Supply chain management is a logistically complex process, with goods traversing time zones, altitudes, and varied weather conditions across the globe.
As consumers, however, we are only exposed to a fraction of the supply chain process, whereby goods reach us closer to home at the point of consumption.
Innovations in the so called “last mile”, from drone deliveries to one hour grocery order fulfillment, have changed consumer expectations: We crave instant gratification, obtaining exactly what we want, where and when we want it, within a few clicks.

These changing norms have also upped the ante for traditional industries like shipping and trucking, long mired in bureaucracy, manual processes and heavy administration. While shipping crews may be more accustomed to updating paper charts than analyzing big data, their employers ignore innovation at their peril: The entire supply chain is in the midst of massive change, incorporating new technologies to improve operational cycles, increase efficiencies, cut costs, save time, and reduce human-error.

SOSA’s role as a bridge between start-ups and multinational corporations makes us ideally placed to understand the changing ecosystem and how Israeli technologies are disrupting it.

While lesser known than traditional Israeli strongholds like cyber security, notable innovation is taking place in the space, spurred by the roughly 50 Israeli startups pushing the boundaries in artificial intelligence, data analytics, robotics, smart packaging, and more.

Working in conjunction with our partner DSV, one of the largest corporates in supply chain logistics, we identified, analyzed, and categorized the start-ups working in each sub-vertical of the space. The combination of SOSA’s knowledge, coupled with DSV’s domain expertise and familiarity with the pain points of the industry acted as a foundation for this first of its kind overview of Israel’s supply chain and logistics landscape.

We are thrilled to share joint work of DSV and SOSA – An overview of Israel’s supply chain and logistics innovation landscape as we see it:

The Robots are coming (to a warehouse near you)
Warehouses are central to supply chain management, and some of the most exciting innovations in the field focus on making them smarter. New technologies are optimizing and automating the storage, packing, and flow of goods within warehouses, housing and moving more goods, more effectively.

Startups like Caja and BionicHive, for example, automate the warehouse experience through the use of smart robotics. Engineered as “plug and play” scalable systems retrofitted to existing infrastructure, autonomous robots increase throughput, enlarge storage space, and radically reduce manpower. In the midst of such innovation, warehouses are no longer just physical storage space, but increasingly the “brain” of complex receiving and delivery operations.

Keeping track of moving parts
As critical as they are, warehouses are only one part of a much larger picture. The multiple moving parts involved in a supply chain make inventory management another area ripe for disruption. New tools are being developed and refined for tracking, and ensuring optimum conditions as goods move through the supply chain process.

Data Detection Technologies, for example,develops advanced vision based counting and packaging systems capable of counting up to 25,000 objects per minute, including small and delicate items like diamonds, seeds, and medical tablets. Other technologies monitor the varied conditions encountered during a products journey, such as climate or temperature.

Going with the flow: Intelligent Transportation
Making the ships, trucks and other vehicles carrying cargo themselves smarter–along with the systems for routing and receiving them–is another focus of Israeli supply chain innovation. New tools for fleet management enhance real-time decision-making, offering big picture data on inventories, carriers, vehicles, and personnel.
As ships travel to new ports, a trail of paperwork is created for export and import. For international shipments, new technologies are being used to digitize and automate laborious manual processes such as customs clearances.

An example for this is Wave, providing secure, shipping related documents on the blockchain. By enabling direct exchange of documents without the need for a trusted third party, it aims to eliminate disputes, forgeries, and unnecessary risks.

Optimizing the last mile
Closer to home once again, a slew of startups have sprouted to optimize last mile delivery. After Amazon upped the ante, bringing a heretofore unseen level of operational efficiency and customer service, industries from retail to groceries to restaurants had no choice but to offer seamless delivery processes with the end user in mind.

Startups such as Bringg enable those companies to compete, providing a comprehensive suite of tools for managers, disatchers, drivers, and customers to manage delivery logistics. Their platform evens the playing field, powering those near perfect delivery experiences customers have come to expect.

The journey is just beginning
As supply chains are rapidly being digitized and disrupted, information and insight is becoming the most powerful currency. Israeli creativity and technological prowess provides those critical insights, transforming the entire supply chain process from point of origin from point of consumption. As old industries transform, surely we will see more and more Israeli companies contribute to the next generation of supply chains.

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Partnership between SOSA and DSV
SOSA is an open innovation platform. Founded in 2014 by 25 leading Israeli investors and high-tech entrepreneurs, our global network comprises more than 150 multinational corporations and investors, together with over 8,500 startups. We leverage this network to bridge the gap between the supply and demand of corporate innovation. Sosa works with DSV, global transport and logistics company, to nurture innovation in supply chain management and logistics. Through scouting, tech challenges, and innovation panels, Sosa connects DSV to cutting edge disruptive technologies. DSV’s start-up service works in partnership with small and medium size companies to design the optimal supply chain solutions. To date, DSV is collaborating with 11 Israeli start-ups, with a pipeline of dozens more.