LogChain

From Yugenpedia
Jump to navigation Jump to search

LogChain has information that may be valuable to qualified investors stored in its entry in the Yugenpedia Vault. If you'd like to learn more or are interested in receiving access please contact the Yugenpedia Staff.

LogChain is a logistics platform for the chemical sector. LogChain delivers manufacturers and operators savings, opportunities and full transparency of their trade lanes in real time.

History

The logistics industry is a €5.275 trillion sector (2020) that is resistant to change, fragmented and low margin. In part this is due to the number of different operators involved in the handling of product as it moves from factory to consumer. This can include haulers, ports, washing depots, weighbridges, customs, shippers, 2PLs, 3PLs,Pls and 5 PLs, freight forwarders, warehouses, container lessors as well as all the parties involved in last mile delivery.

Whilst most companies in this B2B space have their own ERP or similar system to manage their internal processes, the majority of shipments rely on emails and spreadsheet-style reports being sent between all the parties in the trade lane. This is expensive because every email is created and reviewed manually. There are no systems to allow exception reporting, trust is low, potential liabilities are high and commercial disputes are common.

Computer technology has not significantly changed inter-business communication; the last major innovation to do so was the fax machine in the 1980's (email is functionally little different to fax in this context.). This is a persistent problem that companies like SAP and Oracle have failed to solve because of their business model. Other companies like Maersk and IBM have spotted the opportunity but because of the low trust in the industry have failed to expand beyond their traditional customer base with their offerings.

LogChain was conceived in 2019 as a way of enabling the logistics industry to achieve significant benefits from digitalisation

Product

LogChain is a private permissioned blockchain that makes corporate logistic systems interoperable across the supply network without significant capital expense or integration [citation needed, perhaps to company website]. LogChain replaces email and excel, paper and clipboard, reporting as the key coordination tool for normal operation, enabling supply chain managers to focus on edge problems and new business, which they will know about in real time.

Site based and mobile workers (and IoT devices) report activity using the iOS/Android apps (or API) key events such as weighing, loading, heating, checking replacing paper reporting [citation needed].

This information is made available to everyone else in the private permissioned blockchain which is limited to those involved in the trade lane (for example a shipment of oleochemicals from the refinery in Asia to a detergent manufacturer in Illinois). As the information stored on the blockchain is immutable it is totally clear who has done what and when, or critically what has not been done (preventing accidents).

Because the information is shared in real time, for example once the container is weighed, the port, the shipping company, the trucking company and the consignor and consignee all see the verified certified weight (SOLAS).

This instant sharing of information throughout the whole supply chain massively reduces the cost of operations (for example 80% of emails)[citation needed] and enables significant intercompany digitalization.

Managers and office workers can report on any aspect of the supply chain and using the blockchain data plug in apps using the API to automate operations or analyse data in more detail.

Problem

The logistics industry is huge, whilst also being low margin [1], highly complex and subject to catastrophic failure[2]. This creates a low-trust, blame focused culture with critical information being exchanged by voice and email, making transparency impossible.

It is impossible to communicate up and down the supply chain because all computer systems are built as silos and integration is slow, expensive and does not offer the ability to be agile resilient as market conditions.

All international shipments are managed through email and phone call. International shipments involve up to 30 parties coordinating. All communication is siloed and linear in nature. For the paying customer delays in receiving information are measured in days and not hours.

The Supply Chain ecosystem today uses legacy peer-to-peer communication systems from the 80’s. Consequently, stakeholders are working in silos which leads to large process inefficiencies.

• Limited data sharing across process steps • Lack of visibility on shipment tracing & status • Difficult to comply with Safety Regulations

This creates a space for mistakes, duplicated effort, and fraud. Recently this has culminated in events costing billions of USD and hundreds of lives [citation needed]. The frequency and severity of these incidents (Beirut, Tianjin etc.) are growing.

7% of the world’s carbon footprint is from freight [citation needed], in part due to the inefficiencies of the supply chain loading and unloading goods.

The process of shipping goods is slow, expensive and error prone. Cash leaks out of the process continually through delays, disputes, non-compliances, liabilities, verifications, checking and late payment.

Market Segments

LogChain is targeting the logistics chemical sector, specifically the movement of liquid chemicals in specialised tank containers. This is a defensible niche market which allows for expansion into adjacent sectors as the business scales.

Chemical Manufacturing

Chemical manufacturers use LogChain to get increased transparency of their supply chain to improve deliveries to customers maximizing utilisation, productivity, and customer retention. To get more benefits they force the rest of the supply chain to use it.

Chemical Logistics

Logistics Service providers use LogChain to get far finer granular control over the supply chain, especially if they are a 3PL or 4PL. This means that they have fewer problems to solve which reduces manpower requirements, increases reputation, and delivers growth.

