The focus of ‘LoRRI Benchmark’ on the full truckload (FTL) is mainly because 70-80 percent of the total road transport industry in terms of value is FTL, informed Saxena.
In a bid to bring in more transparency in the otherwise fragmented road logistics segment, Shell-backed LogisticsNow, recently launched a benchmark for contracted freight on full truckload (FTL) freight for medium and long haul lanes.
“Manufacturers using road transportation do not have a trusted benchmark for freight rates. They are relying on their own database. This benchmark will not just enable manufacturers view freight range but also display top rated transporters in turn helping in freight price discovery,” Raj Saxena, founder and chief executive officer of LogisticsNow told Business Standard.
Over 65 per cent of the country’s freight today gets transported via trucks.
‘LoRRI Benchmark’ has a dedicated data analyst team that pools in data from the transporters, manufacturers and government sources to offer a strong base for its customers. Today, the benchmark offers 20,000 routes across the country and has 650 logistics companies on the platform.
The focus of ‘LoRRI Benchmark’ on the full truckload (FTL) is mainly because 70-80 percent of the total road transport industry in terms of value is FTL, informed Saxena.
LoRRI Benchmark beyond a point is paid usage. However, it offers services to a wide range of manufacturers as well as transporters from small-and-medium-enterprises to large organised commercial entities.
While the company is engaged in adding more routes to the benchmark, it aims to move into rail freight in the coming six to 12 months.
“FTL alone is more than 60,000 routes today. However, we cover only 20,000 routes at present. In less than 36 months, we will have all these major and minor routes on the platform. The idea is to focus more on road and rail. We are looking at a combination of these,” said Saxena.
The company’s plan to foray into the rail segment is also strong. While it is in discussions with both private players as well as the Indian Railways, the company is seeing more value in private segment due to price dynamics as government freight, being more controlled, will not have scope for tech-enabled logistics business of LogisticsNow.
“In the private rail segment, it is the demand-supply equation which will help in price discovery. So there is more scope for freight transparency and a level playing field,” informed Saxena.
Meanwhile, LogisticsNow is also looking to build multiple products for the logistics and transportation ecosystem.
It plans to launch LoRRI Procurement, which will allow procurement of goods in a transparent manner. A crowdsourced rating platform for transporters is also on its way where truckers hired will see their trips and services rated by the customer, in turn paving the way for more reliable services.
“About 200 transportation companies have already been rated and haver benefitted via increased business,” said Saxena.
Alongside, as part of its timely move, amid the Covid-19 pandemic where vaccine distribution is a point of concern at present, LogisticsNow has entered frozen goods transportation where it has mapped several routes in India for refrigerated transportation.
“So, if Serum want to see how or which transporters can send the cargo, it is just a click away. We are still to initiate talks with Serum for this initiative, but have been advised to do so,” informed Saxena.
While Shell remains invested in LogisticsNow, the company is looking to raise more funds in 2021 mainly via private equity. Saxena, however, refrained from divulging funding details for the company.
LogisticsNow is building the digital backbone of global logistics to help customers develop a stronger technology enabled transportation and logistics business. The company provides advanced analytics, leading to better fleet utilisation, service and cost savings.
Source: Business Standard
