistics businesses

— Weft gives operations managers the flexibility to respond to last-minute changes, transport schedule disruptions and co-signee updates by providing a comprehensive, real-time global view of operations.

HQ Cambridge, USA

Founder Marc Held

Founded 2013


US$ 3mn in 2 rounds from 8 investors


- Andreessen Horowitz

- Bridge Boys Fund

- CLI Ventures

- Data Elite

- Procyon Ventures

- Drew Volpe

- Kima Ventures

- Plug & PlayVentures

Last Funding US$ 2mn, Convertible Note on July 17, 2015

Selected clients

n/a

Offices Cambridge

Employees 11

Key facts




HavenHaven is an online exchange that automates air and ocean freight shipping

Business model

— Haven is an online exchange for freight shipments

— The startup offers an automated platform for quoting, booking and tracking shipments and provides shippers with guaranteed capacities and transparent billing

— Booking on the platform means all-in pricing without any upfront costs or subscription fees – Haven charges a transparent transaction fee based on the trade lane

— Via Haven shippers commercial clients can make their bookings easily and efficiently on a secure platform and are enabled to react to individual supply chain needs in response to evolving market conditions or port congestions

— Carriers get access to an efficient global marketplace and can optimize their revenue streams due to the decrease in cost of selling and the potential to acquire new customers without additional overhead

— Carriers receive detailed feedback about the deals won and lost, which provides with competitive intelligence necessary to deep dive into the needs of their clients

— Currently Haven works with 15 out of the top 20 ocean carriers, all of the major freight forwarders and thousands of other service providers

— Haven supports shippers that need additional door services

HQ San Francisco, USA

Founder Matt Tillman

Founded 2014


US$ 3mn in 1 round from 3 investors


- Data Collective

- First Round

- Oreilly AlphaTechVentures

Last Funding US$ 3m, Seed on March 12, 2015

Selected clients

Clients in the apparel, electronics, and high-value agriculture industries

Offices San Francisco, Singapore

Employees n/a

Key facts




Eyes On FreightEyes on Freight acts as a logistics and supply chain concierge service

Business model

— Eyes on Freight operates the world´s first matching business for the logistics and supply chain industry and brings together shippers and vendors for a national and international client base

— About 90% of the company´s clients are international based and Eyes on Freight has developed a networks that spans China, India, Australia, UAE, UK, New Zealand, Poland and South Africa

— In contrast to other logistics marketplaces the startup offers a unique service as it not only brings together both parties on a platform via request, but does the matching

— A shipper enters an RFP into the database and the platform automatically matches the needs with the best vendors, who in turn present bids to the shipper

— Eyes on Freight covers the whole supply chain and offers services for freight management, import/export, warehousing, fulfillment and packaging

— The platform is designed interactively, which means vendors can be contacted directly or one-on-one cooperation is possible, submitting quotes or RFP anonymously is also possible

— The company recently participated in 500 Startups, a San Francisco based incubator; before that, the startup was bootstrapping and had not started any funding activities

HQ Columbia, USA

Founder Chris Nyenhuis, Matthew Thomas, Ben Scott

Founded 2012


No known funding


- n/a

Last Funding n/a

Selected clients

More than 250 (135 of those are freight and logistics companies)

Offices Columbia (MO), San Francisco

Employees 9

Key facts




KontainersKontainers is a online door to door booking and tracking platform for ocean freight

Business model

— Kontainers allows shippers to get instant shipping rates for their containers and execute the whole shipment process online on an online platform

— Companies that want to ship their goods just choose town of collection and port of destination, specify their needs like number of containers, refrigeration requirements and their preferences according to price, date or transit time and get instantly displayed available alternatives

— After a decision has been made the client just needs to fill and confirm an order form and pay for the shipping online

— Shipment is fully tracked in real-time and updates can be retrieved online on the personal dashboard

— The platform is already used by a broad base of clients across industries like dairy, trade and machinery

— With the help of its recent seed funding Kontainers will support the launch of business in the United States and the plans rolling-out more products like an import module or a “less than container load” module

HQ Newcastle, UK

Founder Charles Lee, Graham Parker

Founded 2014


US$ 1.3mn in 1 round from 3 investors


- EC1 Capital Ltd

- Northstar Ventures

- Partech Ventures

Last Funding US$ 1.3mn, Seed on October 27, 2015

Selected clients

Trioni, Remet, JEC, Asian Global Trade, Bosch, Saint Gobain

Offices Newcastle, Dublin, New York

Employees 15

Key facts




XenetaGlobal sea freight market information and actionable data on rates and transit times

