Why SaaS Logistics Franchise is a Brilliant Opportunity
Opportunity India Desk
Nov 27, 2020 -
3 min read
In the present situation, the biggest differentiator for a business is to deliver fast and deliver at good prices. People are aware of the lead times and inventory levels and there is super excitement and activity in the logistics supply chain. Businesses have faced difficulty in logistics within the country as well as internationally. Hence, it raised the need for a platform where they could send anything anywhere. Service providers needed better technology for delivery.
Shipsy is a leading logistics software solution provider in India that helps businesses reduce expends with the help of SAS. Shipsy began with helping the logistics company technologically. Slowly it expanded and reached a point where it is now helping SMEs and other firms in international trading. It caters to SMEs, large and medium companies. Its focus is on reducing costs and creating a good customer experience.
Logistics is a fragmented market and huge growth has been witnessed in specific sectors. In the current scenario, the dependency on China for exports has largely reduced. Therefore, Indian exports have risen three times than the usual. The need of the hour is bringing more operational efficiency, real-time inventory, and navigation through the process in a transparent way. India has a huge potential target market in this sector. At the same time, SMEs aspire to go above and go international, but there are a lot of barriers in the way. These barriers may include ocean freight, paperwork, legal terms, etc. Shipsy educates SMEs in these areas.
Shipsy educates SMEs on what documentation is required, who is the best freight forwarder, etc. Shipsy helps the clients in:
- Reducing costs: The costs are reduced through operational efficiency in logistics and hence it is passed as a discount to the customers.
- Processing: The platform itself explains the processes.
Shipsy is a 5-year-old company and within this short period, it has made a huge difference. It provides a premium product. Most of the revenue comes from larger companies.
Shipsy has over 600 customers that are SMEs. The main reason being SME product export is free up to certain containers so that they discover the right freight forwarder. It has a dedicated network team and is working on tie-ups with different trade associations.
When an SME signs up with Shipsy, a freight forwarder also receives the order. Shipsy receives a commission from both parties. And in the case of franchise, this commission is also transferred to the partners.
Shipsy is looking for 2 kinds of partners:
1. Those who help onboarding more customers. These partners are on a revenue sharing basis. It is recurring revenue since the platform is strong and clients keep coming back. The good part is that the variable revenue is also shared with the partners.
2. The other partners are the service partners. Any kind of services that help in forming a comprehensive offering to the customers can become partners. Services like insurance brokers, trade finance, truckers are good options.
Other aspects of partnership:
- The partners are given training by a dedicated channel partner team.
- There is no area exclusivity as such.
- Higher focus on technology
- The platform can be strong only with technology.
- Majority of the staff with the technology team.
- Educating the customer is of prime importance
- Frugality is needed in terms of time and money.
- Servicing customers is of utmost importance: Both in software aspects and harder aspects.
Edited By: Vaishnavi Gupta
