Transform unused space into valuable solutions, optimizing storage and streamlining operations for impactful logistics management through
YSpace
About
Academic project - IoT & business innovation.
Role
UX Researcher and Designer
Duration
August 2022 - October 2022 (3mos)
Background
In today's fast-paced logistics industry, businesses are constantly seeking new ways to optimize their operations and streamline their supply chains. These centers are responsible for the storage and movement of goods, and their efficiency is crucial for businesses and individuals alike. However, many companies struggle with managing their space, leading to inefficiencies, and wasted resources. This is where YSPACE comes in - a revolutionary platform that connects businesses needing yard space (for logistics purposes) with distribution centers that have excess space available for rent.
But wait, is finding space really that big of a problem?
Yes, finding space can be a significant problem in the logistics industry, especially for businesses that need temporary or seasonal storage solutions. For example, during peak seasons or holidays, businesses may require additional space to store excess inventory, but may not have the capacity to do so in their own facilities. In addition, some businesses may have fluctuating storage needs due to factors such as sudden changes in customer demand or unforeseen events like natural disasters. On the other hand, some distribution centers may have excess space that is not being fully utilized, resulting in missed revenue opportunities.
Facts on Logistics
54% of consumers increased their online shopping in 2021.
55% of consumers say fast shipping is important.
44% of retailers diversified fulfillment network locations in 2021, to achieve reduced delivery times.
The intense demand for warehouse space spurred a record increase in new construction in 2021, with 520 million sqf of industrial space under development at the end of the year, an increase of more than 50 percent compared to the total at the end of 2020.
50%
Growth
Introducing YSpace
YSpace connects businesses requiring yard space for logistics purposes with distribution centers having underutilized space available for rent. YSPACE's user-friendly interface operates much like Airbnb, providing distribution centers with the ability to list their available yard space, including location, size, and amenities. Businesses and individuals can then easily search, book, and pay for the space they need, providing a seamless and efficient process. YSPACE is an ideal solution for businesses looking to optimize logistics operations and monetize their excess yard space.
The Solution
The idea for YSPACE came about in an Internet of Things and business innovation class, where our team was tasked with developing a solution to help a logistics company establish itself as a yard management leader. After conducting extensive research and interviews with logistics industry professionals, we identified a need for a platform that could provide businesses with access to underutilized yard space.
Outcomes of YSpace for Stakeholders in the Logistics Industry
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Successfully capitalized on underutilized yard space, resulting in a 82% increase in revenue
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Increased visibility and Boosted reach and exposure to potential customers.
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Opportunity to develop long-term relationships with businesses in need of yard space.
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Access to a wider range of yard space options.
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Ability to find yard space more quickly and easily.
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Making sustainable choices by Reducing the wastage of resources.
Design Process
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Discover
conducted user research by interviewing people in the logistics industry and observing how supply chain works at big companies like Amazon and FedEx . We also conducted an environmental and competitive analysis to understand the existing solutions available in the market.
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Define
synthesized the data collected during our discover phase to identify key themes and patterns. We used this information to create a customer profile and personas that represented the typical user of YSpace. This helped us to develop an empathy map that allowed us to understand the user's needs, pain points, and behaviors.
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Ideate
In our ideation phase, we used a range of methods including Crazy 8's, SWOT analysis, storyboarding, and wireframing to generate potential solutions. We also tested our concepts through a concept mapping activity, where teams shared and refined their ideas in 15-minute sessions.
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Prototype and Test
We started with low-fidelity sketches and moved on to digital wireframes using Figma. These wireframes were then iterated upon multiple times, considering feedback from users and stakeholders. We also created high-fidelity mockup of a few screens to test the look and feel of the platform.
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Market
For the business innovation aspect, we created a value proposition canvas and a business model by analyzing the costs associated with the problem for stakeholders, estimated the cost of implementing the YSpace solution, and projected the additional revenue it would generate.
Literature Review
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Warehouse space is shrinking and companies are getting more creative.
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An integrated perspective on the future of mobility, Transforming Urban Delivery
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En route to Sustainable Logistics
Discover
Environmental Analysis
To get a deeper understanding of the market trends and competitive landscape, we conducted an environmental analysis of the logistics industry and of the pre-existing companies in the yard space rental market. We used the Four-Tiered Environmental Analysis approach to identify key insights and inferences.
Here are the key findings we discovered from our analysis:
Industry forces: The logistics industry is highly competitive with numerous players vying for market share. However, there is a growing need for flexible and cost-effective logistics solutions. There is a high demand for yard space in certain geographic locations due to the concentration of distribution centers or the presence of key transportation hubs. We also observed that there is a high potential for revenue generation in this market.
