De ondernemer

From Backroom to Multimillion-Dollar Company: Explect Aims to Become the Uber of Logistics

In 2015, brothers Martijn and Bart de Ruiter founded Explect, the first digital freight forwarder in the Netherlands. They started in a small backroom on Havendam in Oud-Beijerland, with just enough space for two desks. Since then, Explect has grown into a multimillion-dollar company that simplifies all the paperwork involved in importing and exporting sea containers.

Ilja Post (AD) 8 augustus 2022

The Explect management team when it was still complete, with Martijn (center) and Bart de Ruiter (right). Photo: Remie Kranendonk | REEM

The two brothers are not lacking in logistics knowledge. They literally grew up with it. Bart de Ruiter said in the AD: “Our father and uncle both had their own freight forwarding companies. A brother between us is a captain on the high seas. So you could say that transport and logistics are in our blood. As little boys, we already walked among the sea containers to have customs documents stamped.”

But while Martijn quickly developed an interest in business administration, Bart initially tried to break away from what seemed like a predetermined career. He decided to study psychology but didn't stick with it for long.

“Before, you had to physically go to a travel agency and, accompanied by a travel agent, browse through all kinds of brochures on site. Nowadays, you can arrange everything online yourself.”

Bart de Ruiter, Explect

The time of rise of companies like Alibaba, Amazon, and Uber

“As my father increasingly asked me to help out in the company, I eventually gave in. Barely 19 years old, I was already working in the full freight forwarding business. There was no shortage of work or earnings. The logistics sector was and is a trillion-dollar market.”

For about three years, the brothers worked side by side with their father. When senior expressed a desire to quit, they decided to continue independently. But they wanted to do things slightly differently than their father had done all those years before.

Bart: “It was just the time of the rise of companies like Alibaba, Amazon, and Uber, which with their integrated trading platforms quickly became larger and more influential than many traditional businesses. We also wanted to get a piece of the pie. Our ambition: to become the Uber of logistics.”

The world of logistics often revolves around weight and volume.

To make it easier, the brothers decided to develop their own software with Explect to simplify all the paperwork needed to make container transport possible. This includes extra assistance with filling out questionnaires on regulations, insurance, and other administrative matters.

According to Bart, what they do can best be compared to how you used to book a trip versus now. “In the past, you had to physically go to a travel agency to browse through all kinds of brochures accompanied by a travel agent. Nowadays, you can do it all yourself online.”

He says that especially starting entrepreneurs are immensely helped by this. “In the world of logistics, it often comes down to weight and volume. Smaller companies, with little knowledge of the sector, find it difficult to compete.”

Explect became the forwarder for Seepje

For example, Seepje, now a well-known A-brand that deals in laundry and cleaning products based on soap nuts from Nepal, had a hard time finding a forwarder at the time of their inception. Nobody wanted to help them because they were still a small player. But we did. Our goal is to open up the market further. In other words: more transparency in the chain through digitization.”

What started with a simple online application form to help new as well as existing large clients, grew into a software package that precisely meets the wishes and needs of their customers. Thanks to this online platform called Digimentr, which helps other companies digitize their forwarding, Explect has been growing steadily over the past 7.5 years.

“Before the COVID-19 pandemic, companies paid less than 600 euros for a container freight from China. At its peak, the same transport cost around 15,000 euros,” says Bart de Ruiter, Explect.

“Those who don't keep up with digitization simply won't survive long in this industry”

All of this was against the expectations of senior De Ruiter. Bart explains, “My father initially thought that Explect would do more harm than good to the sector. He feared that it would become a kind of Marktplaats. But those who don't keep up with digitization simply won't survive long in this industry. Especially not since COVID-19.”

He explains, “Before the pandemic, companies paid less than 600 euros for a container shipment from China. At its peak, that same transport cost around 15,000 euros. And although we have no influence on that market price, just as a real estate agent cannot determine the price of a house, our track & trace service does help companies make their goods visible.”

Explect has since become a multi-million dollar company with a team of fourteen employees. This is important even for large companies that had made multi-year agreements with suppliers before COVID-19, he continues. “It's simple: a container that doesn't generate enough revenue for a shipping company will just stay at the dock.”

This is one reason why, he says, some fashion companies only received their spring collections in the fall at the beginning of the pandemic. “Digitization also makes such possible setbacks visible, so that customers are not negatively surprised.”

Thanks to this service, Explect has grown into a multimillion-dollar company with a team of fourteen employees. The digital platform has over 2,000 users, and more than 6,500 companies are connected, with expectations for rapid growth to continue.

Utilizing knowledge to digitize other industries

The only downside to this otherwise bright future: Martijn will no longer be a part of it. He recently realized that his passion lies in digitizing industries that have a lot to gain from it. In good agreement, the oldest brother decided to say goodbye to the company and use his knowledge to digitize other sectors. The remaining directors, Bart de Ruiter and Pim Verhage, will continue to run the company.

According to Bart, it will take some getting used to. "We started this adventure together, and I would have liked to have had Martijn with us for the next few years. But as he recently said himself: what we're doing is bigger than ourselves. And maybe that's true. What is certain is that we will continue to disrupt the market from Oud-Beijerland, just like Uber did when they still stood for their ideals."