Circular IQ has been named supply chain startup of the year during the InNOWvate Supply Chain Event. The Amsterdam-based startup was preferred to the four other nominees in this European competition. Circular IQ has developed a software tool that allows customers to collect data on products and materials and provide insight. The world and especially the supply chain needs such startups. "The supply chain is the only department within our companies that can save the world," he said.
"Do you know that ninety percent of all the material we mine is wasted again?" Co-founder Roy Vercoulen va Circular IQ tries to excite attendees during his three-minute pitch on the main stage of InNOWvate. His start-up helps companies gain insight into these kinds of figures. "The data on this is often fragmented across different systems. A lot of data gets lost in digital documents and certificates," Vercoulen explained.
Circular IQ's software allows companies to compare their products, materials and suppliers. They can select the suppliers that make the greatest contribution to sustainability. Customers such as DSM, Brink, Bolsius, Gispen and Van Wijnen use the software to allocate purchasing volume totalling 400 million euros. This not only saves them 800 tonnes ofCO2 emissions, but also 8 million euros in costs.
Credibility strengthened
Vercoulen received a handsome statuette from Aike Festini of Swiss-based LuckaBox, last year's winner. In addition, Circular IQ gets the opportunity to set up a marketing campaign worth 40,000 euros together with Supply Chain Media. Festini stresses the importance of the award. "It has strengthened our credibility. In the months after winning last year, we closed many deals with big customers. From the marketing tools we developed, we are still benefiting today."
Festini said earlier that the life of a startup involves big peaks and deep valleys. Moments when belief in one's own abilities seems unlimited alternate with moments when self-confidence sinks below zero. Vercoulen recognises that pattern of peaks and troughs. "We've had a crazy year in which successes have alternated with disappointments. An award like this helps. It gives us the confidence to keep going."
Booster for innovation
A total of 28 start-ups and scale-ups participated in the competition organised by Supply Chain Media. Ambrosus, MotionMiners,Stockspots and Shipnext were the four other nominees alongside Circular IQ. The title for best scale-up - companies that have outgrown the start-up phase - went to Seven Senders, beating Buyco, Cargonexx, Everoad and Fretlink. Seven Senders develops software to find the right last-mile carrier for each package.
Start-ups are an important driver of innovation in the supply chain, says chairman of the day Martijn Lofvers of Supply Chain Media. He refers to Boyan Slat of Ocean Clean-up who saw his first attempt to clean up the plastic soup fail. "But he will try again. That's how innovation happens: through trial and error. And innovation is what we need. The supply chain is the only department within our companies that can save the world."
Unexpected outcomes
Carlos Cordon, professor at Switzerland's IMD Business School, agrees that innovation leads to unexpected outcomes. "Digitalisation of the supply chain delivers a lot, but often not what we expected," said Cordon, citing examples of new technologies such as augmented reality and autonomous vehicles. Augmented reality helps factories fix breakdowns quickly and reduce changeover times. Autonomous vehicles can be a solution to the driver shortage.
Cordon: "Many innovations in supply chain have traditionally focused on cost savings. But with cost cutting, we're done with it now. The value of innovations is often in other things like speed, flexibility or solving driver shortages. With all these innnovations, great times are ahead for supply chain professionals."
