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featured image - 4 Factors Driving Freight Logistics Companies Towards Digitalization
You're here: Home Home Improvement 4 Factors Driving Freight Logistics Companies Towards Digitalization

4 Factors Driving Freight Logistics Companies Towards Digitalization

  • Perla Irish
  • December 19, 2021
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Table of Contents Show
  1. 1. The Need for Data Analytics
  2. 2. The Need for More Time and Cost-Efficiency
  3. 3. Real-Time Cargo Tracking Data
  4. 4. The Rise of Freight Forwarder Alliances

Many operators in the global freight industry are going through total digital transformations. For some, the process of digitalizing their operations has been slow.

image - 4 Factors Driving Freight Logistics Companies Towards Digitalization
4 Factors Driving Freight Logistics Companies Towards Digitalization

But, with the rise of software tools designed specifically to automate business operations, it’s clear that digitalization is inevitable.

According to various industry experts, the COVID-19 pandemic has increased the demand for digital freight solutions. Companies want their cargo carriers, freight forwarders, and other supply chain operators to be more efficient. Here are six other factors driving freight logistics companies toward digitalization.

1. The Need for Data Analytics

Most freight forwarders, logistics managers, etc., collect large amounts of data. This data includes delivery times, port documents, insurance data, delivery speed, details about shipping routes, etc.

However, this useful data arising from day-to-day business operations is often siloed and not used at all.

Thankfully, freight forwarders, logistics managers, etc., can now access different software tools to optimize this data.

Use these tools to analyze the data your organization collects. Then, use the insights derived from the data to improve internal and external workflows, predict risks, etc.

Companies that provide data-based logistics or freight forwarding services will perform better. They’re also likelier to attract more business.


Read Also:

  • Essential Tips to Follow before Shipping Delicate and Fragile Items Overseas
  • Unlocking Growth Opportunities With Australian-based Companies
  • Importance of Using a Shipping Container Hire for Self-Storage
  • How Do Global Companies Benefit from Translation?
  • Are Air Freight and Air Cargo the Same?

2. The Need for More Time and Cost-Efficiency

Software tools that help freight forwarders and logistics managers optimize their data can also help them automate certain internal functions.

Anyone in the workforce can access these tools. Workers get 100% data visibility, so they’re able to perform administrative tasks and back-office operations with more efficiency.

These tools can eliminate the need to perform redundant tasks such as –

  • Sending emails to share documents. Send direct notifications from your software tools instead.
  • Collecting invoices, bills of lading, etc. All these documents can be stored in the software’s cloud system.

Anyone in the organization (with permissions) can access these documents to perform administrative operations.

  • Provide instant quotes to customers within seconds.

Freight forwarders and logistics managers rely on complex operations between different stakeholders.

One miscommunication can cause a ripple effect and impact their shipment’s final delivery time. That’s why using tools that give all relevant members of the company easy access to data is critical.

3. Real-Time Cargo Tracking Data

The maritime holdups due to the COVID-19 pandemic are impacting freight forwarders and logistics managers across the globe.

These challenges are harder to cope with for operators who don’t have access to real-time information about cargo locations. The latest logistics and freight forwarding software tools come with live-tracking features.

Operators can gain end-to-end visibility over their shipping operations with these features. With timely access to vital cargo data, they can avoid delays, optimize their shipments’ routes beforehand, and avoid port congestions.

4. The Rise of Freight Forwarder Alliances

In the past, forwarders operating individually couldn’t use these tools because of budget constraints. Now, these freight forwarders have the option to join freight forwarder alliances.

These alliances are groups of well-vetted freight forwarders. Group members pool the costs to use the latest software tools.

Freight forwarders can now avoid the immense up-front costs of digitalizing their business by joining these cost-effective alliances.

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Perla Irish

Perla Irish, who is more familiarly known as Irish, is the Content Manager at Dreamlandsdesign.com. She loves following trends around home and garden, interior design, and digital marketing. Through this blog, Irish wants to share information and help readers solve the problems they are experiencing.

Related Topics
  • data
  • freight
  • tools
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