TimAnn-logistics investor summary
1. The Problem.
The global economy suffers gigantic losses (> € 250 B / year) resulting from the inability of (global) transport & logistics providers to provide shippers with a seamless, global, neutral (= transport provider independent), affordable, real-time, door-to-door, shipment tracking and alert system.
One reason for this absence can be found in the high fragmentation of the transport provider land-scape. A landscape in with the incumbent players, at best, have a regional coverage and/or a focus on only one transport mode. This market structure also implies that a global shipper has to engage with multiple transport providers in parallel in order to fulfill his global transportation needs. In addition, the contracted transport providers often have to collaborate with their ‘colleagues’ in other regions (by handing over shipments to them) in order to deliver shipments from the shipper to the consignee.
This provider patchwork, in combination with an absent global “tracking and alert” (data) standard, make it practically impossible for shippers to obtain a seamless and reliable (real-time) shipment status for their en-route shipments. If tracking data is provided by a transport provider, it is often provided through a proprietary system which, due the lacking global standard, does not integrate seamlessly with the data provided by other providers. This implies that shippers who want to construct a holistic picture of their shipments’ progress have to collect their data from all of their service providers individually, translate this data into a meaningful format and subsequently collate this data into an interpretable message. This process is so time intensive and error prone that the associated cost quickly outweighs the achievable benefits. And above all, the required processing time completely eliminates the possibility to respond, in real time, to unforeseen events.
The absence of reliable, consistent and accurate tracking data therefore makes the transport process into a black-box to the shipper. The consequential inability to digitally track shipments also means that a shipper cannot detect process inefficiencies in his shipping process or engage in real-time electronic supply chain integration beyond the boundaries of his own enterprise. In a rapidly digitizing economy, this is a huge innovation roadblock!
Past attempts by players in the transportation industry to create and implement global IT systems and standards have failed as they immediately led to a deterioration of an already low profitability within the transport sector. This profitability decline is in part caused by the reduced opportunity, on the part of the transport provider, to optimize their own operational efficiency.
2. The Solution.
Learnings from past attempts to break the above mentioned deadlock show that any new shipment-tracking concept shall be simple to implement, shall show immediate results, shall not impact existing (collaboration) structures or processes, shall be neutral to any transport provider and shall allow a shipper the flexibility to self-select the shipments/lanes he wants to control.
By combining the latest innovations in data processing and analytical techniques, with state-of-the-art tagging, communication, database, IoT and packaging technology,
3. Market Size.
The global transport business is a multi-trillion USD market. To this come the cost of operational inefficiencies caused by the fact that shippers cannot leverage the benefits of the digital economy. The latter is the result of the fact that the full strength of supply chain planning systems -S&OP / MRP- cannot be exploited due to the lack of current and reliable data.
Our addressable market is so large that we feel that aiming for complete market dominance is neither realistic nor desirable. What is achievable, and therefore our goal, is to
These four market segments have a combined transport volume of well over $ 100 B annually with a combined consignment value reaching well over 2 Trillion USD annually.
4. Business Model
Our mantra consists of seven basic guidelines:
Market entry and market protection.
TimAnn-logistics will enter the market with a recognizable and unique product. All efforts and actions will be aimed at locking-in the customer by making him addicted to the value created by consuming our services and so sharply increase his exit-barrier.
Upon our successful market entry or in case a competitor attempts to enter into our target market, we will (immediately) start horizontal and vertical diversifications. Our plans are ready to be implemented. Once sufficient shipment and tracking data has been collected, we will start the delivery of a series of data-as-a-service and physical transportation (support) offerings. This will further diversify our product offering and make us less vulnerable to market changes.
TimAnn-logistics’ pricing strategy.
We want low entry barriers for our customers. Customers shall not be scared off by (large) capital investments or lengthy, complex implementation projects. In addition all processes will allow maximum usage flexibility.
We will base our revenue streams on a number of subscription based service offerings. These will be strategically priced and strive to quickly addict the customer to the data provided. The latter will ensure long term revenue stability and increase the exit barriers
Alternative pricing scheme during product launch.
As an alternative to the subscription based pricing schema, we will offer selected customers with a no-cure no-pay service offering. Aimed at taking the entire investment risk away from the customer, this model will be time restricted and will only be allowed for customers who are willing to disclose a verifiable baseline.
