Summary of Organizational Background

Type of E-Business Model Organization Currently Operates In

According to Total Logistics 2020 report, overall size of logistics markets is amounted to be
touching USD 6 trillion in 2019. However, online sales and automation of this trillion-dollar
industry is insignificant as compared to overall size of the market. Considering the existent gap
of automation in the logistics industry, Freightos stepped forward to revolutionized the fright
industry in the digital era, making “global shipping faster, more cost-effective and smoother".
Freightos is a global freight online market place that offers unique service in the freight industry
by bringing the shippers (customers) and freight forwarding companies together at a single
online forum. Freightos, an Israeli company, was established in January 2012 as a tech startup.
Soon it established its worth in the freight industry. Till date it has raised funding from the
investors worth USD 94.4 million, has expanded ten folds and has established six offices across
Europe, United States and Asia, covering almost all trade routes of the three continents. Its first
customers went live in September 2012 and Software as a Service (SaaS) was commercially
launched in March 2013. According to Freightos, it uses “a SaaS-Enabled Marketplace model,
helping leading logistics automate their internal freight rate management, pricing/routing and
business intelligence. This same technology also functions as the supply side for Freightos’
online freight marketplace.”
Freightos aims to ease out the process of logistical arrangements. It has managed to disrupt the
traditional global transportation industry. In pursuit of freight automation and online sales, more
freight forwarders are looking for freight automation and online sales for future proof their
business. Currently more than one thousand global forwarders are registered on Freightos and
use the technology daily to increase sale and improve operational efficiency. As an online market
place, it allows importers/exporters to choose from a wide range of freight forwarding companies
and shipping lines. Bringing an array of logistics companies on a single platform, fosters
competition that eventually brings price competition in the market, but also brings transparency
in the freight quotes and costs. Freightos provides detailed breakup of costs from the pick-up
location of the goods to the final destination of delivery. It has brought air, ocean, trucking and
rail freights into one database. The software also provides miscellaneous costs associated with
logistics in the international trade, e.g. bill of lading, customs clearance, etc. All the relevant
costs are accessible to the shippers on a click. Furthermore, the Freights website allows the
shippers to compare freight quotes of different freight forwarders and of various shipping lines
provided by a single forwarder. The shipper can choose and the best quote and book shipment
instantaneously.
Organization’s Current E-Supply Chain
A marketplace like Freightos is a blessing for not only the shippers as they get competitive rates
in a transparent environment, but also for the freight forwarders as the forwarders experience
increase in sales and improvement in efficiency. On one side of the supply chain there is shipper,
while there is freight forwarding company on the other side.
To bring value for the shipper (importer/exporter), Freightos ensures smoother shipping by
saving time and money for the shipper with instant freight price comparison, better shipment
management and round the clock support. Experience for a shipper starts with a search. A
shipper has to choose the cargo type (pallets/box/crates), enter weight and dimensions. Then add
the origin and destination details and when the shipment would be ready for the pickup. Finish
up with the optional services like insurance, customs brokerage and customs bond. There is
always help buton on the button if the customer is confused while selecting an option. This leads
to the results with dozens of shipping options to select from various freight forwarders, which
can be sorted by transit time or price. The website provides detailed breakdown of the cost of any
individual quote. Once the best result is found, it can be saved for later or can be booked. Once it
is clicked as booked, shipper has to enter initial shipment details or any comments/concerns that
a shipper may have. Then shipper has to head to the payment screen and pay via credit card or
wire transfer. This leads to final booking of the shipment. This leads to proving of details- exact
pick up and delivery addresses and then upload the documents like the commercial invoice or the
packing list on the shipment management page. After this, the turn is for the facilitating team of
the Freightos to finalize the details and the forwarder selected would coordinate with the
supplier. During the course of shipment, the shipper gets live updates to always know where the
goods are. Once safely delivered, shipper can review the performance of the forwarder, which
then appear on other users’ search results. For any query/question, Freightos team can be
contacted live any time by clicking the chat button on the home page of the website.
The effectiveness of the web marketplace depends on four strands of its supply chain on the
forwarder end:
1. Rate Management
2. Instant Quotes
3. Business Intelligence
4. Online Freight Sales
Rate Management
A forwarder is flooded with hundreds of carriers’ tariffs every month. Freightos AcceleRate
Automated Rate Management using tagging technology to ingest air, ocean, trucking and rail
freight contract into one database making rates accessible globally to all in seconds. This helps in
automating complex tariffs that have multiple way breaks or arcane fee structures. Together, this
makes inaccurate quoting, waiting on local charges and clumsy shared folders things of the past.
If air cargo business is required, Freightos AcceleRate connects to Freightos WebCargo
providing real time access to the world’s largest airbase database of over two hundred airlines,
complete with contracts and promo rates. This allows the forwarding companies to set the stage
for instant placement.
Instant Quotes
Without automation of the fright forwarding companies on an online marketplace, industry
average quoting time is around three days- wasting time and losing to faster competitors. With
the Freightos cloud-based database, small and medium scale forwarders can instantly search and
compare quotes across all tariffs and modes and can easily shares quotes with customers and
agents in seconds. The result is higher volume of sales and lower costs of sales. The quoted rates
are viewed by the customers. Finding a quote appropriate and in line with the requirements, a
customer can accept and book the shipment. For better customer experience, website offers a
single quote in different templates, currencies and languages for better customer experience.
Business Intelligence
Since automation is nothing without visibility, all sales activity is tracked, from quoting,
distribution to negotiation, making is easy for the sales team of logistics company to stay on tops
of the accounts and prospects. This also allows great deal of visibility with eagle’s eye view on
the freight sales powered by on demand dashboards of quotes, rates, carrier usage and mode
selection. The sales team can better negotiate the contract with shippers based on actual usage of
the dashboards and information shared. Thus, giving forwarding companies more control in
finalizing a deal with the shippers.
Online Freight Sales
If the sales team of forwarders are using Freightos in-house, the same automation can increase
sales online, providing agents and customers a self-service sales portal. Freightos in-house sales
automation sets the stage to sell online on the Freightos market place allowing them to sell their
freight online directly.
Current E-Business Strategy including its Mission and How it
Measures in Strategic Success
Freightos Group aims to smooth out the process of moving goods around the world. With baby
steps in 2011, Freightos has emerged as a giant in the online freight industry. It is one of the
pioneers to initiate digitalization of the freight industry, making international shipping quicker,
smother and cost-efficient.
According to the Inc., “Freightos is poised to transform the trillion-dollar freight industry.”
Following its mission, Freightos is aggressively pursuing its goal to make the process of
shipment smooth and cost-effective in the digital age. It has managed to bring heavy traffic on its
marketplace. Currently serving more than 200,000 users on its platform on daily basis, CEO, Zvi
Schreiber, aims to further increase this number. With offices spread over three continents,
Freightos has raised funds of US Dollar 94.4 million in different rounds of investment.

