Luis Moncayo of Inspectorio
An exclusive Tech Tribune Q&A with Luis Moncayo (co-founder and managing director) of Inspectorio, which was honored in our:
Tell us the origin story of Inspectorio – what problem were you trying to solve and why?
Prior to Inspectorio, I founded a sourcing company called ASIAM with Carlos Moncayo, Fernando Moncayo, and David Klein, my co-founders at Inspectorio. We were sourcing products out of China selling them in South America.
At ASIAM, we were extremely close to the production chain because we were a vendor. We spent 13 years doing sourcing and as a result, we knew very well how production processes work, so we could see the pain points.
We discovered one very big pain point – there was a lack of visibility into what was happening in the production chain and in the quality of the goods.
At ASIAM, we first tried to hire our own inspectors and then hired the biggest inspection companies in the world to assist us. We found everyone was doing the same thing – using a pen, paper and a digital camera. There was a lack of visibility.
When we went through these challenges, we spoke to others and realized it wasn’t just a pain point for us – a lot of companies were suffering.
We put our heads together and found our own way to bring a solution to the pain point. We decided to produce our own technology for the inspection process and in effect, to digitize the inspection industry.
We then had increased visibility into what was happening in real-time. We realized we had a lot of data, like what were the most common defects by factory or product, what factories were performing better, how inspectors were conducting the inspections, and a whole lot more. We were then using the data and the tech for our own orders at ASIAM and were seeing the benefits.
We then thought about how we could bring this new solution to the market. We applied for TechStars, which is a part of Target, in 2016. When Target heard our pitch, it was clear they were interested, as it was a pain point for them and the industry. We have since grown to over 15,000 users and have some of the biggest companies on Earth using us.
What was the biggest hurdle you encountered in your journey?
There have been so many that it’s hard to say. One of the hardest challenges we faced was keeping up with the speed of the market. The industry has been static for a long time. No one saw the opportunity in terms of using technology related to quality or sustainability programs.
Keeping up the pace in a very dynamic market (especially with the COVID-19 pandemic) is a big challenge. If you want to continue to be the leader in the market, you need to expand your product portfolio and improve the way things are working. People look to Inspectorio as the leader, which is both a huge challenge and opportunity.
Another early challenge needing to meet compliance requirements with retailers, so we had to evolve the product. It’s a lot different using a system for your business vs having a major enterprise adopt the software, so we had to put in some work there. And that created a challenge. We didn’t have the resources we needed so we had to hire more engineers.
We were fortunate that we didn’t face funding challenges at Inspectorio, which is common for many startups.
What does the future hold for Inspectorio?
I would like Inspectorio to be considered the operation system for the production chain worldwide. I want us to continue to be seen as setting the standard. We already have some big names on board including Target, Crocs, Dick’s Sporting Goods, and many more.
We want Inspectorio to be embedded in the production chain. Our aim is for brands and retailers and their ecosystem of vendors and factories to use Inspectorio for everything related to the production chain.
The first product we brought to market was Inspectorio Sight, which is quality focused. We also have Inspectorio Rise, which is centered on sustainability and addresses social and environmental issues (something that’s becoming a huge topic in boardrooms and the minds of customers). We are soon launching Inspectorio Tracking which is focused on real-time production tracking.
Our business is growing rapidly but one of our values is to remain humble. We are only where we are because of our customers and employees, but we are confident that the future is bright.
What are your thoughts on the local tech startup scene in Minneapolis?
The local tech startup scene and ecosystem has grown since we setup our U.S headquarters in Minneapolis in 2016. The Twin Cities initiative (TechStars) has since expanded to three programs.
It is a wonderful place to be for budding entrepreneurs to take advantage of the local ecosystem.
There are many early-stage VCs that specialize in early-stage startups and are looking for opportunities to invest. Many senior executives (CEO, Chairman, VPs) of Fortune 500 companies are originally from Minneapolis and are eager to work with startups and to give back to society or invest in the next big thing.
I am also now an active mentor on the TechStars program for companies that apply to the accelerator program. We wouldn’t be where we are without some help and guidance along the way.
What’s your best advice for aspiring entrepreneurs?
My best advice is to solve real problems. Look for real pain points that exist in the industry.
Finding and solving real problems are the biggest opportunities out there.
There are a lot of entrepreneurs who want to create things without understanding if there is a real need in the market. They are looking for solutions without looking to see if they are real pain points for their target market.
If you are going to spend your energy on something, spend your energy on a real problem in the industry.