This is not only a Dutch problem. The Israeli, Avishai Trabelsi, also came across against this problem in his mother land. As a logistics manager at a family business, he looked for ways to reduce logistics costs. Eventually, he came up with the idea to create a marketplace for the empty space in the trucks. "I wanted to improve our logistics by preventing trucks from driving empty, but I found no partners among the companies in northern Israel," he explains. Eventually, this resulted in Quicargo, a virtual marketplace for unused space in trucks.
Avishai Trabelsi, Quicargo.
Dutch transport market
By doing away with the unnecessary costs incurred, the market also changes. "The market has become much more dynamic and less predictable," states Avishai. "On average, there is less cargo loaded per shipment and distances are no longer the key factor, but time." The transport time is what makes the difference in many cases. "A company that can deliver quickly has an advantage over other parties in the chain."
After having analysed how the transport sector works in different countries, Avishai decided to roll out his plan in the Netherlands. The operations began in October with over 1,200 trucks from leading carriers such as Meeus, Vos Logistics, De Graaf, Transmission, etc. "The Netherlands has a well-developed logistics industry and companies are open to solutions," he explains. "It is a very competitive market and carriers have to look for value added." That a lot of logistics plans are already made in systems was an added benefit. The Israeli entrepreneur developed Quicargo; a tool that makes it possible to offer the unused capacity in trucks. The companies who utilise the empty space range from packaging companies to freight brokers and even e-fullfillment companies.
Competitive rates
The principle is simple. A company wants to transport cargo from point A to point B and is therefore looking for a carrier. Through the Quicargo application, you can select the kind of truck you need to transport the cargo and where the cargo needs to be delivered. The company can then immediately see which trucks have available capacity nearby and how long will it take before they can pick up the cargo. The price bids of each carrier is also displayed to the shipper.
The company chooses a carrier which then picks up the cargo and delivers it to the right address. "The companies do not share any sensitive customer information, making it more attractive for companies to use the service." Each carrier can decide what price needs to be set based on mileage and time. "We see that the carriers are offering competitive rates, up to 20 percent below market prices."
Fresh in the future
Quicargo does not currently work for the transport of fresh fruit and vegetables, but this is bound to change in the coming months. Several logistics firms that are devoted to the transport of fresh produce are interested in introducing the service, although there are still some difficulties around issues such as food safety. "I have a background in the fresh fruit and vegetable industry, so I have a lot of experience with transportation in that sector and everything that comes with it. We also work with major carriers in the industry who also have a lot of experience and are familiar with the vulnerability of fresh produce."
Quicargo also wants to work at an international level. The plan is to introduce the service in the Benelux and Germany within the next two years. "We started small, and will gradually grow to more sectors and more countries," concludes Avishai.
More information:
Quicargo
Avishai Trabelsi
avishai@quicargo.com
www.quicargo.com