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The last two years saw a major increase in home deliveries. About 60% of the world’s population will live in cities by 2030 and last-mile deliveries are expected to grow even higher by 78%, according to the World Economic Forum.
Currently, the size of the global last-mile delivery market is $130 billion, with 4,160 packages shipped every second. The number stands at about 150 billion a year, a figure that is always rising due to the growth of e-commerce and changing consumer behavior, according to the Pitney Bowes Parcel Shipping Index. All major organizations like McDonald’s, Starbucks, Walmart, and UPS are investing heavily to focus on home delivery and provide the best digital delivery experience.
Today, it is possible to order everything online and companies must be prepared to meet these customer demands. Both business-to-consumer (B2C) and business-to-business (B2B) shipments have grown significantly, and customers expect the best delivery experience.
LogiNext, a New York-based logistics technology automation company for large enterprises, says its proprietary artificial intelligence (AI)-powered logistics management solutions provide a software-as-a-service (SaaS)-based solution to help businesses digitize, optimize and automate logistics operations from start to finish. With predictive ETAs, the platform kicks in even before a consumer places an order online, helping a brand orchestrate deliveries all the way to the door (including handling returns).
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LogiNext CEO Dhruvil Sanghvi told VentureBeat that LogiNext’s platform has tracked more than 13 billion location data points, supporting and processing more than 500 million orders a year. According to Sanghvi, LogiNext’s platform enables customers to deliver faster and more efficiently, providing clear information on the best possible routes for drivers and providing real-time visibility into all logistics operations.
Challenges around home delivery
Sanghvi noted that traditional brands looking to offer home delivery as digital natives have some hurdles to overcome.
1. Lack of digitization: Several large organizations have logistics operations that rely heavily on manual tasks. Digitizing processes, from inventory management to electronic signature collection, analytics and reporting, is critical for smooth delivery operations.
2. Legacy technology systems: While many companies use some technology, they are often on-premises legacy systems that are expensive to install and maintain. New-age SaaS platforms can easily replace legacy systems and give operations managers a great digital experience to manage deliveries.
3. Driver management: Orders come in from multiple channels and organizations rely on internal drivers or a third-party fleet. Managing all this in excel sheets is very inefficient and leads to increased delivery costs.
Deliver smart, deliver fast
Sanghvi said that what LogiNext does has a lot of artificial intelligence (AI). The SaaS platform helps companies deliver in a smarter and therefore faster way.
“In order for our algorithm to assign orders and discover the best routes automatically, it needs to consider things like traffic patterns, weather conditions, transportation regulations, rush hours, customer preference, and several other variables,” he said.
To help companies optimize logistics, LogiNext’s AI and ML capabilities are useful for route optimization, capacity utilization, dynamic order allocation, and visibility across the supply chain.
“One of the main benefits of using LogiNext is digitization. There are still many manual processes in the logistics industry that need to be digitized first and then move towards automation. The more historical and current data we have, the more we can use AI to optimize logistics delivery,” he said.
According to Sanghvi, food and beverage (F&B) home delivery, retail, e-commerce, and courier companies are the largest segments adopting logistics automation to make last-mile deliveries more efficient.
Prioritizing automation is critical to digital transformation
One of the main challenges in today’s business ecosystem is unstructured data. Sanghvi said that many supply chain companies still handle many of their processes manually, collecting data in Excel sheets, making it difficult to put the data into context. He said LogiNext helps digitize entire business systems to ensure they collect, label and use data in the best possible way.
To achieve true success in their digital transformation journey, Sanghvi said organizations must prioritize automation, making processes more efficient. Logistics has a great scope for this.
“Digital transformation and process automation are two high-impact areas where we help businesses,” said Sanghvi, highlighting how one of LogiNext’s largest customers in North America reduced the order life cycle of a product from 12 hours to 2.2 hours.
While Sanghvi sees the likes of Project 44 and Bringg as LogiNext’s main competitors, he said LogiNext has a differentiator in the fact that it’s an end-to-end platform with elements of visibility and routing. With over 100 out-of-the-box API integrations, businesses can plug and play to get up and running quickly, since they don’t need to refresh any of their existing technology. The LogiNext platform sits seamlessly on top of any existing technology through APIs and webhooks.
He said another differentiator is LogiNext’s ability to provide end users with a superior customer experience where ETAs are communicated to them in real time with contextual alerts and notifications.
“A lot of our competitors often focus on one thing in particular, whether they focus only on viewability or only on routing. We focus on all aspects of the delivery process, from the first mile to the last mile. So they can think of us more as horizontal players than vertical players,” Sanghvi said.
More about LogiNext
Founded in 2014 by CEO Dhruvil Sanghvi, LogiNext is based in New York, with the company’s founding team and business development teams based in New Jersey. While LogiNext’s research and engineering teams are based in Mumbai, the company has small offices in Jakarta, Singapore and Dubai.
Growing 120% year-over-year and with a valuation between $300 million and $500 million, LogiNext says it aims to complete its initial public offering (IPO) in the next five to seven years, building a global company with cutting-edge technology. technology for logistics, especially in the segment of home delivery and last mile.
LogiNext has a current staff of around 200 and has raised $49.5 million in total funding to date from investors including Tiger Global, Steadview Capital and the Alibaba group of companies. Currently, the company serves more than 200 business customers in more than 50 countries around the world, including companies such as McDonald’s, KFC, BurgerKing, Decathlon, SingaporePost, among others.
Sanghvi said that LogiNext provides its software to companies that want to compete with Amazon in their delivery experience. The company has been named a Gartner Hype Cycle Sample Provider many times, and has also received Frost and Sullivan’s 2022 Customer Value Leadership Award.