Collaboration continues to be a critical focus by leaders and managers as both volatility and complexity proliferate in the supply chain. And major brands have taken notice of its cost-saving benefits. For example, says Logistics Bureau, “Sharing costs and bringing prices down through economies of scale, depending on the type of collaboration, can help each company’s bottom line. US food company Sysco offered an example when eyeing joint operations with U.S. Foods a few years ago. Sysco indicated that over three to four years, it expected annual cost savings of at least $600 million from improved logistics, supply chain and associated efficiencies.” For that reason, it’s important to recognize the value of collaboration and technology in freight forwarding as well and how a digital freight forwarding system of record is essential.
The Challenges of Outdated Freight Forwarding Management
Outdated freight forwarding simply refers to a manually driven process. Office tasks like communications and payment processing all occur manually. While these may seem somewhat trivial, they amount to massive opportunities for waste. After all, there may be a lack of insight, and the team may be continuously putting out fires. Meanwhile, today’s shippers want fast, instant, and affordable forwarding services. That’s where the disconnect can grow and lead your customers to your competitors.
Tech-Driven Forwarding Reduces Miscommunications and Delays
Utilizing tech-driven forwarding capabilities reduces those direct risks and promotes a timely and quick experience for your customers. As such, they are likely to continue working with your forwarding office and increase volume. This can be a tricky concept though. As volume increases, your scalability depends on the capacity of your tech stack and the diversity, not to mention density, of your network. Bringing everything together through technology in freight forwarding streamlines the whole process and eliminates waste while building better customer service levels and more opportunities for collaboration. Collaboration combined with technology in freight forwarding is further critical to closing the gap with larger forwarders too.
Why Integrated Technology in Freight Forwarding is a Best Practice
Integrated technology, ranging from GPS-enabled sensors through big data, can power a new breed of supply chain efficiency. It all comes down to maximizing small tasks and optimizing the full scale and strength of your network. For instance, some of the top tools that power digital freight forwarders to succeed above their competitors include:
- Use of advanced analytics to continuously find weaknesses and optimize their relationships.
- Reduced delays in payment processing by keeping everything with a clear chain of custody and sharing information in real-time.
- Eliminating the hassle of manual check calls and requests for quotes by partnering with brokers or carriers, letting technology in freight forwarding do the heavy lifting with RPA or other forms of automation.
- Sharing information and updates to shipper-clients in real-time and doing more with less whether a domestic forwarder or international player.
- Booking loads digitally with partners through advanced marketplaces and load boards, using APIs to connect the forwarding system to various software suites.
Reap the Rewards of Technology in Forwarding With the Right Software Vendor
A technology-driven strategy is the only way to unlock a future-ready freight forwarding process. And it begins with using the right forwarding software in your enterprise. That’s right. If the software cannot cut it, your organization will face grave uncertainty, and since freight forwarding can be an overlooked aspect of the modern supply chain, it’s imperative for your team to find the best technology in freight forwarding software to book more loads, connect with more LSPs and reduce delays. Cargologik is that software. Sign up for a Cargologik to get started.