Logistics: Is it possible to find a niche today

Over the past several months, few business functions or industries have witnessed as much disruption than transportation and logistics. Global supply chains were altered, local grocery and e-commerce sales increased rapidly, and it became evident that restructuring and innovation should occur within the industry. Logistics appears to have finally received its due attention among the general population, making it much simpler to grasp why transportation plays such an essential role. In this post, we will look at the current state and development of logistics as a field of study, while reflecting upon its prospects and outlook for the future.

Logistics Today

Firstly, what exactly is logistics? Originating in military circles, supply movement refers to the transfer of supplies and equipment directly from warehouses or transport trucks to troops in the field. Today, logistics encompasses much more than simply transporting resources between locations. Logistics management may encompass any combination of resources: people, inventory, materials, equipment or fleet management. Logistical operations management encompasses several components such as fleet administration, inbound/outbound transportation management, demand planning and inventory control to fulfill orders efficiently.

Logistics are an indispensable part of running any e-commerce or other enterprise of any size, including online businesses and brick-and-mortar establishments alike. Speedy and effective delivery services play an essential role in any enterprise - no matter their domain. Because of this, many have attempted to break into the logistics industry and fill some niche. A typical business model for startups that innovate in logistics typically incorporates innovative technology or digitalization of some sort, while keeping costs as low as possible.

Let's examine some examples of startups' innovations in logistics

Firstly, national-scale logistics models tend to be outdated. In Ukraine, national post Urkposhta had become ineffective over time, so an alternative service called Nova Poshta was created as an alternative solution. Nova Poshta was a private Ukrainian postal and courier company offering speedy delivery with excellent user experiences; something Ukrposhta could not match. Terms for parcel delivery were drastically reduced, leading to significant business development growth as well as enhanced customer satisfaction levels. Simply stated, such an approach involves taking an existing solution as the starting point and making it more effective.

Another form of innovative logistics solutions involves creating a technological platform to connect stakeholders. UberEats and Glovo are two companies operating under such an approach, serving as marketplaces connecting restaurants, couriers and consumers; restaurants list their menu items; consumers order dishes; and couriers deliver orders. Such a solution would benefit all parties involved: restaurants can increase revenue with additional orders, consumers can enjoy delicious food delivered straight to their homes or workplaces and couriers can earn additional revenue.

Logistics Prospects

Despite advances in technology and innovation, many countries still rely on ineffective logistics systems that fail to offer efficient or convenient service delivery systems. But inefficiencies and thus needs can vary considerably across countries (or regions), depending on cultural traditions and available alternatives. Innovative solutions may vary significantly across geographies. For instance, one country might lack efficient B2B collaboration in transportation services, so parties needing these services may pay more while having no effective ones at their disposal. When faced with this scenario, a B2B solution with reasonable pricing and terms would be ideal for all parties involved. Another example could be countries that need timely, seamless goods transportation services. As Idealogic believes strongly in solutions which utilize sharing logistics solutions, a startup offering decentralized transportation of goods via minivan drivers - similar to Glovo and BlaBlaCar combined - would likely prove popular.

Cost savings, optimized resource usage and increasing earnings of independent parties all play a part in increasing welfare. We believe the logistics industry is ideal for sharing innovations as both demand and opportunities exist for implementation. Now it is the turn of progressive entrepreneurs to come up with intriguing concepts - we will take it from there.