draft mag eng 21

December 2021 DIGITAL MAGAZINE

Tinder

for the Logistics Industry

WOW

500,000

Trucks onboard!

Join the revolution
“Next year

we are going
to hit NASDAQ!”

Hanan Friedman
Trucknet Funder&President

FORECAST 2022
From Development Team

We offer a

stepping stone
on the way to

net-zero greenhouse gas emissions

in the "hard to abate" transport sector

Hanan Friedman

Founder&President

Board members

Tomer Haim Ofir Gomeh Avi Arditi

Nehama Ronen Amir Guttman Dekel Vaknin

Team

Ronen Chen Shai Nahari Ran Cohen Uri Appelbaum

CTO CCO CFO COO

Sorin Teriteanu Lana Elner Ronnie Ginat

GM Europe Business International
Development Manager Sustainability Manager

Milestones and Achievements 2021

Welcome to Tel Aviv Stock Exchange

Part of 100%+ Club

on Tel Aviv Stock Exchange

top platinum investors
(from Bursa)

logos

Milestones and Achievements 2021

550,000

trucks on board

6,000

registred companies

5

countries

FROM OUR BLOG

6

TRENDS

FOR THE LOGISTIC INDUSTRY
2021

Hanan Friedman, Founder&President
The logistics industry was turned upside down in 2020. The
COVID-19 pandemic and the subsequent impact on internet
sales boosted the sector's growth considerably. The industry
boomed despite the lockdown during March-May as well as a
small drop in sales in September, according to the Office for
National Statistics.
The effects of the Pandemic gave the cargo industry good
reason to invest more efficiently in technologies. It was clear to
see that those companies, which already had invested, were
ahead in the sector. Many supply companies still are adapting to
the new world and how goods are delivered to clients.

7

What trends evolved due to Covid-19 and
will remain within the industry?

The logistics industry was turned upside down
in 2020. The COVID-19 pandemic and the
subsequent impact on internet sales boosted
the sector's growth considerably. The industry
boomed despite the lockdown during
March-May as well as a small drop in sales in
September, according to the Office for National
Statistics.

The effects of the Pandemic gave the cargo
industry good reason to invest more efficiently
in technologies. It was clear to see that those
companies, which already had invested, were
ahead in the sector. Many supply companies
still are adapting to the new world and how
goods are delivered to clients.

Outsourcing
During 2020 the logistics industry increased
the distribution of its supply-chain activities to
outside parties. With end-to-end management,
they were able to reduce risk, increase
flexibility, focus on their core business, and
respond rapidly to changes in the market.

8

Digitalization
Companies were faced with huge amounts of
data, especially during the first lockdowns. The
online market grew tremendously as the world
responded to the Pandemic. The digital
technologies offered quick responses to
fluctuations in demand while maintaining
additional volumes of orders even with strict
social-distancing protocols in place. With the
huge number of outsourcing companies, it has
become extremely important to maintain digital
documentation (of paper) that can be tracked
and traced in real-time, in order to keep the
process updated.

E-commerce thaHtadnigaintaFl rdioecdummaenn, tFaotuionnde, r&Pr
We are not claiming

instead of paper, was adopted during the

pandemic, it of course existed before. However,

to lessen the spread of disease, companies

reduced the use of paper, thereby adding

protection for their employees and customers.

This trend of digitalization underscored the

value of being able to respond quickly to

customers’ needs and demands, through a

well-thought-out strategy. According to a

CNBS report, global e-commerce sales were up

more than 31% at the end of June 2020.

9

What trends will develop following Covid-19?

During these difficult times, many lives were put on hold, while
the Pandemic has slowed down the progress of some existing
trends. We are confident they will resurface in 2021.

Fall in employment
Although unemployment rose in 2020, and many companies
were forced to close down, logistics providers experienced a
shortage of workers. The moment the economy begins to
rebuild, the industry will be faced with some competition, as
other fields also begin to open. A positive and efficient work
environment will become once again the primary competitive
arena in the supply chain.

Intelligent forecasting
Customer behavior was unpredictable during most of the past
year, which made it almost impossible to use historical past to
manage inventory and foresee a client's next move. When we
return to a more stable environment, AI and Machine Learning
will take back their position on the front seat of advanced
analytics and forecasting.

10

Sustainability
Unfortunately, many industries put questions of
sustainability in the background, because it was more
important to fight for business continuity while the world was
struggling for survival. US President Joe Biden signed an
executive order to rejoin the Paris Agreement for climate
change the moment after his inauguration. In 2021 issues of
sustainability will take high priority, where it will be supported
on a global level.

