Technology

Freight Forwarding Network: How a Freight Forwarding Platform Consolidates Your Network

There are unavoidable costs and resource allocations among all established supply chains and upcoming logistics startups, regardless of load size. Even if a truck, plane, or cargo container is half-full, it still needs to travel the same amount of distance, which takes the same amount of manpower and time, albeit with a marked potential fluctuation in fuel consumption. With these fixed costs “locked-in” from the onset, freight forwarding network efficiency is one of the few ways logistics companies have to pull the proverbial needle into the black. And in 2020 and beyond, efficiency and transparency are indelibly linked and intrinsically connected to digital management. As Transport Topics noted, highlighting this approach in contrast to logistics companies relying on mergers for growth, “[other companies] are working to create large networks of shippers and carriers and applying technology to make freight transactions more efficient.” While it isn’t precisely reinventing the (2 axle) wheel, going digital is a viable path to growth for modern logistics service providers, and in many cases, a smoother transition as well. And it promotes consolidation of the freight forwarding network. Here are four reasons why a freight forwarding platform is a crucial tool for consolidating your transportation network:

A Freight Forwarding Platform Offers Self-Service Convenience

A customer who enjoys hassle-free oversight and document access for their shipment is one that isn’t compelled to micromanage the process’s human element(s). This ensures that both transporter and cargo get where they need to go quickly and more efficiently and cuts down on the effort required to answer status update questions throughout. Using a freight forwarding platform also creates a paper trail by default, allowing everyone involved to pinpoint the source – including the time and location – of an issue, should one arise.

A Consolidated Freight Forwarding Network Management Strategy Maximizes ROI

There are constants in logistics that will always remain – the cost of tolls, fees, taxes, and labor will always factor heavily into final profit calculations. If, however, a company knows that a vehicle will be transporting an LTL load to a specific city, it makes logical sense to complete it with a comparable LTL shipment(s) to make the most out of every mile. A freight forwarding platform keeps track of available cargo space, stops, and allotted manpower throughout a freight journey to identify potential optimization points. In other words, when all the information is gathered in the same digital space, it’s much easier to make smart decisions about when and how to combine LTL shipments.

It Identifies Improvement Opportunities

While a “head down, eyes front” philosophy is a smart approach to work ethics in logistics, it can also enable ongoing inefficiencies. Assembling reports and “top-down views” from existing logistics information usually requires precious effort and concentration from some of the company’s most essential employees. While freight forwarding network reports will always remain important, a freight forwarding platform passively assembles insights that can be pulled, sorted, and fed into decision-making processes going forward. 

Digital Systems Leverage a Global Approach to Efficiency

One of the most challenging aspects of operating a logistics company is ensuring that everyone is on the same page. With a freight forwarding platform, a company can be sure everyone – quite literally – is on that page. By creating and utilizing a central connection point, necessary paperwork – bills of lading, customs documents, inventories, invoices, and so on – all involved parties can always access what they need. The 24/7 aspect of working through a platform also has a bonus benefit: problems arising from mismatches in time zones are effectively mitigated. Live calls/email conversations are primarily replaced by on-platform messaging, which can be read and responded to in a timely fashion in each user’s respective time zone.

Join the Freight Forwarding Platform Revolution Now

Freight forwarding network management remains a core concern for shippers and carriers alike. The right-sized network will create new revenue and maximize existing operations. And it’s easier to manage than working across countless phone calls and relentless emails. Ready to join the digital revolution for efficiency for your routes? Sign up for Cargologik online to discover how a freight forwarding platform can help you make even more from the work you’re already doing.

Collaborative Supply Chain Visibility: The 4 Types of Visibility & Why Each Are Important

Approximately five years ago, as few as 16.9% of supply chains possessed end-to-end supply chain visibility, says Supply Chain 24/7. While that number has improved, there are still significant opportunities for growing visibility throughout global logistics networks and even among digital freight forwarders. And part of the issue goes back to how individual organizations define visibility. According to Alexis Bates via Supply Chain Brain, “What do we mean by supply-chain visibility? In many discussions, visibility refers to in-transit transparency — tracking the movement of product once it’s shipped as well as nodes it’s passing on the way to final delivery. Other levels of visibility might be from supplier to manufacturer to buyer, which are often deemed end-to-end.” But what does that mean? Does it include visibility beyond traceability during transport? If not, visibility falls short. Consider these top four types of visibility and why each is important in full digital transformation.

