ASX micro-cap Yojee is exploiting blockhain and AI to deliver efficiency improvements in global freight logistics, writes tech expert Tim Knapton of TechVoyage.

Blockchain and artificial intelligence (or AI) are two of the tech world’s most emotive buzzwords at the moment.

Blockchain — a digitally online secure — promises to revolutionise the way international commerce is conducted.

Supported by intensive robotics R&D led by the likes of Google and Facebook, AI is already exerting a huge disruptive effect on every aspect of communications and information exchange.

One ASX micro-cap is exploiting blockchain and AI to deliver efficiency improvements in global freight logistics.

Yojee reverse-listed in June last year and is well on its way to building a collaborative supply chain network similar to Amazon — but with a blockchain layer to enhance security and network trust.

The Yojee platform allows freight operators to manage cross-border, national and last-mile logistics with real-time tracking and efficient customs clearances.

Blockchain security and AI efficiency

Blockchain delivers the security of all the freight details and AI provides algorithms to optimise efficiency.

The Yojee platform not only streamlines the whole supply chain and gives it complete visibility for monitoring and planning — it also provides customers with opportunities to reduce cost of acquisition and data to optimise their own activities.

As more suppliers and customers become interlinked it drives higher subscription revenues for Yojee at the centre of the logistics marketplace.

The company’s commercial roll-out is still in its infancy. But it recently delivered a digital transformation of the logistics network of South East Asia’s biggest airline Lion Group.

Lion reported an 80 per cent increase in internal efficiencies as a result of the software deployment in last-mile delivery activities such as couriers.

The Yojee app allows tracking and chatting between the freight delivery and customer service teams.

Deals in Asia and Australia

Subscription agreements have been signed with several Indonesian freight operators. Yojee has recently commenced a pilot with Post Media in Cambodia to digitise logistics and allow job and vehicle-mapping from administration dashboards.

Closer to home, the company has signed a potential deal with Puma to move its sporting goods freight through the platform. It also has a deal with Popink to help run its domestic fulfilment operations.

The Asian freight market is characterised by huge and rising volumes of shipments — but a highly underdeveloped tracking and fulfilment infrastructure.

That is inevitably changing — and the pace of change should be assisted by Amazon’s imminent regional expansion (starting in Singapore) and by major players like e-commerce giant Ali Baba investing $US2 billion in supply chain enhancement.

Not surprisingly, therefore, Yojee is in advanced discussions with two of the world’s biggest shipping companies and two of the biggest freight-forwarding companies.

A placement at 6c per share in April supplemented the company’s cash reserves by $3.4 million and the stock is now trading at almost three times that, giving it a market cap of $84 million.

That looks high given the company was yet to register any sales revenue last financial year.

But it understates the potential if the platform continues to deliver such efficiency gains for trial customers.

Tim Knapton is the founder and CEO of online tech research and finance marketplace TechVoyage.   Its video/financial database and digital broadcast platform provide a more efficient way for investors to appraise listed and unlisted tech companies and for entrepreneurs to finance, acquire and exit them.   

Previously Tim was Head of Corporate Broking at Deutsche Australia and before that ran a research department for a leading broking house.  Tim has also been a freelance tech/finance journalist for more than 20 years and a columnist with The Australian Financial Review, The Bulletin, BRW, Shares and Australian Business.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.