Freight procurement and management tool Loadar has raised $4 million Seed funding.
The way shippers procure and manage freight carriers is outdated, inefficient and costly. A combination of outsourcing, antiquated in-house models, and Transport Management Systems (TMS) that are not designed for super-large enterprises have resulted in an industry that is distinctly lacking in efficiency.
Loadar offers advanced procurement and streamlined management, as well as the ability to automate the process and provide real-time insight into the whereabouts of freight at any given time. Further, it is simply integrated into most major enterprise systems.
Loadar is already live and operating for clientele, including bluechip sustainable packaging providers.
Founder and CEO Ciaran Doherty has significant experience in logistics and operations, having spent more than five years with Northern Irish public transport provider Translink, before serving as Vice President of Foodservice UK for packaging giant Huhtamaki.
He says:
“For the super-large enterprises moving product all over the globe, transport procurement and management is a major expense both financially and in terms of time.
Teams are often individually managing hundreds of carrier relationships, it truly has become an impossible task to do well.
Third-party logistic (3PL) companies are inefficient and fail at promoting crucial strategic partnerships between shippers and their carriers. It’s a challenge in need of a solution.”
Doherty estimates shipping logistics typically cost between 7-8 per cent of a shipper company’s revenue, which is a major expense for super-sized enterprises making billions of dollars a year.
Loadar projects users can reduce transport costs by 15 per cent, by streamlining processes. Furthermore, by digitising the entire workflow, real-time oversight of where freight is in the supply chain is made possible.
Frontline Ventures led the round, with follow-on participation from existing investor Techstart Ventures.
Will Prendergast, Partner at Frontline Ventures, says:
“Managing transport costs and reducing carbon footprint are two of the top priorities for large manufacturers.
Loadar is unique in that it tackles both of these topics together, achieving significant cost savings for clients by reducing empty leg journeys for transport companies.
It’s a win, win-win scenario for manufacturers, transport carriers and the climate.”
The money raised will go towards fueling Loadar’s expansion to the US, where the market size represents a huge opportunity for growth and uptake of the Loadar solution. It’ll also fund the growth of the team, which is planned to double in size over the next 12 months.
Lead image: Loadar. Photo: uncredited.