How Freight Forwarders Can Leverage Technology To Scale Their Business

It’s not a news flash to say that the freight forwarding industry is known to be hesitant

It’s not a news flash to say that the freight forwarding industry is known to be hesitant when it comes to adopting new technology compared to other industries. Some forwarders are still choosing to rely on manual processes rather than investing in even basic automation for their operations. In order to provide seamless customer service and drive real efficiencies, however, companies need to fully embrace what has quickly become the future of freight forwarding: internet-based shipping platforms.

According to a recent report, shippers are now using online platforms to book more than 10% of their volumes. As competition in the freight forwarding market continues to grow, leveraging specialized solutions like online booking and real-time tracking to improve the customer experience are key for companies looking to differentiate themselves and scale their business.

Benefits of Digitization

Despite the forwarders who are still a little behind the times, many have come to understand the wide range of pay-offs digitization provides that extend far beyond saving money.

Increase customer retention

At the end of the day, every company’s goal is to keep their customers happy. When you use technology to streamline your operations, you’ll find that the resulting increase in efficiency will enable you to offer customers better pricing. Also, by integrating a centralized system into your shipping processes that gives both you and your customers instant access to more accurate data, you can lower your operating costs and improve their overall experience working with you as well.

Improve carrier relationships

Carriers want to work with forwarders who are reliable and can coordinate shipments with ease, which usually requires some form of automation. Since technology makes their life simpler by eliminating time-consuming paperwork and optimizing routes, it frees up time for them, which can get you reduced shipping rates. For instance, if any issues pop up regarding Bills of Lading or Customs documentation, digitization helps resolve these problems in real time, preventing them from holding you and your logistics partners up for too long.

Guarantee more accurate quotes

Technology can increase a forwarder’s confidence because it guarantees more accurate quotes for customers. International shipments can be extremely tricky to price out sometimes, but this is where technology can help you keep rates competitive without accidentally undercharging a client. Cloud-based software solutions also make the process more convenient, since all of your important information is contained in one place.

Differentiate your business

Yes, low rates are always a great way to attract customers; however, they aren’t the be-all, end-all because you aren’t going to get very far trying to compete on price alone. What will really make a difference for your reputation and help you see substantial growth is the level of service you provide to shippers. If you want to improve your margins in the long run, then you’ll need to invest in the technological tools that will make your interactions with customers stand out from your competitors.

The role of a forwarder is evolving, and technology is playing a big part in this transformation. Don’t wait until it’s too late to invest in the systems that can take care of your day-to-day tasks and let you focus on expanding your place in the industry.