Artificial intelligence is hitting new adoption levels each year, with industries like supply chain management and logistics taking center stage in the AI race. The process complexity and amounts of data generated by both economies call for a higher tighter structure and transparency through digitalization. Operational challenges aside, people want their stuff right now – be it a multinational corporation awaiting new equipment or an Amazon customer expecting their gifts come holiday season. In today’s world, the speed of delivery matters more than ever. In addition to speed, customers demand deliveries and pick-ups at a specific time slot, adding a layer of complexity to route optimization. Then there’s the question of pricing.
At the age of online price transparency, companies are expected to deliver a higher quality of service at lower costs, putting pressure on company margins and pushing them toward labor automation. There are just too many moving parts to this industry for it to persist without AI and the augmentation. With multiple players across different parts of the supply chain, regulators, a vast number of third parties including subcontractors, operators, airlines – this is literally too big to fail, but it’s certainly prone to economic stagnation and hard losses if the whole setup does not adapt to the modern age.
Industry trends and major players
While there is a lot of innovation coming from startups, established players bring plenty of disruption. Companies like DHL and ports like the Port of Rotterdam are constantly in the headlines when it comes to adopting new technologies. Automation of existing processes is the first step towards large-scale optimization across the board, and lots of companies have already done it to at least stay competitive:
- Automating repeatable tasks like form completion, invoicing, and inventory check-ups.
- Accelerating the complex brokerage process susceptible to human error and requiring very specific knowledge of regulations.
- Automating customer data collection and storage – an ongoing challenge for large enterprises which want to keep up-to-date records on their clients.
Automation already brings major benefits to the industry, but there are even bigger gains in the predictive power of AI. There’s an entire host of potential use cases that are being either explored or internalized by major logistics companies:
- Predicting delivery routes by enhancing communication between a multitude of global supply chain participants to efficiently transport, pick up and deliver shipments.
- Forecasting wear and tear of machinery and improving the Overall Equipment Effectiveness index.
- Predicting fuel usage for fleet optimization.
- Predicting future demand for production.
If we explore the technology funnel even deeper, there’s basically a sea of possibility when it comes to more advanced forms of AI that we are just starting to explore. Think Boston Dynamics and Amazon’s fleet of autonomous delivery drones, and then consider how far off are these use cases:
- AI in image recognition will speed up inventory management, while intelligent robotic sorting will accelerate parcel processing.
- Purchasing through smart AI assistants like Siri, Alexa and Google will help personalize shopping experience and increase the already break-neck velocity of consumerism.
AI-Enabled Startups in the global logistics industry
Based on public information gathered from Crunchbase, we have compiled a list of startups that bring artificial intelligence to the global logistics industry. Every company carries a unique approach to AI, and some of them have already operationalized several use cases. This is not an exclusive list – feel free to add more companies in the comment section at the end of this article – we’ll make sure to add them to our knowledge base.
|Company||HQ / year founded||Amount Raised, $||Investors||What they are doing|
|Convoy||2015 / Seattle, WA||265.5M||CapitalG, Y Combinator, Greylock Partners||A marketplace that connects shippers with nearby trucks (‘carriers’) and books jobs instantly.|
|Flexport||2013 / San Francisco, CA||304M
||S.F. Express, DST Global, Founders Fund||A licensed customs brokerage and freight operator built around a modern web application, that includes such services as an online dashboard for businesses to easily understand, purchase, manage and track the services required for global trade.|
||Singapore Exchange Limited, GE Ventures, Annox Capital, Aleph||An online freight marketplace and powerful international freight routing/pricing technology that helps importers and exporters reduce logistic expenses and save time with an instant comparison, booking, and management of air, ocean, and land shipments.|
|CargoX||2013 / Sao Paulo, Brazil||95M
||Blackstone Group, Goldman Sachs||A technology-powered freight broker that provides shippers with an efficient solution to transport the most diverse types of products in any part of Brazil. The service is based on a technology that has a growing fleet of 100,000 truckers.|
|Bossa Nova Robotics||2005 / San Francisco, CA||69.6M
||Cota Capital, Paxion Capital Partners||A real-time, on-shelf product data provider for the global retail industry. Its technology collects terabytes of data that enables the retail ecosystem to optimize the omnichannel shopping experience.|
|6 River Systems||2015 / Boston, MA||46M
||Menlo Ventures, Norwest Venture Partners||Flexible and scalable warehouse automation that engages associates, keeps them on task and provides a 2-3x productivity boost.|
|Locus Robotics||2014 / Wilmington, MA||33M
||Scale Venture Partners||A warehouse robotics company that manufactures autonomous, mobile robots to support e-commerce operations for retailers and warehouse logistics providers.|
|Transmetrics||2013 / Sofia, Bulgaria||1.8M
||LAUNCHub Ventures||Provides cargo companies with data cleansing, demand forecasting and network optimization based on AI and predictive analytics allowing transport companies to improve their capacity utilization, achieve significant savings and reduce their environmental impact.|
|Shippo||2013 / San Francisco, CA||29.3M
||Bessemer Venture Partners, Union Square Ventures, angels, Slow Ventures, Plug and Play||A multi-carrier shipping API and web app for marketplaces, warehouses, and e-commerce businesses. The company processes millions of shipments per month for more than 35,000 customers. Businesses are able to instantly access multiple shipping carriers for real-time rates, shipping labels, international paperwork, package tracking, and return logistics.|
