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:

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

ICP

Customer-ICP

	ICP 1	ICP 2	ICP3	ICP4	ICP 5
Job title	Logistics Head	Customer success manager	CFS-Import/Export Head	Transportation Company-Owner	Transportation Manager-Integrated Supply chain
Age / Gender	35-45	30-35	40-45	30-50	30-40
Organisational Goals	Increase manufacturing/shorten inventory	Increase revenue from user-timely cargo movement	Increase utilization ratio of space	reduce vehicle idle time	increase contract value-diversify customer base
Company Type	Manufacturing company(Ex:mfg of Steel,Glass)	Sea vessel Shipment company(Ex:MAERSK)	Container Storage and dispatch company to & from PORT(node in supply chain)(ex: allcargo,SATTVA CFS)	Pure Transportation Company	Integrated Supply chain Company(ex: kerry Indev,NTC Logistics)
Role Priorities	Timely delivery of material to plant	Ensure cargo in shipped timely to and from mentioned location without damage in material	Increase Revenue and capture more wallet share through additional services	Do planning of shipments according to Customer requirements on within mentioned period .	meet Company metrics and turn around time requirements with max.revenue to company
Role in buying process	end user-influencer	head of influencer	influencer	Decision maker	influencer
Reporting Structure	reports toSupply chain manager	reports to operations manager	reports to head-operations	owner	Divisonal Head
Preferred Channels	mail,whatsapp,web	web,inhouse apps	email,sap,cargoes	whatsapp,call	email,call,
Products used in workplace	call,Email	Email,call	call, face to face,text	call,whatsapp,face to face	email,call,
Where do they spend time	Youtube,gmail,prime	outlook,youtube,whatsapp	email,sharechat,google	facebook,whatsapp,youtube	amazon,myntra,primevideo,youtube,insta
Pain Points	Avoid Excess Charge for storage,timely delivery for factory	Coordination with mulitple Parties responsible for shipment like PORT staff,Custom clearance team,Tranport incharge	Timely Consolidation and movement of goods to their location or to customer location(depending on requirement) with smooth flow in operations.Ensure vendors move in and out timely coordinated to meet time commitments	Vehicle availability at all times, time Quote to new customers, Ensure Driver discipline during duty.timely payment of bills to him.	Ensure timely availbility of vehicles for multiple customers on same date. Rent vehicle from outside apart from owned vehicle to satisfy demand. Balance fluctuation without additional impact on revenue
Priority (Money vs time)	time	time	Money	Money	Time

Here we have identified the various Potential ICPs for the product

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

	ICP1	ICP2	ICP3	ICP4	ICP5
Ability to pay	Medium	high	Low	low	medium
Frequency of use	Medium	high	high	medium	medium
TAM	Large	Large	medium	low	medium
Urgency	High	Medium	High	High	Medium
Distribution	High effort to scale	High	Proportionate Impact to scale	Impact medium for the effort	Low margin to scale

Based on above analysis ,ICP-2 is shortlisted,

	ICP2
Job title	Customer success manager
Age / Gender	30-35
Organisational Goals	Increase revenue from user-timely cargo movement
Company Type	Sea vessel Shipment company(Ex:MAERSK)
Role Priorities	Ensure cargo in shipped timely to and from mentioned location without damage in material
Role in buying process	head of influencer
Reporting Structure	reports to operations manager
Preferred Channels	web,inhouse apps
Products used in workplace	Email,call
Where do they spend time	outlook,youtube,whatsapp
Pain Points	Coordination with mulitple Parties responsible for shipment like PORT staff,Custom clearance team,Tranport incharge
Priority (Money vs time)	time

CVP

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

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 :

Primary job is to serve fluctuating customer demands

channel categorisation

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,

we have three channels:

leveraging founder brand by bringing organic traffic ( posting regular content about developments in logistics and customer impact stories,this increase organic traffic to website
Referral ( good feedback from drivers -->reaching owners( through associations)--> these associations interactions with industry improving trust among peers to do digital across value chain
utilizing stalls in logistics/Industrial events were we have maximum dense footfall across industries.showing demo of pro