Over time, Eshan realized that while the General Contractor’s (GCs) primary role at a construction site was overseeing the build, they effectively acted as real estate managers during the project’s duration. This stems from the fact that GCs have a finite amount of space to receive inventory from subcontractors. Managing the inflow and storage of these materials is crucial; otherwise, they risk project delays.
This realization became the foundation for Krane. At present, GCs manage their space using static Excel spreadsheets, providing limited visibility into their supply chain and material flow.
Armed with this insight, Eshan enrolled in Stanford GSB for his MBA. He used this opportunity to test his thesis further, fully launching Krane on graduating this year.
Why Does the Construction Industry Need this?
The construction industry predominantly relies on manual information flows, leading to unnecessary delays and cost overruns. Recent global events, including the Covid-19 pandemic and the Ukraine-Russia conflict, have severely disrupted supply chains. This disruption has necessitated additional effort to ensure materials are transported promptly. In large construction projects, several stakeholders — from laborers on-site to drivers in trailers — lack a clear view of the supply chain. Complicating matters further, suppliers often employ third-party logistics providers who aren’t directly involved with the project for material transportation. As a result, millions of dollars worth of goods can be stranded without a definitive delivery timeline, causing project delays.
We think that construction supply chains will be disrupted, primarily for three reasons:
- Escalating construction costs.
- Shortages of materials and labor.
- Constraints within the supply chain.
What Does Krane Do?
While many competitors are emerging in construction materials procurement and tracking, Krane sets itself apart by emphasizing collaboration between GCs and subcontractors in planning their materials workflows.
As Krane is still officially in stealth mode, we cannot go too much into the details of how they will revolutionize the relationship between GCs and subcontractors, but Krane is highly focused on creating alignment between these parties that traditionally work through static communication.
Krane is Rapidly Progressing
Krane has shown strong demand for its product, with four major General Contractors (GCs) committed to pilot projects. This includes the global GC, Boldt, where Eshan spent part of his career. Eshan has been spending time integrating Krane into an $800M project in Sri Lanka. When we last spoke with him, he called from onsite inside a shipping container where temperatures exceeded 100°F. It does seem Krane is heating up!
We are excited to partner with Eshan and his team so early in their journey, and we are really looking forward to helping them build a solution to reduce construction costs and bottlenecks across the world.