According to the Fast Company, Freightos technology roots out the overpayment in the
transportation and fostered transparency, saving big shippers up to 30% in the freight tariffs and
is used by 23 of the worlds top 25 freight forwarders.

With the objective to digitalize the industry, Freightos has powered freight automation at some
of the world’s largest freight companies, retailers and distributers like Sysco Foods and Marks &
Spencer, and hundreds of small businesses. Freightos has also made its mark in the business
world as could be seen by the awards it won as a company. A partial list is shared ass below:
Gartner Cool Vendor – Supply Chain Services (2016)
Fast Company Top 10 Most Innovative Company (Israel)
InvestHK Top Startup (2014)
Identify the Issues Organization is Facing in Developing E-Business
Strategies
Freightos Group is one of the first movers to disrupt the existing freight industry. Besides
enjoying the first mover advantages, Freightos had to face issues while developing and
implementing its e-business strategies.
1. Small freight forwarders are hesitant to get registered at the online market place with the
fear of exposure of open market to their customers.
2. New shippers have trust issues while handing over the shipment to a new logistics
company.
3. Freightos charges the freight fee at the time of booking. However, credit system is widely
prevalent in the industry.
4. Freight forwarders are hesitant to open up their standard rates publicly.
5. Difficult to attract shippers from non-English speaking country, since the website is in
English Language
6. Different countries deal in their different currencies. Hence, it is difficult to use a
standard currency for payment on the Freightos website.