ClearMetal, the company that provides AI solutions to the logistics industry, recently received $9 million in funding. The logistics industry is riddled with time-intensive, labyrinthine processes that are managed using inept and inefficient legacy digital solutions. ClearMetal offers new age, AI-based solutions to manufacturers and retailers. These solutions can potentially save ClearMetal’s clients millions of dollars depending on the size of its logistics operations.
ClearMetal CEO and co-founder, Adam Compain, says the technology they offer is a quantum leap to what logistics industry uses currently. He says it’s like using a smartphone to someone who doesn’t know anything beyond a regular flip phone. In short, ClearMetal’s AI-based solution has a lot more to offer its clients.
The $9 million funding for San Francisco-based ClearMetal is in addition to $3 million seed funding it garnered in February 2016. The total funding to date is $12 million. Prelude Ventures and Innovation Endeavors are behind this latest investment in the company. NEA, SAP.io, PSA Unboxed, DCLI and John Urban also participated in the round.
How AI in Logistics Help Companies
Goods worth trillions of dollars move all across the globe each year. The business of moving goods around runs into billions of dollars. Companies can save lots of money spent on logistics, says Compain. A lot of bloated logistics cost reason around improper tracking of goods. Even worse, improper tracking results in companies investing in backup arrangements for the delivery of goods. To ensure that it has proper stock of goods at a large sale, for example, a company would typically order more than one shipment. Even if a shipment isn’t on time, it hopes to compensate that with other backup shipments. If somehow, everything arrives on-time, it has to bear the costs of excess inventory. So, retailers are always in a dilemma regarding how much to order and when to order. That, obviously, results in wasted capital, one way or other.
CleartMetal’s AI offering is basically built on SaaS platform that standardizes data and provides comprehensive visibility with drill-down capabilities. Using ClearMetal technology, companies are always on top of correctly tracking their shipments. Further, they can see the likely time of delivery, which helps them manage their inventories and plan their deliveries better.
AI in Logistics goes far beyond in terms of benefits it offers. Based on tons of data and parameters that it takes into cognizance, the AI technology also advises companies on which freight carriers and transporters to choose. Clearly, for companies, the benefits are impressive and far-reaching.