Logistics Launchpads: Tech accelerators foster air cargo innovation

When Bay Area serial entrepreneur Vijay Harrell hit upon the idea for OneClickShip, an online portal that allows small businesses to control most of their supply chain management needs, he knew he had a winner on his hands. But he also knew that he didn’t know nearly enough about the freight business to strike out on his own.

Enter EPIcenter, a technology accelerator that opened in Memphis in 2014 and is backed by logistics giant FedEx, the Memphis Regional Chamber of Commerce and other private sector leadership in the city. The goal of organization, said Leslie Smith, president and CEO of EPIcenter, is to provide technical expertise, teach business skills, raise funds and provide a safe haven for at least 500 companies over a seven-year period.

Noting that EPIcenter was looking to create a program specifically designed for logistics startups, Harrell jumped at the chance to join in 2015. “Coming to Memphis from San Francisco for the EPIcenter accelerator was a no-brainer,” he said. “It’s one of the best things we’ve done to move our business forward.”

According to Harrell, EPIcenter’s Logistics Innovation Accelerator provided valuable insight about international trade and the life-cycle of goods, “from cotton to the t-shirt in the retail store.” Other topics covered during the five-month program included the dos and don’ts of exporting, logistics and the supply chain, the supplier dynamics, the buyer dynamics, the freight forwarding market, customs and customs brokers, the warehousing market, the ocean carrier market, and the trucking carrier market.

“We basically got an Executive MBA in logistics and supply chain management,” he added. “We wouldn’t be where we are today without the program.”

Today, more logistics startups are turning to these innovation laboratories, using them as launchpads to start their businesses, gain expertise and attract venture capital. Even cargo airlines are getting into the act. In March of this year, Lufthansa Cargo announced that it was teaming up with San Francisco-based technology campus, RocketSpace, and Spanish logistics company, Kaleido, to create a new Tech Accelerator specifically for the logistics industry. This is the first time RocketSpace has delved into logistics, and the first time a cargo carrier has participated directly in any known accelerator program.

“RocketSpace helps entrepreneurs and global corporations bring the future to market, and that applies to a range of industries, including logistics,” said the organization’s founder and CEO, Duncan Logan. “We keep tabs on the disruptive trends, business models and startups that will impact corporations today and in the near future.” He estimated that about 100 startups across several business sectors have been helped by RocketSpace.

The popularity of these organizations is only expected to grow, Duncan said. “The air cargo industry ripe is for innovation,” he said, “as consumers increasingly expect speed and easy access to goods.”