Supply Chain Visibility Into Rates

The first form of supply chain visibility surrounds rates. Supply chain leaders need to know what they pay for when moving freight. It is remarkably simple on paper. However, rate complexity increases exponentially when applied across thousands of shipments, dozens of potential mode combinations, hundreds of carriers, and countless fulfillment centers. That variety contributes to lost opportunities to increase visibility. As such, supply chain leaders without that level of insight and transparency are making decisions without the picture’s full scope.

Visibility Into Supply Chain Activities, Such as Quotes and Bookings

The next side of visibility in the supply chain surrounds all the activities that go into supply chain management. Quoting processes, booking confirmations, sharing of paperwork, documentation management, creating the bill of lading or proof of delivery, and many other functions need visibility too. All supply chain activities should be traceable. What happens if something goes wrong? Without visibility, it is impossible to isolate and address the problem promptly.

Visibility Into Records for Auditing

The idea of finding problems leads directly into the next form of logistics visibility, visibility into auditing processes. Auditing visibility means having the ability to dig back through all existing transactions, data, and documentation to review, validate, and complete freight settlement. Furthermore, auditing visibility forms a cornerstone of maintaining compliance with applicable regulations. That is of the utmost importance for companies operating across international borders.

Visibility Into Current Cargo Location

The fourth and perhaps most crucial form of supply chain visibility is the real-time location of the cargo. Think about what someone says when asked, “what is the most important form of supply chain visibility?” The chances are good that the response will involve something along the lines of knowing shipment status. That is the foundation of all visibility discussions. Knowing real-time location data and status is critical to scheduling, payments, providing notifications, and planning. This form of supply chain visibility supersedes all others in that it involves the physical freight. And as a result, supply chain leaders that overlook the other three forms of visibility in the supply chain are missing out.

Increase Supply Chain Visibility With a Collaborative Freight Forwarding Platform That Unifies All Visibility Types

It is possible to unify supply chain visibility for all freight management parties, including freight forwarders. While freight forwarders already have an arsenal of tools at their disposal, they need more. Yes, they can track freight shipment status, manage documentation, and perform other vital functions. Still, any missing step of the four primary forms of supply chain visibility will open the door to risk. Fortunately, freight forwarders that apply a robust software-as-a-service freight forwarding platform can achieve the well-rounded level of visibility needed to maximize efficiency and productivity in the digital era. And Cargologik can help your organization achieve that goal. Sign up for access to Cargologik online to get started.

6 Ways Freight Forwarding Systems Improve Desired Outcomes

The digital transformation conversation creates some pushback in the freight industry. No company realistically uses completely manual processes in modern freight forwarding. Unfortunately, that further adds to some misconceptions. And as explained by The Loadstar, “it’s no surprise that logistics professionals get indignant. Having someone point an accusing finger at your industry is frustrating, but completely writing off claims by these companies is a mistake, and a dangerous one at that. What’s more, it’s a disservice to legacy companies that can play the innovation claims to their advantage.” Instead of writing off these companies, today’s freight forwarders need to rethink how freight forwarding systems can apply data and real-time communications to improve desired outcomes. 

1. Freight Forwarding Systems Enable Automated Bookings

Securing more bookings remains a leading problem for freight forwarders. Even if a company maintains a strong reputation, they come up against limits unable to do more with existing staff. That’s where freight forwarding platforms add the most value. Instead of leaving teams to their own devices to quote and secure bookings, the right technology for freight forwarding automates the quoting process. As a result, companies realize the benefits of turnkey bookings and efficiency due to automating processes.

2. Digital Capabilities Allow for Performance Measurement of Frontline Staff

Freight forwarders also deal with the challenges of measuring the performance of frontline staff. By using digital platforms, booking and quoting data pours into performance metrics. As a result, companies are better able to train and provide feedback to staff.

