Nexcade, a burgeoning AI automation firm based in London, is stepping into the spotlight with an injection of $2.5 million in pre-seed funding. The round was spearheaded by Connect Ventures and complemented by MMC Ventures, Entropy Industrial Capital, Inovia, and notable angels Charlie Songhurst and Keith Wallington. Geared towards revolutionizing the logistics sector, Nexcade’s aim is to cut down on manual processes traditionally dominating the freight forwarding industry.
AI in logistics has shown varied trajectories over time, often struggling against the intricacies of unstructured communication. Many systems have historically faltered due to inconsistent data inputs or inability to handle exceptions crucial in freight operations. Nexcade, with its AI framework, wants to be distinct by effectively streamlining processes that historically impeded digital transformation efforts in logistics.
How does Nexcade address the logistics challenge?
Nexcade’s AI endeavors to assist freight forwarding by automating labor-intensive tasks such as pricing and quoting. By extracting data from scattered communications outside the Transportation Management System (TMS), Nexcade converts this data into more manageable and automated workflows. This approach is hoped to improve rate management and enhance data visibility.
What makes Nexcade’s AI unique in freight forwarding?
The uniqueness of Nexcade’s AI lies in its ability to handle the frequent exceptions and inconsistent datasets typical in the logistics sector. By translating unregulated information from various sources into structured formats, it allows for a fluid integration into digital workflows. Consequently, this helps in reducing response times from several days to mere minutes, aiming to move logistics teams from mere reactive to proactive roles.
The challenge with existing systems was eloquently framed by Nexcade’s CEO and co-founder Dan Bailey, who highlighted the gap between logistics data and its entry into TMS systems. The void results in significant revenue leaks and degraded service quality. According to Bailey:
“Bridging that gap is the only way to unlock real automation and enable the revenue growth and operational resilience forwarders need in today’s market.”
Nexcade’s strategic path forward is ambitious. The company looks to expand its customer base significantly over the next year while tightening collaborations with key forwarders. This effort aims to drastically transform commercial workflows as adoption accelerates, promising more efficient freight forwarding processes.
Freight forwarders face mounting pressures as freight rates continue to squeeze margins, with some seeing revenues halved compared to previous periods. Automation through AI, now capable of mastering intricate natural language nuances, is being positioned as a vital solution. Economic pressures combined with technological capability have aligned to create a critical opportunity for change.
Nexcade’s automation endeavors resonate well with a logistics industry under strain from both reduced profitability and the demands for seamless workflow integration. With the right strategies and collaboration, their aspiration to redefine logistics processes is grounded in addressing longstanding challenges in the freight forwarding domain.
