Read our subjective reflections looking back on 2020 and our outlook on the future of logistics & digitalization.
The year is coming to an end, and 2020 has not been like any other year. Little did we know when we back in 2017 founded Adnavem. We were four people with a vision and an idea on how to transform an industry by using digitalization and by giving more control to the world´s importer and exporters.
Back in 2017, the founding team with a substantial global experience and background in logistics, digitalization and management figured it was time bring to international multi-modal freight what had already happened in other industries.
Dare to let go of the past
A new generation is about to take place in today’s companies, and they are used to do their research online and purchase goods and services based on their preferences and instant decisions. Commoditized international freight, such as full containers between Asia and Europe should not be more difficult.
There was a time in the past when some of us, booked holiday trips and travels via a travel agency and curiously awaited an offer.
Today we probably prefer to search, compare, and book our holiday experiences online and doing so directly with the flight-, train-, car rental-, hotel- and transfer company—no need to pay extra for using intermediaries.
That behaviour change is why we have launched the Adnavem marketplace. A platform where importers and exporters using multi-modal transports, can book and collaborate directly with their preferred chain of logistics service providers online. And doing so skipping intermediaries. Importers and exporters are in full control and have maximum visibility on time, suppliers, cost and where the gods are.
Covid-19´s impact on business growth
Adnavem is moving away from being a start-up into becoming a scale-up phase. We are growing fast, but we were also impacted by the downturn in quarter two of this year.
When we first saw the COVID-19 effects, it was when our customers had problems exporting from China, and later in the quarter, this shifted to lower demand for imports into Sweden.
Some of our customers had volume reductions up to 30 per cent whereas others were unaffected. Throughout the second quarter, the customer onboarding part of our business was slower, and the overall volumes were declining.
Third quarter gave some hope
Adnavem managed to grow year-on-year even though quarter two showed slower growth than forecasted before the pandemic hit. Some of our existing customers are already increasing their volumes in quarter three.
When we were entering November, we see a substantial increase in both interest of an objective online marketplace, and we experience a faster onboarding pace with new customers. When onboarded on the Adnavem concept are quick to ramp up the volumes on the marketplace.
Flexibility a must when prices are skyrocketing
Currently, we are experiencing turbulence in shipping with high prices, shortage of equipment and blank sailings.
In the past, shipping was done using long contracts on fixed trade lanes as well as always shipping between favourite ports and with the same suppliers.
Already before the pandemic hit, we saw a trend of shorter contracts and more companies wanting to buy transports on spot prices.
To meet customer demands, the Adnavem marketplace allows the shippers to optimize each transport every time, selecting the most optimal combination of modes, routes, and suppliers.
During this pandemic we have seen that it has become even more important to be able to find new routes, transports and suppliers quickly – a marketplace model enables just this and the impact on supply chain disruptions can be minimized.
Accelerated change in behaviour and adoption of new technologies
China is “back to normal”, and it is possible to travel domestic for our Shanghai team which is essential to us to continue to grow our business and increase our value we offer to the Chinese exporters.
Sweden is recovering quickly with an increase in imports, and many companies are reporting strong financial results for quarter three.
A positive side of a downturn is an accelerated change in behaviour and adoption of new technologies; this will improve competitiveness and create new business opportunities.
Projects to digitalize are now sped up in many companies which will push the transformation of the transport- and logistics industry.
Digitalization is no longer just a new behaviour for a new generation; it is increasingly becoming a necessity to keep supply chains intact.