Latest Trends Adoption for Your Logistic Startup Idea Verification

According to CBInsights the most successful and capitalized companies are concentrated on e-commerce services and delivery businesses. Investors are constantly increasing their presence in this sphere and the yearly volume of transactions grows starting from 2012. CB Insights estimated that a large part of the revenue belongs to the companies which use software programs to increase the efficiency in a supply chain and logistics ecosystems (for instance, food supply on demand).

As you can see, investors are ready to give money to logistics and supply chain startups. Later, we will list some of the possible logistics enterprises which you can use as a basis starting a logistics company. But before that, we'd like to talk about the current issues in this sphere. These problems may become your gold mine if you create a mobile app or a software solution for them. Here are some trends you can use in your business.

We all remember the success of Uber for X business model. Some companies (like Convoy and Cargomatic) already tried to implement this solution as a crowdsourcing application.

The relevance is that about 70% of all companies that transport cargos only by trucks in the USA suffer losses. It all happens because the majority of trucks drive back empty covering large distances and spending money on fuel and other materials. Companies offer their available space to the brokers to shorten this distance and get at least a few orders. Yet, the brokers take a large share.

Dispatch trucking software for trucking allow transportation companies and private long-haul truckers to contact other companies that need to transport their cargo without any middleman. Logistics apps take fees for each deal. Nevertheless, it is much cheaper than to cooperate with brokers.

E-commerce growth and the customer demand on delivery services stimulate warehouse optimization. As a result, the rental fee for the storage facilities increases. The main problem is that there are not so many storage areas available and the rent grows every year. All these factors influence the solutions created to optimize storage facilities and the efficient placement of goods.

Why should a supply chain go to a cloud? There are many reasons. Here are the most important of them:

We want to look closer at some logistics industry trends that have prevailed lately and are still on the front burner in the logistics sphere. We checked CrunchBase, CB Insights and AngelList to find the most promising startups in logistics, here are the best of the best who managed to benefit from logistic business opportunities.

There are many more fantastic startups. We showed you the best logistics startups as examples to explain how some startupers are trying to find their segment in a logistics niche and to offer their solution to one problem or another.

Optimization and convenience are the two components of a logistics business. Take them into consideration while you are looking for your own segment in the industry. So, all we have to do is to find an idea for a startup in the logistics business and for that, we move to the next block.

Basically, a successful business idea nowadays is something that eliminates an existing need with the help of online tools. What we need to warn you about from the very beginning is that for logistics startups this business is hard. Big players of the market rarely are willing to change their business models. And if you want to create linkages between ships, railways, marine, and cargo transport operators, you will need lots of time and efforts. And if you still want to work in this sphere you should be prepared for the facts that:

But nothing is possible. Especially, if the benefits from your product are difficult to overestimate. To find an idea (a really great one) for your logistics tech startup, we suggest you performing a few steps to understand how to start a logistics business and what product you really want to create. What steps are they?

Usually people who work there know manufacturers, carriers, storage companies, customs agents and customers on both sides of the border. They hire employees who manage spaces inside air transport or marine containers as well as transportation time including customs inspections and the shipping itself. If you can get a job in this sphere, take the opportunity. It will not only give you the understanding of what these companies do but also introduce you to the customers who use the services of the companies.

It would be even better if you concentrate on specific segments of a larger logistics market. Segmentation can be based on different levels of the market, like geography, brunch niche, specialization, and other factors. You can use any of them to focus on a segment you need.

For instance, TTS Logistics owner Kelly Kristy decided to focus on exhibits shipping all over the world. It proved that the choice of a narrow segment can be even more profitable than a desire to cover all spheres. Of course, you can expand your business after a while and cover other market segments. However, it is better to start with one solution.

For example, Uber for X has proved that a good business model can influence lots of things. And logistics is not an exception. And an opportunity to cut the expenses is crucial for a company.

What if your idea has been taken already? By doing that you will understand the weaknesses and strengths of your solution. You can take an already existing business model as a basis. But you need to improve it, make it even more useful. Because logistic business relies on statistical data, coherence, and uninterrupted work. If you understand these details you have to include them into your product.

And finally, here are some logistics business plans and ideas of small-scale niches for your startups:

Here is a video for you about warehouse optimization and all the newest technologies you can apply to advance your warehouse business

I hope we inspired you with fresh ideas and accomplishment. Despite the fact that logistics is a very tedious sphere of business it doesn't have to stay where it is. The same as other progressing areas, logistics have to be advanced. If you want to start a transportation business or think about how to start a logistics company based on advanced software systems, write us and tell us your idea. Cleveroad is a logistics software development company with years of expertise in the field.

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