Key Trends: There is a growing trend toward using technology to optimize logistics operations. Additionally, there is an increasing focus on sustainability in the logistics industry. The analysis highlighted regulatory changes that impact the logistics industry, such as new zoning laws or environmental regulations.
Market Forces: E-commerce and online retail have significantly increased the demand for logistics services, leading to increased competition and innovation.
Macroeconomic Forces: The logistics industry is influenced by macroeconomic factors such as economic growth, global trade, and regulatory changes. Operational costs are going to increase due to inflation which brings out the need to have a flexible and cost-effective solution that can help them adapt to changing market conditions.
Competitive Analysis
There are several established companies offering yard management solutions, including FourKites, PINC Solutions, and Descartes Systems Group. But we also wanted to do a competitive study of software which are Logistics and Real Estate focused like Loopnet, Appfolio, and MRISoftware.
These companies offer a range of features, including real-time yard visibility, appointment scheduling, and dock scheduling.
There are also companies that provide land for logistics, such as Prologis, Goodman Group, and Loopnet which offer warehousing and logistics real estate solutions.
Overall, the market for yard management solutions and logistics real estate is highly competitive, with several established players offering a range of solutions to meet the needs of logistics companies.
Comparative Chart
Who did we interview?
To gain a comprehensive understanding of the logistics industry, we conducted a total of 21 interviews with a range of experts. This included 5 distribution center managers from WernerCo, ShipBob, and Fedex who provided valuable insights into the logistics process. We also spoke to 6 industry research specialists from Indiana University, who shared knowledge about emerging technologies and industry trends. Additionally, we interviewed 5 professionals from trucking companies to understand Transport Management Systems, and 5 developers from Yard Management Solutions, a software company, to gain insights into user preferences.
Synthesizing the data through thematic analysis
Key Findings
Limited Space
One of the main pain points of distribution centers is limited space, which can be due to many reasons such as the increasing amount of inventory, inefficient utilization of space, or even limited space in the warehouse facility.
Inefficient Organization
Another pain point is the inefficient organization of inventory. This can lead to difficulties in finding and accessing specific products, which can slow down the entire distribution process and lead to delays in delivery.
High Cost of Renting/Leasing Lands
Distribution centers may face high costs of renting or leasing land for storage or yard space, which can be a significant financial burden. Additionally, they may struggle to find available and suitable space that meets their needs and requirements.
Lack of Visibility and Control
Distribution centers may also experience a lack of visibility and control over inventory and logistics operations, which can result in inaccurate tracking of products and delays in delivery. This can lead to dissatisfied customers and lost business opportunities.
Difficulty in Managing Logistics Operations
Distribution centers may face difficulties in managing their logistics operations due to factors such as complex transportation routes, varying delivery schedules, and changing customer demands. This can result in inefficient utilization of resources and increased costs.
Define
See
Overstocked or disorganized shelves
Crowded aisles and storage areas
Delivery trucks waiting in line to unload
Workers scrambling to find space to store incoming shipments
Hear
Workers complaining about lack of space or difficulty finding items
Trucks beeping while backing up
Customers complaining about delayed shipments
Managers expressing frustration over inefficient use of space
Think and Feel
Frustrated by inefficiencies and delays
Worried about meeting delivery deadlines
Concerned about safety hazards due to crowded spaces
Stressed by the pressure to keep up with demand
Says and Does
Prioritize inventory based on demand and space
Schedule regular cleanups and reorganizations to optimize space
Negotiate with suppliers to minimize unnecessary packaging and materials
Seek out new technologies or solutions
Customer Profile
By our research, we discovered that our customers are primarily small businesses that require yard space for short-term storage or local distribution. But the platform should also cater to customers that are larger corporations with more complex logistics needs, such as cross-border shipping or specialized equipment requirements. To gain more insights into our target audience, we created an accurate customer profile by first identifying the pain points related to logistics in distribution centers. We took note of the tasks that people have to perform in order to fulfill orders and manage inventory. By analyzing this information, we were able to identify potential gains that could be achieved by optimizing space utilization and streamlining warehouse processes. With this customer profiling, we were able to better understand the needs of our users and design a solution that addresses their pain points while maximizing their gains.
Personas
To create personas, our team used a creative approach by drawing inspiration from popular TV show characters. By using characters like Johnny Rose and Jocelyn Schitt from Schitt's Creek, we were able to create relatable and engaging stories that helped us better understand our target audience. Overall, by using creative storytelling and drawing insights from our research, we were able to create effective personas that helped guide the development of the solution.
As a Manager of a distribution center
When a loaded truck arrives at the station
I want to start the unloading process timely
So I can maximize the efficiency of order fulfillment.
But sometimes I do not have the space needed to operate optimally without creating deadlocks and delays in order fulfillment.