We know during 2021 the challenge of the global crisis will
continue in the world. Dealing with COVID-19 made us think
more creatively and struggle for efficiency. However, if we
continue to use and improve modern technology together
with the experience gained last year, strategies implemented
to fight the virus will continue successfully. As long as we are
together in this effort!

In the past we have had a

light which flickered, in the

present we have a light

which flames, and in the

future there will be a light

which shines over all the land
and sea.

Winston Churchill

11

SUPPLY CHAIN VISIBILITY

Hanan Friedman, Founder&President

In simple terms, supply chain Accurate supply chain visibility

visibility refers to when a actually is based on trackable

company can see and fully information in real time. The

understand the procedures of responsible personnel should

its supply chain from A to Z. know the inventory

Though this may seem simple, it management details at all times.

can be extremely difficult to In addition, they would have

achieve for many companies. access to information and be

According to HaRneasniliFerniceed3m6a0n, Faobulnedetro&Ptrreascideentthe status of all
(launched by DHL in 2012) and components within the process

The Business Continuity of transit, as products move

Institute, 73% of companies from the manufacturer to the

globally experienced final destination - End-to-End

detrimental supply-side (E2E).

disruption as a result of the

COVID 19 pandemic in 2020.

12

What is supply chain visibility (SCV)?
SCV is the transparency of, and access to, data relating to every
traceable component of the entire supply chain. For retail
operations, this definition includes tracking goods from the supplier
all the way to the end customer.

In an ideal situation, the fleet manager (or the person responsible
for managing the chain) would have complete access to the status
of all data.

Regarding the cargo industry this would include:
All details of the cargo such as a form with regulatory and tax
information according to country requirements. This will ensure
that as soon as cargo arrives at the warehouse, all necessary
documentation is ready;

Status of cargo ready to be loaded (warehouse layout, container
movement at port/airport);

Supplier management programs and status;

Estimated time of delivery (ETD) taking into consideration traffic
and weather conditions;

Updated information about the location of goods and/or
containers would provide the possibility of reusing an inbound
container for outbound delivery. Operations would be faster and
smoother while reducing the number of rides of empty
containers, leading to a decrease of CO2 emissions. This
information helps with planning appropriate warehouse space
and optimizing time;

Customer and regulatory information;

Current order status.

13

Visible Commerce is a concept that promotes collaboration of
technology and data to bring about more transparency to the
supply chain. This idea represents a transparent exchange of
money, goods and services with the availability of data, thereby
empowering people to make more effective and ethical business
decisions. It actually means knowing what and who is
underneath all those transactions that bring products into our
lives.

What are the main problems without SCV?
Supply Chain Visibility is not only a way to access data linked to
delivery processes, rather it offers companies the ability to stay
well-informed of their extended supply network. With efficient
integration within systems, high visibility can provide sufficient
time to resolve detected errors straight away.

With a high visibility supply chain a company can:

Avoid supply chain disruption: there are many reasons for
delivery problems including human factors, adverse
weather conditions, traffic and road circumstances,
malfunction of vehicles and more. SCV is critical for
preventing errors and planning in order to avoid disruption.

Meet customer needs: real-time monitoring and analysis
help companies better address customer needs.
Unfortunately, often companies only have visibility up to
their Tier 1 suppliers, due to fragmented data across
multiple systems.

14

Make data-based decisions: manual updating processes of
supplier information is time consuming and lacks both data
accuracy and cost efficiency. On the other hand, an
intelligent platform will consolidate data and with
predictive analytics, an innovative technique for making
predictions, can be used to improve supply chain
management.

Choose the right suppliers: Every company has its ethical
standards and would like partners who share the same
ideas. In this manner, your supplier becomes an extension
of your company’s image and reputation. Therefore,
business partnerships that align with company ethics will
be more stable financially.

Covid-19 has shown the world that investing in
supply chain visibility is a necessity. Supply chain
visibility begins with a process that a company must
undertake to ensure optimal efficiency. To achieve
supply-chain excellence, a collaborative effort is
essential between all players in the network for
improving performance.

This digital age requires leaders to be visible and
authentic and to be able to communicate the
decisions they've made and why they've made
them, to be able to acknowledge when they've
made a mistake and to move forward, to engage
in the debate.
-Gail Kelly, former CEO of Westpac bank,

was named 8th most powerful woman in

the world by Forbes in 2010.

15

GLOBAL EMISSIONS

16

Without a doubt, the threat of climate

change is already here. During the past
150-200 years, CO2 (carbon dioxide)
concentration in the atmosphere has
significantly increased. It is clear these
dramatic climate changes are attributed to
GHG (greenhouse gas) emissions caused by
human activity, such as the burning of fossil
fuels for electricity, heat and transportation.

