Freight forwarding is an integral process when it comes to logistics service. It is, after all, the freight forwarders who act as a bridge between the shippers and carriers and help them in transporting the shipments on time. So, a streamlined freight forwarding service is mandatory to establish trust across the network and, in turn, create a good vendor-customer relationship. The conventional freight forwarding business model needs a revamp to overcome its inefficiencies and move on to a higher stratum. In fact, the industry faces a huge loss of 17 billion USD on account of inefficient freight forwarding techniques.
The freight forwarders have a role to play in everything that comes under logistics, from the order fulfilment to return processing. Considering this importance of freight forwarding, it is high time the process is taken onto a digital platform to unlock its true potential. A recent study claims that digitizing businesses increases the profit rate by 13%. Also, 81% of freight forwarders believe that automation can revolutionize freight forwarding in the days to come.
Problems in freight forwarding
Offline freight forwarding comes with poor visibility. Considering the massive network the freight has to pass through before it finally reaches the end customer, real-time visibility is a necessity. The lack of visibility makes way for miscommunication between the stakeholders involved which, in turn, delays freight movement from one stakeholder to the other.
Additionally, the use of manual record-keeping – which freight forwarders currently rely upon – is another major issue. It can lead to errors and also consume a lot of time when it comes to legal clearance segment as transportation laws differ from one country to the other. Besides, quote generation becomes a herculean task for the freight forwarders without knowing the exact requirements of the shippers.
How a digital solution is the problem solver
With a digital freight forwarding platform, end-to-end freight visibility is possible. This data transparency eliminates miscommunication and establishes trust across the supply chain network from suppliers to end customers. Trust is a sign of a growing customer base which eventually leads to the growth of the logistics industry.
Digitalizing the legal freight forwarding documents makes it easier to get through the legal procedures and saves time to prompt faster freight delivery.
The advanced analytics generated by the digital solution facilitates the freight forwarders to consolidate their business performance and make plans to improve their business prospects accordingly.
Automated quote generation
The digital platform also generates precise quotes based on the requirement of the shippers reducing the manual efforts on the part of the freight forwarders.
The above initiatives prevent operational inefficiency and streamline the freight forwarding process cutting down about 40% of the total cost eventually.
Want to realize the benefits of a digital platform for your freight forwarding business?