Finding Forager: Why We Invested
What often gets lost in the noise of perceived disruption is what’s actually happening on the ground. Last year, third party logistics firms (3PLs) controlled over $800B of freight spend. Despite the commotion around a broker-less logistics ecosystem, 3PLs will continue to play a critical role for years to come.
That said, the tides are shifting. Software is infiltrating every component of the 3PL technology stack, from high fidelity data and API connections to robotic process automation. Without software, the solution providers of today will not be the providers of tomorrow. The old guard knows this and are investing accordingly. But efforts to date have largely focused on automating or improving workflows for intra-US lanes. Whereas cross-border shipments to our sovereign neighbors remain as manual, opaque and inefficient as ever.
Shipments to Mexico and Canada are riddled with complexity. Sending a single cross-border shipment often requires managing numerous carriers and vendors across 85+ crossing locations, a highly manual process further magnified by language barriers, convoluted customs paperwork and multiple currencies. It’s no surprise cross-border shipments are often an afterthought to major 3PLs today, notwithstanding the billions of dollars at stake. The result is customers with limited to no shipment visibility, nonexistent customer service operations and perpetual fear of delays.
Opportunity abounds in markets that necessitate a deep understanding of idiosyncratic processes and are over-looked given the perception of high service requirements. Matt grew up in freight, built the cross-border team at Coyote Logistics and can be found describing the nuances of customs documentation to anyone who will listen. He has (hard-)earned truths about customer needs, which manifest in products customers want. This stands in contrast to the over-engineered, but under-utilized dashboards and analytics suites that are all too common across the industry.
Today, the Forager team announced the upcoming release of on-demand pricing and capacity for both Mexico and Canada. These products will supplement the company’s existing suite of supply chain solutions. They’re also indicative of the team’s future plans to use software to better serve their customers, particularly those that are running advanced logistics frameworks.
We are proud supporters of the Forager team and are privileged to be a part of their story.