Scientists throughout the world agree that in
order to limit the impacts of climate change,
global GHG emissions must be reduced
globally. Despite the international conferences
and innovative technologies, the world is still
far from implementation of a sustainable path.

CO

17

Carbon dioxide emissions are Let’s take another example.
released into the atmosphere in
many ways. The problem arises Food production is responsible
when human activity upsets the
balance in nature. Greenhouse for about 25% of global GHG
gases such as carbon dioxide,
methane, fluorinated gases and emissions. In addition, food
more absorb heat. The huge
amount of CO2 emissions in the waste emissions are significant,
atmosphere today has become
the main driver of global climate making up about 25% of total
change, and we are
experiencing the impacts. food production. The global food
If we look at global GHG
emissions by sector, we see that system is quite vast and
energy is responsible for about
76%. This includes heat, involves the manner in which
electricity and transportation.
The transport sector alone food is produced, processed,
accounts for about 23% of total
emissions including road packaged and distributed.
transport, aviation; shipping,
rail. Effective technological

solutions are needed for

processing and distribution,

activities that also contribute

emissions from the sector.

Worldwide statistics show global

averages, however, the situation

can be very different in

individual countries. For

example, in the USA the

transport sector contributes

higher emissions than the global

average. In Brazil, the majority of

emissions come from

agriculture and land-use

change.

Recent data confirms our The situation today
The long-term goal of the Paris
demand for energy and CO2 Agreement is to keep the
increase in global average
emissions while providing temperature to well below 2°C
(above pre-industrial levels) and
awareness into how economic to pursue efforts to limit the
increase to 1.5°C. Almost all
activity and energy use are governments of the world have
ratified the agreement and have
recovering after COVID-19 in made commitments to reduce
man-made GHG emissions. In
countries around the world – order to reach the Paris
Agreement target, global
and what this means for global emissions will need to be
dramatically reduced.
emissions. The International Energy
Agency (IEA) issued a report
I am happy to know that the USA assessing the direction energy
demand and CO2 emissions are
changed the direction regarding taking following the effects of
COVID on the world economy.
environment goals. US Projections carried out in April
2021 show a rebound of nearly
President Biden has put the 5% in global CO2 emissions this
year, as the world recovers from
issue of climate change high on 2020.

the national agenda. Shortly

after his inauguration, America

rejoined the Paris Agreement

after several years of no official

involvement. The return of the

US to the international arena is a

serious game-changer. It is

worth noting that the US is the

biggest emitter of fossil fuel CO2

emissions after China.

In April this year, President

Biden hosted a Leaders Summit

in which 40 world leaders

convened to discuss the targets

and measures necessary for

tackling the climate crisis and

meeting the demands of

science. He announced his

country's 2030 greenhouse gas

emissions reduction target,

involving plans for every sector

of the economy.

Here, we are addressing the challenge of global CO2 emissions
reduction and how each sector must contribute to finding a
solution.
The private sector is getting on board. We see many companies
and corporations committing to integrating sustainability
measures into their business plans and strategies. The logistics
industry is no exception. It is clear that integrating
environmentally sound practices into supply-chain management
will increase transparency and reduce emissions. What is
measured can be managed!
The 26th UNFCCC Conference of the Parties (COP26) will take
place in the United Kingdom (UK) in November this year. As the
Party hosting the annual Summit, the UK finds it especially
important to take responsibility for promoting the Paris
Agreement’s targets. Several “pre-COP” events are being planned
in order to accelerate action. Step-change campaigns will focus
on the energy transition (from fossil fuels to clean energy), clean
road transport and nature (biodiversity).
The UK Transport Decarbonization Plan (2020) sets out clear
policies to tackle transport emissions and includes ensuring that
goods will be delivered through an integrated, efficient and
sustainable delivery system.
These are the first steps, however, they are the steps leading to a
fundamental change relevant for every country. We hope these
actions will serve as great examples for other countries to follow.

As the world moves towards implementation of the Paris
Agreement, it is clear that strong policy will be a catalyst for
private sector ambition. I believe that only behavior change can
help to reach better optimisation and efficiency that will support
the environment sector.

20

2050net-zero emissions

I believe that transition to
electric energy is stepping
stone on the way to
achieving net-zero freight
emissions.

