November 12, 2020

Freight Forwarding Risks How a Freight Forwarding Platform Mitigates Risk

Adam Robinson
Adam Robinson

In modern supply chain management, the needs for supply chain visibility and planning are absolute. More visibility and data add up to an improved ability to map needs, plan for the unexpected, and handle risks as they come to light. Supply chain mapping holds significant value in lowering freight forwarding risks. Consider this; according to Paul A. Myerson of Inbound Logistics, “Companies can help avoid at least some of the pitfalls of supply chain risk—including COVID-19—by developing risk mitigation strategies such as supply chain mapping.” Freight forwarders need to know how a freight forwarding platform can mitigate risks and streamline operations. 

Centralized Freight Forwarding Management Avoids Confusion

Centralized freight forwarding management mitigates risk by avoiding miscommunications and confusion. Since information is contained within an overarching platform, other supply chain partners are less likely to misinterpret data or fail to deliver on expectations. For example, centralized freight forwarding management can help frontline workers connect with other trading partners and keep information and needs clear. Of course, that leads directly to a freight forwarding platform’s next opportunity to mitigate freight forwarding risks.

A Digital Freight Forwarding Platform Builds Collaboration

Another way that digital freight forwarding platforms reduce freight forwarding risks lies within the increased collaboration they foster. Remember that a digital freight forwarding platform leverages software-as-a-service (SaaS) technology to offload maintaining a resource in-house. As a result, all trading partners are likely to access the most recent version and deployment software available. Therefore, it continuously builds collaboration within the network. Additionally, increased collaboration through a dedicated resource can help a freight forwarder establish new relationships with other carriers and shippers, lowering profitability and scalability barriers. 

Increased Access to Real-Time Data Enables Competitive Rating and Management

Other freight forwarding risks exist within inaccurate and untimely rates. Essentially, waiting too long to offer a rate or get back to a customer, which could be a shipper or a carrier, will lead to less profitability. However, a freight forwarding technology platform mitigates this risk by allowing freight forwarding employees to rate and book shipments more quickly and from the comfort of any location with Internet access. In a sense, access to real-time data is about much more than just offering the best rates; it provides the best price and service level for each load. It is a tall order, and the growing supply chain’s complexity is on track to continue. With that in mind, access to real-time data is crucial to making the most of all resources, conserving labor resources, and keeping everyone working together correctly.

Automated Notifications Help Shippers Intervene When Problems Arise

A final way freight forwarding platforms can mitigate freight forwarding risks and steamroll operations lies within the value of robotics process automation (RPA) and automation of back-office processes. Freight forwarding is a back-office process. It involves the management of loads and interactions with other carriers. Yes, freight forwarders bear some characteristics of freight brokers, shippers, and carriers. However, they all possess the common goals of improved profitability, offering the best rate, expanding the transportation network, and doing it all as efficiently as possible. What is more efficient than automated alerts and notifications to help these companies manage by exception? As the volume of e-commerce swells considering the pandemic in the rapidly approaching, if not already here, peak season shopping holiday, automation is everything.

Overcome the Leading Freight Forwarding Risks With the Right Platform in Your Company

The supply chain is filled with risk. That much is certain. However, SaaS-based resources can level the playing field and help your company stay informed with real-time data. Take the time to know how a digital freight forwarding platform lowers risks. And sign up for Cargologik access online to get started. 

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