Trucknet Enterprise signed an agreement with a subsidiary of the Danish logistics giant, the DSV Group
Trucknet Enterprise (TASE: TRAN), a company that developed a platform enabling smart matching between available space in trucks with cargo (haulage) for improving efficiency and profitability for companies, announced today that its subsidiary, Trucknet Romania, signed an agreement with DSV Solutions S.R.L. (Romania), a subsidiary of the global DSV Group.
Mr. Hanan Friedman, CEO and founder of Trucknet Enterprise said: “The agreement signed indicates the trust that the global forwarding giant DSV Solutions S.R.L. has in the technology we developed. This agreement provides a foundation for further future agreements and connections with additional global transport giants.”
The agreement was signed with the forwarding and logistics provider in Romania that carries out approximately 150,000 trips a year. It is part of the global DSV group – an international logistics giant operating in more than 80 countries around the world. I believe that success could lead to agreements with other countries in the group
The agreement with DSV merges with a joint pilot project that the company carried out with the Renault Group during October 2020, in which a connection was made to Renault’s bid system. The pilot demonstrated that using Trucknet’s platform led to improvement in the efficiency and profitability of logistics services by 17%. In addition, it brought savings of up to € 115,000 in two weeks for 268 trips out of a total of 371 (68% success rate).
DSV provides transport solutions to thousands of companies every day. The use of Trucknet’s platform could provide optimization for the Danish transport giant for management of vehicle fleets, options for negotiating with other companies for available space in vehicles and an online bidding system for each tender. The use of our platform minimizes empty truck rides of fleets and subsequently reduces emissions to the atmosphere.
Trucknet began trading on the Tel Aviv Stock Exchange the end of March 2021
Trucknet’s platform enables transport and logistics companies to significantly minimize empty rides, by automatically prioritizing available vehicles with other transport companies, through smart matching based on location between empty trucks and cargo.
The sum that Trucknet will receive under the terms of this agreement come from two sources. Following the trial period, Trucknet Romania will receive 3 euros (plus VAT) from DSV for each shipment that DSV carries out using the Trucknet platform. DSV committed to a minimum of 1,000 shipments per month. In addition, DSV will pay Trucknet Romania a monthly maintenance fee of 1,500 euros (plus VAT). However, if DSV carries out more than 3,500 shipments in a month using the Trucknet platform, it will be exempt from paying the maintenance fee for that month.
The company estimates that it will have an additional source of income by virtue of the signed agreement. It is assumed that implementation of the agreement will increase the number of “matches” made, from use of Trucknet’s system, for the hundreds of thousands of trucks connected to the platform today through transport companies that have contracts with Trucknet.
The company anticipates that successful cooperation among the parties to the agreement would lead to exposure for Trucknet, while additional companies from the DSV Group would choose to connect to its cloud-based platform.