6 benefits of digitalization in the freight industry

We have said it before, digitalization in the freight industry is inevitable. The whole business world is being transformed by new technologies and this one, in particular, is no exception. There are many reasons for this digital revolution to happen, but mainly it is because of its several benefits. This is precisely what we want to share with you this time.


Digitalization in the freight industry has been a slow but unavoidable process. A lot has changed since the old days of vintage shipping to how it’s being done nowadays. There are now fully automated port terminals, autonomous ships, freight benchmarking services, proposals of a floating warehouse, drones being used for cargo deliveries, and let’s not forget about all of the softwares developed to automize and optimize companies’ operations, such as Cargofive.

Not only have we seen how freight forwarders are facing digital transformation in many ways as they are being threatened by different types of companies. But we also are seeing carriers making efforts to digitize their processes to the point that even two of the world’s top are already providing instant quotes.

It’s really important then, that all of the industry players keep up with the technological advances and join the new digital era. Those who don’t are at risk of being left out of the market and even vanishing in time. For instance, according to McKinsey, with carriers’ digitization direct shipper-carrier bookings could go from less than 5% up to 15 to 20%. This could shake things up very much at freight forwarders, right? So, it’s up to them to get ahead of the market by adopting new technology and making it a vital part of their business.

There are six main benefits of digitalization in the freight industry that we can name.


1. A reduced margin of error:

Automation helps reduce the margin of error in freight businesses. It is less likely to have a machine or systems making the same mistakes as human beings. Logistics softwares like Cargofive’s are made to simplify rates and contracts management so that the sales processes can be optimized and errors can be avoided.


2. Multichannel sales:

Making business the old traditional way may still bring some results, but with online sales, it has been proved that the income is greater as there are more closed deals and, at the same time, it reduces costs. It’s about time now that all freight companies open other sales channels to be able to keep up with the trend and grow. Actually, it’s more profitable to gain leads through inbound marketing and get them to buy than to sell the traditional cold way even for freight forwarders and logistics companies.


3. Differentiation and added value:

With technology’s help, all businesses can develop features that add value to their offer and set them apart from the rest. We now see a lot of traditional logistics companies offering more or less the same services, but the new players, such as the startups, are bringing a lot of different values and may be taking over the market. It’s up to you to decide on which side you want to be.


4. Efficient connection with customers:

To engage and gain the customers’ loyalty is not an easy task, but it can actually be determinant to be able to grow as a business. Taking customers to the digital channel makes it easier to build stronger relationships with them, by being able to talk to many at the same time and offering them a custom treatment.


5. To be at the forefront of the market’s competition:

We are living a determinant moment in the industry, as there is not yet a clear and strong domination of the market, and there’s a lot of competition emerging with digital support. It’s then vital for freight forwarders and other logistics players to hurry up and embrace new technologies to be able to position themselves at the forefront of the market’s competition.


6. Improved customer experience:

The customer experience is determinant in a buying decision. A client will tend to choose a good experience over an average one. This is something startups and new digital players know very well and are willing to take advantage of it. So, traditional ones will have to step up and improve their customer experience to be able to compete at the same level. For example, freight forwarders should not keep on taking days or weeks to send quotes to the customers. They should start automating their tasks to speed up the process and this would take their customer experience to another level.


As you can see, there are a lot of benefits of digitalization in the freight industry. It won’t be long until the digital transformation takes over the market. Fully automized sales and customer experience will become the industry standard and set the expectations. So, are you going to join the evolution process or are you going to stay behind?