DAISYCHAIN
Future Success
Daisychain will be profitable within the next 3 years. The most important task at hand is to develop relationships with small businesses in the surrounding area. A warehouse, two trucks, a handful of employees, storage equipment, and packing instruments will need to be purchased.
Daisychain's biggest challenge will be competing in a competitive market.
What strategies are shippers and 3PLs using to manage current challenges?
Due to the surge in transportation costs, shippers and 3PLs are looking to use multiple types of transportations to cut costs in the supply chain. 3PLs are attempting to capitalize on new trends including e-commerce growth and the last mile urgency dilemma by offering better drop shipping solutions, more efficient software, etc.
What's most important to shippers?
Shippers are okay with paying more for service, as long as the 3PL is able to offer solutions their businesses need including the rapid growing e-commerce segment of every business. Shippers want better deals on transportation costs, better customer service, and a more superior business process. 3PLs are able to accomplish this by creating better relationships with shipping services, reducing their warehouse footprint, and acquiring smaller competition to expand their network.
What are the greatest challenges shippers face?
Not surprisingly, cutting transportation costs is the number one priority to shippers. According to Inbound Logistics, the cost of freight has increased ever since the last recession in 2008. Due to this influx in price, 98% of shippers have had to turn to trucking services to deliver their goods; therefore, trucking services have increased their prices.
Market Research
My market research was primarily dependent on research conducted by a company called Inbound Logistics in 2014. They contacted a number of 3PL companies and their customers to ask them a series of questions relating to their processes.
Source: http://www.inboundlogistics.com/cms/article/market-research-3pl-perspectives-2014/
Shipbob
ShipBob is a smartphone application, allowing its users to take photos of the items that they want to ship and connects to a ship captain that provides pick up, package, and shipping services.
Deliv
Deliv is a crowdsourced, same-day delivery service that extends the reach of omnichannel retailers and provides their customers with an even more exceptional shopping experience.
Shipwire
Shipwire provides product fulfillment to growing product brands and retailers with ecommerce order fulfillment services powered by a global warehouse network and a cloud logistics platform.
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Competition
E-Commerce
Fastest growing customer base.
40% of the world's population buys goods online; therefore, we can offer inventory solutions for online businesses that have outgrown their resources.
Retail
Retail is slowly changing in the U.S.
Retailers have experienced 15% less foot traffic this year. Therefore, they are being forced to respond to the 14% increase in e-commerce shopping. All of which means retailers will have to focus on delivering goods bought online.
Entrepreneurs
Helping new businesses scale.
Using our network, we can connect entrepreneurs with manufacturers and other distributors to get their business off the ground. We also support crowd funding and drop shipping.
Customers
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Concept & Vision
Growing up, I worked as a packer for my grandpa's manufacturing plant. On a weekly basis, I witnessed first hand how stressful it was for my dad and pop to make sure their supply chains were in order while scaling their business. It was around this time I started to think about more efficient processes they could adopt. 15 years later, I want to bring that curiosity and passion to my own customers.
The logistics business is a $1.3 trillion industry. With globalization on the rise, goods are being shipped around the world more than ever before. 48 million tons are shipped daily and as a result of e-commerce, this will only continue to increase. This leaves a huge opportunity for new logistics businesses that are more efficient and better automated.
Supporting Statistics
According to InboundLogistics.com, nearly 91% of 3PL's serve North America since 77% of the world's outsourced goods are sent here. (Figure above)
According to the U.S. Census Bureau, in 2012 89.6% of businesses in the U.S. had less than 20 employees. Let your employees focus on growth while Daisychain focuses on the headaches of logistics.
According to Armstrong & Associates, 86% of Fortune 500 companies use 3PL's for supply and chain functions. For example, Walmart and General Motors each use 50 or more 3PL's.
Nevertheless, logistics is an old school industry in the U.S. with a lot of room for improvement. With more goods being manufactured abroad, thousands of products are sent back to the U.S. for distribution. Thats where Daisychain comes in.
Economic Background
Headquartered in Austin, TX with Distribution Channels Throughout the USA
Networking
Once you create a product, how do you find the right person to manufacture it for you? Daisychain has established relationships with suppliers and manufacturers to showcase what they can offer you and your business. Each manufacturer and supplier will have their own portfolio where you can see their performance and contact information.
Distribution
Daisychain has partnered with Bastian Solutions to make our warehouses the most highly automated distribution centers. Our warehouses have fully automated picking and packing equipment leading to less error and higher efficiency. Daisychain has also established relationships with major international carriers to ensure the cheapest transportation costs. Daisychain also processes and manages returns.
Warehouses
Let's face it, it's challenging to constantly relocate due to limited space as your business scales. Let Daisychain store your inventory in one of our safe, clean, and efficient warehouses. We can store all sizes of products and we only charge by the sq. ft. or number of pallets. Daisychain also communicates with your supplier to arrange the necessary shipments as your inventory fluctuates in volume.
Software
Easily integrate Daisychain's software with existing online and mobile infrastructures. When an order is placed, Daisychain automatically keeps track of your inventory so you don't have to worry about any spread sheets. In addition, if your inventory is stored at one our warehouses, Daisychain will efficiently pick and pack your customer's goods and send them out via UPS, Fedex, etc.
