In the freight forwarding business, building relationships and networking in the logistics industry is crucial. However, with technological advancements, relying solely on traditional methods and a limited customer base might not be enough in today’s highly competitive global market. Digital freight forwarding is becoming essential for success. Sales executives in this $180.66 billion industry need to have a wide network of contacts to thrive. This article discusses the challenges they face in pitching for business in a non-digitalized world and explores major cloud/IoT-enabled platforms that can help them in this process.
In a regular freight forwarding company, a salesperson or agent usually spends a lot of time out meeting potential customers. They go out at the beginning of the day to talk to people who might want to ship things and learn about what they need to send. Usually, they visit about seven to ten possible customers during this time.
Customers at this stage usually tell them things like what they want to ship, where it’s coming from, where it’s going, and how big it is. After collecting all this info, the salesperson goes back to the office and talks to the pricing team. Together, they figure out the best shipping options and prices for each customer.
The pricing team has to look at a bunch of complicated rate sheets that have shipping rates and schedules from all over the world. If these sheets aren’t updated, they have to call shipping companies to get quotes and schedules manually. Also, they have to search online for rates from different companies by visiting their websites one by one.
Once they find all the rates, the salesperson puts together a quote by hand. This includes the basic shipping cost, any extra charges, and important terms and conditions. Making one quote this way can take about six to seven hours. And by the time the customer gets the quote, it’s been around 24 hours since they first asked about shipping. But with Digital Freight Forwarding, this whole process can be way faster and easier.
In the shipping world today, things move fast and are very competitive. This makes it tough for traditional forwarding agents to do well. Last year, there were more new freight forwarding businesses in the US, showing how competitive it is. No single forwarding company has a big share of the market. This means the industry is very ambitious and aggressive.
When we talk about why traditional forwarding agents struggle, we have to understand how fast and competitive the shipping market is. Last year, more new freight forwarding businesses popped up in the US, showing how competitive it is. No single forwarding company has a big share of the market. This means the industry is very ambitious and aggressive.
In the traditional shipping world, things move quickly and competition is fierce. This makes it difficult for traditional forwarding agents to succeed. Last year, there was a rise in new freight forwarding businesses in the US, indicating the competitive nature of the industry. No single forwarding company holds a large market share, highlighting the ambitious and aggressive nature of the market.
In the world of Digital Freight Forwarding, one of the key tasks is getting the best rates for clients. Thanks to technology like cloud computing and the Internet of Things (IoT), managing rates has become much easier. Digital tools, like the centralized Rate Management System (RMS) and Rate Procurement Tool, have made the process faster and less work-intensive than before.
These tools help freight forwarders gather and organize rates from different shipping companies, big and small, like Maersk and CMA CGM. Using the RMS, companies can efficiently handle contracts and live rates from various carriers. This helps them save time and money on communication and boosts efficiency across departments. Overall, Digital Freight Forwarding tools improve workflow, leading to quicker responses, lower costs, and happier customers.
Digital freight forwarding relies on the expertise of forwarders to find the best routes, types of vessels, and packaging needs for clients. Forwarders need access to scheduling info from rate management systems and visibility software. Rate procurement tools link directly with carrier websites to provide details like shipping routes, origins, destinations, timing estimates, space availability, and ship features. Track and trace software helps forwarders stay in touch with clients until goods reach the destination port. It tracks cargo using container or MBL/HBL numbers, with automatic notifications for milestones. FREIGHTOSCOPE™ offers tracking data for 90% of ocean carriers.
FREIGHTOSCOPE™ offers a software solution for Digital Freight Forwarding. It helps agents and salespeople make quotes quickly and accurately. Research shows that manual quoting has a low acceptance rate. But with instant quotes, the accuracy is 100%, and inquiries usually turn into sales. With live rates and schedules at their fingertips, the sales team can compare and make quotes instantly. They can add margins digitally and share the quote with customers. FREIGHTOSCOPE™ Instant Quotation Module makes creating a quote simple in three steps. They use one big database to track schedules and rates from global carriers. This ensures that quotes are always correct. Markups can be added as fixed amounts or percentages. Also, default markup rules can be set based on trade routes, liners, charges, and equipment types.
