26th April 2020 Value Proposition Framework – ASHFONN – Asset Sharing for the New Normal.
For: Large, medium & SME businesses emerging from the Coronavirus lockdown into a changed, “new normal” environment of supply chain logistics
Who: We can be certain that the release of businesses from CV lockdown will be staggered and disjointed, businesses will emerge into at least, disjointed and at worst totally fractured supply chains? Recovery cannot be completely orchestrated, and people will be looking for fast supplier deliveries to make up the range of products they normally have on offer. Some stock may be out of date and best before dates and use-by dates will need to be checked. and there will be a measure of spoilt product to be removed and then replenished.
Our product: A highly automated, digital freight matching platform driving optimised use of transport assets (trucks, rail & ships) and a fully integrated blockchain freight settlement engine (FactR). Allows businesses to minimise the associated cost of otherwise fragmented supply chains and to increase their fulfilment of transport assets. Our solution accommodates less than truck/container loads (LTL/LCL) by matching freight from different shippers and driving a modal shift from road to rail & waterways. Transforms transport planning productivity (now one planner can manage circa 15 trucks daily whereas with the matching engine it rises to >100 trucks per planner). Current empty kilometres are >25% and “full” trucks are on average <60% full, leading to an average utilisation of ~43%.
That Provides: Greater speed and cost-effective recovery from the closure of businesses during CV pandemic. Offers the prospect of a “V” shaped economic recovery with one of businesses highest costs: transport, significantly reduced for the largest enterprises to SME’s. The savings are of the order of €150 Bn from the digitalisation /modal shift and a similar amount through not having to build new infrastructure to accommodate the forecast growth. Reductions in congestion (fewer trucks due to removal of empty km) circa 20% and similar reductions in CO2e, NO2 and particulates.
Unlike: Pre CV, inefficient and highly polluting supply chains with overall truck efficiency of <50% to the “New Normal”, underpinned by a fully digitalised solution that is fit for purpose and will allow the forecast future growth in freight transport of 40% by 2040 to be accommodated using existing infrastructure. The alternative approaches seem to be highly manual transport exchanges or e-brokers who add little value but add up to 30% on costs per transaction.
Our product/ solution: Points of differentiation from alternatives such as,
- pre-CV, inefficient, largely manual solutions
- from current <50% efficiency to >80% efficiency through real-time digitalised and algorithmic driven matching.
- highly automated and totally objective, algorithmic matching as opposed to highly manual, subjective, legacy IT systems.
- blockchain-based solution for financial settlement with <24 hours account settlement versus anything from 30-120 days settlement now.
- use of smart contracts to monitor the progress of supply chains in close to real-time for security and a single version of the truth to settle claims.
- Incorporate learnings from the EU funded ICONET research and innovation project which has researched the “Physical Internet” (PI). The Physical Internet is similar to the data internet but tied to physical objects moving around in the real world.
Log in or sign up for Devpost to join the conversation.