Analyst Insight: The digital transformation of the logistics and freight forwarding industry picked up speed about 10 years ago when startup freight technology firms saw an opportunity to modernize forwarding with digital solutions. Today, the transformation to digital from manual processes is full speed ahead, and there’s a broad array of freight technology solutions available to enable forwarders to compete on a level playing field and deliver a great customer experience.  

With the recent downturn in the market, logistics providers (LSPs) and forwarders are seeking logistics technology solutions that provide the greatest business value.

The work to automate time-consuming manual processes will remain a top priority, especially in a down market, where lowering costs, saving time, and improving operational performance will give companies the resilience needed to get through challenging times.

For 2023 and beyond, here are the freight technology investment opportunities at the top of the list to stimulate growth, increase market share and address the needs of customers.

End-to-end visibility. Online access to visibility data is a necessity for timely, data-based decision making. The ability to address issues when freight isn’t moving as planned is key to improving operational effectiveness, streamlining inventory management and increasing efficiency. In addition, sharing data with all parties to a shipment furthers the ability to sync freight moves for a more streamlined and reliable flow of goods to market and a higher level of customer satisfaction. It also contributes to greater supply chain resilience and agility.

Significant improvements to visibility solutions will continue. Data will become more accurate and actionable, nearing real time, and advancements in machine learning and artificial intelligence (AI) will enable more predictive data to continually enhance supply chain execution.

Digital integration. Digital connectivity and integration of freight technology solutions is a high priority given the complexity of modern logistics and the volume of data that needs to be shared with shipment stakeholders. These connections are critical to establishing a smooth flow of shipment data across a forwarder’s freight technology platform for complete door-to-door shipment management. Forwarders equipped with a comprehensive, connected digital infrastructure improve their competitive position and provide customers with a better experience.

Customer relationship management (CRM). There’s no place for organizational silos in today’s fast-paced, connected online world. Given the high number of touchpoints involved with serving a customer, from the initial quote all the way to the shipment’s final destination, it’s important to ensure that all customer-facing teams are operating with the same, up-to-date information. CRM can play an important role in ensuring a consistent, optimal customer experience. It’s also a useful tool that helps sales teams manage pipeline and stay on top of prospective business.

Self-service freight management. Offering B2B customers a frictionless, streamlined freight transaction experience means offering fast, easy, online access to accurate rates, plus the ability to book cargo and access tracking information any time, day or night. This is an important step in strengthening business relationships and meeting the high expectations of modern customers, and it’s also beneficial in reducing operational costs. Ultimately, it’s a new era in freight management, and providing customers with self-service options has become essential for sustainable success.

Outlook: Forwarders and LSPs must continue to adopt freight technology solutions to achieve operational efficiency and meet customer expectations. The old way of doing business by phone, email, and paper simply can’t keep pace with the growing demands of global shipping. The right technology can not only help LSPs be more productive and lower costs, but is also the linchpin to making those important connections, and delivering the best customer experience.