Logistics is successful: An unknown Spanish startup worth a fortune

In class we have seen -and have insisted on- the importance of information systems -i.e. computer software- in logistics management. In this post shows a good example of this, I hope you find it instructive and you like it.


In the startups sector fame is not everything: known companies can fade while unknown rivals end up worth a fortune. Webcargonet was an unknown name until yesterday, when it was announced that it had been bought for a “seven-figure” amount by one of its rivals, Freightos. Its creators are two Catalan entrepreneurs who bet eight years ago for a world as forgotten as important: the logistics of air transport.

It all started when Manel Galindo and Enric Alventosa founded a website creation company. One of his clients, an air cargo director of a freight company – specializing in international freight transport for other companies – told them about the nightmare of managing their air fares: they received them in PDF and Excel, printed and stored them in huge colored folders. All to know the fastest and cheapest way to send a package from Hong Kong to Seville.

“We saw the opportunity and created a system to establish an origin and a destination and that automatically these companies could see all the tariffs of all airlines, from the cheapest to the most expensive,” explains to Teknautas the co-founder and Webcargonet’s CEO, Manel Galindo. So simple and useful for all companies that carry goods by plane: “Before they needed up to four hours for a quote, now they do it in five minutes.”

Webcargonet, founded in Badalona, managed to capture the interest of airlines and freight companies alike. “We have about 900 customers in almost 80 countries,” said Galindo. A couple of months ago the talks began with Freightos, a similar company that also puts in contact all the actors – clients, companies, freight forwarders – through its own marketplace.

It is curious that Freightos, a startup of Israeli origin based in Hong Kong, is actually younger than Webcargonet, since it was founded in 2012. However, Galindo explains that the idea of acquisition is to “create a circle” in which resources and synergies increase and can help the customer throughout the process.

Webcargonet will remain as an independent company within Freightos, and its first objective is to establish e-booking for freight, as other companies do with passengers. In the end, the time saved for transport companies means that the end user receives their goods before and for less money.

Source: http://www.elconfidencial.com/tecnologia/2016-09-01/freightos-webcargonet-startup_1253534/


Written by: Manuel Salmeron


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