Regulatory & Governance (Local, National, Regional, Multinational and International)

They have a role to enforce compliance with regulation (for example SOLAS – Safety of Life at Sea) and all companies have to comply with regulations through audit, reporting and inspection

Value Propositions

There are a number of value propositions the product offers for various stakeholders:

For OEMs it provides real time transparency on product status, For logistic service providers (LSPs) it enables operational efficiency and cost reduction For customers it offers faster and cheaper delivery through reduced errors, delays and incidents

Logistic Service Providers (LSP)

  • Better – The LSP has a single unified database of all shipment information for all of its partners across all of its trade lanes enabling significant automation and process improvement opportunities
  • Faster – Reporting happens in real time enabling new time-based processes to be introduced that dramatically improve performance.
  • Cheaper – with much of the coordination work delivered by the LogChain platform headcount can be reduced by about 80%. Accuracy is also increased reducing the amount lost to claims and delays.

Manufacturers

  • Better – By giving the manufacturer full visibility over the supply network inefficiencies and incidents can be significantly reduced which provides a more resilient, robust and efficient supply chain and significant cost reduction in time, cash and resources.
  • Faster – LC provides full transparency over the trade lane in real time and this enables delivery windows to be tightened and goods delivered faster.
  • Cheaper – because LC provides a unified view of the trade lane (a central database spanning multiple stakeholders) the manufacturer can achieve far high utilisation rates of their plant and significantly reducing the unit cost of their product

Regulators and Governing Bodies

  • Better – compliance failures are apparent instantly and can be reported in real time, giving management far more control over the business and avoiding serious incidents / fines
  • Faster – compliance/ lack of compliance can be assessed in real time rather than week/months after the event, or as a result of a fatal incident.
  • Cheaper – compliance for industry as all data is captured at the event making reporting and auditing far simpler

Banking & Insurance

  • Better – banks can identify credit risks better reducing the default risk on trade finance / LC etc enabling them to offer better terms / products or increase profitability/competitiveness
  • Faster – Banks and insurers are able to get aggregated trade flow data in real time far ahead of official figures, on a sampling basis at first, but later as a whole population. .
  • Cheaper – The insurance company can get a full view of best practice compliance within the trade lane which should enable them to price risk more accurately and to reduce premiums for the best performing operators/manufacturers

Secondary & Tertiary Vendors

  • Better – The ports, trucking companies, shipowners, shippers all get significantly improved visibility over their operations and the interfaces with their partners enabling them to penalise costly stakeholders and improve efficiency and cost for the whole ecosystem.
  • Faster – with clear data on interface and event performance many systems can be reworked to achieve higher throughput reducing cost and labour requirements
  • Cheaper – Like the LSPs LC offers the ability for huge cost reduction as the amount of human involvement in coordination is reduced by 80%.

Team

Our two founders have run our target customers’ supply chains for a combined total of 50+ years. We’ve grown them quickly, made them profitable and highly efficient. Most managers in our target market aren’t like us. LogChain is our way of taking our knowledge and expertise and helping our customers grow as fast as when we managed them, but at scale.

Andrew McKeown has 20 years of experience in the management and operations of logistic service providers. He is a chartered logistician with qualifications in chemicals and engineering. He has an industry reputation for significantly increasing the profits of companies that he manages and is extensively networked throughout our client base. Andrew has extensive business development and leadership experience: [citations needed]

• Grew Katoen Natie Asia by 800% in 18 months

• Improved all contractual margins by double digits

• Set new global safety and risk standards for a major logistics provider

• Ran manufacturing and supply chain businesses in UK, Iraq, Zambia, Congo & Asia Pacific

Andrew Baird has over 30 years of experience in international chemical supply chain and logistics management. He is a qualified engineer with a background in operational and plant management, an accomplished safety, health, environment, and quality professional, and holds a master’s degree in Logistics, Procurement, and Supply Chain Management. [citations needed]

His operational and engineering background combined with health, safety, and quality expertise, familiarity with global statutory and regulatory requirements, and experience of many varied manufacturing processes and logistic services, enables him to provide a positive and effective contribution to the continuous improvement in the operation and commercial management of existing operations, develop new business opportunities, and successfully implement new projects. [citations needed]

Andrew has had a significant positive impact on the safety, efficiency, and quality performance of operations for which he has been responsible, successfully introducing award-winning health, safety, environmental, and quality strategies across a broad range of activities and has an extensive network of industry contacts. [citations needed]


Updates

  • July 2021: ...
  • August 2021: ...
  • September 2021: ...

Competitive Landscape

LogchainCL.png

Most manufacturers and LSPs use a commercial ERP system (Oracle, SAP etc) or one built in house. In the chemical logistics sector MRI Multimodal is a legacy provider of software to tank container operators. A consortium of IBM and Maersk is building a Tradelens, a platform similar to LogChain, using IBM's technology skills and Maersk's commercial relationships. [citation needed]

LogChain differentiates because it enables users to use any logistics provider, as opposed to Tradelens, where users are tied into using Maersk services.

Goals/Results

LogChain has Goals/Results stored in its entry in the Yugenpedia Vault. If you are a qualified investor interested in receiving access, please contact the Yugenpedia staff.

SWOT

LogChain has a SWOT analysis stored in its entry in the Yugenpedia Vault. If you are a qualified investor interested in receiving access, please contact the Yugenpedia staff.

See Also

References

External Links

https://thelogchain.com/