Logistech | The New FinTech?
Many many years ago the term FinTech was born. Somewhere along the line the term blew up and I feel like I can’t go a day without seeing an article or post about FinTech. Not that that’s a bad thing. It is a very interesting industry. Somehow a trend was born of attaching tech to the end of industry names that have been cut short.
Here’s just a few examples:
The list goes on and on as more industries adopt advanced technology. Pet Tech, Construction Tech, Government Tech are some more you should look into.
Anyways back to Logistech!
What is Logistech?
It is a merger of the words logistics and technology. Supply chain technology. Logistics technology is new technology that seeks to improve and simplify components of the supply chain process.
Supply chains have always been around but they are usually in the background. However, they have been in the news as of late due to the impact the pandemic has had. Consumers are now facing empty shelves across the country. Ports are backed up. And a ginormous ship got stuck in the Suez Canal. Needless to say, the industry is hot right now as companies look to solve their woes.
That isn’t to say that supply chain technology companies haven’t already been around. A hot new techy buzzword just hasn’t been formally attached to the industry and supply chain tech companies. So I’m here to push for the adoption of the word Logistech and all the publications, podcasts, and newsletters that should arise with it.
Are there subsets within Logistech?
Of course! It just depends on how you want to break it down.
A supply chain involves a series of steps involved to get a product or service to the customer. The steps include moving and transforming raw materials into finished products, transporting those products, and distributing them to the end-user. — Investopedia
Here are some potential subsets to look into:
- Freight
- Last Mile
- Warehousing
- Order Fulfillment
- ERP and Inventory Management
- Planning
- Transportation
- Data Analytics
- Blockchain
- Third Party Logistics (3PL)
What are some Logistech companies?
While there are many different Logistech companies out there, here are some you may or may not have heard of.
- Flexport — aka a modern freight forwarder. They offer trade management, logistic management, and transportation products and services. All of these services are powered by their software platform and gives customers visibility into the transportation component of their supply chain.
- ShipBob — offers ecommerce order fulfillment solutions for direct-to-consumer brands. ShipBob describes themselves as a tech-enabled 3PL. They use their proprietary software to power their fulfillment network. Orders are automatically sent to their warehouse where the products are picked, packed, and shipped to customers.
- Convoy — offers a digital freight network that uses machine learning and automation to connect shippers and carriers.
- tuSimple — an autonomous trucking company. tuSimple is developing an autonomous driving technology solution to power heavy duty trucks. In 2020, they announced their autonomous freight network that will be offering their customers access to their self-driving trucks for long haul deliveries throughout the country.
- goPuff — a consumer goods and food delivery company. goPuff operates micro-fulfillment centers that carry about 3,000 products. Customers order through their app and get their order delivered directly to their door.
Where can I learn more about Logistech?
Well if you type in Logistech you won’t get much about supply chain technology. There aren’t many resources out there dedicated to Logistech like there is for FinTech (yet) but there is information out there.
A few resources I like to read are Supply Chain Dive, Supply Chain Brain, and FreightWaves. There are also industry reports and articles from companies like Deloitte, McKinsey, and PitchBook.
Finally I would encourage you to tap into experts in the field whether through Twitter, YouTube, newsletters, or podcasts.
Here are some of my recommendations:
- Rethinking supply chain newsletter by Cathy Roberson
- The New Warehouse Podcast
- Supply Chain Secrets
- MIT Center for Transportation & Logistics YouTube Channel
- Craig Fuller — FreightWaves CEO
- Laura Behrens Wu — Co-founder and CEO of shippo
While they may not use the term Logistech they cover a lot of the topics important to the industry.
