Logistics startup Haversack Logistics said today it will team up with technology companies MercuryGate International Inc. and project44 to provide a combination of software and consulting services to shippers.
Davidson, N.C.-based Haversack defines itself as a logistics management service that will empower shippers to manage their own logistics and transportation tasks more efficiently, as opposed to taking over those functions like a traditional third-party logistics (3PL) firm.
Haversack says its approach is a new model that also varies from traditional 3PLs because it charges fees based on the savings a customer achieves compared to industry benchmarks and historical data, as opposed to the up-front margins charged by 3PLs. "A 3PL offers convenience, where you give your work to the 3PL and they handle it all for you. Where it's problematic is in [the lack of] transparency and efficiency, and in the upcharge to working with a 3PL," Haversack President Christopher Nadeau said in an interview.
The company opened its doors with a "soft launch" on March 1 and has since been working with customers in the food-warehousing, automotive, aviation, and plastics industries, Nadeau said. With its announcement today, the company is now making its solution available to the larger market, he said.
Haversack will help its customers operate more efficiently by acting as a certified reseller of the cloud-based transportation management system (TMS) software from MercuryGate and the network of application programming interface (API) data connections from project44, the company said. The firm will also provide professional services to help its customers derive the greatest value from that technology, or from any other TMS platform they may already have installed.
"MercuryGate is pleased to support our customer, Haversack Logistics, as they offer a new business model to the transportation and logistics industry," MercuryGate CEO and co-founder Monica Wooden said in an email. "MercuryGate is committed to supporting a wide range of stakeholders and business models in the supply chain sector. Our flexibility and innovation are two key attributes that our customers have told us they value."
Haversack will work with each client to identify cost savings and performance improvements, providing experts to plan and execute freight transportation and logistics operations, the firm said. Haversack will act in a "first-party logistics provider (1PL)" capacity because of the collaborative relationship it will have with each client, the company said.
Haversack's approach is less expensive than outsourcing the work to a traditional 3PL firm and more effective than keeping the functions in-house, where most companies have a small array of tools and technologies to deploy, Nadeau said. That's because the shipper keeps all the work in house instead of Haversack doing it. Haversack also doesn't tack on fees to the shipper's logistics spend, but claims a percentage of the client's savings.
"We will help them to understand the industry and to see the industry in ways they've never seen it before, while they have full, 100-percent control with us as a partner," said Nadeau. "They take their ship with us as a navigator to help them get through those waters."
The company's goal is to give clients high transparency, real-time visibility, and full control over their less-than-truckload (LTL) and truckload transportation costs and execution, he said. "By teaming with the customer's staff and enabling them to efficiently take advantage of advanced technologies and sophisticated business intelligence, we collectively drive—and are jointly accountable for—performance quality, savings, and process improvement," Nadeau said in a statement.