Business model

— Xeneta is a provider of unprecedented market intelligence for rates, transit times and environment in the global sea freight market

— The company operates the largest real-time database on contracted spot and long-term rates and gives shippers an in-depth look into average market prices

— Easy to handle and visualized tools can be used to analyze own freight spend against daily averages, highs/lows and alternative routes

— The Xeneta dataset helps to improve strategic and tactical decisions and increases efficient and profitable coordination all through the supply chain

— Currently the company offers the products Xeneta Insight, Xeneta Intelligence and Xeneta Analytics, furthermore the Xeneta Advisor which fully customizes the data and intelligence and gives assistance to the procurement process

— Xeneta is independent from involved stakeholders and secures anonymity to all participants, which means that no specific supplier names or rates are disclosed – the dataset aggregates all data

— Renowned Forbes magazine praised the startup as one of the leading European companies transforming the shipping and global logistics supply chain industries

HQ Oslo, Norway

FounderPatrik Berglund, Thomas Sorbo, Vilhelm K. Vardoy

Founded 2012




- Alden

- Alliance Venture

- Creandum

- Point Nine Capital

Last Funding US$ 5.3mn, Series A on February 5, 2015

Selected clients

AGFA, DeLonghi, AkzoNobel, Electrolux

Offices Oslo

Employees 26

Key facts




Freight FilterFreight Filter is a UK-based platform that helps customers to find the best shipping options

Business model

— The London based startup Freight Filter operates a platform that matches the shipping needs of businesses with the optimal carrier out of ocean, air and road carriers

— The company uses an algorithm which collects thousands of data points to ensure that shippers find the best price and service combination with regard to their shipping requests

— The database retrieves information about journey points, port pairs and ancillary charges from mana sources

— Freight Filter says that more than 1,000,000 tons are moved by its network every month

— Customers benefit from instant quotes without any delay, a transparent process and one point of contact for all of their freight needs

— End to end services are available for ocean freight (LCL and FCL), road freight and pallets as well as air freight and couriers

— As the platform is wholly cloud-based user can access the services from all over the world at any time by computer or mobile device

HQ London, UK

Founder Mark Woolnough

Founded 2013


No known funding


- n/a

Last Funding n/a

Selected clients

Genuine Solutions Group PLC

Offices London

Employees 7

Key facts




EfreightsolutionsEfreightsolutions provides software for automated customer-carrier connection

Business model

— Efreightsolutions is a provider of freight brokerage, logistics and forwarding software

— The company offers cloud-based TMS solutions for 3PL, shippers and freight forwarders

— The brokerage software allows to obtain rates, electronically dispatch and retrieve shipment information from LTL carriers and exchanges data from load tendering or invoicing in real-time

— The software also provides value-added services like intelligence, reporting, customer facing tools and an accounting system

— The TMS for shippers allows clients to manage all of their freight contacts, quote multiple carriers, track the freight in real-time, manage tariffs and provides least cost routing for all LTL and TL rates

— The Tier 1 TMS provides a fully integrated platform and turnkey solution for freight forwarders

— All relevant data on shipment history, revenue generation, margin information and accounting is accessible with a few clicks

— The software automates the whole life cycle of a shipment from automated booking of carriers, in-transit tracking, document generation and a robust accounting system

HQ Kennesaw, USA

Founder Spencer Askew

Founded 2005


US$ 18.5mn in 3 rounds


- Investors unknown

Last Funding US$ 1mn, Venture on June 19, 2015

Selected clients

Offices Kennesaw

Employees 10

Key facts




FlexeFlexe has been called the “AirBnB for logistics”

Business model

— Flexe is a Seattle-based startup which offers on-demand warehousing solutions on a cloud-based platform

— The platform functions as a marketplace that connects businesses in need of additional warehousing space to organizations and other businesses with extra space they do not need

— The platform makes the process of adding storage capacity much easier, flexible and cost effective

— Flexe helps to solve essential challenges in inventory organization like the management of seasonal inventory swings, handling of unexpected returns at scale and the test of new products or markets without capital investment for setting up own capacities

— The company currently markets warehouse space in the United States and Canada

— The platform streamlines the whole material handling process – searching, tracking, billing and reporting are built in to the system

