Why should logistics operators invest in digital tools?

Freight forwarders manage a lot of information day by day, and they share it with many parties who are usually located across the globe. Thanks to digitalization, now they can do it using digital tools like cloud computing services and high-speed data sharing. But, why should they invest in these new technologies?

Digital tools like cloud hosting and high-speed data sharing are changing the investment structure of many operators, from being a “capital expense” to an actual “operating expense”. Of course, this is increased by the digital transformation of the industry, but mostly by the benefits of its implementation.

Why invest in these digital tools?

As we already know, technology applied in the supply chain is changing the game. Nowadays, it’s the only solution to sort out challenges and customers’ demands as real-time information and faster shipping. But it’s also changing the investment structure for many, as it’s a must for daily operations. 

  • Lower entry costs and time-to-market for companies.

If a company wants to enter a new market or develop a new business, digital tools and software will provide data analysis to meet these new demands and offer services from a lower cost base. Standardization enables better and faster integration, decreases time to market, drives down the cost of computing and makes businesses more nimble and automated.

  • Reduction of the delay in business communication.

As we always say, communication between a freight forwarder and its client is crucial. With solutions like high-speed data sharing and Application Programming Interfaces (APIs) ones, sharing information becomes easy as it’s connected between systems and services. Besides, these types of communications will be automated via IoT (internet of things), making it simpler and easier to implement for any IT department. 

  • Bigger and faster networks.

Blockchain technology also helps with the previous point, as it’s a big and intelligent network that can be implemented for supply chain processes. Using it and with the information that it provides, a logistics operator can react to alarms or alerts and swiftly replan and reschedule actions without human intervention.

These digital tools are a huge opportunity for freight forwarders. We know that it takes time to adopt new technologies, especially within large organizations, but this is not a subject to worry about as many partners like Cargofive are willing to give a hand and help them join the digital era. As the demand to adopt new tools will not diminish, companies must learn to adapt. Are you considering implementing these new technologies? You should!