Client
Leaf Logistics
Industry
Services
Project: Going digital with B2B transportation logistics
Leaf Logistics is a fast-paced startup focused on reimagining transportation logistics with new digital solutions.
HTEC partnered with Leaf to build a technology layer that analyzes the demand streams of shippers, identifies optimal network coordination opportunities for both shippers and carriers, and helps execute contracts entered through the platform.
Ultimately, this intelligent solution will help Leaf improve the planning and coordination of B2B transportation.
Challenge: A tech-averse industry plagued by inefficiencies
Over the past year, transportation and supply chain managers have been scrambling to find capacity to meet high consumer demand and service expectations.
Yet, the recent public focus on supply chain disruptions due to the COVID-19 pandemic only highlights what supply chain professionals already struggle with: the industry is plagued by inefficiencies, volatility, and price fluctuations.
Many parts in the supply chain industry are not driven by technology, but by archaic, highly manual processes. A lot of energy and effort are invested in dealing with problems as they arise rather than planning strategically to avoid them.
For most large logistics organizations, freight transportation planning is a significant source of uncertainty both in terms of service reliability to their customers and the associated costs.
The entire B2B transportation industry is built around transactional competition, which leads to a lack of coordination and, consequently, empty miles. “Empty miles” are two words no logistics professional likes to hear. Empty miles are a waste of fuel, time, and money causing supply chains to be sluggish and inefficient.
Although carriers are more directly affected by empty miles, shippers also stand to lose from too many empty miles.
When there is a downturn, thousands of small carriers go bankrupt. When there is an upturn, shippers blow their freight budget by double-digit percentages. That’s the cost of volatility, and it happens repeatedly.
– Stefan Friederichs
Co-Founder & Head of Engineering at Leaf Logistics
Solution: A technology platform that plans and coordinates B2B transportation
HTEC’s partner Leaf Logistics takes a network-first approach to address freight transportation planning, supported by Leaf Flex forward contracts and the Leaf Adapt platform.
Leaf products help shippers, carriers, and logistics service providers make B2B transportation decisions that result in cost efficiencies for shippers, while enabling carriers to plan ahead and keep their trucks loaded so drivers can earn more.
Leaf’s mission is to help move the industry from a transactional “how do I cover my next load” mindset to a strategic, forward-looking multi-party collaborative mindset. Based on data analytics and machine learning, Leaf identifies synergies between different shippers’ and carriers’ networks so that carriers achieve higher utilization and margins, and shippers benefit from improved service levels and lower costs.
HTEC partnered with Leaf Logistics from the very start of this journey to help them realize their vision.
Together, HTEC and Leaf are building a technology layer which analyzes demand streams of shippers, identifies optimal network coordination opportunities for both shippers and carriers, and helps execute and settle contracts entered through the platform.
On one hand, this allows shippers to identify, contract, and adjust plannable and predictable flows for up to a year in advance. On the other hand, it allows Leaf to identify and coordinate network moves between shippers such as round trips, which significantly reduces the dreaded empty miles.
The HTEC team is committed to helping Leaf build the platform to plan and coordinate B2B transportation services. HTEC has been working on both the front end and the back end of the platform, supporting the creation of the infrastructure, the data and logic layer, as well as Leaf products such as Leaf Flex and Adapt.
Knowing that anomalies in routes and empty miles are one of the biggest challenges for logistics today, I can’t express how excited I am to partner with Leaf Logistics and have a chance to work on solutions that will improve entire supply chains. Together we can provide tremendous value in creating a resilient supply chain from both a technical and industry domain.
– Dejan Pokrajac
Senior Engineering and Delivery Manager at HTEC
Success: New platform = improved services, reduced costs
Through the Leaf platform, shippers can now plan and adapt their transportation needs to an ever-changing environment. The network-wide collaboration has resulted in improved service levels, reduced costs, and lower emissions, all of which are important for meeting corporate sustainability goals.
Carriers gain access to high quality freight, organized into efficient plans and routes executed over weeks or months at a time, increasing efficiency and utilization.
On top of this, Leaf Flex contracts allow them to plan and grow their revenues with predictability. Finally, drivers’ satisfaction increases dramatically as they are offered repeatable schedules for weeks or months at a time.
Overall, digital forwarding of contracts will help both sides ensure financial predictability and improve operational reliability. This will further allow them to focus on strategy and execution, increase financial and operational reliability, reduce costs, and improve risk management.
B2B transportation is a trillion-dollar market in the US alone, and with more than one-third of trucks running empty, it is far from efficient. We estimate that the industry wastes $200B+ each year due to a lack of coordination, and Leaf is building the infrastructure which allows this coordination to happen on a systematic basis.
– Stefan Friederichs
Co-Founder & Head of Engineering at Leaf Logistics
To learn more about why building anti-fragility systems has become a critical success factor in B2B transportation and logistics, and how businesses can find opportunities outside their mini-network to increase reliability and lower costs, listen to our interview with Anshu Prasad, CEO and Co-Founder of Leaf Logistics.
From my perspective, what makes HTEC stand out are the people. Apart from the technical skill sets, the team is really motivated and committed to making Leaf successful. We are looking for developers with an open mindset, who are passionate about learning and adjusting to the rapidly changing needs we have as a fast-paced startup, and with its people, HTEC has proven to be a reliable partner to achieve big goals.
– Stefan Friederichs
Co-Founder & Head of Engineering at Leaf Logistics
Want to learn more about how HTEC’s technology expertise can transform your business? Explore our Product Engineering and Transport & Logistics capabilities.
