May 12, 2022

How a Digital Freight Forwarder Platform Overcomes Key Challenges

Miles Varghese
Miles Varghese
Helping independent freight forwarders/brokers better stay in-sync, collaborate, and improve operations with their shippers/clients. Co-founder & CEO @ Cargologik.com
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The international and domestic supply chain faces issues that freight forwarders have never seen since the pandemic’s onset. Staff shortages, route interruptions, financial difficulties, and freight forwarding issues have changed the ways of digital freight forwarders.

A spring 2022  article on Yahoo.com says that the international logistics industry grew exponentially in 2021. North America will have the largest market share by 2026, even overshadowing the Asia Pacific industry. The e-fulfillment global market made up virtually half of the e-commerce logistics in 2021.

The rise in demand for e-commerce and logistics has made it harder for freight forwarders to find and manage their shipments. It has created a need for digital freight forwarding platforms to streamline processes and provide real-time updates for shippers and customers. 

Rising Fuel Costs and Environmental Concerns

Rising fuel costs have hit the freight forwarding industry hard as it is a significant portion of its expenditures. As fuel costs increase, carriers increase prices or take a loss. Fuel prices impact the entire industry. When costs increase for digital freight forwarders to transport cargo, the shipper has to increase their charges, leading to the recipient needing to increase their charges.  

Digital freight forwarding companies rely on fuel, precisely diesel fuel, which creates a lot of pollution in the environment. A significant obstacle in the industry is maintaining cost-effective and efficient freight shipping methods that reduce pollution. 

Using integrated tech helps mitigate the effects by allowing for more simplified processes, improves routes, and decreases fuel costs and environmental emissions. 

Growing Customer Service Expectations

Customers expect instant gratification in the age of technology and apps at their fingertips. There are multiple moving pieces involved in transporting goods from start to their final destination in the shipping industry. These components can cause a lapse in communication and productivity which can cause delays in communication with customers. The use of digital freight forwarders provides integrated technology with digital freight platforms that offer accurate and expedient information to clients and customers. Carriers and customers have growing customer service expectations and need transparency. The implementation of digital freight forwarding technology helps overcome these challenges.

Absolute Need for Management by Exception

Market instability and unpredictability threaten the interruption or even shutdown of the supply chain. A strategy to overcome these challenges is to provide real-time information and visibility. Digital freight forwarding offers the groundwork for management by exception, allowing for instantaneous notifications and alerts when an exception occurs. This enables digital freight forwarding companies to diminish risks, improve planning, and provide customers with real-time communication. Management by exception allows digital freight forwarders to quickly deal with exceptions and keep up to date while allowing drivers to focus on the most vital tasks.

Cultural Barriers and Confusion Over Contract Details

International shipments and freight forwarding can create barriers and confusion over contract details. Implementing a digital freight forwarding platform will ease the navigation of these cultural differences and simplify the process to avoid contractual delays. The platform provides a streamlined process of organizing and keeping documentation in one,e easily accessible location. Keep accurate export documentation, customs forms and information, shipping costs, and up-to-date cargo weight. Digital freight forwarding companies will be able to accurately communicate when there are communication barriers and will prevent shipping delays.

Changing Record-Keeping Requirements

Record retention ensures that documents are readily available when requested. For liability, efficiency, and productivity, freight forwarders must keep these records for a period. Digital freight forwarders allow shippers to stay informed of real-time record-keeping requirements changes.  

Leverage Software Built for Digital Freight Forwarding Companies With Cargologik

The demand for change and growth in e-commerce logistics is exponentially higher than the industry has ever seen. Staying current with the latest technology and differences is necessary to meet customers’ needs in a technology-centered world. Ensure your freight forwarding business continues without interruption. Leverage software built specifically for digital freight forwarders and sign up with Cargologik today!

To get the most out of our platform, book your free, personalized training call with our Success Team

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