LCB, is a traditional Customs Broker based in India since 40 years.
It’s a family-owned company currently being run by the second generation.
Background
- Logistics has evolved dramatically across the globe. Margins have been shrinking in the CB business for the last two decades.
- End-customers are now demanding end-to-end logistics, transparency and traceability.
- Customers are also demanding a digital interface and want to reduce communication through phone calls and emails.
- LCB is only equipped to handle customs clearance. The other service lines require additional licences like MTO, IATA, WCA etc which requires significant cost, time and skillsets that LCB doesn’t possess.
- Dealing with multiple agents that provide these services is a nightmare. There have also been incidences of these new agents trying to poach LCB’s customers.
- Due to these issues, customer attrition is at an all-time high of 17% and customer acquisition is proving to be very difficult.
Approach
- iKargos.com offered LCB their full-stack digital solution.
- A digital platform that converts LCB from a traditional customs broker to a full-fledged digital agent.
- This new solution has all things related to logistics. A single dashboard lets LCB add their customers on their website. Once onboarded these customers have access to tools and services that iKargos provides. From 1 service and 0 tools earlier, LCB is now able to provide 14 tools and 9 services.
- This white-labelled solution ensures that LCB does not lose its identity and maintains its customer base.
- iKargos.com provides freight forwarding services to LCB through verified vendors, thus ensuring a smooth supply chain.
Business Impact
- LCB has moved-on from being a traditional CHA to being a digitally enabled full stack logistics company like Wizfreight.com and flexport.com.
- Customer attrition has gone down to 2% in a year, while customer acquisition has shot up.
- LCB is able to provide new services like freight, insurance, certifications etc that is adding to its topline and bottom-line profitably.
- Revenue is projected to double this year while the bottom line will increase by 35%.
While LCB was struggling with the everchanging industry, ikargos.com has provided a one-stop solution that helped resolve the problems. LCB is able to provide end-to-end solutions to its customers and improve its service level
