Find the cost of sending goods prohibitive? What if you could somehow access the spare capacity on trucks already going where you need to send stuff? That’s precisely what Freighthub does.
This innovative Auckland-headquartered start-up has applied digital technology to automate the process of connecting those who need to send goods with the empty space available in trucks moving around the country. The result is lower transport costs for customers, and dramatic improvements in efficiency for transport operators. It even benefits the environment, with reduced emissions from further optimisation of vehicle fleets.
Founder Alan Walpole says making better use of available capacity is not a new idea. “What is new is our ability to use proprietary algorithms to identify where space is across our network and then efficiently and automatically connect that with customers moving goods. The feedback from customers is overwhelming: it saves money and it boosts efficiency, and we’re different from anything else out there,” he explains.
Freighthub digital system handles consignment and sign-off online, providing customers with full tracking and reporting, from start to finish. All shipping documentation takes place electronically and automatically, right down to carbon footprint receipts.
Freighthub’s vision is to have freight manage itself by being the market aggregator with a digital platform specifically for the SME market, both shippers and carriers, says CEO Katrina Hall.
“The SME market is the fastest growing market in the world, they are also the largest users of digital platforms and the shippers and carriers require a digital platform. In New Zealand alone the SME domestic road freight opportunity is a billion dollar market,” says Hall. “Freighthub does not intend to compete with any carriers, but rather to optimise and connect a fragmented market.”
The idea for Freighthub germinated through Walpole’s career in various supply chain and logistics roles. He recognised that when deliveries are made in one direction, it often means transport heads back empty in the other. This simple observation led to further analysis resulting in a broader, novel and cost-effective approach to freight.
The magic in the system is integrated data communications and a simple freight control dashboard for customers. “Customer experience is crucial to our business,” says Walpole. “Logging on to Freighthub, booking the required space and sending goods is fast, easy and satisfying.”
Within its transporter network, Freighthub constantly monitors the landscape and identifies capacity, matching it to incoming bookings. Transport is guaranteed, as is a lower price for sending the goods: Freighthub bears price and delivery risk, ensuring it always meets customer expectations.
“Our pricing is based on variations of demand, availability, urgency, load-type and several other factors important to our customers,” says Walpole. “No one else in New Zealand can provide the same level of nationwide efficiency and customer support as we can with our technology. It’s that good - and we’ve seen month-on-month customer adoption rates of 40 percent.”
There’s more to come from Freighthub and its network of highly motivated haulage partners, as the company continues to innovate and improve its service delivery and reach. “Probably our biggest challenge, now that we’re an established provider of nationwide freight, is staying ahead of customer demand. After all, freight is changing, and customers are coming to us as they expect digital levels of efficiency,” he says.
And while Walpole says ‘adoption inertia’ was expected, a streamlined on-boarding experience has instead been welcomed by the market; it usually takes just one order through Freighthub to see the advantages of ease of use, convenience and – here’s the big one - substantial savings. “People give it a try and they’re hooked. It’s the experience they now expect from modern service providers.”
