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Why Freightos's Business Model is so successful?

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Freightos’s Company Overview


Freightos, founded in 2012, is a global logistics technology company that specializes in streamlining and digitizing the international freight industry. The company leverages advanced technology to provide online freight marketplace solutions, making it easier for businesses to manage and optimize their global shipping operations. Freightos is a SaaS-enabled marketplace for the trillion-dollar freight industry. The Freightos platform provides instant freight routing and pricing for dozens of freight services providers along all major international shipping lanes. It also enables users to manage their freight operation, from booking to tracking to communications, all from one convenient dashboard. The Freightos Marketplace launched in January 2016, bringing international freight online for forwarders, with instant quoting and booking, and 24/7 online sales. Freightos operates on a business-to-business (B2B) model, offering an online platform that connects shippers and freight forwarders. The platform facilitates the entire process of freight logistics, from quoting and booking to tracking and managing shipments. Freightos acts as an intermediary, bringing together businesses in need of shipping services with freight forwarders and carriers capable of fulfilling those services. The platform utilizes innovative technologies, including artificial intelligence and data analytics, to automate and optimize the logistics and supply chain processes. Freightos aims to simplify complex international shipping operations through its software solutions, providing transparency, efficiency, and cost-effectiveness. Freightos generates revenue through subscription-based services, transaction fees, and licensing its technology to logistics service providers. Businesses that use the Freightos platform may pay a subscription fee for access to advanced features, analytics, and other premium services that enhance their shipping operations. Transaction fees are charged for each shipment booked through the platform, with Freightos taking a percentage of the overall transaction value. Additionally, the company may offer its technology solutions, such as the Freightos AcceleRate platform, to logistics service providers and carriers on a licensing basis. By aligning its revenue model with the value it provides to businesses in the logistics sector, Freightos aims to position itself as a key player in modernizing and optimizing global freight and shipping processes.

https://www.freightos.com/

Country: Israel

Foundations date: 2012

Type: Private

Sector: Transportation

Categories: Logistics


Freightos’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, fun/entertainment, attractiveness

Functional: saves time, simplifies, reduces risk, reduces cost, quality, variety, informs


Freightos’s Related Competitors



Freightos’s Business Operations


Combining data within and across industries:

How can data from other sources be integrated to generate additional value? The science of big data, combined with emerging IT standards that enable improved data integration, enables new information coordination across businesses or sectors. As a result, intelligent executives across industries will see big data for what it is: a revolution in management. However, as with any other significant organizational transformation, the difficulties associated with becoming a big data-enabled company may be tremendous and require hands-on?or, in some instances, hands-off?leadership.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Digitization:

This pattern is based on the capacity to convert current goods or services into digital versions, which have several benefits over intangible products, including increased accessibility and speed of distribution. In an ideal world, the digitalization of a product or service would occur without compromising the consumer value proposition. In other words, efficiency and multiplication achieved via digitalization do not detract from the consumer's perceived value. Being digitally sustainable encompasses all aspects of sustaining the institutional framework for developing and maintaining digital objects and resources and ensuring their long-term survival.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Licensing:

A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Orchestrator:

Orchestrators are businesses that outsource a substantial portion of their operations and processes to third-party service providers or third-party vendors. The fundamental objective of this business strategy is to concentrate internal resources on core and essential functions while contracting out the remainder of the work to other businesses, thus reducing costs.

Performance-based contracting:

Performance-based contracting (PBC), sometimes referred to as performance-based logistics (PBL) or performance-based acquisition, is a method for achieving quantifiable supplier performance. A PBC strategy focuses on developing strategic performance measures and the direct correlation of contract payment to success against these criteria. Availability, dependability, maintainability, supportability, and total cost of ownership are all standard criteria. This is accomplished mainly via incentive-based, long-term contracts with precise and quantifiable operational performance targets set by the client and agreed upon by contractual parties.

Platform as a Service (PaaS):

Platform as a Service (PaaS) is a class of cloud computing services that enable users to create, operate, and manage apps without the burden of establishing and maintaining the infrastructure usually involved with designing and developing an app.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

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