Every month we select one logistics startup which represents a positive example of innovation in Logistics and Supply Chain and has the potential to alter the way the industry operates. This time, Transmetrics selected FarEye, a digital logistics platform for the efficient movement of goods, as the “Logistics Startup of the Month” for the outstanding developments in predictive visibility and operational intelligence for on-time deliveries.
In order to learn more about the startup and what it does, we have talked with Kushal Nahata, CEO & Co-founder of FarEye, about their business and how digitalization can help companies improve their logistics processes and bottom line.
First of all, congratulations on becoming the Logistics Startup of the Month! Could you briefly introduce our readers to FarEye?
Thank you so much! We are thrilled to be listed amongst some of the industry’s best solutions.
FarEye is a digital logistics SaaS platform to move goods efficiently. We empower global leaders with predictive visibility and operational intelligence to achieve on-time deliveries at a reduced cost. FarEye helps to address the cost and time-to-market repercussions of uncertain and delayed deliveries.
We make this possible through:
- Real-time predictive visibility on Estimated time of arrival
- Quick and sophisticated workflow creations and reconfigurations – across multiple providers
- Superior visibility on top of the existing TMS/WMS Solutions
Since 2013, FarEye has matured into a well-acknowledged player facilitating 10 million+ transactions per day across 20+ countries for more than 150+ customers. We have been mentioned by Gartner for our real-time visibility and vehicle routing and scheduling technologies in seven reports. FarEye is a game-changer in the logistics industry that empowers brands with the ability to seamlessly orchestrate, control and monitor their logistics operations digitally. FarEye is headquartered in India and has global offices in Chicago, Dubai, London and Singapore.
Let’s talk a bit more about your products – FarEye Delivery, Fulfilment, and FarEye Transportation. Could you please explain what are the main features?
FarEye was born with an intent to move goods efficiently at a reduced cost for an improved delivery experience. Whether it is an artificial limb reaching a hospital or auto parts reaching a manufacturing unit or simply groceries, the importance of deliveries being made on time and in the right condition cannot be ignored. To ensure an end to end digitalization of the supply chain, FarEye has three product offerings:
FarEye Delivery: FarEye Delivery is a flexible workflow-based platform for logistics providers & fleet owners to deliver superior customer experience at peak operational efficiency. The world’s largest fleet owning and controlling companies improve profitability, on-time deliveries, and visibility through FarEye’s agile and scalable platform that lets them design, execute, modify and monitor delivery operations on a single platform.
Among many other giants, we have helped the world’s largest pizza delivery chain to reduce delivery time by 27% and increased courier productivity for DHL eCommerce by 15%.
FarEye Fulfilment: FarEye Fulfilment is a real-time order fulfillment & visibility platform for retailers & shippers to increase perfect order index & offer faster delivery to end customers. FarEye Fulfilment helps companies become more customer-centric by helping them deliver an Amazon-standard customer experience, predictable ETAs, strict SLA adherence, flexibility, real-time visibility & control, and consistent omnichannel experience.
Leveraging FarEye’s platform, Hilti, a leader in developing manufacturing products, systems, software and services for the construction and energy industry, has achieved a 50% decrease in loading time at warehouses, increased on-time in-full deliveries by 6% and increased productivity by 12-15% across stakeholders in sales and supply chain team.
FarEye Transportation: FarEye Transportation is an IoT-enabled predictive visibility platform for manufacturers to run logistics operations in order to achieve on-time delivery and efficiency. It enables predictability in freight movement and integrates with TMS and WMS systems, allows data-driven transporter allocation, digital proof of delivery and provides live ETA during the entire journey.
FarEye Transportation has empowered Tata Steel to reduce loading, transit, unloading TATs by 32%, reduce theft & pilferage by 57% and achieved 100% operational visibility across all stages of movement.
Based on your experience with Shippers and 3PL companies, what are the biggest problems that the logistics industry is facing at the moment?
The global logistics market is expected to attain a market size of around $12,256 billion by 2022.
The growth of international trade and rapid urbanization will fuel the increase in freight transportation of high-value as well as lightweight goods. However, the lack of visibility of freight movement has been weighing down the transportation industry for a long time. According to a study, only 6 percent of companies are successfully able to achieve supply chain visibility, and this is not surprising because 70 percent of businesses describe their supply chain as “extremely complex.”
Talking specifically of the European countries like the UK, Germany, Spain, and others – there is a visible struggle to build a new supply chain and logistics strategies to deliver delightful customer experiences. But making customers happy and staying profitable is not easy.
A key challenge with the transportation market in Europe is that even the largest transportation companies here only cover 10% of the transportation market making businesses heavily dependent on disparate 3PL providers. This results in creating a delivery ecosystem that’s not only fragmented but also disjointed. Hence, the transportation market in Europe suffers from poor collaboration and delivery visibility issues.
