What is a Digital Freight Forwarder?

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More shippers are trying to reduce costs and increase value for partners in the supply chain by using new technologies such as e-commerce and digital forwarding.

As companies discuss new rules and regulations, they are looking for ways to reduce the time required to use traditional forwarding. Digitalization is on the horizon, and digital forwarding is the solution. As the Boston Consulting Group explains, freight forwarders will move into the digital age and talks with freight forwarders will develop. Find out where digital forwarding companies come into play and what they do for shippers now.

The distinction between traditional and digital providers is not complicated, but switching can be difficult, so shippers need to understand why a digital solution is better.

Imagine you were to carry out all the above processes, including contacting a forwarding agent to negotiate a price, planning sea container shipping, handling all the formalities and assuming liability for the carrier. Unfortunately, this complexity means that a traditional freight forwarder could spend hours or more planning and planning a single delivery.

Moreover, global volatility in freight transport undermines freight forwarders’ efficiency, and, as global disruption increases, these processes represent a significant opportunity for improvement. In fact, according to Container News, 92% of industry experts predict that digitalization will create value – additional opportunities for freight forwarders who are threatened by the shipper-initiated upheavals in transport capacities. The digitalization of the freight forwarding industry is crucial for the success of global supply chains and offers clear advantages over traditional processes. The transition across digital borders and regions through the use of automated and integrated platforms reduces redundancy, maintains cost control and minimizes risks.

Further information about the location of your shipment also allows you to plan when the shipment will arrive and what you will pay for it. By selecting shipping options, traceability and transportation ensure that your customers are informed and help supply chain leaders manage processes. Because informed customers are loyal customers and more customers are willing to pay a premium for faster shipping, it is in the company’s best interest to provide accurate and timely information about delivery times, costs and delivery dates.

More and more countries, including the US, are actively involved in international trade, and as fraud in the industry increases, regulations are coming into effect to reduce the damage. Unfortunately, accurate documents and the proper management of records are additional complexities that reduce efficiency. Digital hauliers eliminate this by enabling the exchange of documents, providing immediate access to information and reducing the need to talk to a real person. The integration of these platforms further reduces the need for conversations with real people and allows for faster tendering for freight forwarders, which also keeps costs under control.

However, the impact and benefits of such relationships go beyond the challenges they solve and their impact on business, such as fraud, fraud prevention and compliance.

Forwarders who continue to work with traditional forwarders will see higher prices and longer delivery times. Fortunately, digital hauliers can meet these challenges and even reduce the need to speak to someone face to face to advertise to a haulage company if so desired. Digital forwarding is not only a new business model, but also an important part of the logistics industry.

Learn more about how to get your organization off the ground and benefit your business by contacting FGA Cargo.