Predictive logistics analytics boost as Rimon backs Premonition

By: Rob McKay


New seed funding operation Rimon Investments launches with support for Australian logistics software firm

Predictive logistics analytics boost as Rimon backs Premonition
Premonition co-founder Brad Lorge, right, Rimon director Lior Stein, centre, and Rimon director Gary Shapiro, left, with an unnamed software engineer.

 

Predictive logistics analytics has gained backing in Australia with the involvement of a new seed funding finance operation with its launch project.

Sydney business consultancy and investment house Rimon Advisory, formerly KWS Advisory, has unveiled Rimon Investments, with new logistics software firm Premonition the first company to receive seed investment.

Predictive analytics in the transport and logistics space uses today’s powerful data processing capabilities along with in-vehicle IT and real-time telematics – also known as the Internet of Things (IOT) – to calculate arrivals dynamically.

Premonition evolved six months ago from an effort by former University of New South Wales students to provide an application for Foodbank Australia, the local arm of the international not-for-profit organisation.

Called Foodbank Local, the app uses predictive technology, modelling and ‘big data’ to create a logistics optimisation program to most effectively link excess food to charities that can use them.

This includes route and traffic assessment down to predicting the time likely to be taken finding parking.

"All the things that, when you add them up, they have a huge impact on the number of meals you can deliver and in trial we conducted with the University of NSW, we saw about a 70 per cent increase in the amount of food charities are able to process, just by using this technology to manage their volunteers," Premonition co-founder Brad Lorge says.

Others involved in Foodbank Local included the National Institute of Technology and Microsoft, which is deeply involved.

About a year ago, the group sought to commercialise the technology and Rimon, became involved

"Since then Premonition has attracted up to 3,000 active users from a number of large key initial clients," Lorge says.

"We’ve built a technology platform that’s able to operate logistics networks more efficiently than anything else in the market.

"And that’s critical in an environment where online retailers are putting pressure on traditional logistics networks than ever before."

And while disruptors in transport and logistics are still yet to make a mark, Lorge believes Premonition will also be a vehicle to facilitate such a challenge.

"We’re really looking to provide that capability for existing players in the network and new players in the network, to be better able to understand what their capacity is, what their objectives are, what service they are going to provide customers."

Premonition is already in a partnership with ecommerce service aggregator Hubbed, which Singapore Post’ Australian arm, Quantum Solutions, invested in four months ago.

"We can redirect a parcel that’s on the way to a consumer at any moment if they tell us on an app that they are not going to be home.

"And that is in an effort to cut down on a pretty startling number – that 40 per cent of first attempt deliveries in Sydney fail right now."

Rimon Advisory aims to assists entrepreneurs to commercialise and grow through government grants and strategic advice.

Rimon Investments does not charge management fees, though it will take stakes of around 5 per cent in projects, and is backed by a group of significant investors in Australia, South Africa and Israel.

Among the investors are: Brad Shofer, MYOB co-founder and active board member of Ingogo; Gary Burg, resident director and co-founder at Global Capital Holdings; Neil Hessen, international capital markets expert; Michael Kadoury, angel investor and tech start-up adviser; and Sam Leon, non-executive director of Investec Australia Property Fund.

"We look to invest in scalable technology," Rimon Advisory director Lior Stein says.

"That’s the rule of thumb… but a lot of it is based on who it is.

"Rimon invests in Australian entrepreneurs with unique ideas that disrupt industries."

That said, of the four other projects in its early pipeline one is a medical development that could possibly have a material handling and transport application in time – a brain-wave driven wheelchair.

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