Also in Europe, people are more inclined towards buying in less quantity but more frequently. Take for instance Europe’s grocery industry. Grocery retailers in Western European countries are now investing in convenience stores as a response to changing customer behavior. However, the challenge lies in ensuring that these stores are always stocked up. So, supply chain and logistics stakeholders need to efficiently plan fulfillment and delivery strategies to avoid out-of-stock situations and manual supply chain processes happen to be a major bottleneck in achieving this. The solution is to automate core delivery processes like task allocation, order placement, scheduling, and route planning – things an advanced logistics software can cost-effectively execute.
Besides, the changing government regulations regarding roads, health and environment, rising theft and pilferage incidents and increased popularity of click and collect model in the region, calls for agile and intelligent supply chain operations to stay relevant and ensure customer centricity.
Would you like to share any specific customer success story?
FarEye, today, is one of India’s fastest growing start-ups with a 280% increase in ARR year on year. As enablers of logistics excellence, we facilitate over 10 million transactions per day, enabling more than 150 enterprises across 20+ countries to achieve superior delivery experience using mobility, data analytics & automation.
We have helped several large enterprises to automate and optimize their logistics operations. Listing some of the most interesting use cases below:
The World’s Largest Pizza Chain Reduces Delivery TAT By 27% With FarEye’s Gamification Technology
- Bottlenecks in reducing delivery time to less than 30 minutes
- Poor visibility of key milestones in the delivery lifecycle
- Inaccurate KPI benchmarking & the consequent impact on incentives
- Inefficient collaboration between delivery managers & executives
- Low productivity and poor exception handling
- Machine learning capabilities to automate task allocation
- Single dashboard to view delivery KPIs
- Real-time tracking from order placement to executive reporting back
- Instant alerts to address exceptions immediately
- Geo-fencing capabilities to enhance reporting
- Automatically assign areas to zones
- Milestone tracking to mark areas of delay
- Reduced delivery time to 22 minutes from 30 minutes
- Faster response to exceptions
- Increased peak-hour availability
- Enhanced fleet productivity owing to real-time tracking
- Rapid scalability by intelligently outsourcing delivery
- Greater profitability due to cost-effective & intelligent resource planning
- Accurate KPI benchmarking & reward programs
DHL eCommerce Increases Courier Productivity By 15%
- Lack of automation in delivery allocation processes
- Inability to update customers on real-time status of parcels
- Increasing complexities in managing reverse logistics
- Poor productivity levels owing to lack of fleet visibility and rising OPEX
- Delays in delivery due to operational inefficiencies
- AI-powered routing engine for faster deliveries
- Easy integration with DHL’s existing IT infrastructure
- Drop and pickup at parcel shop in South East Asia
- Machine Learning powered auto-routing and accurate ETAs
- Elastic last-mile pickup in North America
- Reverse pickups in South America
- Reduced inventory with reliable supply chain
- FarEye became the control center for tracking and monitoring all field executives & vehicles
- 15% increase in productivity of delivery agents
- Improved delivery transparency with live tracking for customers and managers alike
- Flexible delivery, payment, pickup & returns options
- Reduced operational costs & increase profitability
Have a quick look at what our clients have to say about us:
We saw the news about your recent deal with Emirates Post and Landmark Group, congratulations! Can you please share with our readers what this deal is about? How do you think FarEye can help the transformation of postal companies at large?
Thank you so much. Emirates Post and Landmark Group are the largest post and parcel service and the largest retailer in GCC, respectively and we are thrilled to work with them.
The supply chain and logistics challenges of GCC are unique. The sudden need to scale during particular festivals, inaccurate addresses, changing cross-border regulation requirements among others often becomes a roadblock when it comes to ensuring seamless execution of supply chain and logistics. The organizations were looking for a solution to help them tackle these challenges and provide seamless, faster and flexible delivery experience to their customers.
As a part of the deal, FarEye will implement an intelligent delivery platform to achieve on-time deliveries at a reduced cost. It would be implementing data-driven routing engine to increase deliveries per hour and provide a delightful and engaging experience to the customers by empowering them to live-tracking their shipments.
The post and parcel industry, especially in the UK & Europe, is going through a major disruption. There is an emerging consensus that the letters market is at the start of a long‐term decline and the digital revolution has started to impact various types of mail in complex ways. The future majorly depends on whether postal companies can develop new, higher‐value services, including delivering goods ordered on‐line.
FarEye helps postal companies to completely digitalize their logistics operations, build new revenue streams and provide innovative offerings such as parcel shop, locker deliveries, personalized deliveries to consumers. We are constantly working towards empowering global leaders with predictive visibility and operational intelligence to achieve on-time deliveries at a reduced cost.
Predictive technology is at the core of your products. A lot of companies in the logistics, including Transmetrics, strongly believe in its potential for the industry. Why do you think it is such a relevant technology at the moment and what other use cases of Predictive Analytics can disrupt logistics the most?
Global logistics spending is set to soar to $10.6 trn by 2020 with transportation accounting for the majority at 70 percent. Shippers are losing a lot of time, money and inventory due to unpredicted freight movement.
