“Do you know that trucks of United Parcel Service (UPS), one of the world’s largest package delivery company, do not make a left turn in the US?,” mentions Dhruvil Sanghvi, founder of logistics analytics startup, LogiNext Solutions. “It is to reduce the amount of fuel used, save time, and use space more efficiently.”
Baffled, I did a fact check, and to my surprise, it was indeed true. UPS engineers found that left-hand turns were a major drag on efficiency. Turning against traffic resulted in long waits on left-hand turn lanes that wasted time and fuel, and increased chances of accidents. By mapping out routes that involved “a series of right-hand loops”, UPS improved profits and safety. This was made possible by its software, ORION (On-Road Integrated Optimization and Navigation), which got the attention of Dhruvil and Manisha Raisinghani, the co-founders of LogiNext. Both of them were keen on big data and had attended Carnegie Mellon University together to study Big Data and Analytics in 2009.
As luck would have it, post graduation, they got to handle a number of clients in the logistics space while working as consultants for Deloitte and IBM Consulting in the US. It was then, piqued by big data and data analytics, the duo got to thinking how they could replicate the UPS technology in other countries. In India, they found managing logistics highly manual, inefficient, and hassled; expenditure on logistics was about 13% of the India’s GDP, while in the US, it was merely 8% of the total GDP.
Dhruvil and Manisha decided to use their previous big data experience to build a product which companies handling logistics could utilise to cut down cost without compromising on customer experience. The timing was perfect. The last quarter of 2013 had witnessed a huge surge in ecommerce, hyper local commerce and services based on the Uber model in India. A lot of startups and even large companies were rushing to tap the opportunity in logistics, but most of them were incurring losses because of very high cost, uncertainties and frequent delays.
In January 2014, the duo quit their jobs and invested over $70K into building a product from ground up in about 6-7 months. And LogiNext Solutions was launched in August 2014.
LogiNext aggregates location data sourced from multiple clients with similar delivery networks and then uses the power of real “Big Data” to generate information to help companies predict delays, save cost and provide reliable customer service.