Portcast Secures $3.2M Funding for Supply Chain Transparency

Portcast Secures $3.2M to Enhance Supply Chain Transparency

For numerous manufacturers and freight forwarders, logistics management remains a largely manual undertaking. This often involves tracking shipments via phone calls or online searches, with subsequent data entry into spreadsheet software. Portcast, positioning itself as a “next-generation logistics operating system,” aims to streamline this process. The company achieves this by aggregating data from diverse sources, providing not only real-time shipment tracking but also predictive insights into potential disruptions, such as severe weather conditions, tidal influences, and pandemic-related challenges.

Funding Announcement and Expansion Plans

The company recently announced a $3.2 million pre-Series A funding round. Newtown Partners, through the Imperial Venture Fund, spearheaded the investment, with participation from Wavemaker Partners, TMV, Innoport, and SGInnovate. Headquartered in Singapore, Portcast currently serves clients across Asia and Europe. A portion of the newly acquired funds will be allocated towards expanding its market reach.

Founding and Leadership

Nidhi Gupta and Dr. Lingxiao Xia, the co-founders, initially connected at Entrepreneur First in Singapore. Prior to establishing Portcast, Gupta held leadership positions at DHL throughout Asia. Her experiences highlighted the “inefficiencies” within the logistics sector, recognizing them as an opportunity for innovation. Dr. Xia, possessing a Ph.D. in machine learning and expertise in product development and cloud computing, proved to be a “great complementary fit” and now serves as Portcast’s chief technology officer.

Data Coverage and Predictive Capabilities

Portcast monitors over 90% of global trade volume transported by ocean carriers and 35% of air cargo. The platform is capable of forecasting demand for 30,000 trade routes. Data sources encompass geospatial information, including satellite data detailing ship locations, speeds, directions, and port destinations, as well as wind speed and wave height. Furthermore, Portcast analyzes economic trends – such as the impact of Brexit on UK ports and the effects of vaccine distribution on airline and ship capacity – alongside weather events and disruptions like the Suez Canal blockage.

Proprietary Data Integration

The company also incorporates proprietary transactional data sourced directly from its customers, including major shipping companies and freight forwarders.

Data Consolidation and Machine Learning

“The core challenge lies in enabling all of this data to operate with a unified understanding,” Gupta explained to TechCrunch. “The data arrives at varying frequencies and levels of detail, necessitating consolidation to ensure the machine can effectively interpret it.”

Core Solutions Offered

Portcast currently offers two primary solutions: Intelligent Container Visibility, providing real-time shipment container tracking, and Forecasting and Demand Management, which monitors booking patterns. While acknowledging the cost-prohibitive nature of deploying IoT devices on every container, Portcast is collaborating with IoT providers on hybrid solutions, such as utilizing devices on select containers to inform management of the entire shipment.

Improving Operational Efficiency

The startup’s overarching goal is to deliver predictions that empower companies to enhance operational efficiency and reduce reliance on manual processes. “Logistics operators often handle hundreds of incoming shipments weekly, requiring daily manual checks recorded in spreadsheets, which then underpin downstream operational planning,” Gupta stated.

The Impact of the COVID-19 Pandemic

The COVID-19 pandemic created an “urgent need to digitize,” fundamentally shifting supply chains from being viewed as a cost center to a critical component of timely product delivery. Consequently, Portcast now collaborates with some of the largest manufacturers and freight forwarders. As an example, a European food and beverage company experienced a shipment to Taipei taking over three months, despite a typical transit time of 70 days. Portcast successfully tracked the shipment across multiple ports and vessels, providing customers with insights into the cause of the delay.

Pinpointing Disruptions and Reducing Costs

“Beyond predicting potential disruptions, we can pinpoint the cause of delays, quantifying them in terms of days lost due to factors like typhoons or trans-shipments,” Gupta elaborated. “This empowers clients to inform their trucking and warehousing teams about container arrival schedules, reducing port fees, detention charges, and the time spent manually tracking shipments across various websites.”

Competitive Advantage: Asia-Pacific Focus

Portcast’s launch from the Asia-Pacific region provides a distinct advantage. This region’s shipping routes frequently involve multiple port calls and are susceptible to frequent weather events like tropical storms and typhoons. The technology developed to optimize voyages between Singapore and Malaysia is readily applicable to intercontinental routes, such as those connecting Asia with Europe or the United States.

Network Effects and Collaborative Approach

“Our technology is scalable globally, enabling us to compete effectively in the market,” Gupta asserted. “Furthermore, our collaboration with manufacturers, shipping companies, logistics providers, and cargo airlines creates strong network effects. The synergy between ocean and air freight allows us to identify industry patterns and provide leverage for companies joining our platform.”

Future Development: Prescriptive AI and Order Visibility

Portcast plans to transition from predictive AI to incorporate prescriptive AI within the next two quarters. Currently, the platform identifies the causes of delays; prescriptive AI will also offer automated recommendations, such as suggesting faster ports, alternative transport modes, and capacity optimization strategies. The company also intends to launch Order Visibility by year-end, tracking containers based on specific item SKUs.

Sustainability and Carbon Emission Tracking

With rising consumer prices partly attributed to strained supply chains, Portcast aims to provide solutions. By tracking specific SKUs in real-time, the platform can expedite deliveries and quantify the CO2 emissions associated with each shipment.

“Carbon offsetting or trading requires accurate measurement of emissions, and that’s where we can contribute,” Gupta explained. “For instance, predicting early arrival allows shipping companies to reduce speed and conserve fuel – like bunker fuel – resulting in significant cost savings and reduced CO2 emissions.”