CartonCloud is an excellent example of how being innovative and harnessing an entrepreneurial mindset can turn any challenge into opportunity.
The SME-focused, third party logistics (3PL) warehouse and transport management system was developed out of necessity by co-founders Vincent Fletcher and Nic Comrie, after they “misguidedly” purchased a faltering refrigerated transport and warehousing business in 2012 and very quickly had to find a way to turn it around.
“SME logistics providers typically have very manual and paper-based processes which are admin heavy and repetitive,” says Vincent.
They found their key obstacles were revenue leakage and delays in invoicing, paper POD's (Proof of deliveries) getting lost, and extremely high admin/operation costs associated with the manual processing of everything.
So when they couldn’t find any existing software that was suitable to automate many of these processes - especially around automated job import, electronic POD capture and automated invoicing - they decided to solve the problem themselves.
“To overcome this, we built a cloud-based transport and warehouse management system, allowing us to reduce administration, reduce paperwork, improve cash flow and reduce our time spent at-work,” he says.
Their solution was so successful that they sold the logistics business and instead focused on expanding and developing their software solution for other businesses instead.
“We've been selling CartonCloud since 2015, with all of our development is done in-house at our Burleigh Heads offices,” Vincent says.
“In January we kicked off working with DHL in Southeast Asia, in May we cracked 100 customers, and our growth is accelerating. In the last 18 months we've grown from seven staff to 23.”
Vincent says they now have ambitions to grow to 33 staff by July 2019 - plus many other big plans for CartonCloud.
“We're putting a huge push on both R&D and sales. We're actively growing our addressable market through functionality expansion, and growing sales both domestically and internationally.
“Our target is to triple annual recurring revenue (ARR) in the 2018-2019 financial year.”
CartonCloud was one of the recipients of Ignite Ideas Round 3, landing the $250,000 grant to assist with their project. Also between 2017 and 2018 they received the Knowledge Transfer Partnership Grant ($40,000), allowing them to bring on a university graduate to work on a route optimisation tool.
He says the Ignite Ideas funding experience was an all-round “positive experience”.
“The most complex part of any transport management system is the rating engine, because people in transport charge for things in extremely different ways.
“Ignite Ideas allowed us to double-down on rebuilding our charging engine from the ground up, and as a result we’ll soon offer the most flexible and powerful transport rating tool available.”