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Logizard (4391 JP — US$26 million) is a Japanese developer of software for managing warehouse inventory.
I first heard about the stock from a Singapore-based former fund manager who has an excellent track record managing his own money. So I wanted to find out more.
What’s fascinating about Logizard is that despite its US$15 million enterprise value, it’s somewhat of a market leader in cloud-based warehouse management systems for e-commerce. The CEO of competitor C-Net once said in a recent interview that he looks up to Logizard:
“I've been working on WMS for over 35 years. I was sometimes intimidated by Logizard's presence”
The core Logizard Zero software helps warehouses keep track of their inventory. Wireless handheld barcode scanners are used to receive items into the warehouse. The system then directs warehouse personnel to pick up items for dispatch and print the needed documents to fulfil customer orders.
Many of Logizard’s customers are warehouses serving individual e-commerce operators. But they also serve larger logistics companies and distributors that sell products wholesale. Logizard also has a product called Zero-Store, helping bricks-and-mortar stores keep track of their inventories.
One of Logizard’s competitive advantages is that it offers standardized software distributed online and paid for monthly. Compared to customized on-premise software, the setup costs are minimal. And the system can be up and running in a matter of weeks.
I also think that Logizard’s 365-day customer service is unique. While costly, customers seem to appreciate this support. In Japan, many small- and medium-sized enterprises still use pen-and-paper or Excel to keep track of inventory. They need hand-holding.
Logizard’s software can be connected to Rakuten, Amazon, Yahoo! Shopping, Shopify and many other e-commerce cart systems. It also connects to Smaregi’s point-of-sale terminals and associated order system. These integrations should be convenient for many of Logizard’s customers.
In addition, Logizard Zero also supports RFID tags, which makes the scanning process faster and seamless. And since 2020, it’s offered integration with certain logistics robots, including the Hikrobot and the Libiao t-sort robot.
Customers seem to happy with the product. Here is some feedback about Logizard’s platform at Japan’s IT Grid Review:
“I have tried various WMSs, but this is by far the best in terms of cost/performance”
“Simply outstanding. Compared to our previous system, we are very satisfied with the 365-day support”
“By implementing Logizard ZERO, our shipping and inventory accuracy has improved dramatically”
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