On a mission to transform the supply chain, Zencargo uses cutting edge technologies and expert industry knowledge to enable businesses to be more efficient, accurate and sustainable in their logistics operations.
Zencargo (www.zencargo.com) is a London-based digital freight forwarder that enables organisations to make smarter decisions through a real-time overview of their supply chain.
From FTSE 100 businesses to fast-growing startups, Zencargo is relied upon by the likes of Vivienne Westwood, Swoon Furniture, Farfetch, and Soho Home. As well as handling all the necessary components of transporting goods – from point of production to end-customer, including warehousing, packing, documentation, and customs clearance – Zencargo also provides complete visibility of the supply chain down to the item level.
Founded in 2017 by Alex Hersham (CEO), Richard Fattal (CCO), and Jan Riethmayer, in the past year Zencargo has more than doubled its headcount to 150 (from 65 at the beginning of 2020).
In May 2021 Zencargo raised £30M in Series B financing which will enable it to significantly grow its team – from 150 to 350 people over the next two years – and further expand internationally, to the Netherlands, Hong Kong, and the United States. Zencargo has now raised a total of £42M, and is targeting revenues of £100m for this year, and over £200m for 2022.
Zencargo empowers clients to make data-backed decisions that on average drive up to a 4% increase in revenues, a 9% reduction in carbon emissions, a 6% reduction in transportation costs, and a 15% improvement in working capital, because supply-chain teams can focus on ordering and moving only the products they need at any given moment.
An Overworked Supply Chain Amid Unprecedented Disruption
Despite the huge volume of goods moved every year, many traditional freight forwarders still rely on time-consuming, manual processes, using paper, spreadsheets, and email. The unprecedented levels of disruption caused by Brexit, the Suez Canal blockage, and the COVID-19 pandemic – which has combined a supply side issue (due to closed factories and port employees being off sick) with a sharp uptick in demand (from consumers stuck at home and shopping online) – have created further complications.
“With global freight reliability so low as a result of the pandemic, Brexit, and even the Suez Canal delays, it’s more important than ever for businesses to make informed supply-chain decisions that will enable them to serve and satisfy their customers, and Zencargo is the perfect partner to help them do that,” comments Zencargo CEO and co-founder Alex Hersham.
In the case of the recent Suez Canal blockage, Zencargo was able to create a live dashboard mapping its customers’ shipments with vessels that were affected by the blockage, then worked directly with affected customers to arrange mitigations and alternative plans.
Zencargo – Data-Driven Insights and Supply Chain Improvements
Even in less volatile times, businesses often struggle to overcome supply-chain issues in time to get goods where they need to be, resulting in stock outs that lead to missed sales. Supply-chain inefficiencies, poor stock management, and ill-informed logistics decisions result in $1.75 trillion being lost each year, according to the IHL Group. According to McKinsey, digitising a company’s supply chain delivers higher profitability gains than digitising any other business area.
Through Zencargo’s freight forwarding and a comprehensive, real-time overview of the status of each shipment, businesses understand where all their inventory is, where it needs to go, and what needs to happen to get it there. Since Zencargo’s technology platform connects directly with global transportation markets and manufacturers, customers can see a full digital picture of the freight environment, helping them make improvements and transport cargo more efficiently. Zencargo also presents customers with information on their carbon footprint, enabling them to choose to reduce and offset emissions.
Given the different needs for shipping different products (for example, furniture versus cosmetics), Zencargo works with customers to understand what is important based on their unique circumstances, and deliver actionable advice. For example, one company might decide it worthwhile to pay higher shipping rates to quickly service demand and avoid any reputational damage that a delay could cause. Another company, with tighter margins, might prefer to accept an increased lead time and avoid impacting their bottom line. Zencargo helps supply-chain teams weigh up these decisions, balancing their priorities for customer service, cost and sustainability.
“We pride ourselves on the outstanding service we provide to customers, combining unrivalled industry experience and know-how with purpose-built technology so that our customers’ inbound supply chains are run in a far more sustainable and efficient way, enabling them to maximise growth,” comments Alex Hersham.