Logistics is one of the most inefficient industries: one-fifth of all trucks and one-third of all shipping containers are moved empty, costing the industry up to $20 billion per year (Boston Consulting Group.
50% of EU trucks travel empty on their return journey to the dispatch site.
This is also due to the fact that, especially in medium-sized logistics firms, decisions are often made based on manual calculations (just using Excel sheet), the planner’s experience, and gut feeling.
Transmetrics is a predictive optimization company that helps cargo transport and logistics service providers increase their operational efficiency by applying modern technology such as Augmented Intelligence, data mining, predictive analytics and computer optimization. The 3 main modules – data cleansing and enrichment, demand forecasting, and predictive optimization – match the urgent cost-reduction needs of medium-sized logistics players: Transmetrics can be deployed in 3 months and for less than €20,000. Our proprietary AI-based algorithms calculate the most optimal and cost-efficient planning strategies based on hundreds of variables.
Empty-asset storage and repositioning typically adds 20-30% of total costs. Small-scale tests with NileDutch showed 20%+ reductions in total costs of empty container movement and storage, and fleet reduction of 7,000 20-foot equivalent units. Jan de Rijk Logistics achieved over 98%+ accuracy for the 10-days granular forecasts.
Transmetrics Project Strategy
The first targeted segments will be trucking companies, container shipping lines, and intermodal transport. We aim to generate €32M by 2024 and develop our IPR portfolio further.
Cargo transport companies have used trial versions of Transmetrics to find optimal strategies for managing containers, trucks, and trailers, including minimizing their repositioning, storage, and maintenance. Our predictive asset management relieves a major pain point at a low cost.
While strategic optimization tools (Ortec, Quintiq) can only work as silos on proprietary freight data from large operators, the PrEDICTS cloud-based platform will analyze proprietary historical data from multiple smaller transporters together with aggregated external-factors data like financial news, holidays and weather and many others, to predict asset needs and plan operations for the next days/weeks.
We will earn revenue by a SaaS subscription-based business model priced at €3,500-5,000/month plus a surcharge based on fleet magnitude. Each additional functional module added on will be surcharged, so that upselling is an option for the future.
Project Funding and the Target
The total budget of the Transmetrics Project is 2.4M EUR for a 24-month period, with 1.67M EUR coming from EIC grant and the remaining 30% are co-funded through the current company’s revenue, coming from another product (SaaS subscriptions and paid implementations).
We estimate the total cost of bringing the product to the market to be an additional 1.5M needed to set our commercialization plan, customers’ roll-out, scale-up plan, etc.
Transmetrics has historically financed operations through VC and business angels’ investments, as well as our own revenues that will also be used to fund the commercialization stage. Our investors have already shown their willingness to support Transmetrics and the Transmetrics project by providing follow-on funding to support the commercialization phase, after receiving the Horizon2020 grant for the development and trials.
We currently have 31 employees and are looking to hire at least 5 additional employees during the EIC Accelerator project. We intend to hire experts in the areas of software engineering, data science, data engineering, user experience and user interface, and technical support.