The trend of digitalization in the freight sector has been gradual but inevitable. From the early days of shipping to how it is done now, a lot has changed. Fully automated port terminals, autonomous ships, freight benchmarking services, floating warehouse concepts, drones utilized for cargo delivery, and let’s not forget all the software created to automate and improve business processes are already commonplace. We have seen that freight forwarding companies in Singapore face the digital transition in many ways and are threatened by many business kinds. However, we are also observing carriers attempting to digitize their operations to the extent that even two of the major carriers in the world are already offering quick quotations.
Therefore, a freight forwarder Singapore must stay up with technical advancements and embrace the new digital era. Those who don’t run the risk of being left behind in the market or possibly being extinct in due course.
For instance, McKinsey estimates that direct shipper-carrier bookings might increase from less than 5% to 15–20% as a result of carrier digitalization. Do you realize how much this may change at freight forwarders? They must thus accept new technology and integrate it into their operations to stay ahead of the competition.
Top 6 benefits of Digital Freight Management
A smaller error margin:
Automation lowers the mistake rate in the freight industry. A computer or system is less prone to make mistakes than a human being. Software for logistics is designed to make managing rates and contracts simpler so that sales processes may be streamlined and mistakes can be prevented.
Multiple sales channels:
The old-fashioned manner of doing business may still produce some results, but it has been demonstrated that internet sales produce more profits since there are more concluded agreements while also lowering expenses. Now is the time for all freight firms to establish additional sales channels to expand and stay up with the current market.
Even for a forwarding agent Singapore and logistics firms, it is more profitable to generate leads through inbound marketing and convert them to customers than to do traditional cold sales.
Uniqueness and extra value:
All organizations may create features that enhance their offerings and differentiate them from the competition with the use of technology. Currently, many conventional logistics businesses are delivering essentially the same services, but new competitors, such as startups, are bringing in a variety of new values and might end up dominating the industry. You are free to choose whose side you support.
Effective customer connection:
It is not simple to engage consumers and win their loyalty, yet doing so can be crucial for a company’s ability to expand. By being able to speak with several of them at once and providing them with a personalized experience, moving clients to the digital channel makes it simpler to develop better relationships with them.
Being in the lead in terms of market competition:
As there isn’t yet a clear and strong market dominance and there is a lot of rivalry growing with digital assistance, we are living in a decisive period in the business.
Therefore, freight forwarders and other participants in the logistics industry must move quickly to adopt new technology to gain an advantage over rivals in the market.
Enhanced client experience:
The purchase decision is influenced by the customer experience. A customer will often pick a positive encounter over a negative one. Startups and new digital players are eager to take advantage of this since they are highly aware of it.
Therefore, for established businesses to compete on an equal footing, they will need to step up and enhance their client experience.
For instance, freight forwarders shouldn’t continue to wait days or even weeks to deliver quotations to clients. To expedite the procedure and improve the client experience, they should begin automating their jobs.
With the aid of technology, any firm may develop features that improve their services and set them apart from the competitors. At the moment, many traditional logistics companies offer essentially the same services, but new rivals, like startups, are bringing in a variety of new values and could wind up ruling the sector. You are free to decide who you want on your side.
Conclusion:
As you can see, the freight business has a lot to gain from digitization. Before long, the market will be completely transformed by digital technology. The industry norm and expectations will be fully automated sales and customer experiences. Do you intend to participate in evolution or do you intend to remain static?