21

BLOCKCHAIN

IN THE LOGISTICS INDUSTRY

Logistics is an important part of the supply chain process and
transportation management within. A report from the Envision
Intelligence agency notes that the global freight and logistics
market will reach $19.36 trillion by 2024. While this appears to be
a very lucrative industry, many companies are missing out on a
significant percentage of their profits due to unnecessary costs,
ineffective practices, theft and cyber-attacks. Stolen,
mis-shipped and/or mislabeled shipments alone account for
about $50 billion in damages annually.

22

Why blockchain?

According to the World

Economic Forum, blockchain

integration can help remove

supply chain barriers and

increase logistics companies’

revenue by about 15%. Using

blockchain technology allows

businesses to save time and

money through the use of

proven smart contracts that

automate the entire

purchasing/procurement

process. By eliminating

inaccuracies and fraud,

blockchain can increase the

transparency and efficiency of

the supply chain and eliminate

paperwork. In addition,

blockchain can significantly

improve supply chain

management and transactions

can be carried out in a secure

manner. Giants such as Unilever,

Amazon, Walmart, Nestlé,

Alibaba are already using

blockchain in their logistics and

supply chains.

23

LET'S LOOK AT 6 WAYS

BLOCKCHAIN CAN BE USED FOR
IMPROVING LOGISTICS PROCESSES:

1 Efficiency

Blockchain has the potential to dramatically improve shipping
and freight procedures. Logistics companies can use
blockchain for enhancing global delivery processes, through
efficient tracking, and for increasing productivity.
Due to the competitive nature of the logistics industry, its
structure can be fragmented resulting in low levels of
transparency. By eliminating bureaucracy in administrative
processes, blockchain can replace paperwork through an
automated system. This will lead to improvement in the
efficiency of global commerce. A solution is provided for
monitoring the lifecycle of a product from origin to shelf, while
facilitating all changes in ownership between manufacturers,
retailers and buyers.

24

2 Security

Current security technology systems are centralized;
therefore, an attacker could have full control over them as
soon as they gain access. They could theoretically change or
erase any information stored in the system.

In blockchain networks, there is no central authority over the
entire system. Compared to other available solutions,
blockchain improves security due to the fact that a third party
is not able to modify the information stored in the chain.

3 Transparency

Using blockchain enhances transparency and security. The
technology allows companies to effectively track and record
everything - what was changed, why, who made the change,
and when. Since all stakeholders in the chain have the same
version of the blocks (ledger), there is no dispute regarding
transactions. This allows for a more efficient process.

After an order is completed and digital contracts are signed, all
data will be reflected in the public ledger. It is stored along with
information about who created the transaction and when. It is
extremely difficult to tamper with this information and
companies that have access to the ledger (registry) can track
items in real time.

25

4 Tracking assets and managing inventory in real time

Blockchain can be combined with the Internet of Things (IoT)
and mobile technologies to develop real-time delivery
monitoring systems. Tracking no longer needs to be done
manually; it can be done using digital sensors that track goods
throughout the supply chain from start to finish. By using
blockchain and the IoT, logistics companies can shorten
delivery times, make the logistics process transparent and
closely monitor the goods they deliver.
Organizations can maintain accurate and up-to-date
inventories using small sensors attached to products or
objects. These smart inventories can provide useful data
about items, past locations, storage times at the facility, and
more.
Thorough inventory auditing can be simplified with IoT
sensors, reducing the likelihood of product loss, improper
storage, or other issues that could impact overall revenue.

26

5 Smart contracts

A smart contract is a blockchain-based solution that
automates the legal binding of agreements in the supply
chain. Smart contracts allow companies to track the stages of
the logistics process and enforce pre-agreed transaction
rules, reducing the risk that the other party will not fulfill the
agreement.

This is especially effective in allowing smaller and less
established companies with no pre-existing standing or
references, such as startups, to join the supply chain sector
there can be supply chains in every sector. Thanks to the
transparency Blockchain provides, smart contracts can start
to alleviate this problem.

5 Monitoring perfomance history

With Blockchain the history of carriers and suppliers can be
tracked. Moreover, companies can check the performance of
individual vehicles in the fleet and record past performance of
specific carriers, including on-time pickups, on-time
deliveries, etc.

This access to history enables one to make more informed
decisions and thereby improve supply chain management and
operations. By relying on valuable data, businesses can design
faster routes and remove unnecessary steps in the shipping
process.

27

Conclusion

The logistics industry is huge and complex. Controlling the
distribution of goods at different levels can be extremely
difficult as the supply chain can go through many stages and
geographic locations. In addition, this sector includes many
documents and invoices, and if even one sheet of paper is
missing, the delivery of the product may be delayed.

