KargaX, one of the country's first nationwide trucking web and mobile platforms, formally launched its mobile app technology for interisland shipments on hopes to further reduce cost of shippers.
Kristofer Montebon, KargaX president, explained that the platform is designed to connect shippers to multiple carrier options and vice versa. This gives the shippers the most cost-effective solution and the truckers a more optimized trip.
Montebon’s 12-year experience in technology startups focused in the logistics industry noted that shippers save as much as 30 percent of shipment cost by finding the right truckers. This is because, he said, "everything from food, fuel to construction materials hinges on an efficient supply chain."
KargaX cited a 2018 study by the Asean German Technical Cooperation, which showed that 56 percent of delivery trucks from Manila to the provinces return under-optimized or empty while 35 percent of that outbound of Metro Manila returning to their base in the provinces are under-optimized or empty. Montebon believes innovations like the KargaX platform can solve one of the most persistent problem of "Empty Miles” in the industry.
This adversely affects not just the truckers but the shippers, as well as they, get charged for the two-way trip.
Montebon saw the need to create a freight matching mechanism to encourage wider use of available logistics management solutions and coordinate supply and demand. He sees opportunities, as the transport industry is projected to grow at an 8 percent compounded annual growth rate according to the Philippine Statistics Authority.
Montebon said, "The pandemic has given impetus to develop the technology to optimize the price for shippers and maximize the load for carriers. In some of our use cases, this resulted in a 10 percent to 30 percent reduction in transportation costs for the shippers" he said.
KargaX has sales and operations team all over the Philippines located in NCR, Cebu, Bacolod, Davao and Cagayan de Oro (CDO).
KargaX's stringent accreditation process for truckers guarantees that truckers booked from the platform are legitimate companies.
A trucking company may also enroll multiple vehicles and drivers seamlessly through the app. They need to upload photos or take pictures of the vehicles and other requirements.
The KargaX team will review the enrolled vehicles and approve them within an hour. Once approved, the trucking company can assign that vehicle to bookings.
"We are integrated with Google maps for a more seamless routing. Clients can choose vehicle type, input cargo details, and their budget. The operator receives notifications through SMS and in-app about a booking and offers prices to the client through the app. They can chat and negotiate with the client," he explained.
Once the client accepts the offer, the trucker can assign a vehicle and the driver and will
be able to track the pick up and delivery address of the shipment in real-time through the driver's phone. Both the trucker and client may also track the shipment in real-time.
The information on the assigned vehicle such as plate number, model, and driver information will be visible to the client.