Logmore receives €4.5M to expand cold chains monitoring
Condition monitoring startup Logmore announced its successful Series A funding round, securing €4.5M from NordicNinja VC and partners Icebreaker VC, Trind Ventures, Tekton Ventures, and Jaakkoo-Taara. The investment will be used primarily for the company's global expansion with a focus on growing its market in North America, Asia, and Europe.
"When we started researching this three years ago, we wondered how no one else had come up with using dynamic QR codes for data logging. Combined with optimal timing in regards to efficient, available technology, this became a real once in a lifetime opportunity" Logmore CEO Janne Juhala said.
Many industries rely on cold chain systems to transport their products to consumers. However, monitoring shipments can be difficult. For example, perishable goods like fresh meats have a short shelf life and have strict requirements to remain edible. Incorrect handling of dairy and frozen goods can lead to spoilage. Flawed supply chains cause up to forty percent of global food waste.
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Likewise, pharmaceutical products can also lose efficacy if exposed to unacceptable temperatures. They must also be transported in protected containers to avoid undue exposure and contamination. Failing to keep variables in check can lead to significant financial losses. The biopharma industry alone loses around $35 billion a year due to failures in temperature-controlled logistics.
In addition, such problems also exist in transporting other products like expensive electrical components. Electronic devices can be very fragile and can be easily damaged by shock or changes in humidity and temperature. These can be costly for all: manufacturers, retailers, and buyers alike.
Big data and analytics should be able to help industries improve their supply chains. Yet, many such efforts fall short as companies fail to make sense of their data in a timely and actionable manner.
"Many logistics companies struggle with last mile deliveries and the data they collect. In recent years it is important to follow the full journey of a delivery, including order receivings," Logmore COO Niko Polvinen shared. "Different companies have a lot of data but don't use it because they feel analytics takes too much time. Either way, they don't even know their real weak spots without collecting and using data."
Logmore addresses these issues through its data-logging solution, which leverages QR codes and sensors to track shipments until they reach their intended users. The platform uses QR tags to collect condition data such as temperature, shocks, humidity, tilt, and ambient light for insights regarding the quality of shipped goods.
The QR code is updated after every new measurement to embed data on it. Companies can access the data by simply scanning the QR code using a barcode reader or a smartphone's camera. The information is then automatically uploaded to Logmore's cloud platform.
This allows companies to transparently and efficiently monitor their supply chains. They can easily detect flaws in the handling of shipment and storage. They are alerted whenever Logmore sensors transmit an unacceptable measurement. Companies can also track down and verify when damage has occurred to identify the responsible party.
The service essentially helps translate the data that companies collect into concrete actions, resulting in tangible benefits. This can drastically improve their logistics and their ability to quickly resolve found issues, effectively minimizing the risk of having wasted products and incurring financial losses.
"In 5 to 10 years' time, we envision tags like this becoming an inseparable part of supply chains. They will be used in nearly all mainstream deliveries, with data being used to build better services by the entire ecosystem. All in the name of reduced risk, reduced waste, and reliability-values that are future-proof," Rainer Sternfeld, managing partner at NordicNinja wrote on Medium.
Since its launch in 2019, Logmore has been used by more than 150 quality management teams. The company previously secured €1.3 million to fund the development of its cloud-based service. Now it aims to scale its operations worldwide by expanding its team in Finland and setting up offices in North America and Asia.
The recent support it received from NordicNinja VC affirms how the company can bring value and ease of use to today's supply chain quality management. Other venture capital firms investing in Logmore should drive its growth and help it reach more supply chain operators.