3. Modern Platforms Let Your Team Customize Use of Solutions to Achieve Company Goals

Modern freight forwarding technology solutions further offer advantages for the customization of platform functionalities. These core functions easily allow forwarders to invite carriers and shippers to see forwarding processes and get real-time shipment status updates building freight collaboration between the forwarder and partners, and offering intuitive workflows to reduce clicks. Too many clicks or manual processes within a platform could have an adverse effect and lower efficiency, and any modern freight forwarding system should focus on reducing clicks and creating workflows that provide a path to achieving desired outcomes in a shorter period of time versus traditional, more manual processes. 

4. SaaS-Based Freight Forwarding Resources Shorten the Payment Process

Using freight forwarding systems further benefits freight management parties by shortening the payment clock. As systems compile records and provide a verifiable paper trail, companies streamline payment processing, including all processes leading up to it, such as auditing. 

5. Carriers Are More Likely to Offer Better Rates and Discounts to Forwarders That Apply Real-Time Resources

When freight forwarders use advanced freight forwarding systems, they open the doors to more opportunities to work with carriers and other LSPs. For example, carriers may offer forwarder-of-choice status that includes discounted rates and promised volume. While these are minor improvements, they prove invaluable when applied across hundreds of thousands of shipments.

6. Real-Time Data and Collaboration Reduce Delays and Build Better Customer Experiences

Companies also gain benefits through real-time data and collaboration to create better customer experiences. In today’s age, a missed or delayed delivery could result in an increased chance of a return. In some cases, the delay could put a customer off so severely that the customer refuses to continue business with the company. Digital resources can lower this risk by ensuring everyone has access to the most updated information, which will reduce the risk of delays. 

Create the Best Outcomes With a World-Class Digital Forwarding System

The best freight forwarding outcomes depend on freight management parties’ ability—from shippers through brokers and beyond—to work toward a common goal: moving freight at the most affordable rate possible. And it all adds up to creating the best customer experience possible. For forwarders that remain unconvinced of the value of investing in ready-to-deploy freight forwarding systems, they should look no further than the six above-listed improvements. Stop wasting time trying to manage freight the old, email way. And move into the new frontier with the right freight forwarding systems. Sign up for access to Cargologik online to get started.

Making the Business Case for Technology in Freight Forwarding

Digital transformation permeates all aspects of supply chain management and transportation. And for freight forwarders, the proper use of platforms and freight forwarding technology allows companies to do more with less, lower barriers to efficiency, and secure more bookings with fewer tender rejections. 

It all trains the attention of shareholders in building a business case for technology in freight forwarding. 

And as reported by Eric Johnson of JOC.com, “To remain relevant in a fast-changing freight environment, global freight forwarders need to use technology as a means to drive business process changes and reduce fixed costs associated with serving shippers. The triple threat of e-commerce retailers, logistics technology startups, and ocean carriers pushing into the logistics services space is creating pressure on forwarders to innovate in the way they adopt new technology and engage with shippers to maintain value in those relationships.” 

Companies that do not keep up with the pace of innovation will eventually be left by the wayside, and if they haven’t already, begin taking steps to a more digital future.  New freight forwarders need to know a few things about building the business case for that technology by following three steps.

Recognize the Fundamentals of a Successful Business Case

A successful business case must include the core components of an opportunity assessment, options, executive summary, cost breakdown, implementation approach, and recommendations, notes Supply & Demand Chain Executive. It’s a tall order, but those core sections can be best presented in a cohesive story-line. And done properly, any business case for technology in freight forwarding must focus on the short-term and long-term ROI and improvements to efficiency. Strategic thinking isn’t just a long-term approach, but a medium and short term one as well with hidden opportunities along the way to begin transforming your organization’s culture into a more digital one.

Define the Problem That Technology in Freight Forwarding Will Solve

Remember that the basic business case should put technology in freight forwarding first. However, that’s easier when the problem is clearly defined in the first place. It all begins with assessing the business opportunities and creating an objective, clear message of how technology will and will not affect current operations. Simultaneous review of the problem and its impact on the existing metrics surrounding staff performance and carrier/LSP utilization help build a strong assessment.  If the talent does not exist within your organization, seek out expertise, fellow industry peers, and yes – even sales professionals – to learn more about what you will need in this regard.

