Welcome to the 89th edition of The LogTech Letter. TLL is a weekly look at the impact technology is having on the world of global and domestic logistics. Last week, I made the case that inventory management was an individual challenge for shippers, while access to capacity is a collective one. This week, guest contributor Robert Petti, CEO of forwarding technology provider Prompt, weighs in on the news last week that former Amazon logistics guru Dave Clark is joining Flexport as CEO in September.
Let me guess Eric, the struggle you have with Flexport as a 'technology' company is that it is not. While it may automate and digitize the freight forwarding and now a global logistics provider processes, it will at best still end up being a digital freight forwarder and a digital logistics company, albeit a global one, with increasingly number of competitors.
IMHO what Petersen failed to do is to apply technology in the way the VCs monies expect (judging from the valuations). Dave Clark hire may only muddy the issue than help it.
Dave Clark rode his success in Amazon as a platform. But his capability is likely to be limited by Flexport's stovepipe business model unless he is able to turn it to a platform one.
Where Does Flexport Go From Here?
Let me guess Eric, the struggle you have with Flexport as a 'technology' company is that it is not. While it may automate and digitize the freight forwarding and now a global logistics provider processes, it will at best still end up being a digital freight forwarder and a digital logistics company, albeit a global one, with increasingly number of competitors.
IMHO what Petersen failed to do is to apply technology in the way the VCs monies expect (judging from the valuations). Dave Clark hire may only muddy the issue than help it.
Dave Clark rode his success in Amazon as a platform. But his capability is likely to be limited by Flexport's stovepipe business model unless he is able to turn it to a platform one.