CEO Update, July 2019
CEO Update, July 2019
July 30, 2019
This month’s update is split in two parts: I would like to start with sharing some news and insights about our operations topics and in the second part move on to the news shared last week regarding the future of the MOD token. While I of course fully support our Board’s token-equity swap proposal and encourage all tokenholders to engage in a factual and respectful discussion and ultimately to vote, the Board and I strive to fully dedicate my role to the business and operational aspects of Modum. Consequently, this update also focuses on those topics and does not add additional information concerning the token-equity swap.
Sharing our perspective of what the industry needs
Last month, I’ve outlined the challenges presented by the product stability budget and how it affects different stakeholders within the supply chain. This month, I would like to add a new perspective on this and talk about Warehouse-to-Warehouse monitoring in the primary supply chain and how we are evolving MODsense to tackle those problems at an enterprise-grade scale.
Taking a look at the main characteristics of Warehouse-to-Warehouse monitoring, we find that in general not only the point-to-point characteristic of the product flow from the Manufacturer’s production sites via his external warehouses and distribution hubs to the regional wholesaler’s, but also a high value of each shipment. Also, the distances can be quite significant in these stages of the supply chain, in many cases we are looking at long-haul air and sea freight shipments.
It is quite common that every single shipment is temperature monitored, in most cases this happens manually, which means that both the handling of the documents necessary to release the shipment as well as the handling of a data logger take up a lot of personnel resources and introduce even more considerable delay to quality assurance and excursion management processes.
In addition, proper track and trace solutions providing shipment status and localization information across the involved forwarders are often not in place yet, making it difficult to understand where a shipment and consequently a specific article is. Very often, not having this information has a significant negative impact on supply chain planning and control as well as excursion management.
In conclusion, key requirements to efficiently monitor shipments at enterprise-level in primary supply chain stages, are controlling and routing the shipments as well as articles contained therein and augment this information with efficient tools to measure shipment conditions over several stages with minimal manual handling of loggers and data, allowing to automatically and securely measure and collect the relevant data, break it down to the corresponding articles, pro-actively identify critical articles and swiftly trigger evidence-based reactions if excursions occur.
Read more about Warehouse-to-Warehouse monitoring on our blog in the coming weeks.
Evolving MODsense to address the issues of primary supply chain actors
To tackle these above outlined challenges in an efficient way, MODsense – from start – enabled deep and easy integration into existing ERP and WMS solutions to render condition monitoring the fully integrated process it should be; monitoring enterprise-grade shipping volumes and connecting the information with track & trace information. We are now taking the next crucial step in solving all those issues with expanding MODsense with a flexible gateway architecture. This architecture allows to incorporate access points installed at neuralgic points in a supply chain such as the manufacturing sites as well as distribution centers described above or even vehicles, which automatically interact with our data loggers in reach and provide the crucial real-time updates for the reasons outlined.
I am happy to share that we are already in the process of starting the first gateway pilots with selected customers. In these pilots we test two types of uses cases, static and mobile:
In the static case, a MODsense gateway is mounted in warehouses and connected to the MODsense platform via WiFi, capturing a snapshot of any shipment nearby as well as reading out shipments with final destination at this specific location.
In the mobile case, MODsense gateways are mounted in transport vehicles and connected via a telecommunication system. These gateways capture the condition of any shipment in the vehicle, sending the information in real-time to our platform.
These functionalities are important steps for MODsense and we will be happy to share more about the progress on the development as well as the exciting use cases this enables in the future.
Another key step this month for MODsense towards expanding the value it can deliver in the primary supply chain was the passing of the DO 160 certification, a standard that is necessary to adhere to in order to approve data loggers with wireless communication capabilities for transportation in airplanes. Based on this approval, we can now expedite the approval processes with the airlines our customers work with, which is greatly helpful for our marketing as well as our customer onboarding.
Blockchain in supply chain
Last week, Business Insider published a report that argues how the logistics industry can substantially profit from DLT technology in order to solve the operational inefficiencies it faces on a day-to-day basis. The industry is expected to reach USD 15.5 trillion in 2023, thus nearly double the amount it was in 2015. Not surprisingly, Modum is mentioned in the report - we are globally one of the few companies that has not only recognized this potential but also already implemented blockchain in our first commercially available temperature monitoring solution to ensure trust and the integrity of our measurement data. Our Chief Commercial Officer Carl Spörri has written how our capabilities to integrate product stability budget information with our monitoring system and our blockchain engineering expertise help our customers to facilitate the transition into an automated and digitalized supply chain. Read the full article here.
With this I would like to switch to the second part of July’s CEO Update and summarize how we see the future of the MOD token and the proposed token-equity swap.
Long term solution for the MOD token
Last week we shared our proposal for the future of the MOD token. We have updated the blogpost and included the timeline and the milestones going forward.
The basic concept is to exchange the MOD token into a regular tokenized share, turning tokenholders into shareholders. As we wrote in our media announcement, the tokenization of shares of Modum and the MOD token-equity swap are new elements of Modum’s token strategy, and we will therefore conduct a milestone voting to let current tokenholders vote on the proposed approach starting 7 August. If the outcome is positive, Modum will offer to swap the MOD token into ordinary registered shares of Modum. The full terms of the swap are published prior to the voting period.
While the proposal as a main idea was well received by our community, the terms of the token-equity swap provoked heated debates, which we are closely following.
We hosted an AMA session to address the community’s concerns. You can read the summary of this session here. Certain points will need further clarification – we will share the update on our website and through our social media channels.
If you require additional information or clarification concerning the token-equity swap, please feel free to reach out to Marc Degen, our Chairman of the Board, on Telegram.
We urge our community to take this opportunity to shape the future of the token and to participate in the voting.
I am looking forward to a productive and successful August and I wish you all the same. Thank you for your ongoing support.
– Simon Dössegger, CEO
30 July, 2019