Emphasize New Opportunities Created Through Freight Forwarding Collaboration

The next step is to emphasize how new technology in freight forwarding enables collaboration. The modern supply chain works together and not against other freight management parties. Even direct competitors, such as larger freight forwarders, may hold lucrative partnership opportunities in their midst. 

By looking at more data and connecting with more freight management parties, freight forwarders of all sizes can achieve more profitability and reduce risks. Moreover, the increased number of freight forwarder and logistics startups is a testament to this fact. 

As reported by Supply Chain Brain, “new players have stirred the competitive pot in such a way to have caught the attention of the traditional forwarders. According to a 2017 freight forwarding survey conducted by Logistics Trends & Insights, 92 percent of survey respondents indicated that digitization adds value for forwarders. Furthermore, 58 percent of survey respondents indicated that the improvement that will be utilized the most in the next five years for forwarders will be the digitization of all services.”

Deploy the Right Technology in Freight Forwarding With Cargologik

Freight forwarding is undergoing supply chain adolescence; new innovations in SaaS, cloud-based resources allow small and mid-sized forwarders to connect with more partners, reach more clients, secure bookings in real-time, avoid delays, and enable real-time performance measurement and improvement. This shift to SaaS from legacy technologies and lifetime license are real, and it’s time to start thinking more agile to effectively keep up with increasing customer expectations and demands.

It’s an exciting time for the industry, and it all begins with the right business case for technology investment. Start by ensuring your business case includes the three core areas listed above. And remember that maintaining a competitive advantage in freight forwarding depends on balancing technology and people to drive results. Sign up for Cargologik online to explore more about how your company can add value through digital freight management.

The State of Logistics Startups Today

From knowing the top freight brokers to understanding freight forwarding platforms’ value, it’s essential to realize that logistics startups represent a massive industry opportunity. 

As explained by Boston Consulting Group, “Not surprisingly, venture capitalists find the sector highly attractive. They poured more than $3.3 billion into digital shipping and logistics startups from 2012 to 2017. A considerable portion of this funding went to freight forwarding.” 

That amount has exponentially increased since then, with roughly $30B total now being invested in the US alone to innovate within the supply chain. The majority of that investment is from venture capitalists, looking to fuel innovation, disruption, and growth of those companies within the supply chain.

Let’s take a closer look at the state of the logistics startups space and what’s happening to fuel such interest from venture capitalists. 

Advancements in Automation Are Stimulating More Interest in Forming Logistics Startups

Much of the interest surrounding logistics startups comes from the opportunities available through automation. Automated processes dramatically reduce inefficiencies and open the doors to new revenue streams when applied correctly. 

One notable trend tied to this interest is dis-intermediation. According to Deloitte, “The freight forwarding industry is said to be a business model prone to dis-intermediation, with many players aspiring to realize its platformization potential in recent years.”

The market is getting tougher for these independent companies, but with the right expertise, a differentiated approach, and applying technology, it’s possible to not only survive but thrive, in today’s global state.

The Industry Remains Hyper-Fragmented

The state of the freight forwarding industry continues to further the need for logistics startups. Freight forwarding has not changed much. 

Yes, modern shippers and carriers have advanced their systems. But as a whole, freight forwarders remain behind the curve and are often left using outdated systems that lack value. Or they have invested too much time and resources into a dated solution to justify any outside investment – a very dire position to be in. 

For this reason, new startups, much like Cargologik, are continuing to reshape the market. In turn, the digital transformation of freight forwarding will overcome the problems with a hyper- fragmented market and allow companies to do more with less. 

The purpose of technology is to make things better, cheaper, and faster for those who participate. While fragmentation has its difficulties, it’s often fertile grounds for new ideas and innovations to take hold in one aspect, and then subsequently expand into other areas as they gain traction.

Shippers Want More Customization and Robust Flexibility Within Logistics Startups’ Services

Both shippers and carriers want the ability to reduce clicks and streamline freight management. 

However, attaining that digital transformation level has proven difficult and costly for companies that wish to build in-house platforms. When you have too many medium-sized companies with their own platform, it further creates instability in the market by forcing shippers to engage with yet another platform.  That experience is broken and it’s one of the things that Cargologik takes on while also providing core benefits to the forwarder.

