Steven Chou, CEO and co-founder of BBTruck
BBTruck, a supply chain and logistics technology company headquartered in Taiwan, recently closed its pre-series A funding round led by Oasis Venture, H2U Corp., and StarWorks Entrepreneurial Venture Capital, to bring its total funding to US$6.5 million.
The firm plans to use the money to accelerate global market expansion, particularly in North America and Southeast Asia.
e27 spoke with Steven Chou, BBTruck’s co-founder and CEO, to learn more about the company’s offerings, USP, and expansion plans.
Excerpts:
How does BBTruck differentiate itself from other logistics technology platforms? What are your competitive advantages in the global market?
BBTruck is a light-asset model that allows us to manage the platform from a holistic supply chain perspective without owning a fleet. This model enables traditional trucking companies and innovative logistics providers to join as capacity partners, helping businesses reduce logistics and transportation costs.
Our one-stop supply chain and logistics technology platform offers a comprehensive 5PL solution, providing a more integrated view than traditional 3PL or 4PL providers. It allows B2B clients to monitor capacity data, track shipments, and oversee routes through an intuitive interface, enhancing transparency and efficiency.
What are the primary areas where the US$6.5 million pre-series A funding will be allocated?
- The funding will primarily be allocated to three key areas:
- Actively expanding into international markets.
- Enhancing technical capabilities in capacity data analysis and integration.
- Recruiting top talent.
We currently operate eight logistics warehouses in Los Angeles, Houston, Chicago, New Jersey, Vancouver, and Toronto, supported by a fleet of around 200 vehicles.
Our immediate goal is to enhance our North American operations by adapting our platform’s functionalities to better suit the local logistics industry. This includes expanding map coverage, supporting more local languages, and strengthening partnerships with local logistics partners and customers.
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By 2025, we also plan to enter Southeast Asia, such as Vietnam, Malaysia, Singapore, Thailand, and Indonesia, where we have already secured logistics partners. We aim to provide businesses in these regions with transparent supply chain logistics management.
We are also advancing our data analysis and integration technologies to deliver enhanced capacity calculation and automated dispatching services to our customers worldwide. We will also optimise our carbon footprint verification data collection applications to support logistics providers’ digital carbon management needs.
With plans to expand into North America and Southeast Asia, how does BBTruck plan to navigate the different regulatory environments and logistical challenges in these regions?
In North America, we’ve identified that shipping costs often fluctuate based on factors like peak hours and demand – unlike the more stable pricing models used in Taiwan. To address this, we continuously refine the features of BBTruck’s one-stop supply chain and logistics technology platform, enabling businesses to manage these variable shipping costs efficiently.
Collaboration with local partners will be key for newer markets like North America and Southeast Asia. These partners’ deep understanding of the regional logistics landscape will help us quickly adapt to each market’s specific operational models and regulatory requirements.
Can you share more about the enhancements BBTruck plans to make in its technology offerings, particularly in capacity data analysis and integration?
BBTruck is focused on enhancing our technology offerings by optimising big data applications and algorithm design to improve logistics capacity calculations and data exchange across multiple carriers and fleets.
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As our network of partners and customers grows, we are accelerating upgrades to our API integration interface and data exchange framework, enabling us to handle larger volumes of information and ensure seamless integration with various systems. We are also actively exploring AI technologies to advance our platform, aiming to develop new capabilities to enhance our one-stop supply chain logistics solutions.
BBTruck’s platform leverages big data to maximise logistics efficiency. Could you elaborate on the specific data points and analytics that drive these improvements?
BBTruck’s platform harnesses big data to enhance logistics efficiency by integrating and analysing various critical data points. Our system collects and analyses data related to transportation capacity, including truck sizes, devices, real-time orders, load capacities, and addresses.
When a business places an order, our platform uses this data to automatically allocate the most suitable transport fleet by matching available trucks to the delivery requirements. This approach optimises logistics resources, resulting in a nearly 75% reduction in empty truck rates and a 40 per cent improvement in order placement and tracking efficiency. These advancements significantly lower logistics costs and enhance overall operational efficiency for our clients.
By integrating diverse data related to transportation capacity, BBTruck can efficiently allocate and flexibly combine different delivery resources. For instance, a truck can be repurposed as a small satellite warehouse and paired with a motorcycle fleet to deliver goods in a radial distribution model. This strategy minimises the number of delivery points the truck must visit and reduces fuel consumption, enhancing overall logistical efficiency.
How does BBTruck’s API integration work with multiple carriers and freight companies? What challenges did you face in developing this feature, and how have you addressed them?
BBTruck’s API integration ensures seamless connectivity between our platform and various carriers and freight companies through a robust data exchange framework. This integration allows for real-time synchronisation of order, load, and cargo information, enabling customers to manage their entire supply chain logistics efficiently in one place.
Despite thousands of freight companies in Taiwan, many still rely on traditional methods like manual scheduling and phone orders, complicating API integration due to their lack of digital systems.
To address this, we developed a lightweight, easily integrable, and cost-effective order management system that adapts to various operational methods. Our solution offers high flexibility, using big data analytics to customise services based on specific customer needs, further ensuring broader compatibility and enhancing logistics management across diverse environments.
In the North American market, we face similar challenges. Although large fleets often have open APIs, many smaller logistics providers still use traditional methods. This presents significant opportunities for technological integration, making it a promising market for BBTruck.
Our platform’s solutions to industry pain points and alignment with market needs have driven a 30 per cent annual growth in logistics providers using our platform.
Moving forward, BBTruck will continue to enhance our matchmaking services, delivering additional advantages to our clients.
BBTruck claims it is committed to reducing carbon footprints and achieving net-zero carbon emissions. How do you plan to achieve these goals?
We plan to achieve these goals by integrating sustainability into our core operations. We employ technology to precisely calculate and allocate logistics capacity, minimising waste and enhancing efficiency. Our approach includes planning the most efficient routes to reduce fuel consumption and consolidating loads to maximise truck capacity, thereby lowering the carbon footprint.
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In August 2024, we partnered with Standard Foods on a charity delivery project in Taiwan executed with a carbon-neutral approach. This initiative leveraged our automated data collection for precise carbon footprint verification, reflecting our strong commitment to ESG principles.
Looking ahead, we will continue to leverage advanced technology to improve delivery efficiency, reduce carbon emissions, and deepen our use of logistics data for carbon footprint management.
Could you provide more details on the logistics data carbon auditing feature? How do you see it impacting the broader supply chain industry?
BBTruck platform’s logistics data carbon auditing feature, supported by Taiwan’s ISO 14067 product carbon footprint certification, allows for real-time collection and processing of emissions data. It provides businesses with access to Scope 3 (indirect greenhouse gas) emissions data from external logistics providers, aligning with the Greenhouse Gas (GHG) protocol. This automated data collection and analysis simplify the often challenging task of calculating Scope 3 emissions, offering a valuable tool for developing carbon-neutral supply chains.
Effective supply chain carbon management has become increasingly critical as the global focus shifts towards achieving net-zero emissions by 2050. The logistics industry faces substantial challenges in implementing sustainable practices and adapting to technological changes. BBTruck’s platform addresses these challenges by providing transparent logistics management that enables businesses to monitor and manage their carbon footprint throughout delivery.
Our platform reduces inefficiencies such as low load factors and high empty vehicle rates by calculating transportation capacity and automating allocation. This lowers the carbon footprint of logistics operations and benefits logistics providers and businesses by enhancing sustainability.
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Image Credit: BBTruck.
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