Digital Logistics with 20x Sales Growth... Expanding Services as the Next Hotspot

[Solution Report] Their Startup and Future ⑤ Park Jungyu, CEO of Logispot
Expanding Services with B2B Quick Service... "15 Billion KRW Sales Target Within 2 Years"

CEO Park Jun-gyu

"We plan to grow our sales to around 150 billion KRW within the next 1 to 2 years and then consider expanding overseas." Park Jun-gyu, CEO of Logispot, envisions expanding beyond the domestic freight transportation market after establishing a solid foundation. The ambitious goals of reaching 150 billion KRW in sales and entering international markets, set by a startup founded in 2016, may seem hard to believe, but Logispot is steadily moving toward them. Starting with sales of 2 billion KRW in its first year, last year's sales jumped to 18 billion KRW, and this year they expect to reach between 40 and 50 billion KRW. The rapid 20-fold increase in sales over four years is rooted in the 'digitalization' of freight transportation.

On the 20th, CEO Park told Asia Economy in an interview, "Logispot has continuously expanded its service scope as a player solving issues in a market that was not digitalized." Logispot is a company that provides inland transportation services to various businesses based on IT technology, its own integrated digital freight transportation platform, and specialized operational personnel. Although the existing inland transportation market was worth 27 trillion KRW, its efficiency was low. Dispatching was mainly done via phone calls or text messages, and it was difficult to track who was coming and when. Logispot digitalized these processes, enabling dispatching, transportation management, and settlement tasks, which were previously handled by phone and manual work, to be conveniently accessed through a mobile app and PC-integrated transportation management solution. Related departments can also view logistics status at a glance.

Through this, Logispot explains that phone call volume has been reduced by up to 75%, closing times by up to 90%, and 60% of customers have experienced logistics cost savings through efficient operations and transportation cost optimization. CEO Park said, "Even if branches scattered nationwide use freight transportation separately, it can be managed all at once, greatly reducing unnecessary communication and simple repetitive tasks," adding, "It has also become possible to improve productivity and efficiency by utilizing digitalized related data."

Logispot's services reflect CEO Park's experience. A graduate of the London School of Economics in the UK, he learned about the needs of the freight transportation market while working in the overseas business division of Bodyfriend, a massage chair company. The market was fragmented to the extent that over 10,000 small-scale service providers were competing fiercely. CEO Park explained, "I believed that consolidation and scaling up would occur in this market, with digital technology centered on improving productivity." He co-founded the company with Park Jae-yong, a fellow alumnus, based on the business model of digitalizing freight transportation, and took the first step into the market by acquiring International Logis, which had annual sales of 2 billion KRW, through angel investment. His vision proved correct, and Logispot has rapidly grown to operate a network of over 100,000 freight vehicles and serve more than 450 corporate clients, including Hanssem Apex, Nexen Tire, and Sungji Steel.

Recently, Logispot has expanded its service range by launching 'Barounsong,' a B2B quick service based on its digital logistics platform and operational know-how. This aims to address issues in quick services, where price competition among carriers has led to quality degradation and opaque additional costs. Barounsong allows quick service requests anytime and anywhere via web and app, completing dispatch quickly with simple information input, and enables users to check all statuses from order receipt to delivery completion. Dispatch details for users, departments, and regional branches within a company are all recorded in one channel for integrated management. CEO Park said, "Quick services cost large corporate clients hundreds of millions of KRW annually, but management was not well handled," adding, "I thought we could reduce costs while improving quality."

Logispot's logistics innovation based on digital technology is ongoing. Following freight transportation and quick services, Logispot is also pursuing acquisitions for warehouse business. It secured 1.9 billion KRW in investments in 2018 from Kakao Ventures, SparkLabs, and others, and raised 10 billion KRW last year through investments led by Alpenroute Asset Management, securing financial resources. CEO Park emphasized, "Our goal is to incorporate various forms of logistics services into a tech platform."