With the participants in the global supply chain so reliant on one another, this opens the door to risk. As reported by Business Insider, “Startups are the lynchpin of this transformation, pinpointing areas of need that can be tackled by cutting-edge digital solutions, including digital freight services, warehouse robotics, AI in the supply chain, delivery robotics, and autonomous driving software.”

Startups Are Working to Streamline the Order-to-Cash Cycle

Newer supply chain startups are also transforming the order-to-cash cycle. Instead of relying on an outdated, paper-based approach to freight settlement, modern freight management parties can leverage digital platforms to centralize the process. 

Systems that produce and maintain a system of record, a “truth” if you will that all parties can clearly see as objective truth for much faster resolution and cost savings on both sides.

As a result, brokers, forwarders, carriers, and third-party logistics providers (3PLs) can get paid faster and are more likely to accept freight tenders in the future – while coming back to do more business.

Everyone Still Wants End-to-End Visibility and Easy Controls

All companies still expect end-to-end visibility and access to real-time information. Supply chain transparency and traceability are hot-button topics in logistics and companies like Amazon have created global customer behaviors and high standards for all logistics companies to live up to and strive for. 

The inability to offer such functions has given rise to entirely new logistics startups, devoted to unlocking real end-to-end visibility and doing so for the businesses that need it most like independent forwarders/brokers who stand the most to lose.

Logistics Startups Need a Freight Forwarding Platform That Works Without Sacrificing Value as a SaaS-Based Resource

While the global state of logistics startups continues to reveal one trend, advancement, companies will be faced with a choice. Will forwarders, shippers, brokers, and carriers continue working within the status quo, or will they fully embrace digital transformation with a final and digital alternative?

Our bet is that it’s on the latter. That forward-thinking, customer experience focused logistics operations that think holistically about their business and stakeholders will succeed.  We believe that their vision allows them to pick the right fun and easy systems that their customers and team will enjoy using. Sign up for Cargologik online to get started on your fun, new digital freight forwarding collaboration platform today.

Choosing the Right Freight Forwarding Software for Your Logistics Startup Business

Managing a logistics startup business has never been easy. It often takes years of hard work, dedication, and consistency to win the loyal client base required to succeed in the longer term.  The world economy, trade wars, pandemics, new competition from digital players, as well as liners getting back into logistics, launching a successful shipping business has become exponentially more difficult.

 It reflects a complex process that must connect with hundreds of possible third-parties and logistics service providers (LSP’s). At the same time, every organization wants more digital capabilities and technology. 

The shortfalls within the type of freight forwarding software used in your business may even negatively impact contribute to the failure of your venture if not implemented correctly. 

As a result, all digital logistics startup businesses, particularly freight forwarders, need to know a few things about using the right freight forwarding software:

1. Evaluate Your Business Needs

Evaluating your business needs is a common principle for any organization that seeks out a new partnership. 

According to Supply & Demand Chain Executive, “The first step in selecting the best matching forwarding service for your business is to define what your needs are. Determine the types of services you would like to have, the modes of transportation and the average volume of shipments. This basic information is crucial for your selection.”

Evaluating your needs should also include a strategic analysis of where your business is now, and where you want it to go.  And from that end-goal in mind, working backwards to outline the activities, projects, and stakeholders coupled with the specific metrics you want to strive for. (ex. improving quote win-rate, reducing overhead)

2. Secure Shareholder Support for Automation

The next step to successful freight forwarding software selection, lies in securing shareholder support for automation. We’re not talking no-human-required automation but rather, improving your people and their skills with the right technology. Technology that cuts down on waste, drives productivity, and saves cost.

These advanced functions allow for a massive increase in self-service capabilities for your customers. In other words, you enable your clients and empower them with tech, that in-turn frees up your own operational time.  So you can start thinking more strategically and focusing those free time and efforts elsewhere.  Not another “hey-where-is-my-cargo” text.  Your operations team can spend less time worrying about manual quoting and more time managing bookings and increasing profitability.  

3. Create Your Shortlist and be Realistic About your Needs

Using the list of key capabilities needed within the forwarding software, create a shortlist of possible software vendors. This list can include up to 10 key vendors, but we generally recommend vetting just three to five. The level of review and analysis that you do, should match up with the size and complexity of your organization and those associated needs. 

