Freight forwarders play a crucial part in ensuring hassle-free cargo delivery. To remain in business, they must be agile and flexible to meet customers’ unique requirements and incorporate technological advancements in their operations.
This article covers some of the most important strategies that can help forwarders to enhance efficiency and stay competitive.
About Freight Forwarding Market
Today, shipping has multiple challenges including volatility in demand and supply, and social, technical, legal, political, financial, and environmental complexities. These difficulties make it hard for shippers to deliver goods effortlessly. Hence, the need for freight forwarding ERP arises.
Challenges for Freight Forwarders
Freight forwarders manage various uncertainties that could result in loss of business if the required action is not taken on time.
- Unstable Freight Rate
Contracts could have been signed at the time when prices were down however at the time of shipping if rates increase, the forwarders are burdened with extra costs
- Changing Laws and Regulations
Many organizations administer supply chain industry regulations worldwide. It is imperative for forwarders to update themselves regularly to give the right advice to clients
- Demurrage and Detention Charges
These are levied by ocean carriers, so it is important for forwarders to talk to their clients about such charges in advance
- Embracing New Technology Advancements
As digital expertise evolves, forwarders need to integrate modern SaaS-based freight forwarding solutions to maintain their presence. Those who do not have advanced freight forwarding ERP lag in the business
- Lack of competent workforce
It is cumbersome to train and retain skilled staff in a complex logistics industry that runs on know-how and expertise. The absence of skilled manpower puts a big question on the reputation of freight forwarders
What’s in Store for Forwarders and Logistics Industry in 2023
The current logistics trends include sustainability, last-mile delivery, adaptability, and digitalization. Post-COVID, there is a reduction in large international shipments. This has made the procurement channels less fluid and more unstable.
Top Robust Practices for a Successful Freight Forwarder
Today, in this competitive world, having a successful business is not straightforward. To differentiate themselves, forwarders need to offer surpassing customer experience and benefits. Some of the strategies to become a successful freight forwarder include:
- Competitive Pricing
Freight forwarders should create pricing models based on their competitors’ prices. In this industry usually, the most competitive price wins a new business. However, the price should not be extremely low and unreasonable, keeping the business at stake and stating a lack of expertise. Value-adds and special services come at a premium, and this fine balance can help to win new business and retain old clients. A rate management system helps freight forwarders manage the pricing easily
- Modern Technology
Digital innovation can eliminate manual intervention and improves the supply chain network. SaaS-based freight forwarding software can set up the base for a successful forwarding agency.
Freight forwarding ERP ensures that data is secured, encrypted, accurate, and reliable. These platforms deliver the cargo in a short time and can be accessed by all stakeholders. Additionally, the visibility that freight forwarding software provide adds value for both the forwarding agent and the customer.
- Delighted Customer Experience
A customer-centric experience where the customers’ queries are addressed and resolved timely is a win for any organization. This surely increases the customer base and adds to the forwarder’s market share. Visibility and sharing the status of the goods play prime role to delight the customers
- Expertise, Word of mouth, and Global Network
A freight forwarder cannot run his business in silos and needs trustworthy and reliable affiliates who can comprehend and mitigate the risks to ease the shipping process. The expert advice customers receive from forwarders adds value and helps retain clients. Hence, this aspect helps in building a successful reputation
- Multi-modal Facilities
Shipment can reach its destination through various modes. A freight forwarder should be flexible and smart to help customers with the best shipping mode for their cargo delivery.
Multi-modal facilities offer cost-effectiveness, decreased time and effort, and fuel efficiency to build an organized and smooth transportation option right from the point of pick-up to final delivery
- Financial Stability
Having a solid profitable income statement allow forwarders to have a larger set of stakeholders and players in the supply chain. This will build stronger logistic networks and improves the forwarder’s credibility in the market.
How can a Freight Forwarder Implement the above Strategies?
Implementing these strategies at once could be challenging. However, a clear roadmap that includes these strategies would be the first step toward success. Focus on the end goal, being customer-centric, leveraging technology, and imparting expertise would be helpful.
Successful freight forwarders differentiate themselves from competitors by managing their customers’ resources properly, prioritizing their experience, and tracking shipments constantly.
The above strategies can be customized to meet the unique requirements of freight forwarders. Customer experience and expert knowledge can attract a lucrative price within a competitive market if supported by the right people and advanced technology.
NewageNXT is a well-known freight forwarding ERP, which can resolve complex challenges of forwarders to ensure customer satisfaction and builds successful forwarding ventures.