This schema will be based upon a fixed success fee for any realized damage reduction and will require the following mandatory parameters:
Infrastructure tags (rented) (500 € /mts, 10 shipments/mts)
Tracking tag cost (basic fee)
Subscription fee (250 € /mts, 10 shipments/mts)
Success bonus of 25% (of 10% of 25.000 €)
Total invoiced cost per shipment
No pay no cure gross profit per shipment
150 € / 167%
Benefit for the customer (per shipment)
5. Proprietary Technology
TimAnn-logistics has made binding supply and IP-agreements with its tag suppliers. This will protect our tag configuration and communication protocols and guarantee long term tag availability. The parties are currently exploring the possibility to engage in a joint venture in order to further strengthen long-term, mutually beneficial business partnerships.
Our IT-backbone and integrated analytical algorithms are our core asset. They will be strictly guarded as a business secret. To reduce the risk for disfiguration (of any kind) of our database and IT-backbone, we will only allow TimAnn-Logistics’ tags and our proprietary apps to communicate with our back-end systems. No concessions will be allowed. (Also see Chapter 11, IoT and Data Security).
Like Uber and Airbnb, TimAnn-logistics will launch a brand new product into a very antiquated market. Being the first to market will allow us to position our concept as the de facto market standard. We will fight to protect this standard and try to obtain and subsequently maintain a healthy market share in our target markets.
As the addressable market is huge, any other players entering the market are welcome as long as they do not threaten our technical standard or compete in our designated markets. The key competitors identified to date are listed below. We see none of these as being an existential threat to our plans.
7. Sales and Marketing plan
The feedback from our pitches to and engagements with customers and potential partners during the design phase, convince us that we have an excellent product for a market that is eagerly awaiting its arrival. This makes us confident that our launch will require only a limited marketing effort.
We will try to quickly acquire one / several blue chip customer(s). In return for their approval for us to use their brand for marketing purposes (press releases, success stories, joint presentations at logistics conferences) we will provide them with time restricted, discounted infrastructure installation and subscription rates.
Following a successful market entry, we will focus on organic growth. This will allow us to increase our revenue stream but also fine-tune all technical and organizational systems under live conditions. Following quality conformation, we will aggressively scale up in order to maximize our market share in our earmarked markets and capture any low-hanging fruit in the rest of the global market. Prime sales channels will be direct customer contact, industry trade shows and strategic marketing.
Once our customer base if firmly established and structural growth is achieved, we will vertically expand our service offering. If unexpected competition becomes visible in our target markets or when customer data addiction occurs faster than expected, these expansion plans will be accelerated. The necessary plans are ready for execution.
TimAnn-logistics will organize itself along the “Exponential Organizations” organizational theory. We will stay small and lean using self-empowered cells. We will be assertive, flexible, innovative and as virtual as possible. We will strictly adhere to the cloud-philosophy and capitalize on the learnings gathered from leading innovators like Airbnb, Uber, Google, IKEA or Amazon.
Our organization will be structured around 4 pillars.
We have identified the candidates to serve as pillar-heads. In a few cases pre-contracts have been agreed.
In parallel to the market entry strategy as defined in chapter 7 “Sales and Marketing plan“ we plan to quickly acquire a leading air and sea carrier as well as a leading forwarder as customer and partner. We envision that, through these partnerships, we will gain access to industry knowledge. We will also strive to use these partnerships to jointly explore joint innovative business opportunities, leverage their sales channels and to install tag-infrastructure in strategically located facilities of these partners. These tagged infrastructures will enhance the tracking quality of all shipments passing through these facilities but more importantly, we will also use these sites as data tracking-hubs.
Please refer to the investor section for detai
11. IoT and Data Security
Our reputation and our database are our largest and most valuable assets. Our customers must have complete trust in our ability to protect any sensitive data entrusted to us.
Our system architecture will ensure that any accidental or deliberate attacks on the stability or responsiveness of our systems can both be easily detected as well as effectively countered without endangering the operational performance or our systems or their integrity. As an additional line of defense we will only allow TimAnn-logistics provided apps or tags to provide data to or access data residing in our systems. No concessions will be allowed.
For reasons of security we do not provide any further details.
we hope that this overview provides you with a good understanding of our vision, intensions and strategy. We look forward to welcome you as a TimAnn-logistics investor, customer or partner!
If you do have any questions or suggestions please do not hesitate to contact me
ing. Marc van Dongen MBA
Founder of TimAnn-Holding bv
 “Exponential Organizations” by Salim Ismail c.s. October 2014.(ISBN 978-1-62681-423-3)
 50% reduction of current damage volume (10% of each 15.000€ Shipment) = 50% x 10% x 15.000 = 750 €
Gross savings (750€) -/- handling fee (375 €) = Net saving per shipment: 750 € - 375 € = 375 €
TimAnn-logistics risk premium 67% (375 € vs 225 € per shipment)
 See chapter 3. Market Size