{"id":17762,"date":"2016-11-18T13:31:37","date_gmt":"2016-11-18T18:31:37","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/flexport-bringing-sexy-backnot\/"},"modified":"2016-11-18T13:31:37","modified_gmt":"2016-11-18T18:31:37","slug":"flexport-bringing-sexy-backnot","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/flexport-bringing-sexy-backnot\/","title":{"rendered":"Flexport \u2013 Bringing Sexy Back\u2026Not"},"content":{"rendered":"

Most people associate digital transformation with hot, fast-growing companies like Google, Uber, or even Airbnb. However, this post takes a different approach and focuses on a company that TechCrunch labeled the \u201cthe unsexiest trillion-dollar startup\u201d[1]<\/a>. Introducing FLEXPORT<\/strong>!<\/p>\n

Flexport is creating value by acting as a \u201cfull-service air and ocean freight forwarder\u201d. Using cloud-based software, this company provides its customers (both exporters\/manufacturers and importers\/final consumers) with complete visibility and control over their entire supply chain.[2]<\/a> But what does this really mean?<\/p>\n

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Let\u2019s start with the basics: What is freight forwarding?<\/strong><\/p>\n

A freight forwarder (like Flexport) is a person or company that organizes for the shipment of goods from a manufacturer to a final point of distribution[3]<\/a>. This transfer often requires multiple carriers and various modes of transportation \u2013 as such, the logistics have the potential to get very complicated, very quickly. A route could look as simple as the following:<\/p>\n

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Or something more complicated like:<\/p>\n

\"pic-2\"<\/a><\/p>\n

** remember all of these transfers could be through different carriers<\/em><\/p>\n

It is important to note that freight forwarders do not physically move the goods, but instead they act as logistics network experts. This includes taking care of tasks like: planning the appropriate route, negotiating lower costs, consolidating the various modes of transportation, arranging for documentation\/insurance, tracking the goods, etc.[4]<\/a> These forwarders play an important role in allowing both manufacturers and importers to focus on their core competencies while also potentially reducing the cost of goods sold.<\/p>\n

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Problems with the current shipping mechanisms<\/strong><\/p>\n

In a nutshell, most existing freight forwarders were established prior to the development of much technology and unfortunately have chosen to maintain their outdated procedures. A few issues include:<\/p>\n