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Aquatio | Annotated Abstract
Aquatio Strategy View

Digitizing mid- and last-mile logistics handovers to reduce waste

An abstract of the McKinsey article Digitizing mid- and last-mile logistics handovers to reduce waste

$95B Estimated annual waste tied to blind handoff inefficiencies.
13–19% Of logistics costs linked to fragmented coordination.
40% Potential reduction in waste with better coordination tools.
Article Abstract See what Aquatio solves across the handoff

Logistics inefficiency is not primarily a visibility problem—it is a coordination problem Challenge Visibility without execution You can see the shipment—but can’t move it forward. Aquatio solves this by turning visibility into coordinated action. . Across middle- and last-mile delivery, significant waste occurs at “blind handoffs,” the moments when goods transfer between shippers, carriers, dispatchers, and recipients Challenge Unstructured handoffs Responsibility shifts—but nothing ensures continuity. Aquatio solves this by managing every handoff as a defined workflow. . These breakdowns in communication and coordination drive 13–19% of total logistics costs, equating to as much as $95 billion annually in the U.S. alone.

While the industry has invested heavily in real-time visibility platforms, visibility alone does not resolve the root issue: fragmented, reactive, and often one-to-one communication between multiple parties operating without shared context Challenge Fragmented communication Too many channels, no shared source of truth. Aquatio solves this by centralizing communication into a single, real-time thread. . The result is avoidable dwell time, re-deliveries, lost shipments, overwhelmed support teams, and declining customer satisfaction Challenge Reactive operations Problems are discovered after they’ve already caused delay. Aquatio solves this by identifying and resolving issues at the moment they emerge. .

Emerging solutions—AI-driven workflow automation and generative AI-powered contextual communication—begin to address this gap by enabling proactive coordination, shared understanding, and multi-party communication. When combined with visibility platforms, these technologies can reduce logistics waste by up to 40%.

Aquatio exists to solve this exact problem. Rather than adding another layer of visibility or point solution, Aquatio addresses the systemic failure at handoff points by creating a unified coordination layer across the supply chain Challenge Disconnected systems and teams Tools exist—but they don’t operate together. Aquatio solves this by synchronizing systems, workflows, and stakeholders in one layer. . It transforms fragmented interactions into synchronized workflows—connecting all parties in real time, automating decision-making where possible, and enabling context-aware communication where human input is required Challenge Slow, uncertain decision-making Lack of context leads to hesitation and back-and-forth. Aquatio solves this by delivering shared, real-time context for faster decisions. .

Digitize your shipping workflows. Save 4% on every shipment.

  • Aquatio closes the gap between visibility and execution
  • Aquatio improves cross-party coordination at handoff points
  • Aquatio reduces manual work, delays, and service friction
  • Aquatio supports more unified shipping workflows
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