Pallet Uses AI to Revolutionize the Logistics Industry
Image: Pallet
In an industry worth billions, where transportation and warehousing often rely on antiquated systems, Pallet is stepping in with a modern AI-powered solution. After announcing an $18 million Series A funding round led by Bain Capital Ventures, the startup aims to transform the logistics landscape with its end-to-end transportation and warehouse management system.
Founded by tech veterans Sushanth Raman and Andrew Spencer, Pallet uses AI to streamline logistics companies' operations, from order entry to driver dispatch to inventory management. Raman and Spencer, both engineers with logistics backgrounds, spotted inefficiencies when meeting with logistics companies in the Bay Area, where many processes were still being done manually.
With AI agents automating workflows, they introduce a concept Raman calls “contactless ordering,” where shipments can be processed and delivered without human intervention. By digitizing tasks such as order entry and quote responses, their platform can drastically reduce workload. In fact, some users have reported a 70% reduction in order entry workflows.
In its 18 months of operation, it has secured some 60 customers, achieved an annual run rate of $3 million, and expanded its user base, with 70% of employees using the tool on a daily basis at those companies. Pallet, which initially focused on bulky goods transportation companies, plans to expand over time into e-commerce and broader logistics operations.
