Over the past 2 years, the global supply chain has been struck with two significant upheavals: the United States-China trade war and, more cataclysmically, COVID-19.
When Reefknot Investments released its $50 million fund for logistics and supply chain start-ups last September, the market was already dealing with the effects of the tariff war, states managing director Marc Dragon. Then a few months later, the COVID-19 crisis started in China prior to infecting the remainder of the world, interfering with the supply chain on an extraordinary scale.
Practically all markets have actually been impacted, from food, durable goods and medical materials to hardware.
Reefknot, a joint endeavor in between Temasek, Singapore’s sovereign fund, and global logistics company Kuehne + Nagel, focuses on early-stage tech business that utilize AI to fix a few of the supply chain’s most pushing issues, consisting of threat tracking, forecasting and financing goods worldwide.
In March, around the time the World Health Company declared the COVID-19 crisis a pandemic, Reefknot surveyed nine carriers about the challenges they face. While there are other macroeconomic factors at play, including Brexit and the oil rate war, the survey’s main focus was on the combined effect of COVID-19 and the U.S.-China trade war on the supply chain and logistics industry.
According to the study, the main things carriers desire is the capability to dynamically handle supply chain dangers and operations and enhance cash flow in between business purchasers and their suppliers, who typically fight with working capital.
A number of the present services used in the supply chain include a great deal of manual tasks, consisting of spreadsheets to anticipate demand, phone calls to validate capacity on ships and airplanes and inspecting items to make sure orders were fulfilled correctly.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.