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Thursday, December 8, 2022

Trucknetic puts digital freight services on the road with AI, ML

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Trucknetic, founded in 2019 by Arham Partap, is an internet marketplace that links shippers with carriers. It intends to convey both front haul and backhaul cargo, resulting in zero waste miles for vehicles.

Arham Partap, a mechanical engineering graduate from NorthCap University in Gurugram, saw a niche in the logistics market while working in his family’s bulk commodity trading firm. It was then that Arham wanted to become an entrepreneur, and he embarked on a mission to solve all logistical concerns, expand his domain expertise, and simplify the company’s supply chain issues.”

Trucknetic, a tech-first logistics firm, was established by Arham in September 2019. He began with one customer, then added another, and by 2019, he had quit his family business to focus solely on his firm. Trucknetic, headquartered in New Delhi and has operations in Gujarat and Uttarakhand, is a digital freight platform that links shippers and carriers.

Its marketplace serves as a primary conduit for front and return loads by utilising AI, machine learning, and other proprietary applications. Trucknetic was founded with a Rs 3 crore investment.

Trucknetic Carrier, for fleet owners and transporters, and Trucknetic Shipper, for individuals, merchants, MSMEs, and corporations, compose the platform. The firm is addressing the return load problem, which costs the Indian economy up to $50 billion each year.

Trucks generally return empty, resulting in fuel waste and greater expenses for the carrier and shipper. Trucknetic seeks to eliminate empty runs and optimise asset utilisation in order to reduce transportation expenses and, ultimately, carbon footprint. The logistics firm in India offers a one-stop shop for all sorts of vehicles and intra-city, inter-city, and line haul movements.

Arham claims, “The functionality is comparable to Uber. A shipper publishes the cargo and travel information; they can also purchase in-transit insurance. Shippers often require operating money for their transportation needs, which Trucknetic delivers through our lending partner with highly appealing advertisements.”

The Trucknetic platform provides visibility into the return load from the destination, saving fuel and increasing income per vehicle by 40-50%.

Carriers also earn “Trucknetic points” for utilising the platform on a regular basis. Both shippers and carriers have access to analytics to analyse fuel costs, space utilisation, route optimization, and other metrics that help in improved decision-making and cost reduction.

AI plays an important role in route optimization, allowing firms to save planning time by 80% while also saving greatly on fuel expenses and driver compensation.

Trucknetic is among the firms chosen for the Microsoft AI innovation—manufacturing and logistics cohort.

“Trucknetic is developing a proof of concept to tackle the return load problem in collaboration with Microsoft using AI and ML,” adds Arham.

Our AI-powered platform provides forecasting algorithms to shippers and carriers.

This allows carriers to verify load availability and forecast future transport demand, while shippers may always check vehicle availability. “To date, Trucknetic has onboarded over 5,000 carriers and 1,000 shippers.” It has a network of about 200,000 fleet owners and 50,000 carriers, totaling more than one million trucks.Arbitrage, commissions, and subscriptions are all part of the business strategy. Currently, arbitrage accounts for 90% of income, with commissions accounting for the remaining 10%.

The arbitrage concept, which is the difference in freight pricing between shippers and carriers, is Trucknetic’s primary source of revenue. 

Arham says, “Trucknetic costs $20 per MT for full-service logistics. However, if a shipper agrees to transport a particular tonnage of load through us, they will receive savings.” 

Anyone who wishes to send their items from one location to another is the startup’s target audience. Its concentration, however, is on MSMEs, individuals, and B2B supply chain startups.

It has a long list of famous clients, including Patanjali, Action Tesa, Nuvoco, Gulshan Chemicals, and others, and has won various honours and chances.

These include the Top Placer Logistics 2021, Best Shippers, and Carriers Marketplace Platform, as well as the 10 Most Trusted Logistics & Supply Chain Brands 2021. (Asia Pacific).

Trucknetic’s Shipper and Carrier applications have over two lakh downloads, with 5,000 daily active users. The firm made Rs 1.4 crore in income in 2019-20, Rs 9 crore in 2020-21, and Rs 14.3 crore in 2021-22. The Delhi-based firm also operates a non-profit with the goal of improving the working and living circumstances of over two million truck drivers, who are the backbone of the MSME sector.

“”A number of factors are pushing truckers to leave the industry.” 

According to a Redseer assessment, India’s logistics business is presently worth $300 billion, with road transportation accounting for 60% of that total.

” Despite having only 1% of the market share, Trucknetic is fast developing and expanding.”

Trucknetic also has around one-tenth of the vehicles in India on its network, which the entrepreneur hopes to treble in the next three years.

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