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by psunavy03 1024 days ago
Then why has it not yet been done? Has God touched Flexport on the shoulder and said "We deem Ye worthy to redeem the freight forwarding industry?"

It seems to me that if it's so easy as you describe, and yet it hasn't been done, than maybe it's not so easy after all. Perhaps not impossible. Perhaps doable. But perhaps not that easy. People who work in the industry are not stupid. They don't want to do unnecessary busywork. What are they missing? And why has Flexport not taken the industry by storm if it's so easy to automate?

5 comments

Do you have experience with enterprise software projects?

For those of us who have, it's a bit of a strange assumption to assume that if something can be automated well then it would have been done already. It's a bit like asking why Blockbuster didn't set up a streaming service. A lot of companies struggle with IT projects. They avoid them if possible. They outsource if not. If they do succeed, then they try not to touch the results more than necessary.

This approach leaves a lot of automation on the table. If you're able to repeatedly pull off complex software projects well, then you can just do it over and over and end up automating far more than other companies will even true.

> why has Flexport not taken the industry by storm if it's so easy to automate

Hasn't it? From Wikipedia, it "has annual revenues of more than $3.3 billion" and "In August 2018, Flexport was named the 8th fastest growing company in the United States". Now maybe they are doing an Uber here and selling below cost services, it's hard to say because they're private and keep raising big rounds so we don't know how profitable it is. But they're clearly not wanting for business.

Well, I didn't say it was easy. :) It's a challenging software problem and the final 20% I imagine will be exceptionally difficult to automate. I have some other suspicions about why Flexport hasn't done this but I'm too far out to say anything with authority.

As for why the the industry folks haven't done this already, that's an easier one. For the operations people themselves, you're asking them to automate themselves out of a job. The efficiency and the cost savings aren't coming from nowhere, they're coming from salary spending on man hours. And I'm not just saying this is a cynical, self-preserving sabotage - I suspect many professionals in the space don't know or don't value automation. It's not "busywork" to them, it's _the job_ and that work is the core value that they add, so why would they change it up?

Leadership at these companies are probably more incentivized to do this, but to your own earlier point, they don't have the experience in building a modern application. They don't have the talent pool and they're probably afraid of "rocking the boat" too much because they have a good business already.

As I said before, I don't think any of the folks working in this space are stupid or incompetent. But there's a good quote from Upton Sinclair that I think is relevant here: "It is difficult to get a man to understand something, when his salary depends on his not understanding it."

Is it me, or are you just both asking the same question from different angles, and not really disagreeing at all:

Why hasn’t anyone done it? What specific things have kept Flexport and everyone else from automating more things?

I think those are very interesting questions.

Very short answer, which is also a question: What makes you think those things aren't done?

Short answer to all your questions: it is a much a people business as it is process, tools and physical goods business. Legacy systems. Global customs. Auditability. Existing operations. Global compatibility of documents.

Long answer: Your local university library probably has some shelves of books on the topic.

1. You seriously think people with 30-40 years of experience in this area want to automate themselves out of a job?

2. It hasn't been 100% automated because 100% automation is not the goal (or reasonable). "Most things are automated" is already a huge improvement anywhere. What do you think "it hasn't been done"? Are you assuming those overnight shipments are being done entirely by humans with pen and paper?

3. Companies that need this kind of shipment are huge. Huge companies are slow for obvious reasons to anyone that has worked in any enterprise. They don't change quickly. Sometimes they don't change at all and have all market inertia in their favor.

It seems to me you're not experienced with huge operations. It's fine and usually people assume it's way easier than it looks. I'm surprised you assume it's way harder and can't be done at all. Don't bet against software, we have decades of examples showing it wins in the end.

I don’t doubt that there is a real market for Flexport’s product.

But I wonder if Flexport has achieved market saturation for the easy-to-automate work, and doesn’t yet have a compelling offering for companies with more complex logistics needs.