Sunday, October 21

How Getting Accepted To Xcelerate Helped KargoLogic Find A Problem Worth Solving In The Logistics Industry

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KargoLogic is a Software as a Service solution that connects end-customers, logistics companies and carriers on one platform to provide seamless communication and automation for all. The aim is to create a level playing field for small to medium businesses to help compete with the large players in the industry.

The company was founded by Surjeet Taank who brings more than 15 years experience in the IT, manufacturing and logistics industry, as well as Harman Singh Basra, an IT sales professional.

It was Surjeet who had the original idea for KargoLogic after noticing the inefficiencies in the industry first hand after working as an owner operator. He teamed up with Harman due to his analytical mindset, past sales experience and passion for innovation to help get Karologic off the ground.

They started by conducting a fact finding mission on the logistics industry in order to look for efficiencies in the process. Based on their initial research and assumptions Harman explained that “we concluded that KargoLogic was to be a two sided marketplace that would help small-to-medium carriers (fleet operators who own trucks) connect with logistics companies and end customers to facilitate the delivery of good”.

As Harman went on to explain, “The reason we wanted to do this was to help enable small carriers work directly with big name customers, which in turn would help them improve their profit margins and expand their business as a result. The benefit to the customers would be that they could now work with small carriers while managing the end to end delivery of their goods all from the one platform.”

After focusing in on this area Harman and Surjeet committed to building out the framework for this platform. However as Harman explains they made two critical mistakes. First of all they went into discussions with fleet operators with a perception of the problem that came from their experience with the industry, not that of their potential customers. Secondly, as a result of this, they were also pitching a solution to fix the issue they had perceived, rather than stopping to ask the businesses what they were actually struggling with.

As a result the company pivoted. Fortunately, KargoLogic was also accepted into the Coca-Cola Amatil Xcelerator program powered by BlueChilli. This made the process easier as the Xcelerate program has introduced the team to numerous industry leaders in the supply chain and logistics field. As a result KargoLogic has been able to speak with a variety of customers to learn and discover the key challenges these organisations face.

The result of all this was the realisation that logistics companies and end customers don’t actually have a problem finding and working with small carriers. The real challenge they face is the lack of automation of manual processes when working with these carriers.

As Harman went on to explain “most of the customers use phone, emails, CSV files and PDFs to communicate information with their carriers. The carriers in turn use similar methods to further interact with their drivers.” KargoLogic also discovered that Tier 1 logistics companies use technology as their enabler to be more efficient and win more business, whereas small to medium businesses are operational heavy and do not have the time, resources or skills to build technology and simplify processes.

“These findings proved to be a pivotal moment for KargoLogic” according to Harman.

KargoLogic is now a Software as a Service solution that connects end-customers to logistics companies and carriers on one platform. But more importantly it levels the playing field by providing seamless communication and automation for small to medium businesses operating in the space, increasing their ability to compete with the large players in the market.

As Harman would summarise “I can safely say that in a short few weeks within the Xcelerate program we have learnt more and done more meaningful work than in the preceding 12 months”.

Harman and Surjeet are now focused on building out this vision and are also offering 50% discount for first 12 months to all customers who sign up to pilot their MVP when released. To secure the discount you must Sign up to their website before 31 October 2018.

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About Author

Paul Towers is a passionate supporter of the Australian startup ecosystem and the Founder of Startup Soda. Originally, Startup Soda was solely a newsletter that helped curate the best content from the Australian startup community, more recently however it has turned into a media platform with the aim of improving coverage of Australian Startups, Founders and VC's.

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