modum.io: From pilots to market entryFrom the whitepaper:
https://modum.io/wp-content/uploads/2017/08/modum-whitepaper-v.-1.0.pdf Since its founding in 2016, modum.io has conducted several pilots in each of the last-mile segments in order to receive customer- and user input for developing the system, test different go-to-market strategies, and explore business and pricing models.
For the pilots, modum.io used an off-the-shelf temperature logging device, the TI sensor tag, and developed its own custom firmware to interface with the modum system.
Pilot 1.0The first pilot was conducted in Switzerland in 2016, monitoring shipments from a SME pharma producer to a wholesaler.
Over six weeks, several temperature loggers recorded 10,000 data points and were able to successfully track the temperature of most shipments.
The collected feedback indicated necessary improvements in the following areas:
1. Connectivity of the temperature logger with the mobile application should be quicker.
2. Data transfer speed should be improved.
3. A dashboard for data analysis should be created.
The main advantages for SME pharma producers to use the modum system is the wider choice to find a suitable logistic partner and ensure compliance on a shipment level.
Pilot 2.0In its second pilot, modum.io monitored shipments between a wholesaler and several clinics and pharmacies whereby shipment volumes were scaled up by one order of magnitude.
For this pilot, the temperature logger’s connectivity and data transfer speed were improved and a dashboard for quality assurance and customer service departments of the wholesalers was introduced and tested. To improve the the responsiveness of the read-out process of temperature data was an important learning from pilot 2.0.
Additionally, modum.io monitored a cross-border shipment to validate the technology internationally and between continents.
Paid Pilot 3.0 with 3PL & mail-order pharmacyA key takeaway from earlier pilots and the market studies was that a direct integration in the processes of a third-party logistics provider already serving high shipping volumes would greatly help modum.io scale because pick-up and hand-over would be handled by the same company.
By using a third-party logistics provider, the shipment process remains the same for the sender: insert the loggers into the respective shipment and transfer the shipment to the 3PL provider.
Prior to delivery to the pharmacy or hospital, the 3PL driver will use their proprietary scanning device to check compliance.
He can then either release the shipment to the owner, or take corrective and preventive actions in case of any deviations.
During the third, paid pilot with the parcel-service market leader in Switzerland, modum.io aimed to prove the suitability for mass use of the modum system.
Two phases were conducted: in the first phase, modum implemented and stabilized customer processes; in the second phase, modum.io quantified additional efforts and the duration of the temperature data read-out process.
The customer’s objective for this pilot was to achieve 95% of all readouts within 30 seconds. modum.io managed an average readout of only eight seconds for 100% of the shipments.
In the pilot wrap-up meeting, suitability of the modum system for mass use was confirmed and the client recommended integration of the modum system into the offering of the 3PL.
Business & Pricing StrategyBy using the modum system, depending on market segment and volume, costs per shipment can be reduced by up to 60%.
With respect to the 200 million shipments of pharmaceutical products in the EU, a widespread adoption of the modum system or competing services has the potential to reduce industry-wide expenses by approximately 3 billion USD.
The modum.io solution is offered in an easy “pay-per-shipment” model.
It has been shown in the market studies and pilots that customers would pay up to 10 USD per shipment.
When compared with the use of environmentally-controlled transport solutions, the modum system still significantly reduces overall shipping costs plus further cost reductions if the potential for automation, that comes with the modum system, is taken into account.
Current statusCurrently, the modum system is being integrated into the system of the leading last-mile logistics service provider in Switzerland.
modum.io is planning to finalize this integration in Q4/2017, using the first series of proprietary temperature loggers.
Clients from the wholesaler and mailorder pharmacy segment are lined up.
Upon successful completion, official market entry in Switzerland will begin in Q1/2018. Once integration has been established within our first client site, the logistics service provider can approach the SME pharma segment to offer the additional service.
Furthermore, modum.io is in contact with significant customers from within the pharma distribution vertical in the UK, France, Germany, Turkey, and Vietnam.
