Photo - Matarstars LSP
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Matarstars LSP

E-tracking, tracing and logistics Planning system

Vietnam
Market: Internet and IT, Logistics and warehouses, Mobile applications
Stage of the project: Idea or something is already done

Date of last change: 07.01.2021
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Idea

Our ultimate goal is to disrupt the logistics industry in Vietnam by becoming our own version of Flexport, an unicorn startup from U.S. We want to reduce the cost of transportation that is usually up to 20% of total GDP of Vietnam.

Our mission is to create a powerful logistic solution that is able to digitalize and consolidate entirely transportation processes into one and easy-to-use clouding platform that make the job of contractors and transporters become more effective and efficient.

Current Status

Started in 2019 to start building our solution.
$10,000 USD contract with one client - An SME logistics provider.

Market

In Vietnam, it has about 3000 logistics companies.

In general our target is to the SME logistics companies which are about 2500 in total, and most of them are small with the Charter of capital are between $50,000 USD to $150,000 USD.

In detail of our real targeted users are trailer and container trucks in land transportation in the group of 2500 SME logistics companies that are in charge of about 60% of total 850 million tons of cargo transportation by land (not including train transportation) in Vietnam.

Problem or Opportunity

Problem in Vietnam logistics:
1- The cost of transportation is seized of 20% of total GDP of Vietnam
2- The empty spaces averagely are 30% to 50% due of lack of applying advanced software into the logistics management.

Opportunity with SME logistics providers in Vietnam who are lack of digitalization in their business. There are two common issues:

1- The logistics process of managing, analyzing and forecasting, planning and reserving, and distributing are heavily dominant of manual handling by human workers. Who are reliant on experience and is lack of supporting from advanced software. Mostly they are still using tools like phone call, email, Zalo or MS excel to manage and monitor all of activities.

2- The market is very competitive in hiring quality employees, who are very skilled and experience in analyzing, planning and managing, and also understand deeply about technological applications in order to help optimizing the process and reduce waste. Normally, the range of salary for those positions are varied, from logistics employee - $500/month, for manager is from $1000 - $4000/month.

Solution (product or service)

We provide two system for SME logistics providers:
1- Transportation management system for digitalizing their business

2- E-tracking, tracing and logistics planning to support logistics manager in managing, monitoring and planning.

Competitors

The biggest competitor (detail in our pitch deck) is Smartlog, who has more than 3 years in the market and is well-established brand among logistics companies.

Advantages or differentiators

Our advantages in comparing to Smartlog is:
1- We understand the mindset and behavior of SME logistics providers in Vietnam better as we're working very closely with them, especially in car supply chain market of Vietnam. Every solutions, features, etc are built based on real data collected from their feedbacks. That is very difficult for Smartlog to do because first they need to convince SME logistics to allow them to touch their confidential data.

2- The most differentiator here is we aim to focus on building a platform to connect and collaborate with logistics service providers to setup a marketplace. That means we don't target to build everything to solve all of their issues, because we only focus on end-to-end tracking and optimizing empty spaces to reduce waste. In comparing to Smartlog who is targeting to build all of solutions with the aim of creating an advanced Enterprise resources management system.

Finance

We have two revenue streams, one from selling subscription for using our products; and the second is setup a marketplace from collaborating with SME logistics partners to sell available empty spaces for LCL services as 4PL. We'll explain more in detail in our pitch deck.

In summary for the next 5 years:
1- Revenue for subscription is from $100,000 USD in year one up to $840,000 in year 5.

2- For selling empty spaces that will start at year 3: we estimated annually revenue is $5 millions USD.

Business model

In 5 years plans, we will introduce two business models:
1- Yearly subscription for SME logistics users with cheap prices to support them in digitalizing their business.
2- Build a partnership with SME logistics providers in Vietnam to form a huge network of transportation in order to sell empty spaces and gain commission from all contracts that flow into our marketplace platform.

Money will be spent on

For the fund spending plan (for $500,000 USD total of investment projection)

1- Hire more developers and BA for development of our main product: e-tracking, tracing and logistics planning: $250,000 USD

2- Marketing, branding and selling: $200,000 USD

3- Other office costs: $50,000 USD

Offer for investor

Negotiation of Equity

Team or Management

Risks

Two biggest risks are the mindset and behavior of SME logistics companies in Vietnam that they believe:
1- The cost of human labors is cheaper than applying IT software (due of they look at companies like Smartlog and its pricing is very high).

2- Scared of exposing their confidential data to competitors through third party like IT companies who provide system.

Incubation/Acceleration programs accomplishment

None

Won the competition and other awards

None
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Idea
Current Status
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Solution (product or service)
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Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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