The Proving Ground
OpenPort has initially focused on solving the logistics issues of emerging markets in Asia – the ultimate proving ground for our technology. The consumer class in emerging markets is growing at an unprecedented pace – the retail markets where we operate are worth over 6 trillion USD, and are projected to grow twice as fast as developed economies over the next 20 years.
Demographic and GDP growth combined with the opening of new sales channels creates logistics challenges, as most basic goods are manufactured and distributed domestically. The capacity of current supply chain infrastructure and supply of transport assets is often exceeded, causing logistics costs to rise faster than new sales, an unsustainable trend.
We estimate the current outsourced spend on trucking in Asia is over 143 billion USD per year, spent in a manual process on transport providers and sub-contracted to asset owners, and reliant on paper-based proof of delivery for both the invoicing and payment between retailers, brand owners (shippers) and transporters.
We believe most deliveries to distributors and retailers in Asia are negatively impacted (delayed, disputed, short paid, or not settled) because of problems related to the paper process. Creating transparent and cost effective supply chains with visibility, tracking and digital records for emerging Asia is one of the greatest challenges in the modern global economy, and we believe the change we drive here will change logistics around the world.