Every year the shipping industry incurs losses of billions of dollars due to lost, stolen or damaged cargo. With the start of use of technology in this sector, the companies used GPS tracking systems to help monitor the location of cargo. But with the advent of more reliable technologies, the cargo industry shifted their focus on much modern monitoring solutions.
ARVIEM AG is one such
Featuring for The Enterprise World’s this issue of The Most Trusted Risk Management Solution Companies is ARVIEM AG, a company, who with their real-time cargo tracking systems is making the global trade visible.
In this interview with Stefan Reidy (CEO/Founder), let us dive into the operations of the ARVIEM AG.
1. Brief us about your ARVIEM AG, what inspired you to start the company?
Based in Zurich, Switzerland, Arviem AG offers Internet of Things (IoT)-powered, real-time cargo tracking and monitoring services to customers, driving transparency across the transportation ecosystem and enabling customers to work with smart cc. ARVIEM AG was founded in 2008 by professionals who were driven by their passion for the supply chain and logistics industries and were aware of the challenges the industry was facing.
Stefan Reidy is the CEO & Founder of Arviem. He is a supply chain enthusiast and a visionary individual. Stefan has over 20 years of experience with innovative technologies and business models in the supply chain, which he gathered both by working for corporations & in the start-up environment.
Seeing the inefficiencies in global supply chains, the arising security issues after 9/11 and the lack of visibility and control, supply chain professionals had over the movement of goods globally, the ARVIEM AG realized that with the emerging new technologies it is possible to improve the status quo and bring transparency into how supply chains operate. Passion and industry expertise has been Important for Arviem’s development ever since.
2. What are the products or services the ARVIEM AG focuses on? How are your services different from those in the market?
Arviem answers the need of organizations for more transparency and visibility in their supply chains. Arviem monitors the location and condition of goods in transit in real-time. We reveal the flow of goods and finances in the supply chain by providing an independent, real-time, end-to-end cargo monitoring and supply chain visibility service.
Arviem monitors, analyses and reports on all aspects of cargo shipments and supplies clients with real-time data in tailored management reports and real-time notifications. Thanks to real-time updates on delays and disruptions, clients can discover and mitigate supply chain problems before they negatively affect business operations or customer satisfaction. Thanks to vast amounts of data and the management dashboards and reports generated by our cargo monitoring service, supply chain professionals are enabled to make data driven decisions to optimize their supply and logistics chains, improve their working capital management, reduce transport and demurrage costs, insurance premiums, administrative costs and to ensure product safety. We offer supply chain risk management, cargo security and logistics emission monitoring services as well.
3. Services different from others:
The core of our entire service portfolio is the combination of the real-time (Iot sensor generated) and historic data that we collect through monitoring the cargo. We combine this data with additional data sources and process it with data analytics and machine learning. Beyond supply chain visibility, cargo tracking and condition monitoring (our core services), we also offer services around carbon footprint monitoring in logistics, cargo security monitoring or cargo monitoring on the New Silk Road.
Our newest services are around inventory financing and working capital optimization. As we are able to provide traceability from container doors closing to doors opening, we enable clients to optimize their financial and physical supply chains by making goods in transit financeable by various financial institutions we are working with.
Unlike our competitors, Arviem is offering a full, carefree service to customers that allows them to track all their global shipments, regardless of the transportation mode or the logistics service provider, on one single platform. Arviem’s services provide a holistic view on all shipments. The service ecosystem sets us apart from the competition.
4. Please tell us about your team.
The CEO of Arviem AG, Stefan Reidy foresees the future of supply chain and logistics chains which will be data-driven, ‘smart’ with inherently better supply chain performance and better risk management. So, the CEO along with his team is supporting the industry and their clients on the journey of this transformation. The team started with three researchers, and over the time added consultants, software developers, logistics managers, operations managers, technology specialists etc. The team works together to help supply chain and logistics professionals to improve their supply chain with advanced, predictive and prescriptive analytics to support decision making.
5. What are the key achievements of your business journey?
To Arviem’s clients including shippers, importers and exporters; enjoy ARVIEM AG’s service on a pay-as-you-use model. Based on analysis of an all-inclusive fee based monitored shipments, ARVIEM AG offers additional consultancy regarding routing, transport scheduling, event and risk analysis, carbon footprint, or working capital management.
Clients achieve quantifiable benefits from a number of areas:
- Inventory Management – efficiency in materials utilization
- Product Quality – corrective measures
- Customer Service – advance information to predictability
- Security – and ability to reduce associated costs
- Compliance and Regulation – automated, data rich reporting, monitoring and preventative actions
The flexibility and global availability of Arviem’s solution will also provide the opportunity to go beyond the initial container-monitoring market segment and leverage the investment by monitoring other modes of transport such as trucks, trains down to the granularity of pallets.
Over the years we are joined by more than 200 customers and partners, showcasing influence as a global leader in the supply chain industry. The supply chain industry faced tremendous challenges in recent years due to pandemic and linked supply chain disruptions. In these difficult times, ARVIEM AG continued its focus on global growth, product expansion and strategic development and could support organizations by providing the needed supply chain visibility in these difficult times. This accolade indicates we are heading in the right direction.
Any client experience you would like to highlight?
Client Experience 1:
A Chinese manufacturer of sweets is a supplier of a big supermarket in the USA. After having expenses for production and after almost two months of transport, the supplier still faces payment terms of 120 day until getting paid. This is challenging because capital is tied up in outbound supply chains for about half a year that could be otherwise used to fulfill next orders and support ARVIEM AG growth. As a small company in China, the access to traditional sources of bank funding is limited or expensive (over 10% annual interest rate on bank credit lines)
By using the ARVIEM AG service, the supplier not only benefits from real-time visibility of his shipments, but also receives the cash for the orders about 5 months earlier than before. With an annualized all-in-one-fee of about 7.5% of the invoice value, the direct access to the Swiss financial market and the private investors via the FinTech ecosystem paid off. This also creates room for price negotiations with the customer, since shortening payment terms is less crucial with the external financing.
Client Experience 2:
We have recently worked with a customer in optimizing their demurrage costs. The customer bought 20 days of free time in the port of Angola. By monitoring the location and condition of their shipments in real-time they discovered that they do not actually need this as their containers are moving out of the port significantly faster. By relying on the accumulated data in Arviem’s management dashboard, the client could adapt its planning data and also plan the pickups better. Optimizing their operations, they could save up to 100K USD per year on demurrage costs.
Overall, the average cost savings achieved by Arviem’s services represent around 10% of a company’s total logistics cost.
“Arviem is oﬀering a full, carefree service to customers that allow them to track all their global shipments, regardless of the transportation mode or the logistics service provider, on one single platform.”