Unicorn Flexport is revolutionizing the world of logistics, serving as a freight forwarder with software program that allows clients to handle their shipments. However there are nonetheless hundreds of smaller freight forwarders, many operating on outdated ERP software program or spreadsheets. A startup known as GoFreight needs to assist them compete by offering the “Shopify of freight forwarding,” with backend software program that makes their operations run extra easily, and a frontend that lets them arrange a storefront and supply quotes in a couple of minutes.
The Los Angeles and Taipei-based startup has raised $23 million in Collection A funding, co-led by Flex Capital and Headline. The spherical included participation from LFX Enterprise Companions, Palm Drive Capital and returning traders Mucker Capital, Cornerstone Ventures and Pink Constructing Capital.
GoFreight, which presently has about 1,000 clients, helps handle transportation of products by way of ocean, air and land routes. It additionally lets them arrange on-line storefronts with a number of clicks. Potential clients can hook up with freight forwarders by sending them an inquiry by way of storefront and getting a citation inside a couple of minutes, as a substitute of the 24 to 48 hours often obligatory.
As soon as a freight forwarding job is underway, shipments might be tracked with an EDI-integrated, real-time software, so freight forwarders and clients know precisely the place their cargo containers are. Monitoring software program additionally integrates with accounting instruments on GoFreight’s platform, so customers understand how the efficiency of shipments is impacting their earnings.
Co-founder and CEO Trenton Chen earned his Masters and PhD in america earlier than returning to Taiwan to affix TSMC. At the moment, AppWorks and different startup applications had been getting quite a lot of consideration, and Chen determined he needed to develop into an entrepreneur. He left TSMC (“it was a troublesome choice, as a result of nobody agreed with that,” he informed TechCrunch), and gave himself six months to discover a viable thought. Throughout that point, one among his co-founders was residing in Los Angeles, working as an importer for a household enterprise.
“After I was within the States, I knew lots of people on this trade as properly. So a lot of our good associates requested us to go there and see how unhealthy the software program is. So within the final month of my six month interval, I made a decision to provide it a chance, purchased a ticket for 3 months to go to LA and spend time with the primary 10 freight forwarders, studying how they do enterprise with software program. We based GoFreight after the primary week we had been there,” Chen stated.
Regardless that Chen says the worldwide freight forwarding market is value about $280 billion {dollars}, virtually all of the software program it runs on is outdated. GoFreight’s aim is to empower conventional freight forwarders to remain aggressive with the identical high quality of know-how that Flexport has.
“A freight forwarding enterprise is about how you can ship cargo from level A to level B. Software program can actually assist, however that’s not their principal enterprise. The service itself is the primary enterprise and software program can’t assist reduce the transport prices or get it there sooner. However it might probably definitely assist present extra useful info to clients, importers and exporters,” Chen stated, including, “We attempt to empower incumbents to compete with Flexport. That’s an strategy to make this whole trade higher and sooner.”
Chen says GoFreight differentiates from different freight forwarding software program startups as a result of most of them are attempting to create new ERP system, or combine with current ones. That is difficult to do as a result of many freight forwarders use ERP methods which can be old-fashioned, and it’s a fragmented market. Some don’t even use ERP methods; as a substitute, they work off of spreadsheets or pen-and-paper methods.
On the backend, GoFreight’s software program has gross sales, working and accounting instruments, so when clients have an inquiry, freight forwarders can enter it into their system after which come again with a citation. As soon as a job is confirmed, GoFreight manages bookings, real-time shipments and any obligatory digital filings. They’ll additionally generate and ship invoices by way of GoFreight.
“Very importantly, we’re attempting to develop into the Shopify of the area, so in one-click they will open an internet retailer, and their importers can use the web net portal to ship an inquiry and it simply pops up within the system, robotically with pricing they usually can e-book their tickets on-line,” stated Chen. “So the entrance finish utility is so vital and we offer visibility options as properly.”
A significant problem that GoFreight needs to unravel is the method of producing quotes, which may take a pair days since freight forwarding orders are advanced. For instance, if a buyer needs to ship three containers from Shanghai to Los Angeles, freight forwarders must test with abroad brokers who’re additionally freight forwarders. In addition they want to rearrange trucking and warehouses. One other factor to contemplate is spot charges versus contract charges, since spot charges might be a lot decrease.
Most of this work is finished by way of emails, cellphone calls and textual content messages, however a centralized customer-facing app means freight forwarders can full your entire course of, together with checking with abroad brokers, by way of GoFreight’s integrations, which Chen says reduces the method from two days to about 10 or 20 seconds. GoFreight is presently working with companions to construct a community that connects clients with freight forwarders, and freight forwarders with carriers.
GoFreight additionally supplies a digital cost resolution, since most funds had been performed by paper checks. This implies freight forwarders can subject a hyperlink to clients, and as soon as they click on on that they’re taken to GoFreight’s web site, the place they will resolve what invoices to pay with bank cards or financial institution accounts. Then that info goes again into GoFreight’s ERP system.
Analytics offered by GoFreight may help freight forwarders earn more money, Chen stated. For instance, in the event that they e-book a 40-foot container, GoFreight will file how a lot they paid for it and the way a lot clients had been charged. The system analyzes efficiency for high clients and abroad brokers, uncovering hidden charges so freight forwarders have a greater understanding of the true price of a cargo. It additionally breaks down prices per SKU, so freight forwarders and their clients know precisely how a lot it price to ship an merchandise.
The brand new funding might be used to develop extra options like sensible quotations, price administration and buy order administration.
In an announcement in regards to the funding, Headline companion Tom Gieselmann stated, “GoFreight’s all-in-one software program supplies larger transparency to freight motion, permitting freight forwarders to higher handle their enterprise, which may vary anyplace from 0-1500+ customers, end-to-end. This versatility makes the product extremely impactful, and a giant cause behind why we’ve recognized them as one of the vital promising logistics tech firms available on the market.”
