The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
Having attended FreightWaves’ F3: Future of Freight Festival in Chattanooga, Tennessee, this week, it is abundantly clear that logistics technology and the investment in startups is far from dead. On the contrary, I encountered more tech startups across the entire logistics ecosystem at this year’s event than ever before. It shows how supply chain companies are digitizing their processes from procurement to payment.
The hallway discussions were both interesting and exhilarating, showing that the logistics industry as a whole continues to advance on its path of digitization. But there is a “back to basics” movement in which companies are investing in newer technologies that focus on core parts of the business. That can be seen in logistics procurement technologies, new warehouse models, last-mile solutions, compliance platforms and many more. The energy was palpable as the attendees were both eager to network with each other as well as to learn what else is possible.
On Thursday, the last day of the event, the FreightTech Top 25 was announced. The results were quite surprising, with 70% being new entrants in the top 25 and most companies in the top 10 from last year being absent from this year’s top 25. It showed a move away in focus from the larger PE-backed companies to the smaller, often bootstrapped and VC-backed, startups. It showed a type of “new light through old windows” of the FreightTech world and proved that new technologies do have a chance to gain in importance even in difficult economic times.
As an adviser to Venture 53, a venture company focused on supply chain technology companies, it was cool to see four Venture 53 portfolio companies make it into the top 25: Better Trucks, MyCarrier, Highway and Fillogic. Only MyCarrier had appeared in the top 25 previously. Venture 53 is one of many investors that are continuing to invest in FreightTech. Venture 53 just kicked off a new fund, its third, demonstrating it is not slowing down investment but rather doubling down on FreightTech.
There are great opportunities out there for investment and end users are hungry for solutions that can bring true value to their businesses. Continued investment in freight technology is essential for the modernization and optimization of the logistics and supply chain industry. It not only addresses current challenges but also prepares the industry for future advancements and opportunities, ensuring its resilience and competitiveness in a rapidly evolving global market.
It was a great week, not because of the many parties and the live bands, but because the industry came together to discuss the past year and to focus on what can be possible for 2024. Logistics remains a people business after all, but technology helps people to work better and more efficiently. I am optimistic that, within all the turbulence created by geopolitical and socioeconomic impacts, there is plenty of opportunity for logistics technology to make a difference.
Look for more articles from me every Friday on FreightWaves.com.
About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.