Start-UP Set to Disrupt Global Logistics

The Beacon Group has raised $15m in a funding round, most notably funded by Amazon founder Jeff Bezos.

The Beacon Group, founded by former Uber executives, combines supply chain finance with technology to find the most cost-effective shipping routes for cargo.

The company hopes that offering the services together will help it gain a foothold in two industries. Manufacturers, from carmakers to furniture groups, use “freight forwarding” companies to handle complex global logistics, from booking ships to arranging onward transportation afterward.

The industry is heavily fragmented, and many companies are behind in using live data to determine the best or most cost-effective routes. Beacon uses real-time data to track cargo and a marketplace service that allows it to view shipping costs and prices overlaid by an algorithm that projects the best routes to take.

In addition, the biggest problem in logistics is almost always cash flow, so Beacon also offers supply chain financing, a service it claims is unique among freight forwarding businesses. Suppliers often require payment upfront, leaving manufacturers with cash demands, while goods transported by sea are usually not delivered for more than a month for longer routes.

Beacon is banking on the coronavirus pandemic driving demand. The outbreak exposed the fragility of the supply chain, as factories worldwide closed. The future of traditional freight forwarders is more precarious than ever as manufacturers look to cut costs, gain greater visibility into the supplier network, and shorten product lead times.