Freight Forwarding Business

How to Grow Your Freight Forwarding Business Through Tech

Freight forwarding business owners of all sizes and all specializations are faced with unprecedented levels of pressure as domestic and international companies continue to adjust to current market volatility. Even as recovery continues, a sense of the ‘new normal’ continues to settle over the entire supply chain network as freight forwarders work to improve services and maximize profits. GlobalNewsWire reported that “according to the report published by Allied Market Research, the global digital freight forwarding market generated $2.92 billion in 2020, and is anticipated to reach $22.92 billion in 2030, manifesting a CAGR of 23.1%.” With this level of focus and pressure, it is no surprise that freight forwarding companies and transportation service providers are focused on how to improve their business with innovative transportation technologies for freight forwarding.

1. Track Cargo Within a Single System of Record

As a freight forwarder, anything that can help move cargo less stressful and more straightforward is good. Advanced freight tracking tools and innovative supply chain technology solution gives forwards access to fully automated and digitally integrated platforms. Freight forwarding businesses of all types can benefit from a single system or recoding and monitoring all cargo that goes in and out of their network as it allows for easier management and better control over shipment specifics.

2. Share Timelines With Clients and Network Partners to Improve Experiences

Collaboration is often the answer in highly competitive markets that helps forwarders better network and manage their loads while remaining profitable.  Sharing timelines and collaborative opportunities gives shippers access to data and historical statistics regarding niche shipping markets and the supply chain as a whole. All of this can be done without extensive data analysis and wasted person-hours as the collaborative nature of freight forwarding business partnerships streamline automated management actions

3. Manage by Exception 

Supply chain technology and innovative tools such as chatbots,  automatic updates, ML processes, and collaborative platforms make life easier. Supply chain managers can promote more visibility and intervene only when necessary to minimize disruptions. Freight forwarding businesses can easily manage delivery exceptions and keep shipping clients and customers in the loop with a manage y exception approach that frees up drivers and team memes to focus on the most critical tasks at any given moment. 

4. Streamline Data Entry With Bulk Uploads

Optimization is critical for freight forwards today. Good digital platforms make it easier for all parties to focus on essential tasks and streamline mundane processes such as bulk uploads. Adequate onboarding and utilization of supply chain technology offer a win-win solution for forwarders and their clients. All vital information and data can easily be stored, organized, accessed, and applied quickly and easily, thus improving freight forwarding business processes.

5. Automate Quoting and Scheduling Processes

Freight forwarding business logistics often arise as a problem area for many shipments, especially when it comes to quitting and scheduling processes. A lot of wasted time in freight handling comes from sifting through bids and job listings and adjusting schedulings and load routes. Supply chain technology allows for faster and easier communications and managerial work. It is more accessible to connect across time zones coordinate busy schedules to ensure all involved parties work with current data.

6. Enable Searchable Communications

One management area that many in the freight forwarding business have to contend with is wasted time looking for information, reports, data, and other resources. The ability to search communications for critical data and knowledge makes it easier to locate source material and data points whenever and wherever needed. Cloud-based storage and recording platforms allow team members, management, and customers to search and find data and information with on-demand access to freight forwarding tech. 

7. Enable Digital Document Management

Keeping customers updated and third-party members informed at all times is one thing freight forwarding business managers cannot skimp on for the sake of saving a few bucks. Digital document management makes it easy to share files and papers across multiple teams and networks. Drivers can access and share customs and BOL papers, carriers and forwards can exchange invoices and documents, and customers can quickly sign and record delivery receipts for a more streamlined process overall.

Choose Cargologik to Grow Your Freight Forwarding Business With a World-Class Tech Stack

Supply and demand trends constantly change from economic instability, supply chain disruptions, and shifting consumer demands and throw the transportation and shipping industry into disarray. Freight forwarding business management teams can benefit from taking their business processes to the next level with innovative techy stacks filled with the latest in supply chain tools and software. Contact Cargologik today to sign up and learn more about how you can boost your freight forwarding services and keep profits high and expenses low.

Launching Your Freight Forwarding Business With a Freight Forwarding Platform

Change is the one constant in the supply chain. Consumer and business demand has proven that the supply chain, while not immune from the effects of disruption, will always be in demand. That notion has never been truer than it seems than with the freight forwarding business industry in the biggest holiday season in history. 

A wave of digital methods and platforms began to appear in the freight forwarding sector a few years ago. And now the logistics technologies that helped to improve efficiencies and build lean supply chains are back in the spotlight. These features are not just nice to have; they are now table stakes for launching new forwarder logistics services. With the arrival of the COVID-19 pandemic and the uprooting of classic methods and ideas, these new systems have been tested more than anyone could have imagined. The ultimate test for freight forwarding business platforms is here and now.

Common Barriers to Launching a Freight Forwarding Business

There are many systems and tools available within the freight transportation industry. For those embracing the freight forwarding model, there are specific barriers that need to be addressed, especially now considering the global upheaval of traditional models and methods. 

According to Logistics Management, “In such a situation, container shipping’s “networked” profile is laid bare as the relationship between different ocean cargo container lines, container fleets, container terminals and land-side transport requires some degree of equilibrium.” Without insight and rapid booking capabilities, it’s impossible to determine what’s really happening and where loads/capacity lie. 

Finding that equilibrium is not an easy task. It’s further complicated if startups don’t have the past industry experience to exercise caution. A few key obstacles to keep top of mind when launching a new forwarding business include:

  • Limited contacts, especially early on, can put a severe limit on profit expectations over the first few years. This can also affect other efforts, such as customer acquisition and retention costs. Establishing reputation and building loyalty takes time.
  • An inability to track freight efficiently remains a major obstacle for those starting a forwarding business. 
  • Failure to accurately track settlements in real-time and the lack of a streamlined method for securing payments may lead to cash flow problems.
  • Poor performance measurement and a lack of data to analyze can turn into a blind-leading-the-blind type of scenario.

A Digital Freight Forwarding Platform Streamlines Launch

Digital processes are always superior to the archaic hassle of phone calls and even endless email threads. However, digital forwarding business advancements have turned the tables. Instead of relying on outdated systems and limited network connections, digital freight forwarders can tap the value of digital load boards and freight matching capabilities to streamline launch and begin booking loads on day one. That’s a genuine distinction in an age marred by flailing third-party service providers and shuttering freight businesses. 

Added Benefits of Digital Resources During Launch

It’s essential for anyone entering the freight forwarding business to understand the scope of the industry and its impact on local, state, and global markets. 

As explained by Boston Consulting Group, “Not surprisingly, venture capitalists find the [logistics] 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.” The amount has only continued to increase as the benefits of freight forwarding businesses become more prestigious. In fact, consider these top benefits of digital freight forwarding business software during launch or expansion:

  • Less downtime and a quicker turnaround on overall ROI. 
  • Faster implementation of processes and changes with automated systems. 
  • Turnkey functionality allows for immediate implementation and use. 
  • Wide use tools and processes for self-managing and reporting of carriers. 
  • Improved performance measurement and better real-time data analysis. 
  • Less hassle with every aspect of the forwarding business.

Launch Your Freight Forwarding Business Faster With the Out-of-the-Box Features of Cargologik

A successful freight forwarding business depends on your ability to execute your go-to-market strategy. The best way to achieve that goal is to focus on tapping out-of-the-box, off-the-shelf digital freight forwarding solutions like Cargologik. Discover the tools and platform needed to get a freight forwarding business up and running by signing up for Cargologik online today.