When a forwarding agent spends a lot of time at a client’s place without the necessary info for quick decisions, it’s tough. They need to know the latest spot rates, but that info usually comes from a pricing team in a central office. Clients want the agent to stay connected throughout the shipping process. But if the agent has to rely on others for data, it’s not good. The delay in getting info, like prices and schedules, can mess things up. Mistakes happen when too many people are involved. And because the market moves fast, the info becomes outdated quickly. If a forwarder gives old info, customers won’t trust them. Keeping clients is hard when other companies have better info. So, digital freight forwarding needs to change how things work to keep up with the fast-moving industry.
In a study by PwC, half of the participants said that the main problem for transportation and logistics companies is not being comfortable with digital stuff and not getting enough training. Some leaders in logistics are worried about spending lots of money on digital things and not knowing exactly how it will help them. They say the winners in the future will be the ones who understand and use new technologies like data analysis, automation, and platforms. A report by Deloitte says that involving many different people and needing to customize things make it hard to go digital. Also, there aren’t enough people who know about new technologies and how they affect the forwarding business.
FREIGHTOSCOPE™ tries to fix these problems with their digital forwarding solutions. With their system, you can quickly see rates, schedules, and where your cargo is. This could make a big difference in how freight forwarding works. Getting fast information from digital systems can help a freight forwarder give more value to customers. This can make their relationship stronger and help them grow. Imagine being able to quickly see how to group shipments to save money or find routes with lower fees. This would be like getting expert advice and could help sales teams win more business.
Cloud technology has introduced a new idea called ‘digital freight forwarding.’ This means using online tools to manage shipping. It’s great because it makes things faster, more flexible, and easier to expand. Also, it helps to have the same processes across the whole company. dIn the supply chain world, things change a lot. So, freight forwarders need tools that can adapt quickly.
FREIGHTOSCOPE™ offers a set of tools that rely on one database. This keeps information safe, accurate, and updated. Then, it turns this data into useful info that can help get more business. With features like analyzing data and connecting to other systems (like APIs), FREIGHTOSCOPE™ wants to change how freight forwarders work.
Traditional freight forwarders often struggle with manual processes, outdated information, and slow response times due to reliance on traditional methods. In today’s digital age, where speed and accuracy are paramount, these challenges can hinder their competitiveness.
Digital freight forwarding utilizes online tools and platforms to streamline processes, increase efficiency, and provide real-time information. This contrasts with traditional methods that rely heavily on manual data collection, communication, and processing.
Technology plays a crucial role in enhancing the productivity of freight forwarders by automating tasks, centralizing information, improving data accuracy, and facilitating quicker decision-making processes.
Centralized rate management systems enable freight forwarders to efficiently gather and organize rates from various shipping companies, saving time and money on communication and boosting overall efficiency across departments.
Centralized schedule visibility software provides forwarders with access to real-time scheduling information, helping them make informed decisions regarding routes, vessel types, and packaging needs for clients. This enhances transparency and improves customer service.
Instant quotes generation tools like FREIGHTOSCOPE™ enable freight forwarders to create accurate quotes quickly, leading to higher acceptance rates and improved sales conversion. This efficiency enhances the overall efficacy of the sales team.
Traditional freight forwarders often face challenges such as delays in obtaining up-to-date information, reliance on multiple teams for data, increased risk of errors, and difficulty in maintaining trust with customers due to outdated information.
Freight forwarders can overcome the challenges of digital transformation by investing in employee training, embracing new technologies, leveraging digital platforms like FREIGHTOSCOPE™, and adapting their processes to meet the evolving demands of the industry.
FREIGHTOSCOPE™ addresses the concerns of freight forwarders regarding digitalization by offering user-friendly solutions that provide real-time information, enhance productivity, and improve decision-making processes, ultimately empowering forwarders to stay competitive in the digital age.
Adopting digital freight forwarding solutions can benefit sales teams by providing access to accurate and up-to-date information, facilitating quicker responses to customer inquiries, improving sales conversion rates, and strengthening customer relationships through enhanced service offerings.