Built a list of the needs you need – not to be confused with those that you want. Document & gather key info such as potential costs and implementation time.  After just a few conversations, you should be able obtain a better understanding of what the current market vendors can do today, and what is within the realm of possibilities.  Startups also make a great choice for smaller organizations who are unafraid of tech.

We suggest that you avoid being too free with the shortlist too. Stick to your core needs.  After all, failure to recognize the top-performing from low-performing vendors during this phase will complicate, delay, and confuse your team working on the project.  

In his 2016 annual shareholder letter, Bezos explicitly took time to share his approach to decision-making at giant Amazon:

“Most decisions should probably be made with somewhere around 70 percent of the information you wish you had. If you wait for 90 percent, in most cases, you’re probably being slow.” (Inc. 2020)

4. Request Demonstrations of Available Freight Forwarding Software

Request demonstrations from the shortlist of forwarding software vendors and be weary of those that take too long to get back to you.  It’s 2020 – you should be able to at very least see the product you’re going to be paying for.

Most organizations offer some sort of demonstration without requiring payment to help your organization better understand potential gains. If not, ask them why, and mark that down on your assessment list. 

In addition, some companies may offer Beta access, so your company can see the real improvements and opportunities to drive efficiency within the software and scale operations.

5. Submit RFP to the Top Software Vendors

After conducting trials to test drive forwarding software, it is time to submit your request for proposal (RFP) to the top forwarding software vendors. This is where the real legwork of software selection and implementation begins. 

It is important to consider the implementation timeline, total landed cost for the system, cost of maintaining the system, modifications necessary to implement the system, adoption time and change management process, and time to return on investment. 

Furthermore, organizations should ask questions and work with software vendors to understand exactly what to expect during implementation. This is the only way to avoid software TCO growing out of control. And whatever you consider, do not pay for any lifetime licenses – those very rarely maintain utility and will be disrupted relatively soon by new entrants. The future of all software is SaaS.

6. Track Performance of the Software

Regardless of the type of software or vendor used, it is important to track performance. Performance measurement is a key defining characteristic of successful supply chain management systems and platforms. 

In today’s world, the use of analytics and key performance indicators (KPIs) are an absolute necessity. Lacking access to data and insights into the performance of the software opens the door to risk and leaves your company in the dark. 

Conversely, businesses need to understand their costs and then operate better as a result to preserve profitability. More access to data and actionable insights allows organizations to maximize profitability of freight forwarding software and eliminate additional inefficiencies.

The need to eliminate such efficiencies is even more important due to the COVID 19 pandemic. 

According to John Koetsier via Forbes, “COVID-19 has massively accelerated the growth of e-commerce, according to an Adobe report released today. Total online spending in May hit $82.5 billion, up 77% year-over-year.” 

This unprecedented growth in e-commerce transcends all industries. For industries that have seen a slight decrease in demand throughout the pandemic, such as apparel, growth is still strong. Apparel purchases are up 12%, and this is despite more people working from home. Pricing is changing in tandem. Grocery prices have risen 4% in May 2020 compared to May 2019. 

Regardless, it all points to a universal need for more transparency, insights and analytics, cost savings in the supply chain, and more efficient processes. The right forwarding software can make or break your business for those reasons.

Grow Your Logistics Startup With the Right Forwarding Software

The state of the global supply chain is changing in profound ways. Economies remain uncertain. The U.S. election is on the horizon. And the ongoing demands of e-commerce are growing faster than ever. 

Now is the time to rethink your use of forwarding software. Find out more about the value of the right freight forwarding software by signing up for beta access today.

Cargologik Named in Recent Freight Forwarding Technology Infographic

Every industry on the planet is working with the goal of digitalization in mind, and the freight forwarding industry is rapidly changing to reflect that mission. 

In a recent infographic, created by the staff at the Journal of Commerce (JOC), the various forms of digital capabilities among forwarders were broken into industry leaders and forms of technology. While an argument exists for each form of technology highlighted, the rise of digital platforms for forwarders is more noteworthy, and the JOC staff chose Cargologik as among the top leaders for that category! We told our moms right away, but really wanted to get the word out to the world at large.

