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.