Choosing the Right Digital Partner: A Cautionary Tale of project44

Over the last few years, there as been a lot of hype about digitization in the logistics industry. But there are large risks involved with this process. The most important decision is selecting the right digital partner. If the digital partner runs into financial trouble, all the work you put into adopting the platform into your business could go to waste.

An example is p44, which provides “real-time supply chain visibility that goes beyond shipment tracking to provide reliable insights to save you team time and money.” Since launching in 2014, the company has raised nearly $900 million in investments. But over the last 12 months, they have had to lay off close to 18% of their staff amidst “increased market volatility”. This seems to be an example of overspending on marketing, acquisitions, and expansions, while offering a weak product.

When selecting a digital partner to work with, it’s important to calculate the return-on-investment (ROI), which is both the time and money required to implement the solution and also the actual benefit to your business, your staff, and your customers. It is also critical to thoroughly evaluate the long-term viability of the digital partner.

Sources:
1. When did Leaders Stop Owning Their Failures? A project44 story. Anthony’s attempts at Wiser (Log)Tech, May 29, 2023. Accessed June 8, 2023.