Acquisition Project - Aggregation platform for 20ft/40ft Freight Trailers

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Acquisition Project - Aggregation platform for 20ft/40ft Freight Trailers

INDUSTRY USE CASE

India's ports act back bone for shipping 95% ( Source: Invest India ) of goods Volume into the country and outside the country. In this cargo, List of most shipped cargo is

containerized cargo
crude oil
machineries and others

Due to Increased volume of trade & containerization of goods moving in ports, we see humongous vehicle traffic at ports sometimes waiting for days for loading and unloading of cargo from trailers. Lot of these trucks are operated by individual operators with demand coming from corporates.

Effectively ports operates as Hub for receiving cargo and Various spokes are roadways & railways bringing in cargo from other nodal points like Container Freight Station(CFS) & Inland Container Depots (ICD) and directly from factories.

these trucks are majorly owned by individual owners with less than 10 trucks . 85 % are fleet in owned such small fleet owners

PRODUCT

Product : Aggregation platform for container trailers built on ONDC network by placing booking directly by corporates

Industry : Freight Logistics-B2B ocean Freight

Product stage : Pre-PMF

Current Process :

Cargo movement is currently outsourced by factories to third party providers. these third parties are further involved with multiple intermediaries to reach the actual transporter. these intermediaries end up taking a cut from transporter's revenue who operate with a thin gross profit margin of 15-20%.

Core insight for the product is currently 2 to 2.5 intermediaries are there between truck operator and shipper

these intermediaries leads to Delay and improper communication to end customer ,sometimes causing delay in shipment and causing pain at critical situations thereby affecting TAT and operational efficiency of factories and trailers

Why This Product :

1.Reduce Intermediaries

2. Timely availability of vehicle for Shipment of Containers for Customers ( To Avoid Paying Additional Storage Charges.

3.Timely Payment Support for service Providers

4.Standardize shipment cost for distance travelled per unit weight

5.Bring uniformity and seamless movement to and from port/CFS in supply chain

Intermediaries take upto 10% of revenue from truck operators

Focus : we are currently looking at demand side acquisition (end customers)

with assumption that supply side with be on board by discussion with various transport associations

Proposed application flow for customer:

ICP

Customer-ICP

	ICP 1	ICP 2	ICP3	ICP4	ICP 5
Job title
Age / Gender
Organisational Goals
Role Priorities
Role in buying process
Reporting Structure
Preferred Channels
Products used in workplace
Where do they spend time
Pain Points

Here we have identified the various Potential ICPs for the product

we use this ICPs and apply our framework For user acquisition depending on stage of product .

Since it's Pre-PMF/PMF Stage,

I apply this frame work of faster feedback, cheaper to acquire to form Tight Closed loop for iteration based on feedback.

ICP-2 & 3 are shortlisted,

In This ICP-3, qualifies for PMF Stage framework

COMPETITION

This market is cluttered with mix. of organized and unorganized players

1. providing integrated services Such as Warehousing, Customs Clearance Documentation along with Transportation of Containers providing Customers a slew of services through mix of in-house & thirty party support.(Network & Fixed Contracts is the Moat) .Ex: kerry indev Logistics, Ceva logistics, Allcargo CFS

Few Tech players are Building a platform by providing services in broad road transportation sector across various kinds of light Commercial vehicles (LCV) with little focus on port segment. most of vehicles on this platform are in less than 18MT segment in MCV . Ex: Let's transport, Trucknetic, Blackbuck, Vahak ( Data is moat with fixed contracts for recurring venue )
Unorganized players : The dominant players in the market in terms of volume, but little in terms of capturing value created.( Roughly80%-market share, less than 10 Vehicles ) .this group supports the 1st and 2nd group during demand fluctuation

MARKET SIZE

INDUSTRY TAM:

Indian Logistics Industry is $300 Billion

Intercity road logistics is 75% is $225 Billion

In this Intra city Logistics is 8 % which is $ 18 Billion( less than 200 Km)

TAM For This Product:

	TAM
Containers shipped/year	18million TEU
avg. distance on road	100km
approx. freight cost	Rs.15000
total revenue	18M*15000=27000 crore
commission charges @ 3%	810 Crore

TAM is 810Crore ARR

	SAM
TAM	810 CRORE ARR
Assuming 40% is organized business	324 crore
unorganized business is	=810cr-324cr=486 Crore ARR

SAM Is 486 Crore ARR

SOM

	SOM
TAM	486 CR
80 % container traffic originates at 4 major cities(Chennai, mumbai, mundra, Kolkata)	=80% of 486=388cr
Initial target city is chennai (with 30 % share among the four)	388*0.3=116 Cr

SOM is 116 Crore ARR

1. Objective is to do a Pilot Run from PORT to CFS and back ,by tie-up with two specific CFS to get feedback on product and experience.

Then scale it to other 20 + locations to and from PORT in chennai.
then replicate this across 13 Major ports and 200 + Container Freight stations and 180+ Inland Container Depots

Core value Proposition of the Product:

1.Book Trailers on-Demand . (For Shippers)

2.Avail Direct Loads , Reduce waiting time and Increase Profits.

3.Pay Transporters Early with Invoice Discounting Model (For Truckers).

4. Use Govt. Port data From Unified Logistics Interface Platform(ULIP) Portal to plan trips Timely reducing waiting time at ports

Roach sketch of application function- skeleton

Stage : PRE-PMF

JTBD :

Functional: Ability to serve fluctuating demands

Financial : O-time, saving additional Cost on storage

Personal: Time Saved from frequent calls and follow ups with transportation companies

Social :

For the Product , i do the Channel categorisation

Channel name	Cost	Fexibility	Effort	Lead time	Scale
Founder Brand	Low	High	Low	Slow	Low
Referral	Low	Medium	Low	Slow	Medium
word of mouth spread	Low	High	High	Slow	Low
Google search	High	High	High	High	High
On the Ground sales team	Low	High	Medium	High	High
Google app campaigns	High	Low	High	Low	High
Youtube	High	High	High	Low	High
Facebook	High	High	High	Low	High
SEO	medium	Medium	High	High	Medium

Coz, its is pre-PMF Stage, acquiring any new users during pilot run is costly ,before creating a positive feedback loop (Make them Use product-->Experience AHA Moment-->and Brag it others) and iterate based on feedback)

Only preferred Acquistion is slow and low cost by trial with vendors and scale up with reference and brand trust.

after finding AHA moment and spread it to other ICPs.

Till then i have to tweak product,get feedback,check right marketing pitch and whether commitment is followed ,if not find right ICP suitable ICP to figure PMF.

After PMF, have to optimize search results as a category ,after website go live, coz, existing search results like

1.container transportation,

2.container movement and

3.20ft container transport

lead to integrated solution providers like maersk ,hapag loyd, and other big vessel owned companies.

so, Product integrations for Acquistions to be done with trusted large reputed shipping companies(vessel Owners) to integrate our services in their platform while booking containers.

this Should be taken after establishing proof of customer base and Flattening of retention and order fulfillment success rate data.