What Is dKargo (DKA)?
The logistics industry serves as the veins of the economy. The industry is poised to grow enormously to reach USD 15.5 trillion by 2024. At the same time, the industry is facing transformational change; the rapid growth of the e-commerce market, the transition from business-to-business (B2B) to business-to-consumer (B2C) and consumer-to-consumer (C2C), and the expansion of cross-border trade.
dKargo With such changes in the market, customers now have a higher expectation for more cost-effective, flexible and faster logistics services. Moreover, existing services focused on storage and delivery transportation must go beyond to meet the growing demand for a wider variety of services. Nevertheless, incumbents are stuck in the old ways, competing against each other and are failing to improve services to meet their customer demands.
dKargo Storage Key Points
|Circulating Supply||1.02B DKA|
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|Official Project Website||Click Here To Visit Project Website|
Incumbents failed to meet the needs of flexible services
Despite the growing demand for more flexible and efficient logistics services, many logistics companies are struggling to keep pace with rapidly changing customer demands. Customers are now looking for local, real-time, and personalized deliveries. However, the market currently relies on the hub-and-spoke model where individual shipments are hauled from regional warehouses to a central shipping hub where they are sorted and bundled.
dKargo Under this model, it is difficult to meet customer demands. Inflexible logistics services can trigger other challenges in different business environments. For example, logistics service providers in rural areas have less freight traffic and are likely to deliver one or two goods to the delivery destination. On the other hand, in urban areas where delivery destinations are concentrated, excessive traffic leads to inefficient deliveries.
Developed countries struggle to meet diverse customer needs
With the expanding e-commerce market in developed countries, there is a greater demand for more flexible logistics services that ship all different types of goods. But, if the incumbents want to provide more flexible logistics services to customers, then the cost increase is inevitable. In Korea, the logistics industry has achieved substantial growth thanks to the development of e-commerce and the logistics network, but growth in terms of quality has stalled.
dKargo According to the Korea Integrated Logistics Association, the average unit price to deliver a single parcel in Korea’s courier, express and parcel (CEP) market decreased only by 7% from 2010 to 2016. Under such market conditions, providing flexible logistics services would only lead to price hike and efficiency loss.
Emerging markets struggle to maintain efficient logistics infrastructure
dKargo For example, India has experienced rapid economic growth. As the economy grew, India’s shipment volume has also rapidly increased and logistics related industries such as warehouses, freight forwarders, and container businesses have all grown. However, due to inefficient business operation and a lack of infrastructure, India’s logistics network has reached its capacity and failed to support India’s continuing economic growth. For example, the logistics network is divided up by freight transportation companies, so it is difficult to operate the network efficiently.
India’s limited infrastructure coupled with a lack of ICT creates more challenges to India to raise the efficiency of its logistics network through collaboration. Limited infrastructure is also a problem for Southeast Asia. This is one of the major issues for many Southeast Asian countries because relative to the size of their territories, many countries lack the infrastructure to connect major cities with remote areas or little villages in islands. Only 10% of the roads are paved in Cambodia and Laos, making it difficult for vehicle-based logistics services to reach many areas in these countries.
Data without trust makes it impossible to provide flexible logistics services through collaboration
dKargo For domestic logistics, every participant in the logistics network invests heavily in all routes from first-mile to last-mile delivery to secure economies of scale. However, this makes collaboration even at the smallest level difficult. Participants have, in fact, made double-investment by investing inefficiently throughout the industry and in return, failed to achieve economies of scale. In theory, collaboration should be possible by combining the freight volume from each route so that participants can achieve economies of scale and enjoy mutual benefits.
dKargo However, the reality is quite different. There is a possibility of the data-tampering of the frights’ conditions. Furthermore, standards of each data are all different and a sense of mutual trust is weak due to silo logistics structure. All these factors make collaboration often challenging. However, under the current industrial structure, it is difficult to meet customer demand without collaboration taking place.