The logistics industry, including cargo companies, aims to
achieve maximum transparency for the flow of goods in
delivery processes. Blockchain technology has the potential to
completely transform the industry. Successful supply chain
management links processes within and between companies,
giving them a competitive advantage.

Combined with new technologies such as the Internet of
Things, Big Data and Artificial Intelligence, Blockchain
provides an important next step for ensuring transparency in
transactions, reducing costs and providing valid route
information. Adoption of blockchain will enhance connectivity
and promote a stable foundation for a sharing economy that
ultimately unlocks new value in logistics.

Bitcoin

is a technological

tour de force

Bill Gates

28

29

AIR FREIGHT SERVICE CONNECTIONS
WITH THE ROAD TRANSPORT SECTOR

30

The modern logistics

industry is like a circulatory
system. We don't regard an
optimization process as
separate from a business, rather
as a combination of the different
streams of money, people,
goods and services. Today, we
live in a world that has adopted
the notion of delivering goods
when and where a client wishes.

The air cargo sector is an
integral part of the logistics
industry. From pick-up to
delivery, the air shipping
process is quite straightforward.
It can begin with a private
individual or a major
manufacturer with any product
they wish to ship. Shippers
(person or company supplying
the goods that are shipped)
have the option of taking an
item directly to a carrier or of
using third-party logistics
providers (usually a freight
forwarder) to find the best
shipping possibilities and to
ensure that all the
arrangements are made.

31

Air transportation is a critical There are several ways in which
part of operating an efficient goods can be shipped. Air cargo
supply chain, both domestically carriers provide various services
and internationally. When a according to customer demand.
company prioritizes speed Integrated express carriers such
without delay (compared with as FedEx, UPS and DHL operate
shipping by sea), the primary a large fleet of scheduled
transport option is air shipping. aircraft, trucks and couriers for
For example, medical and door-to-door service. However,
agricultural cargo must be it should be noted that their
shipped rapidly and efficiently. system caters to only a minor
part of the air freight market.
Airfreight transportation is a
Most international shipping is
complex process that can consolidated, a method that
combines several different LTL
involve much paperwork. There (less than load) shipments from
various shippers into a single full
is no room for mistakes that container. A freight forwarder
also may choose to ship
could cause long delays, as well products individually and
immediately whenever an order
as huge financial costs. A comes through, though
consolidated shipping is the
pertinent example can be seen most cost-efficient. Domestic
shipments are typically
from the past year of COVID-19 unloaded at the destination
airport and are then picked up
during which air freight and delivered to the consignee
by truck.
transport was essential for the

pharmaceutical companies.

They had to ensure

temperature-sensitive

immunizations could be

delivered worldwide in a safe

and swift manner.

32

Regarding international shipments, we need to add a few players
(as opposed to domestic):

CUSTOMS OFFICIALS (inspect shipments in the

destination country);

CUSTOMS BROKER (or IMPORTER, work with government

agencies to clear cargo for entry into a country);

CONSIGNEE (a buyer who receives the shipment after it is

cleared to enter a country, before shipments are separated for
individual customers/consignees and delivered by truck).

31

How does air freight work today?
In the simple model, the movement of cargo from A to B by air
includes a few steps:

Identify the location of the cargo (factory, warehouse);
Contact a forwarder/supplier - a trucking company to deliver
shipment to the airport warehouse;
Learn the transport approach inside the airport area, in
accordance with local security requirements (may be carried out
by airport vehicles);
Complete customs clearance process for international
delivery;
Load onto aircraft;
Prepare for transport of goods to airport warehouse;
Pick-up by forwarder and deliver in trucks to the final
destination.

32

Sounds easy? Maybe, however, this process has many pitfalls. A
typical route is divided into 4 main parts:
1. Transfer cargo by truck from a warehouse to the airport
terminal warehouse
2. Airport vehicles take the goods from the warehouse to the
airplane
3. After landing, goods are transferred from the airport to the
terminal warehouse at the new location
4. The goods are transported by truck to the final destination.

Security restrictions exist in all airports to prevent dangerous
goods from entering aircraft. Every shipping company should be
aware of the regulations that apply for x-ray machine security
screenings in an airport. "Known cargo" refers to a consignment
for which the appropriate security controls have been applied;
Known Consignors are those people who must maintain a high
level of security to ensure cargo is safe to load on to an aircraft.
After a shipment has cleared customs, the cargo is then further
transported to the aircraft.

A significant effect of the COVID-19 pandemic was that many
companies were forced to think about and adapt new ways to
transfer goods across the world. The crisis highlighted the air
cargo sector and the urgent need for sustainable digital
adaptation, in order to establish collaborative business models.

33