This episode is the second half of our conversation with Alexander Nowroth, a 16-year shipping industry veteran and sales strategy consultant. 

We explore the complicated relationships between carriers, forwarders, and tech companies in the drive to logistics modernization. From track-and-trace to IoT solutions, the possibilities for innovation seem endless but are choked by data availability and bureaucratic obstacles. Alexander brings a wealth of insight and ideas on accelerating the process.

What You Will Learn In This Episode

• The role shippers play in the adoption of innovative tech platforms
• Why forwarders often have a cynical view of track-and-trace 
• How forwarders can benefit from being more systems- and solutions-oriented
• How control tower solutions have benefited shippers and large carriers like Maersk

Money Quotes

"Why did Flexport or Project 44 [come to market]? Why didn't [DB] Schenker or Kuehne & Nagel create these companies and launch them under a different name? I think it's because [they're] busy ... squeezing out the current business model and dealing with the bureaucracy they have built up over the last few years ... there's an absolute overburden of bureaucracy in most of these large companies. So they literally don't have the time or resources to do that ... Sometimes the non-established, non-conformists have to shake up the tree." [12:25 - 13:12]

"There are startups like ... Arviem, who put a physical device in a container and said, "here's the uncompromisable, uncorrupted way to [track and trace]. If I put physical [technology] into it, the logistics are very difficult, and no one wants to pay for it. Because it's only perceived as a diagnostic tool, not as much a business-critical surgery tool." [15:56 - 16:17]

Mentioned in This Episode

• Alexander's book: https://a.co/d/6ZQJeEY
• Book: "Humanocracy: Creating Organizations as Amazing as the People Inside Them" by Gary Hamel: https://a.co/d/fXlNhtw
• Movie: "Free Solo": https://www.imdb.com/title/tt7775622/
• TPM23: https://events.joc.com/tpm/index.html
• TPMTech DevCon: https://events.joc.com/tpmtech/program/devcon.html
• Lebenswerk Consulting: https://www.lebenswerkconsulting.com/en/
• Alexander's LinkedIn profile: https://www.linkedin.com/in/alexander-nowroth-40300255/

The logistics industry has seen very little innovation in the past 40 years. New data streams, innovative business models, more automated processes -- all of these can drive higher yields and lower costs. Yet embracing innovation is far from the norm. Why? How can we change this?

Alexander Nowroth, an industry veteran and sales strategy consultant, brings a fresh perspective on how carriers and forwarders can escape the status quo. He and host Judson Rollins discuss the factors that make innovation difficult and contrast this with how industry leaders like Maersk forge ahead with more profitable ways of doing business.

What You Will Learn In This Episode

• How carriers and 3PLs can drive innovation internally rather than wait for tech startups to disrupt them
• How "mistake avoidance culture" traps industry insiders in obsolete technologies and processes
• Why Maersk stands out from its peers as an innovator
• Why the global logistics market is so fragmented

Money Quotes 

1. "A lot of 3PLs have made fantastic revenues and profits over the last one to two years ... so now, where did they go from here? [They need] to ask themselves, "what could be additional revenue streams, additional products, that I could develop from an innovative mindset? And number one is "what hidden needs do my key customers have?" ... That's an advantage the carriers and the tech companies don't have yet. Yes, they may hunt for market share, but they don't really have the knowledge about these customer needs and these hidden needs." [4:41 - 5:21]
   
2. "A lot of shippers say, "yes, the front end is nice, we love the tools. But if the freight doesn't get there in time, I don't care about your fancy IT system, I don't care about your fancy apps. But what is your contingency plan if something goes wrong?" I think that's the biggest Achilles [heel] of a lot of these tech firms: the back end ... is very much manually driven. In fact, it's a lot more manually driven than even the established 3PLs." [27:02 - 27:29]

Additional Resources

• Alexander's book: https://a.co/d/6ZQJeEY
• Lebenswerk Consulting: https://www.lebenswerkconsulting.com/en/
• Alexander's LinkedIn profile: https://www.linkedin.com/in/alexander-nowroth-40300255/
• Judson's LinkedIn profile: https://www.linkedin.com/in/judsonrollins

Many industries have moved to digital documents with standardized formats that are easily shared between all stakeholders. However, the logistics world still lags far behind. In this solo episode, host Judson Rollins explains why now is the time for digitization!

What You Will Learn In This Episode

• The current state of digital communication in the shipping world
• The opportunity unlocked by 2024's "maritime single window" requirement
• Why digitization can reduce cost and grow revenue for carriers and forwarders
• How carriers and forwarders can shape the digitization process

Money Quotes

• "[This is] a once-in-a-generation opportunity! And what makes it doubly impactful is that it has the ability both to reduce cost AND increase revenue -- for both carriers and forwarders!" [2:28 - 2:39]
• "Why aren't carriers and large forwarders clamoring for seats at the [TPMTech DevCon] table? For digitization to improve shipper outcomes and/or reduce administrative costs, carriers and forwarders must agree on cross-platform data formats and sharing." [5:05 - 5:18]