Ofir Bronhaim, DSV Innovation Manager, manages innovation strategy and practical application in the different verticals. Ofir loves taking an active part of the startup ecosystem in Israel and believes in the importance of culture for innovation success. 

Supply chain management has been evolving continuously over the last four decades. In particular, the pace of change, in the last decade or so, has been truly rapid in every sense of the word.

Consumers are usually exposed to parts of the supply chain process which are closer to the point of consumption. The changes are happening, however, across the supply chain’s entire length.

These changing norms have upped the ante for traditional industries like shipping and trucking, long mired in bureaucracy, manual processes and heavy administration. While shipping crews may be more accustomed to updating paper charts than analyzing big data, their employers ignore innovation at their peril: The entire supply chain is in the midst of massive change, incorporating new technologies to improve operational cycles, increase efficiencies, cut costs, save time and reduce human error.

DSV constantly strives to be a leader in changing this ecosystem. Because DSV is one of the largest corporates in supply chain logistics, globally, it is very familiar with this industry and understands its pain points. One of the main things we are doing to overcome/solve those pain points is working with startups in order to bring innovation to the field.  DSV’s start-up service works in partnership with small and medium sized companies to design the optimal supply chain solutions. To date, DSV has collaborated with 11 Israeli start-ups, with a pipeline of dozens more.

Why Israel?

DSV’s innovation unit works mainly in three countries – South Africa, Denmark (where the company HQ is located) and in Israel. This is because the company understands that the Israeli ecosystem provides excellent, flexible, innovative solutions and is a powerhouse in the global innovation market. 

Why would startups want to work with DSV?

As a world leader in the field of supply chain, DSV has its ear to the ground on needs and challenges in this field and knows how to best fit a technological solution to those challenges. DSV offers startups access to the best subject matter experts in the field and an opportunity for exposure in different countries. Being able to design a product and adjust it in response to DSV’s or its many customer’s needs ensures a better product. DSV can also later incorporate the startup into its offerings and help it reach a wide audience.

3 Tips for Large Corporations Working with Startups

1. Commitment

When an organization decides to include an open innovation methodology or incorporate innovation into its ranks, the different departments have to be committed to that innovation. Managers and employees need to understand that work processes are complex and the combination of a startup and enterprise is a complex endeavor that requires time, patience and commitment from both sides.

2. Transparency

One of the most critical points in the combination of a startup and enterprise is the allocation of resources. The amount of resources a startup has is limited and, often due to mismanaged allocation of resources, may find itself shutting down. The enterprise, that often controls the pace of product development and incorporation, needs to be completely transparent with the startups it is working with. A relationship based on transparency saves the startups unnecessary expenditure of resources and allows it to focus on the product. 

3. Culture

The cultural differences between startups and large organizations are vast. One of the challenges of having open innovation is taking into account the cultural adjustments that need to be made. The eventual combination of these cultures when done correctly and together brings positive results to both sides. Culture, open communication, and work processes are all important in making sure open innovation is productive.