Problem Statement
Target Audience
Logistics Companies that require land to store and distribute their goods efficiently
YMS, WMS, and TMS solutions companies who can generate new revenue streams
Property Owners who have excess land which is underutilized
Ideate
Our ideation process was fueled by creativity and innovation. We used the dynamic Crazy 8 method to generate and refine a multitude of innovative ideas and then applied the rigorous SWOT analysis to evaluate their feasibility. With our design thinking approach, we then storyboarded two captivating concepts that stood out -
A. a comprehensive dashboard platform to efficiently manage yard space and
B. an intuitive platform to streamline the management of trucks and transportation for seamless deliveries.
Tweaked StoryBoard
Ms. Joclyn Schitt, A Distribution Center Manager is frustrated because of capacity issues.
Mr. Johnny Rose is trying to think like an entrepreneur. His land is currently not generating any money.
Mr. Johnny Rose and Ms. Joclyn Schitt registering for the Yard Management Platform.
Mr. Johnny Rose, harnessing the power of location in the Internet of Things.
Mr. Johnny Rose and Ms. Joclyn Schitt doing business together.
The MVP (Minimum Viable Product) of this solution is focused on helping users with space forecasting and finding with the help of the Internet of things.
Design Exploration
Prototype
We created a basic version of the product that includes its core functionalities. The MVP features are real-time tracking of the yard, camera view, space forecasting, incoming shipment space forecasting, space calculation, space finding, and recommendation, contacting the facility, and messages.
Find Yard spaces
Become a Host
or
Onboarding
YSpace's onboarding process is simple and straightforward. Users can choose to become a host and rent out their yard space or find a space and pay rent to the host. During onboarding, users will be asked about the location, area, and type of space they need or want to rent out. YSpace's platform will then match hosts and renters based on their needs and preferences. Once matched, users can communicate and arrange details through the platform's messaging system. Finally, YSpace ensures secure payments and provides support throughout the rental process.
Real-time tracking of the yard is important for distribution centers and trucking companies as it provides visibility into the available space and helps them plan their operations efficiently. The camera view feature allows users to monitor the yard remotely and ensure the safety of their inventory.
Real-time Tracking
Space forecasting is a key feature of yspace, as it helps users plan ahead and make informed decisions about their space utilization. Incoming shipment space forecasting allows users to know how much space they need to allocate for upcoming shipments.
Space calculation and recommendation features are essential for users who want to optimize their space utilization. These features suggest the best use of the available space and help users identify the optimal locations for storing their inventory.
Space Forecasting
Home page
YSpace provides users with an easy and efficient way to find the perfect yard space for their needs. Users can search for available spaces directly on the platform and filter their search based on factors such as location, type of space, and required area. The platform also offers a map view that allows users to see available spaces in their desired area. YSpace ensures that all available spaces on the platform have been verified and meet the necessary safety and quality standards. Once a suitable space has been identified, users can easily book the space and begin using it for their operations.
Finding a Space
Details of the space
After finding a suitable yard space on YSpace, the user can contact the facility owner through the platform's messaging system. The messaging feature allows the user to ask questions or clarify details about the space before making a booking. The facility owner will receive the message and respond in a timely manner, ensuring efficient communication between the two parties. The user can also use the messaging feature to discuss any special requirements or negotiate rental terms with the facility owner. This helps to establish a transparent and trustworthy relationship between the user and the facility owner. Additionally, YSpace can provide notifications to both parties when there are new messages or updates regarding the booking.
Contact the facility
Business Model
How can YSpace earn profit?
YSpace's subscription-based business model offers affordable pricing for landowners looking to optimize their yard space. For a basic package of $70 per month, users can access space forecasting, calculation, and recommendation features. For more advanced capabilities like real-time tracking of the yard and camera views, a premium package can be purchased for $100 per month. Distribution centers can also benefit from YSpace by integrating it into their existing yard management, warehouse management, and transport management solutions and selling it to their clients for $70 per month. YSpace can earn revenue by charging a percentage of the profit made from using the platform. Along with these revenue streams, YSpace can explore partnerships and collaborations with logistics and transportation companies to further expand its offerings.
70*38*12 = $32,000
The global warehousing and storage market reached a value of US$ 451.9 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 605.6 Billion by 2027, exhibiting at a CAGR of 4.9% during 2022-2027.
BILLIONS
Feedback
Chad Ringer, CEO, RING-CO
āI love this idea. Iām impressed with the depth of research and analysis into the YSpace solution. The personas were spot on and the empathy map helped us understand the pain points and gains of our target audience. The ideation process was creative and the prototyping of the MVP features was well thought out. We appreciate the clear and concise business model presented. Overall, we feel that YSpace has great potential in the logistics and transportation industry. Our only suggestion would be to further explore partnerships and collaborations with established companies in the industry for a more streamlined approach."