Because of fragmented stakeholders and data silos, flow of information in supply chain has traditionally been in a bad state leading to huge losses and reactive approach to finding solutions.
Predictive technology platforms have the capability to pull data from multiple sources and modes of information onto a single platform showing the right information to the right stakeholders. This helps businesses in making time-sensitive data-backed decisions and drastically boost operational visibility.
The technology enables organizations to make use of current and historical data, to identify trends and optimize resources to respond proactively to future developments. This finds multiple use cases in the value chain:
Reduced Customer Anxiety Index: With predictive visibility of shipments and power to manage exceptions in time, businesses can keep the customers (B2B or B2C) informed of the status of deliveries and keep the anxiety index in check.
Personalization: With predictive analytics, organizations can ensure that high-demand and seasonal products based on geographies are delivered in advance. Real-time information also helps to maintain agility to make adjustments based on market exceptions/ demands.
On-Time In Full Compliance: Owing to early detection of theft, pilferage and exceptions, businesses can be assured that their customers receive the exact quantity of goods and raw materials they paid for right in time. Also, IoT enabled sensors can constantly inform customers and other transportation stakeholders about temperature drop and rise of a shipment.
FarEye is not just a customer-centric company, but also a team-centric. What makes the culture of FarEye so robust?
For FarEye, it is Wow > Profit. We aim to deliver excellent customer service over solely making a profit. The current team at FarEye is a blend of freshers, entrepreneurs, and executives who left their corporate lives to make something new. It is a place where aspiration meets ambition, where dream job meets gratification and where hard work meets recognition.
While growing the team, we have ensured that there is immense focus on building a cohesive and encouraging work culture. At FarEye the focus has always been on building intrapreneurs, not employees. We strongly believe that when individuals are given a chance to ideate, create and own their tasks themselves, there is immense job satisfaction and innovation which is why we follow a ‘flat-hierarchy’ culture where ideas are not restricted by designations.
We are open to taking calculated risks and making efforts. Technology has the answer to most complex problems of logistics and transportation and each of us at FarEye is dedicated to finding those solutions. Together we laugh a lot, constantly solve problems, talk non-stop, work hard and are always up for a game of table tennis.
What was the biggest learning point for you while building FarEye? If you had a chance to do it all over again, what would you do differently?
FarEye was established with a vision to empower global leaders with predictive visibility and operational intelligence to achieve on-time deliveries at a reduced cost.
Back in 2013 we started with one eCommerce client, focussed to solve the challenges that existed in making eCommerce deliveries efficient and delightful. Working and scaling with them made us realize that the entire logistics and supply chain industry is riddled with numerous challenges and outdated processes. Over the years we expanded to multiple industries and geographies helping organizations like DHL eCommerce, Blue Dart, Walmart, Hilti amongst many others to optimize their operations, achieve real-time visibility and save millions.
The biggest thing I would say that we learnt on this journey was to be agile enough to keep changing and updating with the changing market dynamics.
Constant change in customer expectations and technological advancements have accordingly impacted the needs of our clients. The solution that was innovative two years back does not hold relevance today. Therefore it is extremely important to understand the client’s business objectives, regional requirements and market needs- and offer customizable solution to be able to consistently deliver value. Looking back I don’t think there is anything I would want to change in our growth story.
What’s next for FarEye in 2019?
At FarEye, we aim to make a difference to how deliveries are made – making them accurate, on-time and cost optimized for the shipper. Lack of visibility and disparate data sources lead to massive losses in the supply chain – in 2018, supply chain disruptions and cargo theft cost a total of $56 billion.
In the coming years, our endeavour is to completely remove the unpredictability out of both B2B & B2C deliveries and add a layer of real time visibility and predictive intelligence in freight movement.
Clocking triple-digit revenue growth since the past 3 years, we are now targeting a 325% growth in revenue this fiscal. In November 2018, we acquired Dipper Technologies, an IoT platform that provides visibility and predictability in freight movement; reinforcing our plans to solve challenges by having cutting edge technology for carriers and shippers in moving goods. With 3 new articulated product lines and leadership position in India and the Middle East, FarEye is on the path of massive global expansion with offices in Chicago, London, Dubai & Singapore to enable manufacturers, retailers, 3PLs globally with Delivery, Fulfilment and Transportation offerings.
The unique offering of the workflow-based platform coupled with data and intelligence enables enterprises to invest not just for today but also for future needs in the supply chain. We are looking to strengthen our integration capabilities to offer a complete plug & play model to businesses. Over the last financial year, FarEye had grown its employee strength to over 300. The notable headcount growth highlights the company’s ambitions to build valuable services, strengthen its presence and achieve new levels of growth. In order to accelerate its product development further, FarEye plans to hire 100 more employees in this fiscal with the major focus being given to create jobs for the latest technologies such as deep machine learning, data analytics, etc.