But thinking a bit more about our shout out, it makes us wonder: what about the other categories, and what is Cargologik doing differently? 

Let’s answer those questions by looking at freight forwarding tech and:

  1. Its business improvement capabilities
  2. Primary forms of technology and service providers across the globe
  3. + How Cargologik is transforming digital forwarding once and for all

What Does Freight Forwarding Technology Mean in Today’s World?

Freight forwarding technologies include a wide range of digital capabilities that help forwarders either manage workflows, automate processes, or enable more efficient and speedy processing. 

Pandemics aside, freight forwarders are still essential in a world faced with continuing digital transformation, modern freight forwarding capabilities, and delivering a critical piece of service that in-turn helps their own Clients succeed.  This means going beyond the traditional, yet redundant, email/text/call to book standards. Yes, one might argue that those established methods are a digital aspect of freight forwarding, but it is far too inefficient and prevents independent forwarders from working on their business, versus. in their business. 

We like to refer to this as the “hamster-wheel effect,” where established forwarders and brokers are far too busy trying to win new customers, retain old ones, while also staying competitive in such a rapidly advancing and quickly evolving digital world. This is the true power of most FF tech.

Defining the Dominant Forms of Freight Forwarding Technology

The freight forwarding industry comprises five core forms of digital technologies, including:

  • Marketplaces that provide a way for forwarders and shippers to connect, comparable to load-matching services in OTR trucking.
  • Digital platforms for forwarders that create automated processes for small and mid-sized freight forwarders by giving them the resources to accommodate shipper quotes of all sizes, secure faster bookings and streamline processing.
  • Rate management software providers that serve provide quick rate indices and help companies maintain compliance with contractual obligations. 
  • Digital freight forwarders that give shippers the ability to login and perform freight forwarding services themselves—eliminating the intermediary.
  • Incumbent forwarders with instant quoting processes that work for some shipments and leave others unavailable.

Additional Aspects of Freight Forwarding Technologies Transforming Shipping

Even with the best technologies in place, there’s inevitably and almost always a degree of uncertainty. Controlling those known-unknowns becomes critical and these platforms serve a core role in helping organizations better manage and control variables.

These supply chain players become exceptional when their offerings transcend the five buckets of technology, and provide these core characteristics:

  • Collaborative IT infrastructure that shares data and reduces barriers to integration.
  • SaaS-based systems that let smaller freight forwarders compete with the biggest names in the industry.
  • Multi-tenant architecture that connects supplies chains from end-to-end and beyond your four walls.
  • Easy to Deploy systems that leveraged advanced connecting capabilities, including EDI and API.
  • Improved visibility through real-time data that also supports management by exception. 
  • Using systems to handle all forwarding functions and grow businesses with less risk.

At this point, the role of freight forwarding technology merges with company values, allowing previously limited marketplaces to suddenly connect with more forwarders and brokers, quickly. 

It often provides companies the ability to manage multiple bookings and contracted forwarding rates from a single freight forwarding platform. For example, Cargologik can transform outdated freight forwarding businesses into whole digital freight forwarders – providing a brand new digital experience for your team and your customers in just a few minutes after registration.  

The whole process grows in value and effectively breaks companies into two categories:

  1. those that provide a resource for forwarders and brokers to thrive, and 
  2. those that wish to eliminate the need to contact a freight forwarder in the first place. 

Become the Freight Forwarder of Choice With Cargologik

Take a moment to think about this. What do marketplaces, rate management software providers, digital freight forwarders, and somewhat instant quoting capabilities all need? 

A tool to support their digital freight forwarding efforts is the answer.  Our recognition by JOC among the other five sole providers in this infographic, shows that we are clearly on track to become the digital platform for companies that wish to achieve “loyal customer” status and embrace digital freight forwarding and brokerage at last. 

Learn more about how Cargologik is making freight forwarding easier for all companies with an industry-leading platform by signing up online right now. And, be sure to check out some of the other big names that Cargologik rose above as listed in the below-republished infographic.

(Footnote: We love Eric Johnson’s modern and relevant approach to tech coverage at JOC.) Image via JOC.com.