HQ Seattle, USA

Founder Karl Siebrecht, Francis Duong, Edmond Yue

Founded n/a




- Fritz Lanman

- Hank Vigil

- Second AvenuePartners

- SV Angel

Last Funding US$ 4.4mn, Seed on November 12, 2015

Selected clients

True Fabrications, Fun World, Play Vision Toys

Offices Seattle

Employees 6

Key facts




Carrierstore / KuebixKuebix provides cloud-based turn-key TMS solutions

Business model

— Carrierstore (rebranded as Kuebix in February 2016) is the provider of Kuebix, a SaaS TMS built on the Salesforce.com platform

— Kuebix TMS is available for small business as well as enterprise editions

— Kuebix also provides consultancy and managed services with unique revenue generating programs to companies that look to partially or fully outsource their transport management

— Modules integrated into the Kuebix suite range from shipment management, order consolidation, load boards, allowance management, CRM, scheduling and yard management

— The audit process can be automated with electronic invoices, which will save time and money

— Kuebix is equipped with analytics tools to evaluate transportation costs and execution performance and could be an enabler of cooperation across the departments of an enterprise with integrated TMS & CRM

— Managed services programs are individually designed and may cover vendor allowance and compliance, freight audit&pay, resource allocation, consulting or load tendering

HQ Maynard, USA

Founder Dan Clark

Founded 2007


No known funding


- n/a

Last Funding n/a

Selected clients

Ahold USA, Weis Markets, Yankee Candle, Topco

Offices Maynard

Employees 6

Key facts




Arrive LogisticsArrive Logistics was funded as a logistics startup for a life sciences company

Business model

— Arrive Logistics was set up as a start-up fro Nutrabolt, a nutritional life sciences company. Doss Cunningham and Manish Patel have grown Nutrabolt into one of the leading nutritional life science companies in the world. Now, Arrive is poised to leverage their experience in efforts to optimize freight solutions for companies that are dealing with the same issues that Nutrabolt has faced over the past 15 years.

— In 2015, revenues exceed US$30mn in it's first year. This year, Arrive is on pace to double last year's revenue.

— The startup provides full scale in-house logistics services from RFP execution, procurement of core carrier base, tendering, tracking, bill pay and risk management.

— Arrive was launched as a shipper for consumer products goods and thus understands the complexities, sensitivities, and urgency that supply chain and logistics teams operate by. It's this mutual understanding that sets it apart from peers.

— Arrive’s load matching software allows carrier team to identify active capacity within the network. It also offers GPS mobile tracking.

— The startup utilizes three different types of capacity: common carriers, dedicated fleets, and private fleets and monitors carrier compliance and performance

HQ Austin, USA

Founder Manish Patel, Doss Cunningham

Founded 2014


No known funding


- n/a

Last Funding n/a

Selected clients

n/a

Offices Austin, Chicago

Employees 150+ (aim for 2016)

Key facts


What’s next for Freight Forwarders & 3PLs


Freight Forwarders / 3PLs

— APL Logistics announced that it will be launching ShipMaxAlliance, a collaborative shipping solution designed to save time and money by optimizing and managing high-frequency truck deliveries across complex supply chains

— DHL Freight recently abandoned its IT project ‘New Forwarding Environment (NFE)’ which was designed to increase customer and employee visibility

— CH Robinson in 2015 acquired the domestic online quoting platform Freightquote for $365 million

— Kuehne+Nagel introduced KN Freightnet, an online platform for placing air freight orders and is upgrading its technology to enable online booking for LCL shipping.

— CEVA plans to launch a customer portal which is expected to allow importers to manage their business with CEVA and achieve transparent Customs clearance information

— Hellmann Worldwide Logistics recently announced a roll-out of the Freightos rate management and auto-quote system

— Expeditors considers innovation in information technology as a core part of its business strategy. In 2011, Expeditors introduced Exp.o Analytics, a suite of dashboard-based reports displaying different facets of customers' supply chains, with historical trending enabling them to carry out both macro analysis and drill down to the details of an individual shipment, order, or entry. It also set up a customer solutions centre at its corporate office to enable the company to demonstrate its IT capabilities to customers, carriers and investors.

What are competitors and Tech Giants doing?What’s next for Freight Forwarders & 3PLs

Carriers

— Delta Cargo launched online air cargo booking in 2015

— CMA CGM recently increased its investment in startup TRAXENS which develops innovative containers monitoring, geolocation and multimodal coordination systems

— Maersk Line now takes about 87 percent of its orders electronically, up from about 80 percent for the past four years. About 40 percent of bookings on Maersk’s website are confirmed in 5 minutes to 19 minutes, and 90 percent are finished within two hours.

