Consultant Insight: The operating system for global logistics

After two years of supply chain upheaval, questions surrounding the survival of globalization grow louder as the COVID-19 pandemic emphasized existing weaknesses in many countries and exposure risks associated with global supply chains built around China, according to think-tank Carnegie Europe. In response, there are calls for reshoring, regionalization and localization, with some supply chains taking heed while others continue to maintain a global approach. Regardless, supply chains are evolving to address changes, and technology plays a significant role. [caption id="attachment_69752" align="alignright" width="373"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] One technology provider, Australia-based WiseTech Global, aims to become “the operating system for global logistics,” according to its website. Total revenue for the period ending June 30 increased 26% year over year to AUD $632.2 million (US $436.7 million), while Cargowise, a company subsidiary, reported total revenue of $309.4 million, a 37% YoY increase, according to an Aug. 24 earnings report. “This standout performance demonstrates the increasing resilience of our business model,” WiseTech founder and Chief Executive Richard White said in the earnings report. “In an environment of persistent supply chain constraints, inflationary pressures and COVID-related business disruption, to have delivered these outcomes is a real testament to the strength of our business, the dedication of our people and the effectiveness of our 3P strategy.” Indeed, White believes that today, organizations are much more focused on profitability and efficiency improvements while also facing increasingly complex regulatory measures. The company plans to invest further in research and development, focusing on landside logistics, warehouse, digital documents, customs, compliance, international e-commerce and Neo, Cargowise’s integrated platform. The company has also made 42 acquisitions since 2016 to expand and enhance its logistics technology capabilities. Three tuck-in acquisitions were made during the past year: Inobiz, which provides data integration systems, and Hazmatica, a provider of hazardous goods compliance and management capabilities, and the latest acquisition, Bolero, which provides electronic Bills of Lading and digital document capabilities. Who’s who in freight forwarding The freight forwarding market tends to thrive in times of disruption. Just when you think it’s the end of the freight forwarding market, it reinvents itself and proves itself once more. In fact, many forwarders demonstrated their value during the height of the pandemic by chartering airplanes, ships and domestic transportation to secure capacity for customers. Forwarders also expanded to new geographies and into new services while investing in technologies to improve efficiencies and offer a transparent way for customers to manage freight movements. Cargowise’s solutions have been the technology of choice for many forwarders due to the breadth of capabilities it provides. WiseTech and Cargowise’s customer list reads like a who’s who in freight forwarding, including DSV, Geodis, Bollore Logistics and CEVA Logistics, and the list continues to grow. CargoWise added 10 new global customers in the fiscal year 2022, or the period ending Jun. 30, of which were five new global rollouts with UPS, FedEx and Craft Multimodal, Brink’s and Access World. “We have 43 CargoWise global rollouts, with 10 of the top 25 global freight forwarders, including three of the most recognized logistics brands in the world: DHL, FedEx, and UPS. That is very significant regarding our market presence and product recognition,” White told analysts during the company’s Aug. 24 earnings call. Cargowise has a strong market presence and could easily call itself the operating system for global logistics, but there are also a number of different logistics technology companies and startups that are ready to challenge WiseTech and Cargowise. Forwarders, other logistics providers and carriers — as well as the shippers themselves — may turn toward these other technology providers as the market continues to quickly change and the need to differentiate becomes important. Join Air Cargo World for our next webinar, “Forward Thinking: Best practices for freight forwarder success,” on Tuesday, Sept. 13, at 11 a.m. ET. Click here for more information and to register.

Consultant Insight: The operating system for global logistics

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