Raft & Eight Roads - NOAH24 London

Summary

James, CEO of Raft, discusses his company’s innovative approach to automating the freight forwarding industry, a $200 billion sector that has historically relied on outdated tools like Microsoft Office. Raft’s AI-powered logistics platform optimizes data, automates workflows, and aims to transform this complex industry. Despite the challenges of slow technology adoption in logistics, James believes that Raft's model will become the standard within the next three to five years. The conversation explores how Raft is tackling the industry’s complexities and its future potential in adjacent sectors.

Takeaways

• 😀 Raft is revolutionizing the freight forwarding industry with AI, making it more efficient and automated.
• 😀 Freight forwarding is a $200 billion industry that is typically overlooked, but it plays a critical role in global trade.
• 😀 Raft's platform is designed to optimize freight data and processes, providing a centralized system to manage all logistics operations.
• 😀 AI is already impacting freight forwarding, automating workflows, processing complex data, and improving efficiency.
• 😀 Despite the industry's slow adoption of technology, AI and automation are essential to solving its complexities and inefficiencies.
• 😀 The freight forwarding industry heavily relies on outdated tools like Microsoft Office products, creating opportunities for technological improvements.
• 😀 Raft's AI-powered system touches around 5 million shipments per year and has reconciled approximately $1 billion worth of invoices.
• 😀 The company is already the largest AI-powered operating system for freight forwarding, showing its potential for widespread impact.
• 😀 James, the CEO of Raft, did not grow up in the freight forwarding industry but has leveraged his background in commodities and trade finance to address its challenges.
• 😀 Raft's business model focuses on gradual, incremental change, working with existing systems to facilitate adoption in a traditionally slow-to-adopt industry.
• 😀 Raft's ultimate vision is to expand its technology beyond freight forwarding into other adjacent industries once it fully masters this space.

Q & A

What is Raft and what problem does it aim to solve in the freight forwarding industry?

Raft is an intelligent logistics platform designed to automate freight forwarding. It helps freight forwarders organize, centralize, and optimize freight data and processes, addressing the inefficiencies and complexity of the industry by maximizing automation and integrating with existing technologies used by freight forwarders.

How large is the freight forwarding industry, and why is it important?

The freight forwarding industry is a $200 billion industry and is critical for global trade as it helps move goods from the point of production to the point of purchase. Despite its size, it remains largely inefficient, providing a significant opportunity for technological innovation and optimization.

What challenges does the freight forwarding industry face in adopting new technology?

The freight forwarding industry has been slow to adopt new technologies due to its reliance on legacy systems and tools, such as Microsoft Outlook, Word, and Excel. The industry is highly complex and traditionally resistant to change, requiring incremental adjustments rather than complete overhauls.

How does Raft integrate with existing tools in the freight forwarding industry?

Raft works with the tools that freight forwarders already use, such as email and legacy software, to incrementally introduce automation. This approach allows Raft to deliver value without requiring companies to fully abandon their current systems, making the transition to AI-powered solutions smoother and more manageable.

What role does artificial intelligence (AI) play in Raft’s platform?

AI powers Raft’s platform by enabling the automation of data processing and workflow management. It helps freight forwarders handle complex data, optimize their operations, and reduce the human effort required in managing logistics, making the process faster and more efficient.

What is the scale of Raft’s impact on the freight forwarding industry so far?

Raft currently touches around 5 million shipments annually and has reconciled over $1 billion in invoices through its platform. This positions Raft as the world's largest AI-powered operating system for the freight forwarding industry.

What does James say about the future of AI in the freight forwarding industry?

James believes that within 3 to 5 years, every freight forwarder will be using AI to run their business. While adoption is slow at the moment, he is confident that AI-driven platforms like Raft will become integral to freight forwarding operations as the industry continues to evolve.

Why did James decide to focus on the freight forwarding industry despite not having a background in it?

James came from a background in commodities, finance, and trade, which gave him a top-down view of the logistics and trade sector. He found freight forwarding to be a vast, complex industry with significant potential for improvement, and he saw an opportunity to leverage AI to address these complexities.

What is Raft’s long-term vision in terms of expanding beyond freight forwarding?

While Raft is currently focused on freight forwarding, James envisions the possibility of applying the lessons learned from this sector to adjacent industries in the future. However, given the size and complexity of freight forwarding, Raft plans to continue deepening its expertise in this area for the foreseeable future.

What is the key to successfully introducing new technology to the freight forwarding industry?

The key to successful adoption of new technology in freight forwarding is incremental change and effective change management. Raft focuses on working with existing systems, building trust with customers, and securing Champions within the industry to drive adoption. It's crucial to be patient and take the time to ensure customers are comfortable with the new technology.