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Qargo Aims to Digitize and Decarbonize the Trucking Industry with Cloud-based TMS

Image Credits: Qargo
By: Headliners News / July 3, 2024

Transportation contributes significantly to global greenhouse gas emissions, with road vehicles being the primary culprits. Empty or underfilled trucks, which produce more emissions than all international flights combined, exacerbate this issue. This major inefficiency presents an opportunity for optimization in the trucking industry, traditionally reliant on manual processes. Meet Qargo, a Belgium-based startup, which has recently raised £11 million ($14 million) in a Series A round led by Balderton Capital to tackle these pressing challenges.

Rising Pressures in the Logistics Industry

The logistics industry is under increasing pressure due to rising operating costs, the imperative for decarbonization, fluctuating fuel prices, and the threat of cyber attacks. These factors have led to the collapse of numerous haulage companies, particularly in the U.K. As such, there’s a pressing need to digitize the industry to achieve cost savings and improved efficiency.

Legacy Systems vs. Qargo’s Modern Solution

While the transport industry employs legacy software platforms such as McLeod Software, Rose Rocket, and Dash Doc, these solutions are outdated and less efficient. Qargo aims to outpace its competitors with its advanced technology. Founded in 2020 by Adriaan Coppens (CEO), Joeri de Turck (CTO), and Sander de Wilde (Head of Engineering), Qargo’s platform integrates seamlessly with customers’ systems, significantly enhancing operational efficiency.

Key Features and Benefits

Qargo’s platform offers numerous features designed to streamline operations:

  • Order Processing: The system can process orders up to 10 times faster than traditional tools.
  • Automation: It auto-imports PDFs, automates address lookups, and optimizes truck loads to reduce empty trips.
  • Environmental Impact: By optimizing routes and loads, Qargo helps reduce carbon emissions.

Their system has a lot more integrations, from AI and planning optimization that basically does the same things as other legacy systems, but Qargo does it a lot faster and more efficiently.

Real-world Impact

Qargo’s effectiveness is demonstrated by the experience of Anglia Freight, a U.K. logistics company. By utilizing Qargo’s platform, Anglia Freight achieved annual savings of over 200,000 miles and optimized routes by over 20 minutes per vehicle per day.

Building Trust and Future Prospects

Coppens emphasizes that customers value Qargo because it’s integral to their operations. The recent funding round, Coppens hopes, will reassure customers of Qargo’s longevity and stability. This assurance is crucial in an industry where operational continuity is paramount.

Their Market Potential

The transport management software market is anticipated to grow to $19.1 billion by 2032, according to Fact.MR. Qargo is well-positioned to capture a significant share of this expanding market. The logistics industry is a $5 trillion global market, however, it is often overlooked by software companies. Most of the companies within this sector are still using very outdated software which often does not meet their needs.

Looking Forward

Qargo is poised to make a substantial impact on the logistics industry by providing a modern, efficient, and environmentally friendly alternative to legacy transport management systems. With robust financial backing and a clear value proposition, Qargo aims to digitize and decarbonize the trucking industry, driving both economic and environmental benefits for all.

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