Digital freight forwarding maximizes efficiency and leverages advanced analytics to forecast models, optimize global logistics, and increase visibility. Find out how.
Data is a valuable resource, and real-time data is an even more valuable resource. According to Boston Consulting Group, innovative models within digital freight forwarding systems give shippers a birds’ eye-view of their complete global supply chain. Furthermore, digital forwarding platforms can generate automated alerts for confirmation of service, freight movements, delivery of the digitized bill of lading, and more.
Meanwhile, many companies continue to argue the validity of digital freight forwarding, and in truth, many freight forwarders share similar characteristics, notes Dan Gardner via the Journal of Commerce. Regardless of where you stand on the matter, digital freight forwarding is the new standard for better operational management, and shippers need to understand how it can enhance visibility.
Traditional freight forwarding is a process with considerable risk. According to McKinsey and Company, inefficiencies within the world’s ports, terminals and carriers result in the loss of more than US$17 billion. These efficiencies are the result of transformation within the industry that complicates other processes.
For example, a lack of connectivity between freight management platforms will increase the level of risk. Communication issues arise, and disparate systems lead to miscommunication between different supply chain parties.
Implementing a digital freight forwarding process offers significant advantages over traditional freight management. Much of the benefit derives from the increased use of technology in the process.
For example, technology connected to a management platform, such as a SaaS, can immediately provide a centralized location for the sharing of data. Such systems also enable integration with legacy systems, making them applicable to importers and exporters, trucking companies, airline carriers, customs agencies, ocean carriers, and port terminals.
The use of digital freight forwarding platforms holds additional value in document management and compliance with applicable trade laws. Trade is an immensely complicated topic, and each country continues to develop new standards and requirements for imports and exports. The US tariffs are the latest example of how an action in one hemisphere can amount to changes in the economies of scale around the globe.
Using smart technology, including advanced, data-generating sensors, such as those installed on Traxens’ containers, as explained by Mark Szakonyi via the Journal of Commerce, shippers can finally achieve the complete end-to-end visibility necessary to reduce costs. Deep visibility and control throughout the entire shipping journey promotes confidence in the supply chain and reduces costs.
Before an organization can reap the benefits of digital freight forwarding, it is imperative that necessary actions be complete. These include the following tips:
Increase the level of shipment-level detail in your freight, using GPS, RFID and AIDC sensors, powered by the Internet of Things.
Evaluate your existing freight forwarding processes to benchmark the time spent in managing each shipment.
Take advantage of advanced analytics to better predict outcomes and refine your freight tendering processes, as well as service guarantees for your customers.
Reconsider your freight forwarding partnerships based on cost per shipment and delays.
Determine whether a new partnership with a digital freight forwarder is right for your organization, taking advantage of online resources, including demonstrations and more, before making a final decision.
Digital freight forwarding is the new normal, and shippers that continue operating with traditional, manual processes will experience increases in average freight tendering costs, potential delays in customs acceptance and clearance, and even the threat of lost customers due to higher costs and delays. Instead of putting your business at risk, make sure your organization is on track to utilize digital freight forwarding capabilities and the visibility-driving technologies that accompany a modern service.
Shypple can help your company reduce its time in managing transport and ocean freight by up to 30 minutes per shipment. Find out more about how Shypple is changing the game by requesting a demo online.