From LT-manager 3-4/2019

An agile start to the digital future

The transport market is growing and with it the need for digital assistance that is easy to use. The father-son duo Håkan and Alexander Berglund recognized this and launched their software in 2016, which today promises to be nothing less than a smart everyday product.

© LogistIQo

Logistiqo is the name of the company from Bad Feilnbach, which not only has a good product but also a high degree of innovation and agility. The pioneering interface function of Timocom's Smart Logistics System has multiplied the business opportunities for the programmers and their customers.

Fluid data exchange plays a key role in efficiently organizing the complex work steps between transport companies, industry, trade and suppliers. Logistics without new technologies is therefore no longer conceivable. Modern IT solutions can bridge the gap between several parties in the transport chain who use different, possibly incompatible programs. Interface programming is the future-oriented technology that networks the players with each other, as in Timocom's Smart Logistics System. The comprehensive system of new applications, interfaces and partners digitally supports logistics companies in all areas of the transportation process. And networking creates synergies that benefit both companies and their customers.

A win-win-win situation
New interfaces make it easier for companies to access the Smart Logistics System. So-called Smart APIs offer customers the opportunity to connect to the system via their existing transport management software. The applications are accessed via a single interface. For example, companies such as Logistiqo can use the Smart API to connect transport orders with more than 43,000 potential business partners in the system and exchange transport orders with all transport companies connected to Timocom.

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In this way, Logistiqo is connected to Timocom's Smart Logistics System so that users can now access another partner for their business activities. And thanks to the implementation of the Smart API, Logistiqo works with transport orders in the system and can thus provide its customers with access to the more than 130,000 users in the network.

In addition to the aforementioned competitive advantage of a larger customer base for both sides, there is also the time factor. You can send and receive transport orders from your own logistics software. The highlight: once entered into the system, transport orders can be imported fully automatically into the company's own logistics software via this connection, which is a real time saver.

Taking innovative paths for the digitalization of logistics
A recent study by the German Association for Information Science (Bitkom e.V.) shows that IT has become an integral part of the industry. More than 90 percent of those surveyed have a positive view of digitalization and derive benefits for their company from it. This is another reason why digital providers are on the rise. More and more companies are already working with digital support; 76% of those surveyed also see this as the future.

The founding team recognized the trend and at the same time saw an obstacle. Digitized offers for logistics are already available, but many of them are based on software whose licenses have to be purchased and installed. Choosing the right tool while at the same time incurring entry costs for the purchase of software costs companies more to acquire. Håkan and Alexander Berglund had the idea for a web-based service that would be easier and cheaper for customers; they started implementing it in 2014.

Digital service - simple, online and mobile
What the Berglunds offer: a product that does not require the purchase of a permanent license. Software as a Service (SaaS) is the technical term for the rental model and is a sub-sector of cloud computing. The IT infrastructure required for the service runs in a German data center. With its innovative model, Logistiqo brings the use of cloud technology to transportation and logistics.

A "complete solution" from order processing, scheduling, tracking and route optimization, warehouse and loading equipment management, document management including accounting and numerous analysis tools. The product range extends from full loads, part loads to general cargo, cloud-based for a fixed monthly fee, to offer services that are available via login in an app.
They have both always been drawn to logistics, but it was during a trip to South Africa that they had the brilliant idea. The desire to write their own program was certainly a great motivation. But the drive that led to the foundation was the desire to offer logistics players software that makes their work as easy as possible. They achieve this by copying strategies that have so far mainly been used by start-ups.

Innovative service needs a lean structure
Even before founding Logistiqo, Håkan and Alexander had been self-employed for years, together. While most young people move away from home, Alexander decided to start his own business with his father. Håkan had already gained many years of experience in the software sector, including at SAP, before father and son founded Logistiqo.

From the very beginning, they contacted potential customers directly, created an initial prototype according to their needs, gathered feedback and developed a marketable end product step by step. They continue to develop this further today in close contact with their customers. Thanks to this lean product cycle, the company remains flexible in adapting to customer requirements and market changes. And at transport logistic 2019, we were able to observe just how profoundly the entrepreneurs have implemented this agility in their business activities. Fingers move across the touchscreen of a smartphone in a calm rhythm of high concentration. Unimpressed by the soundscape of the trade fair, Håkan Berglund programs a new code while his son and business partner Alexander talks to the companies at the same time.

The fact that both take over the programming is a real plus. Changes can be incorporated into the model quickly and easily - just like at the trade fair. Product development is a constant flow. Although Logistiqo is looking for new business partners, it is not looking for financial backers. Right from the start, the company decided against outside investors and realized the start-up with a tight but own budget plan. And here, too, you can recognize a start-up method. Bootstrapping is the name given to the process in which scarce resources and a tightly planned expenditure plan are used to found a company. The experience and profits gained were directly reinvested in the further development of the prototype, so that the idea was ready for the market after just under two years.

Agile for the digital future
The strategy for a lean corporate structure worked. Logistiqo was able to acquire almost 100 customers right off the bat. No wonder, as the company offers an all-round carefree package of services that can be used via the web. And who is the product suitable for? "Simply for any freight forwarder or logistics company - regardless of size," says Alexander. The smart service is available at fixed monthly prices.

And there is something else that is exciting about the Berglunds. Instead of seeing the age difference between the founders as an obstacle, both see each other as important exchange partners. Håkan himself says of his age and his many years of professional experience: "That's important, but it also slows you down because people tend to prefer to stay in their comfort zone." Alexander, on the other hand, is the one who drives things forward with energy, admits the father openly. "You also build up mutual respect." And Alexander says: "We both see our age range as a total advantage. We're pulling in the same direction." And they have something else in common. Digitalization is the number one topic for both of them. Their positive attitude towards this topic, which is so important for logistics, is probably what makes them both so successful.

And for the future, we ask the agile duo, what do they expect for themselves in the medium and long term? Fully automated registration is to be offered so that customers can register even faster. Even though Logistiqo is a team of two and the number of employees is not increasing for the time being, the number of users is growing rapidly. Advertising has not been necessary so far - also thanks to the link with Timocom. "It works because the program is of such high quality. All our customers tell us how easy it is to use and we are delighted with this feedback," says Håkan.

And beyond that? Ambitious goals. Grow, find partners, internationalize. 1,000 customers in five years is the provisional plan. And, of course, that works better with a web-based solution that can be operated from any location. But turnover is not an end in itself, the founders emphasize several times. Growth is important - yes, but to give many people access to an ingenious product that makes work much easier for people in the multi-billion logistics and transportation market. Offering this help is the most important goal of the two "Logistiqos".

Digitization as easy as electricity from the socket
The Wahl-Bayern subscription is very popular, and not just because they have been working with Timocom for years. Building interfaces with others makes more sense than trying to assert yourself as the sole player on the market. Creating synergies brings advantages for customers on both sides, as logistics in particular thrives on a long chain of cooperation. The transport industry in particular is dynamic throughout Europe, but also fragmented. This is also reflected in the use of digital programs and services.

It makes more sense to pick up the many different threads and weave them into a fabric, rather than having to rely on finding a business partner whose software is compatible with your own in-house transport management system in day-to-day business. This is what Timocom and Logistiqo offer together and describe a shared future: logistics without challenges, in which digital solutions are as easy to obtain as electricity from the socket.

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