— Hapag-Lloyd has started to pilot a collaborative, cloud-based stowage planning system (XVELA) that makes stowage plans and cargo data available to vessels and to terminals

Others

— Boston Consulting Group is currently testing xChange, a marketplace for empty shipping containers

— Amazon has not only set up its own logistics capacities in trucking, air freight and warehousing, it has now also registered with the U.S. government to provide ocean freight services. The tech giant now refers to itself as a ’transportation service provider’ and in a securities filing said it faces competition from companies ‘that provide fulfillment and logistics services for themselves or for third parties’. A report published by Bloomberg recently describes Amazon’s logistics strategy as a ‘revolutionary system that will automate the entire international supply chain and eliminate much of the legacy waste associated with document handling and freight booking.’


What’s next for Freight Forwarders & 3PLsWhat’s next for Freight Forwarders & 3PLs

Reactive Follower

Asset based

Service based

Asset & Service based

Startups

Expeditors

XPO

Amazon?

— Asset mapping: what are your assets and capabilities?

— Strategy assessment: where is your target operating model heading?

— What are value drivers, success factors and competitors in each quadrant?

Strategic considerations for Freight Forwarders & 3PLs

Service level

Ass

et

level

Muscle quadrant

— Provide physical transport network

— Optimize fleet (own, contracted)

— Focus on operations performance

Implications

— Become cost leader

— Achieve operations scalability (warehouse/station footprint and setup)

— Accept “white label” perception

— Lose customer touchpoint and collaborate with startups

Brain quadrant

— Service-based

— Provide transport and supply chain intelligence

— Source transport flexibly

— Manage customer touchpoint through leading edge technology

— Monetize on dataanalytics

Implications

— Shift of paradigm, shift of mindset, shift of skillset, shift of people

— Full customer centricity and segmentation, industry specialization

— Build D&A capabilities

— Become information broker

Carriers?

Muscle…

…Brain


How Forwarders can join in with startupsWhat’s next for Freight Forwarders & 3PLs

Collaborate with startups

■ Building on current operations and capabilities

■ Benefiting from expanded own or joint value chain

■ Branded or white-label engagement possible

■ As transition path for ramping-up Forwarders digitalization and customer touchpoint set of skills and resources

■ Lean startup workshops

Invest in / acquire selected startups

■ Building on current operations and capabilities

■ Benefiting from expanded own or joint value chain

■ Branded or white-label engagement possible

■ As transition path for ramping-up Forwarders digitalization and customer touchpoint set of skills and resources

■ Set up corporate venture funds

Focus own forces in incubator

■ Create startup ecosystem

■ In-house bottom up innovation process

■ IT platform pilots

■ Seed funding of prospective business models

■ Use of corporate accelerators (pressure cooker session to help corporate teams evolve from idea to implementation)

Startup corporate collaborations can take many different forms, from relatively short–term, transactional commitments to long–term, evolving relationships. A KPMG survey found that most collaborations are fairly superficial (customer-supplier, licensing). Equity based collaborations comprised a total of 40% of all collaborations*.

*Source: KPMG, On the Road to Corporate Startup Collaboration, 2015

http://www.kpmg.com/NL/nl/IssuesAndInsights/ArticlesPublications/Documents/PDF/Innovatie/Infographic-On-the-road-to-corporate-startup-collaboration.pdf


The path to successful startup collaborationWhat’s next for Freight Forwarders & 3PLs

Source: KPMG, On the Road to Corporate Startup Collaboration, 2015

KPMG Innovative Startups

KPMG Innovative Startups helps large organizations to identify and work with the best startups to promote innovation. We work with startups to build new products and services for our clients and KPMG.

— Run Future-Proofing programs

— Scan and monitor startups

— Bring businesses into contact with startups to launch pilots

— Set up an innovation lab and develop venture program

— Guide digital transformation throughout the organization

KPMG Innovative Startups

http://www.kpmg.com/NL/nl/IssuesAndInsights/ArticlesPublications/Documents/PDF/Innovatie/Infographic-On-the-road-to-corporate-startup-collaboration.pdf

kpmg.de

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2016 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany.

kpmg.de/socialmedia

Dr. Steffen Wagner

Partner,

Global Head of Transport & Leisure

+49 69 9587-1507

[email protected]

KPMG AG

Wirtschaftsprüfungsgesellschaft

The Squaire / Am Flughafen

60549 Frankfurt

Contact

Tobias Wölfel

Global Sector Executive,

Transport & Leisure

+49 69 9587-1170

[email protected]

KPMG AG

Wirtschaftsprüfungsgesellschaft

The Squaire / Am Flughafen

60549 Frankfurt

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