We are often asked why we don't invest in 'hot' supply chain spaces--digital freight networks, local delivery companies, etc. It's just not true that we do not invest in these spaces. We just do not invest in 'me too' companies that have no differentiation among the competitors. We have looked at over twenty-five DFNs in the last few years and have found a few that solve unique problems in freight matching that others have not tackled.
Loadsmart, for example, was one of the first DFNs to incorporate AI into evaluating past freight flows to determine patterns that aid in the creation of efficient backhaul. Torch Logistics, another DFN, is focused on the short-haul (daily turn) freight matching space--one often treated as a second cousin by the big brokers, but one rising in importance as more short-haul truck moves are needed in eCommerce operations. Transporeon is a cloud-based transportation sourcing and management platform in Europe. And Leaf Logistics focuses on booking moves many days in the future, whereas most freight is booked in one to two days before moving. Pelicargo is focused on helping smaller freight forwarders and shippers book air cargo space, something the big brokers don't like to handle.
There are other ideas in the space that are also interesting if a founder came along with a fundable business plan:
- DFNs incorporating real-time data (including traffic, dwell times facilities, and weather)--we are seeing transportation management systems starting to use real-time data in an a posteriori sense as the load is tracked, but not a priori as the freight is being booked
- DFNs focusing on other unique movements (similar to short-haul freight)--cross border flows are one example, especially with moves a few miles of the border
- DFNs--surprise us with something completely original.
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