Envíoclick is Automating Latin America’s LogisticsBy Alfonso Núñez | Mon, 01/24/2022 - 12:57
Q: What drove the company’s launch and how did you attract investment from Innohub Venture Builder and Startup Olé?
A: Two women four years ago founded the company. We worked for one of the largest e-commerce partners in Latin America and recognized that e-commerce could not grow without efficient logistics. Companies were not taking advantage of data and technological advances in the industry and were losing competitiveness as a result. Later, Innohub became interested in logistics and became our partner. We were lucky to start with investment support and a group of partners who had experience launching companies.
We knew our technology was going to make a difference. By collecting industry data and using AI to optimize packaging, we create an experience similar to Amazon Prime’s and guaranteeing 99.9 percent efficiency on deliveries. We are a technological and data company, which is our competitive advantage in Latin America.
Envíoclick connects with logistics and delivery companies for last-mile logistics. Latin America has one of the world’s largest entrepreneurial ecosystems, but many subindustries have not embraced technology, such as the logistics sector. Our vision is to generate cutting-edge technology so companies in the region can compete in a globalized world.
Q: What factors help you determine if a client should use Envíoclick Pro or Envíoclick Advance?
A: The decision to use Envíoclick Pro or Advance is based on a company’s volume and technological maturity. Pro is a basic but complete platform that handles up to 2 million monthly shipments. In Latin America, most logistics companies work only with large companies that have robust financial muscle. The remaining 85 percent of companies have to work with commercial prices, even though they are making thousands of deliveries a month.
Envíoclick Advance can be used by large companies and even giant retailers that might have their own systems but use software in their internal operations to increase efficiency.
Q: How did Envíoclick adapt to the market’s changing expectations for delivery processes caused by the pandemic?
A: The pandemic accelerated the industry’s education. The market was 15 years behind, so we had to educate companies on the impact of failing to adapt. As Envíoclick was founded two years before the pandemic, it was ready for this change in the industry but we were not prepared for its exponential growth. Before the pandemic, we were growing 50-100 percent each month. Now, we are growing 300-500 percent monthly. The platform is now sufficiently robust to manage this growth, but some customers need direct attention. The number of packages that did not arrive or are damaged has increased from 1,000 to 15,000 per month, requiring a larger team to manage that.
Q: What are your expansion plans and how has the pandemic affected those plans?
A: The pandemic changed perspectives. Before the pandemic, we had decided to expand to Colombia first and then throughout Latin America quickly thereafter. But the pandemic put a freeze on capital deployment. We also saw massive growth in Colombia and Mexico, so we changed our plans to become a better business by focusing on these two economies, the two largest in Latin America after Brazil. Each country has different fiscal regulations, laws and operations to adapt to. We will continue expanding but for the next year and a half to two years, we will remain where we are and open in new countries when we are in a more robust position.
Q: What role does AI play in your logistics services?
A: AI is a broad field. Our technology is mostly based on machine learning, making decisions as it receives information. No logistics company knows it is saturated until its trucks are packed with thousands of products and unable to accommodate more. Only then will they tell managers to act, which can take days. Meanwhile, clients are still generating products. Envíoclick tracks delivery times for all packages. We are immediately aware of delays and can inform clients in real time.
The industry wants to adapt but despite AI being available for years, there are less than four logistics companies in Latin America using it. That will change in the next couple of years.
Q: What awaits Envíoclick throughout 2022?
A: Our technology can be replicated in other parts of the logistics process to increase efficiency. The next step is fast-food logistics, which might be launched in 2022. We are also creating half-mile intelligence technology. Also, we have developed technology to help delivery companies comply with a new regulation introduced by SAT. In 2022, we want to become the type of company that incorporates intelligent software at all possible logistics points.