Pavan Kumar T V

CTO | Technology Leader

How to build for Logistics

This isn't theory. I've seen it play out. The founders who make it see opportunities in the chaos and navigate around them.

Here's what to watch out for.

1. Building tech before understanding ground-level operations.

Great dashboards, slick routing engines, beautiful UIs — all useless if they ignore:

• messy contract realities

• carrier constraints

• customs delays

• the chaos of hubs and cross-docks

Watch out: If your product adds even 2 extra steps to an ops team already juggling peak loads, they simply stop using it.

Founders demo "next-gen visibility platforms" to ops managers who smile…

then go back to WhatsApp, Excel, and voice calls — because your tool doesn't replace any step in their day. It just adds another tab.

Where AI helps: Keep your software in emails, WhatsApp — no new UI needed. AI can parse, understand, and act on messages in the tools ops teams already use. No new tabs. No new workflows. Just smarter versions of what they're already doing.

2. Underestimating the complexity of cross-border & compliance.

You can't "Digital Transform your way" around:

• HS codes

• Duties

• VAT rules

• manifests

• carrier SLAs

• documentation sequencing

• trade lane restrictions

Watch out: Startups assume customers will "adapt" or carriers will "integrate eventually".

They won't.

If your product can't fit into existing Ops workflows, it dies at pilot.

Where AI helps: Let them be messy in Excel. Let them use whatever format they want. AI translates and transforms. You read their messy spreadsheets, their inconsistent documentation, their ad-hoc workflows — and AI makes sense of it. No forcing them to adapt. You adapt to them.

3. Chasing scale before fixing unit economics.

Opening new lanes, countries, hubs, partnerships before validating:

• cost per shipment

• carrier incentives

• failure rates

• returns flow

• customer support cost

• exceptions management

Watch out: In logistics, small inefficiencies don't scale — they explode.

A 2% exception rate at 1,000 shipments/day is noise.

At 100,000/day, it's bankruptcy.

Where AI helps: Be maniacally clear on margins, hidden costs in contracts, carrier incentives. AI can parse contracts, extract terms, flag discrepancies, calculate true costs. You see the unit economics before they become a problem. No surprises at scale.

4. Treating logistics like any other software-only SaaS.

This is not pure tech. It's:

• warehouses

• brokers

• carriers

• bonded zones

• SLAs and penalties

You can't "subscribe" your way out of physical reality.

Every logistics product eventually becomes professional services + operations + tech.

Watch out: Most founders underestimate the operational overhead by a factor of 5–10.

Where AI helps: Internally, your ops team should have AI to handle humans. AI handles the routine queries, the status updates, the exception routing. Your humans handle the complex cases, the relationship management, the edge cases. AI scales the ops team without scaling headcount linearly.

The logistics space is complicated, but it's also massive. The winning formula is don't try to reinvent the wheel. Make the wheel spin faster, smoother, with less friction.

If you're building in logistics, you're not just building software. You're building trust with ops teams who've been burned by shiny tools that don't work. You're building systems that handle the messiness of the real world. You're building something that has to work when everything else breaks.

That's hard. But it's also your moat.

The founders who get this right? They don't fight the complexity. They use it. They build AI that works in Emails and Excel, not AI that requires new workflows. They read messy Excel files, not force clean data formats. They understand that logistics is professional services + operations + tech, and they plan for all three.

The ones who don't? They build beautiful products that nobody uses.

Lets make the world a better place for people who brings us our parcels.