There are many structural reasons for why the logistics and supply-chain industry ranks amongst the worst in technology adoption (razor thin margins and over-reliance on tribal knowledge chief among them).
While these factors limit innovation, they miss the fundamental difference between logistics and other industries: logistics handles the movement of physical goods in the real world, and the real world is an inherently messy place.
In the world of software, we have grown accustomed to neatly structured schemas, well documented APIs and dynamically-sizing cloud infrastructure. But the real world has none of these things; it is filled with snowstorms, global pandemics and a limited and aging industrial infrastructure.
The result of this “messiness” is staggering - $80 billion in logistics shrinkage every year in just the US alone. Administrative errors and manual data entry cause more than half of these losses, leaving the average consumer with the bill - higher prices and longer lead times.
The pandemic shined a bright and uncomfortable light on this untenable situation. In order to usher in a new era of supply chain efficiency and resiliency, we need a way to seamlessly connect the physical asset - a piece of food or a car tire for example - with its digital representation. Creating this link will unlock an entirely new way to manage every aspect of logistics - from payment to capacity management.
At Kargo, we are building the connective tissue between the physical world of freight and the digital ecosystem used to manage it. We believe that supply chains need to become resilient, accessible and equitable, and the best way to do that is to provide a single source of truth for stakeholders to make faster and more efficient decisions.
Today I am thrilled to announce our $25M Series A led by Sozo Ventures. The task ahead of us is not an easy one, but it results in a safer food supply, cheaper prices on everyday products and a more crisis-resilient economy. These outcomes are what we at Kargo are extremely excited to continue working towards.
To that end, our success rests on the phenomenal team we’ve built and will continue to grow. At Kargo, we look for both technical excellence and humility equally. Core to our mission is to provide an opportunity for the brightest minds to focus their energy on solving some of the world’s most challenging and impactful problems. I am beyond excited to continue building Kargo alongside our new team members, partners and customers.