Here is an update on how Modum is taking shape
Here is an update on how Modum is taking shape
A lot has happened since my last update at the end of 2019 when I was sharing our plans for 2020. We were excited to kick-off deployments and pilots in our first international customer project. Shortly after and along the lines of Einstein’s saying “planning replaces coincidence by error” the COVID-19 crisis struck the world.
Now, more than half a year later it is time to share a few thoughts on where we are and where we are headed.
First of all, Modum is doing great, we managed to stay healthy and fully operational. We have not only managed to deliver on all our customer projects over the past months, we have also streamlined our organization in the face of expected COVID-19 implications.
As for probably any organization, COVID-19 had a significant impact on our marketing and sales activities. Thanks to the thorough marketing work we did last year in refining our way of promoting Modum and its solutions directly and through numerous partners, we were able to mitigate a large part of the impact by now.
Overall, this streamlining allows us to soften the impact of COVID-19 and provides us the confidence to keep planning for us and our customers as long-term as we are used to do.
Modum’s market approach
In the pharma supply chain industry, with typical sales cycles of 12 to 18 months, our main challenge is still to establish Modum and our solution as a capable and competitive player.
So far, we have built good relationships with leaders of about 120 pharma brand owners and about 50 pharma wholesalers. We have learned that our approach of not just supplying measurement devices but to offer holistic supply chain visibility systems that are well-integrated into the leading IT systems of pharma brand owners and distributors, is well-appreciated. In addition, supply chain and quality professionals see the value of not just measuring supply chains with MODsense but also to fully leverage the data collected with our AI-driven MODsight analytics software and to feed these insights in a trusted way either to other supply chain stakeholders or back in to their own logistics processes. We do this with a series of integration and data management options we label under the term MODlink.
So, where do we stand with regards to applications and market traction with respect to each solution area?
MODsense summarizes our supply chain monitoring and tracking solutions consisting of software and hardware components. Today, we are pursuing two main applications of MODsense – monitoring of (intercontinental) warehouse to warehouse shipments, and monitoring of national distribution of sensitive goods all the way to the point of sale or dispense (e.g. hospitals or pharmacies), as was launched last year with Swiss Post.
However, in the last year we have not just continued to evolve our solution including our MODsense T data logger in collaboration with Swiss Post and their customers, but we have also identified scalable use cases for the same core system with a handful of well-known pharma manufacturers and distributors in Europe and Asia. With them, we are now in the process of industrializing and rolling out the system, mostly for pharmaceutical products and drug kits for clinical trials but also for samples of medical diagnostic laboratories.
The results we can demonstrate there, show that MODsense is undeniably outperforming our competitors, being at the sweet spot of cost-efficiency yet still very effective and simple to use.
This provides us the confidence to continue investing in optimizing our existing MODsense T data logger and expanding MODsense. This expansion happens on the hardware side, where we now also offer connected gateways that completely automate the interaction with our data loggers, further reducing the already low handling cost to a point where MODsense becomes a uniquely attractive solution for data collection at point of dispense or at designated cross-docking locations. It also happens on the softwareside, where we recently released improved mobile and desktop apps for even smoother workflows that allow users to add shipment-specific meta-data, improved regulatory compliance with advanced audit trails and enabled Modum-managed logger inventory features.However, building up the business behind this use case is a long-term process as this is a new market, partially driven by new regulatory requirements (e.g. GDP) which need to be fully understood and reasonably enforced first. So, despite our desire to speed things up in general, we are happy how MODsense is evolving towards national distribution!
We started to build a second application for MODsense last year, which is about real-time monitoring of international and intercontinental shipments in the primary distribution network of pharma brand owners. For this purpose, we are expanding our MODsense solution portfolio with the new XL-RT data logger which is not only capable of measuring temperature, but also other conditions such as humidity, light levels and more. In addition, this data logger is also able to determine its location and to continuously communicate all of the above data via cellular communication networks (please refer to the description of our token milestone 3).
This device will itself be a game-changer for us to address the thriving trend to track products end-to-end, but the true potential will be unlocked when we feed these new types of data into our MODsight platform.
We are actively piloting this real-time monitoring & tracking system in multi-national setups with well-known brand-owners. Its industrialization will be a key activity during the next months.
In summary, with our Gateways and the XL-RT data logger, we are expanding MODsense into the industry’s most powerful and modular end-to-end monitoring system. With the full ownership of both hardware and software, we are unlocking a huge potential in designing truly process-centric supply chain monitoring systems. And this does not stop at monitoring the transportation of pharmaceutical goods but expands to permanent temperature and humidity monitoring of warehouses or tracking of high-value equipment. Lastly, we are also happy to see that the experience in delivering pharma-quality-grade solutions we built up, is clearly paying off when we move into other industries.
MODsight is all about advanced and predictive analytics based on data acquired by MODsense and augmented with additional data. A good example is with the smart packaging selector, we piloted with interested customers at a very early stage. Read more here.
Bringing in our capabilities and fully leveraging collected data usually follows in a second stage of a customer engagement, in the form of a dedicated project or general features that benefit a large part of our user base. MODsight features concerning the latter, for example shipment analytics reports or lead time estimates, we are continuously building out and adding to the core of our solution modules. Please refer to the image below for a recent example.
Overall, it is great to see that our customers understand the value of these additional levels of insights and ask us to help them beyond just monitoring. This is also where our network of consulting and implementation partners really helps as it provides us the flexibility to decide how we engage in a specific follow-up project and we can combine forces with our experienced partners when it comes to showing the customer the full benefits of supply chain visibility and control across their organization.
Although the blockchain-hype cooled off to a reasonable level in the past year, the underlying challenges of exchanging trusted data in a well-governed, cross-supply setup with trusted access permissions prevail. This is where Modum’s MODlink is considered as a leader in creating trusted events for supply chain process automation and interaction with final product recipients and is therefore invited to participate in the solution finding.
Based on the relationship ecosystem we built up, we are called for more and more project opportunities with global players, which are about leveraging the benefits of adding blockchain-secured data from our now proven MODsense system into the leading systems of brand owners and their distribution partners. It is great to see how Modum can bring pharma brand owners and distributors to the same table in order to facilitate true end-to-end monitoring of their products and to enable process automation and optimization across their full supply chain.
I hope this provides some good insight into where Modum stands and what we are up to in the coming years. We wish things would go faster, and COVID-19 did not help with this, but Modum is in it for the long run and the customer and prospect portfolio we built up in only a year, gives us not just the confidence that we are doing the right thing, but also provides a solid foundation to plan our steady business growth for a good return on investment.
We are very much looking forward to the point where we can share the details of all the above cases together with our customers.
In the meantime, we keep working and delivering to our customers and are thankful that we see business interactions coming out of lockdown again. It is reasuring that this pandemic is not threatening our customers and industry. I believe in the long run, COVID-19 sped up supply chain digitalization and unearthed challenges to solve. We are ready and eager to help solve them.
I would like to close with a remark about the ongoing Token Swap. So far, more than 500 transactions to burn the token have been completed and more than 7 million MOD tokens have been burned to date.
As a reminder, tokenholders have until 21 August 2020 to swap their MOD tokens into participation certificates or against monetary compensation. The participation certificates and the cash-out will be issued or paid out no later than the fourth quarter of 2020. For more information, please refer to the Token Swap page including the FAQ.
Simon Dössegger, CEO Modum