1. One to watch - Zencargo
Zencargo – An award winning, digital, end to end intelligent supply chain platform. If you operate in the logistics industry, I would be surprised if you haven’t come across them by now, but to give some background to their success, they have recently been accepted onto Tech City UK's Upscale 5.0 programme along with only 29 other UK businesses. Last year they scooped the "One to Watch" award by the Sunday Times Tech Track 100 and are experiencing impressive 300% Year on Year growth. Working with 30% of the fastest-growing UK e-commerce businesses, Zencargo operate in a growing market and are well positioned to continue their exponential growth.
Fundamentally it is Zencargo’s technology that is driving their logistics offering.
By digitising the supply chain, they can increase their customers efficiency, whilst reducing costs. Their platform promises to provide customers with total control of their goods from order to delivery, by utilising Zencargo’s intelligent supply chain network. They monitor real-time supply chain data across customers manufacturing and logistics partners, creating a control tower solution; providing visibility and insights all powered by smart analytics tools, finding opportunities and risks across the supply chain process, with the aim of driving measurable revenue growth and costs reduction attributed to inefficiencies.
Internal research conducted by the company, shows that their value add to consumer businesses equates to a ratio improvement in EBITDA of 200 basis points driven by an increase in Revenue, Freight Cost Savings and a reduction in Inventory. This is down to the combination of supply and demand data to mitigate out of stocks and to get the right SKUs to where they need to be.
In their latest round of funding Zencargo received $19m USD, taking their total fundraising to $20m. With the likes of Flexport receiving a valuation of $3.2 billion, are Zencargo quietly going about their business, picking up key customers to mirror Flexports trajectory.
Covid-19 has increased the public's acceptance of technology, whilst highlighting to businesses that their supply chains need to be less rigid, to properly serve an evolving customer landscape.
Post Covid supply chains have rapidly risen in importance and have been escalated to a problem that needs to be handled by C-suite executives. I can only envisage businesses will further look to utilise technology platforms to drive efficiencies and cost savings in their supply chains, especially in such unstable global environments. Platforms like Zencargo’s are only going to become more critical in enabling decisions of consumer businesses to ensure that customers get the products they need.
The industry is slowly warming to the idea of innovation and technological advancements. Zencargo seem to be making historically siloed logistics an essential part of commercial outcomes and empowering freight forwarders to make the right decisions to keep goods in stock at the lowest cost.