The New Waves Of Logistics: Digital Freight Forwarders (Updated 2023)

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Mai Le

2022-11-23 08:26:26

vnext global the new waves of logistics digital freight forwarders

Author: Chi Vo - Content Writer


Due to the fast transition of the global supply chain sector to a digital platform, the conventional freight forwarder has lately been overtaken. This leads to the so-called digital freight forwarders, which use their own designed platform to instantly link shippers and carriers, facilitating the connection between a carrier and a shipper.

Furthermore, for a more customer-centric approach, this platform allows clients to book deliveries or shipments directly via mobile devices. In today's article, we'll look at the function of digital freight forwarders and why it is the future of the whole supply chain.

 

1. What precisely is digital freight forwarding?

A digital freight forwarder, by definition, utilizes digital tools to facilitate easy communication and provide status updates on each shipment on a timely basis. A digital freight forwarder uses a totally transparent system to compare numerous shippers and deliver the best rate to clients. It attempts to eliminate paperwork by producing, uploading, and distributing all documents on the online platform, allowing all stakeholders fast access.

 

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2. The current status of the digital freight forwarding platform

While digital freight forwarders are rather new, the notion of a business that directly communicates to a service provider, such as apartment rent, or temporary housing, is nothing strange. Such firms, whether it is Airbnb or Uber, have effectively established themselves in their respective areas and attracted significant investor interest in public markets.

When digital freight forwarders joined the logistics market and began competing against traditional logistics providers, the story did not change much. With its Uber Freight endeavor, Uber also moved into the logistics business, not just in the United States, but also in Canada and Europe, pushing the digital freight forwarder movement into what appeared to be overdrive.

Investment in logistics start-ups, especially digital freight forwarders, has increased dramatically in recent years.

Same to the way Uber and Grab has invaded the transportation industry, the digital freight forwarder is forecasted to dominate the logistic industry soon. 

 

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3. Why digital freight forwarder is the future of logistics?

As competition drives innovation, the emergence of digital freight forwarders prompted and gave a convincing cause for traditional freight forwarders to digitalize. Here are some reasons why digital freight forwarder is the future of logistics.

 

A. Process automation

First, the technology enables the increase of data analysis and its systematization. It simplifies the process of paperwork and automates logistics activities. This is especially crucial when 67.4% of supply chain managers already use Excel spreadsheets as their primary data-management tool. When working with big arrays and many deliveries, this raises the potential for computation mistakes. Additionally, the delivery of several stock-keeping units (SKUs), particularly on busy days, can dramatically alter the delivery schedule and cost. Digital freight forwarders enhance data and record management by employing AI to handle and analyze massive data volumes. Intelligent neural networks optimize delivery by determining the most effective routes and taking traffic and other variables into consideration. Automated package management using auto-dispatch systems permits optimal, on-time, and cost-effective organization of shipments.

 

B. Enhanced data analysis

The second benefit is a direct result of the first since Big Data analysis in Logistics and freight enables such systems to do predictive analytics and maintenance. AI algorithms monitor the present status of supply chain systems, the loading of transport lines, and the condition of delivery service equipment, in addition to assessing data on cargo transit and consumer activity peaks. Thus, they are able to anticipate potential difficulties, the timing of essential infrastructure repairs and maintenance, and a spike in demand for transportation services. Then, businesses amass transport resources in points of highest load and recruit extra professionals for freight transportation. This is accomplished mostly via the use of technology like Telematics and ELD software.

 

C. Improved final-mile delivery

The most important benefit of freight forwarding solutions is that they aid in resolving last-mile delivery issues. Even the most advanced algorithms are incapable of precisely calculating the resources required to transport items to consumers' homes, particularly in rural locations. Due to the inefficiencies of supply chains in the final mile, delivery times and expenses are significantly increased. AI systems enable the calculation of the most efficient routes for vehicles, the cost reduction, and the efficient use of extra instruments, such as bots and delivery drones. This synchronizes the efforts of big carriers with those of local delivery services and automated centers, creating an efficient framework for the quickest, and most profitable cargo transportation.

 

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4. How to digitize your freight forwarding business?

 

Even though there are numerous choices, it is difficult to determine which digital freight forwarding company best serves your business. Making the right decision depends on many factors such as reputation, safety, and cost-effectiveness.  Here are some must-have requirements for selecting a reliable and efficient digital freight forwarding company!

 

  1. Reputation and Commitment

 

A reputable company with years of experience in the market will eliminate the risk during project execution and ensure the project outcomes. However, with scams and frauds all over the place, it’s hard to verify the credibility and authority of a company. The wise choice would be thoroughly research, background check, or ask the industry’s expertise for reference. 


However, as digital freight forwarder is still a rather new player in the logistics industry, the information on digital freight forwarding companies in the market is still limited. Therefore, it’s hard for decision-makers to evaluate and invest in a suitable digital freight forwarder. 

 

Instead, collaborating with digital partners in the logistics industry is an effective alternative for those who prefer personalized services, cost-effective solutions, and experienced industry experts. 

You can read more here to find out the best logistics app providers in the market: 

9 Best Logistic Apps in 2023 That You Shouldn't Miss

 

  1. Cost-effectiveness

 

Aside from reputation, development costs are the top priority for logistics SMEs, particularly startups when it comes to finding the right digital freight forwarding company.  Ensure that the selected services can accommodate your company's budgetary needs. In order to accomplish this, the pricing structure must be transparent so that hidden surcharges or brokerage fees, which ultimately result in paying more than agreed upon, can be avoided.

 

  1. Comprehensive Logistics Services

 

What if you want to add more features or ask for other digital logistics services? Can a digital-only freight forwarding company handle this? Or must you find a new logistics partner in order to request additional logistics services?

 

As previously stated, there are numerous questions and factors to consider when deciding on the ideal digital partner. As a decision-maker, you should select a comprehensive logistics software provider that offers additional services to help your company save time, money, and effort.

 

VNEXT Global is the best option for companies seeking comprehensive solutions in the logistics industry. We offer a comprehensive suite of services, including digital freight management, transportation, shipping management, asset monitoring, warehousing, etc., all of which are customized based on a client's specific requirements. 

 

Final thoughts

Digital freight forwarding solutions significantly optimize logistics supply chains, enhance the effectiveness of delivery services, cut costs, and guarantee optimal infrastructure usage. The technology enhances processes for dealing with data, using predicted analytics to aid in the prevention of issues. In addition, it offers maximum data security and delivery workflow transparency. If you like to maximize your potential in the sector of Logistics, please contact VNEXT Global - an expert in the creation of digital transformation solutions in logistics for further consultation.

 

If you are looking for a trusted IT partner, VNEXT Global is the ideal choice. With 14+ years of experience, we surely can help you to optimize your business digitalization within a small budget and short time. Currently, we have 400+ IT consultants and developers in Mobile App, Web App, System Development, Blockchain Development and Testing Services. We have provided solutions to 600+ projects in several industries for clients worldwide. We are willing to become a companion on your way to success. Please tell us when is convenient for you to have an online meeting to discuss this further. Have a nice day! 

 

Author: Chi Vo - Content Marketing Executive

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