Competitor Analysis
Shippit tends to operate in a red ocean where it tries to offer the best to its customers but at a lower price due to competition. Following the completion of an AUD 30 million (about USD 22.2 million) Series B financial round led by Tiger Global and including Jason Lenga, Shippit, an e-commerce logistics platform located in Sydney, Australia, will grow throughout Southeast Asia. Shippit, a company founded in 2014, uses technology to automate processes for completing orders, such as selecting the most appropriate carrier, tracking deliveries, and managing returns (Tan & Sundarakani, 2020). The company plans to expand in Southeast Asia and hire 100 new people, including 50 software engineers, to double its present workforce using its Series B capital, which brings its overall budget since 2017 to AUD 41 million.
Tens of thousands of retailers, including Sephora, Target, Big W, and Temple & Webster, make five million deliveries to Australian customers each month, according to Shippit. In May, the company launched in Singapore, and in August, it did the same in Malaysia (Yong, 2022). However, according to co-founder and co-chief executive officer William On, the potential market in Southeast Asia alone is five times larger than Australia and twice as large as the United States (Medel, 2020). Southeast Asia is predicted to be the world’s largest e-commerce market in the next five years, told TechCrunch (Ismail & Masud, 2020). Shippit anticipates its Southeast Asian company to increase at least 100% annually for the next three years and is considering expanding into the Philippines and Indonesia.
The necessity of software like Shippit has been underscored by the rise coupled with the volatility in the logistics and supply chain during COVID-19 and a decline in online sales. Before the pandemic, E-commerce was rapidly growing in the Asia-Pacific region; Forrester forecasted the region’s online retail sales would rise from $1.5 trillion in 2019 to $2.5 trillion in 2024, with a compound annual growth rate of 11.3% (Sindhu et al., 2021). Several other businesses in the same sector include ShipStation, Easyship, and Shippo. According to On, Shippit’s competitive strategy is to make online fulfillment as simple as possible for business owners. It does this with features such as connecting online shopping carts with its assignment engine, which automatically chooses the best carrier choice for an order.
Innovations Created by the Organization Services
Innovation created by Shippit in logistics and transportation is always needed. Everyone is searching for ways to increase their operations’ effectiveness, speed up their freight delivery, and reduce shipping costs. Innovations often occur in modest steps; new shipper-specific solutions are discovered. On occasion, though, a significant breakthrough will advance the whole sector. New technology often makes up these innovations (Sindhu et al., 2021). Regardless of the invention’s significance, it will always have some effect. Visibility, flexibility, and cost reductions are the three aspects of shipping and logistics that are most frequently touched by innovation.
In the past, loading a ship meant hoping it arrived at its destination unharmed on time. One might not find out for days or even ever if something went wrong. Thanks to wonderful technological advancements, everyone engaged in shipping can now see where the freight is. Furthermore, in addition to knowing where it is, people may also see its location, temperature, humidity, and even a live image (Bach et al., 2020). Innovations in shipping and logistics have also made data more visible, in addition to the sight of the freight. Transportation management systems may track, record, and analyze any information. After that, using AI, trends in the patterns result in other affordable ways.
Innovations result in better procedures, routes, and more efficient operations. These all help one save time or money. Savings are frequently the primary impetus behind advancements in logistics and shipping. Shippers are searching for ways to reduce the amount they spend on shipping. Partnering with a transportation company is the greatest approach for a shipper to obtain discounts. Regarding the supply chain, very few solutions are “one size fits all.” The majority of savings will be designed expressly for the shipper’s operational structure. Although they may already be aware of and use the major advancements in shipping and logistics, there are countless opportunities for incremental improvements.
Design Thinking
Since the firm secured $30 million in Series B fundraising in 2020, little momentum has been lost, and the Series 3 funding campaign has been ongoing since late last year. Additionally, on claims that the move would help both client bases since 21 Premonition employees will transfer to Shippit’s offices as part of the transaction, which predicts will increase efficiency by up to a third. In order to help our merchants and carriers save waste, total carbon emissions, and prices, he says, according to Brad Lorge, co-CEO of Premonition, they can acquire insight on where to boost efficiency with increased parcel visibility and multi-carrier connections, claims that the firm has had the chance to entirely rethink the logistics model as a result of the rise in e-commerce demand brought on by the epidemic.
Organizational Culture
Creativity and imaginative problem-solving must be encouraged inside a corporation. While successful, practical idea generation requires a framework and event schedules, an innovative company encourages its employees to explore, seek new approaches, and even fail. According to Shippit inventor, regardless of status, workers have been made accountable for shaping the company structure in order to build a workplace that is both pleasant and demanding, where everyone is allowed to propose bold ideas that may occasionally fail (Pantouvakis & Syntychaki, 2021). Creating an organizational culture that encourages true innovation may be challenging, and it will likely require top-down and bottom-up actions to ensure the business functions smoothly.
Warm firms assist employees in forming friendships by giving them social opportunities in the workplace and having a reasonable tolerance for chat, play, and enthusiasm. Once within the working zones, people have felt free to express their emotions, sensitive information, and weird, unpleasant thoughts. To orient the shipping organization toward the future, it has hired and promoted individuals who appear career-focused and motivated to upgrade their skills and take chances instead of those who are inspired by ignoring adverse outcomes or minimizing the impact of crises (Pantouvakis & Syntychaki, 2021). Furthermore, it encourages organizational optimism – not by stifling opposing views or unhappiness, but by anticipating the best from employees and the firm.
On a broader level, Shippit has provided numerous opportunities for employees to learn new skills, absorb new understanding, and be challenged. If possible, provide continuing education benefits and be highly supportive of people who pursue their true passions. Provide lectures, optional seminars, and other opportunities for the organization to learn about various shipping-related issues. A monthly studying club with free books for employees has also helped personnel enhance their skills and feel like valuable assets to the firm’s future.
References
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Ismail, N. A., & Masud, M. M. (2020). Prospects and challenges in improving e-commerce connectivity in Malaysia. Chen, L. and F. Kimura (eds.), E-commerce Connectivity in ASEAN. Jakarta, Indonesia: Economic Research Institute for ASEAN and East Asia, 78-98.
Medel, I. L. (2020). The Palau legacy pledge: A case study of advertising, tourism, and the protection of the environment. Westminster Papers in Communication and Culture, 15(2).
Pantouvakis, A., & Syntychaki, A. (2021). The role of shipping companies’ organizational culture and cultural intelligence when selecting manning agencies. WMU Journal of Maritime Affairs, 20(3), 279-308
Sindhu, V., Anitha, G., & Geetha, R. (2021). Industry 4.0-A Breakthrough in artificial intelligence the internet of things and big data towards the next digital revolution for high business outcome and delivery. In Journal of Physics: Conference Series (Vol. 1937, No. 1, p. 012030). IOP Publishing.
Tan, W. K. A., & Sundarakani, B. (2020). Assessing Blockchain Technology application for freight booking business: A case study from Technology Acceptance Model perspective. Journal of Global Operations and Strategic Sourcing.
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