|ClearMetal||2014 / San Francisco, CA||12M
||Innovation Endeavours, Prelude Ventures, Skyview Capital||A Supply Chain Visibility Software company that builds data-driven products to solve the most complex operational problems in supply chaiт to make trade data organized, accessible, predictive, and actionable.|
|TradeGecko||2012 / Singapore||17.7M
||Aura Venture Fund, TNB Aura Fund, Jungle Ventures, Openspace Ventures||Inventory and order management platform for modern wholesale merchants, integrating sales channels, logistics providers, and accounting services.|
|Starship Technologies||2012 / San Francisco, CA||42.2M
||Daimler, Playfair Capital, Grishin Robotics, Matrix Partners, angels||Develops fleets of self-driving delivery robots, designed to deliver goods locally within 30 minutes. The robots drive autonomously 99% of the time to make safe and environmentally friendly curb-side deliveries from a local hub.|
|Nuro||2016 / Mountain View, CA||92M
||Gaorong Capital, Greylock Partners||Self-driving delivery startup which accelerates the benefits of robotics for everyday life.|
|Marble||2015 / San Francisco, CA||10M
||Lemnos VC, Tencent Holdings, Maven Ventures||Creates a fleet of intelligent courier robots to reliably and securely transport the goods.|
|Boxbot||2016 / San Francisco, CA||9M
||Artiman Ventures||Integrates years of advancements in robotics and autonomous technologies to optimize last-mile logistics, which is the single most expensive part of any delivery.|
|Drive.ai||2015 / Mountain View, CA||91M
||New Enterprise Associates, Nvidia GPU Ventures||AI software for autonomous vehicles based on deep learning technology.|
|Zoox||2014 / Foster City, CA||790M
||Grok Ventures, Blackbird Ventures, DFJ, Lux Capital||Autonomous mobility-as-a-service, operating at the intersection of design, computer science, and electro-mechanical engineering.|
|Aurora||2016 / Palo Alto, CA||90M
||Greylock Partners, Index Ventures||A self-driving vehicle company that works at the intersection of engineering and applied machine learning to transform the way people and goods move.|
||Shenzhen Capital Group, Wu Capital||Empowers cars and trucks with artificial intelligence to make transportation safer, more enjoyable, more efficient.|
|Voyage||2017 / Santa Clara, CA||20.2M
||InMotion Ventures, Khosla Ventures, Amino Capital||Autonomous vehicles company working to bring about the end-goal of self-driving cars: a world where anyone, anywhere can summon a car directly to their doorstep, travel safely to their destination, all for an extremely low price.|
|CoLoadX||2015 / New York, NY||1M
||Right side Capital management, Silicon Badia, Closed Loop Fund, others||An international ocean freight marketplace, digital ocean freight procurement platform built by freight forwarders, NVOCC’s, and logistics service buyers.|
|New York Shipping Exchange (NYSHEX)||2014 / New York, NY||13M
||GE Ventures, Goldman Sachs, Blumberg Capital||NYSHEX provides the alternative to the unpredictable spot market and volatility of freight rates.|
|FreightHub||2016 / Berlin, Germany||23M
||Northzone, Cherry Ventures, Global Founders Capital||The digital freight forwarder and a digital interface to manage user logistics. It features past, current, and future freight shipments, keeps track of missing documents, uploads all files and stores them for future use, and offers real-time freight tracking.|
|Fleet||2014 / Portland, OR||14M
||Lufthansa Cargo, Hunt Technology Ventures, Avala Capital||An online platform that businesses use to book and manage transportation for international freight. Fleet provides instant quotes, improved decision making by showing provider lead times, ratings and reliability, direct access to all of the service providers and a team room to communicate directly with service providers for status and view shipping documents.|
|We4Sea||2016 / Delft, Netherlands||0.45M
||Mainport Innovation Fund||A cloud platform that offers solutions to optimize the performance of large commercial (cargo) ships.|
|Nautilus Labs||2016 / New York, NY||2M
||Root Ventures, angels||A proprietary data collection & storage system for the commercial shipping industry to help them burn up to 30% less fuel.|
|Loginext||2014 / Fremont, CA||10.6M
||Alibaba through One97 Communication, Paytm||Logistic and field workforce solutions to plan, optimize, track, and analyze resource and asset movement in real-time, offering field workforce optimization, real-time tracking, route optimization, resource allocation automation, long-haul trucking, and on-demand management to more than 250 enterprise clients.|
|Smarter Sorting||2015 / Austin, TX||9.3M
||RTP Ventures, McCune Capital, others||A machine learning solution for waste management that allows municipalities to take waste of extreme negative value and use proprietary software to sort that waste into high-value commodities that are sold into established markets.|
|ZenRobotics||2007 / Helsinki, Finland||16M
||Invus, Lifeline Ventures, EASME, Finnvera Venture Capital||A supplier of intelligent sorting robots for the waste industry. The company’s main product is ZenRobotics Recycler, a waste sorting system which separates raw materials from waste.|
|Qopius||2015 / Paris, France||2M
||360 Capital Partners||Retail Computer Vision Platform automating and digitizing retail using computer vision to enable retailers and brand to track out-of-stock, price issues, and compliance in real-time using autonomous robots, IoT cameras and smartphones.|
|Package.ai||2016 / Tel Aviv, Israel||–
||ICONYC Labs||A software and Artificial Intelligence (AI) for optimizing last-mile delivery operations and experiences. package.ai has developed Jenny, a conversational agent that can contact parcel recipients via Facebook Messenger or SMS to coordinate delivery times, locations, and other specialized instructions.|
|Cargofy||2014 / California, CA||–
||Iowa Startup Accelerator||Cargofy it’s a mobile assistant, kind of a “Siri” but for truck drivers. Cargofy helps truckers access to high paying loads through our app, and receive discounts on fuel, maintenance, and truck parts.|
Updated Aug 14, 2019 — 00:00 UTC
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