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The next wave of supply chain innovation will be driven by startups helping existing companies win – TechCrunch

The next wave of supply chain innovation will be driven by startups helping existing companies win – TechCrunch

 


Steve Sloane is a partner of Menlo Ventures and invests in companies in the refraction stage.

Other Posts by This Contributor Software Soaring: Is VC Overkill?The transition to collaborative robots means the rise of robotics as a service

Derek Xiao is an investor in Menlo Ventures, focusing on companies that are about to break out during the refraction phase.

For years, the general account of supply chain innovation has focused on disruptors. A start-up company entering the industry with new technologies and business models that replace existing companies.

Little is known about the next wave that these destroyers often catalyze. Digital enablers are trying to arm incumbents against the invasion of new digital rivals.

But in areas ranging from freight brokerage to B2B marketplaces, these enablers have recurred after the initial turmoil. For these industries, digital enablers, not disruptors, make up the next wave of supply chain innovation.

The second wave of repetitive innovation

In freight brokerage, Convoy and Uber Freight have digitized the traditional process of matching truck drivers and packages, enabling hours of email and phone calls to be streamlined with a simple app-based workflow. Today, companies like Parade are equipping traditional cargo brokers with many of the same tools.

Flexport and Forto have created the headline for freight transport by promising greater transparency and control. They have introduced a digital business model that not only improves the customer experience, but also hastens the onslaught of enablers such as Vector.ai and Shipamax, which seek to make traditional freight carriers more digital.

Image Credit: Menlo Ventures

And in the traditional world of B2B commerce dominated by trade shows and sales reps, Faire and Ankorstore helped the rise of enablers Proton.ai and Enable.

Enablers play an unattractive role in helping maintain the relevance of incumbents.

These call-and-response patterns of disruptive innovation can be seen many times throughout the supply chain category. This story repeats as enablers track disruptors across each category of supply chain business.

In either case, the threat of replacement has led existing companies to invest more in their digital capabilities and allocate more budget to digital tools to match the capabilities of new competitors. result? This time, it is none other than the next-generation innovation led by enablers.

A quiet engine that drives transformation

Enablers typically drive or accelerate growth after a disruptive predecessor introduces technology that reshapes industry and customer expectations. They have an unattractive role in helping incumbents maintain relevance. Perhaps because of this approach, enablers as a category have been surprisingly overlooked. Especially given the spread throughout the supply chain and the impressive achievements they have achieved.

Sources

1/ https://Google.com/

2/ https://techcrunch.com/2022/06/23/the-next-wave-of-supply-chain-innovation-will-be-driven-by-startups-that-help-incumbents-win/

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