The global digital freight forwarding market is expected to grow at an average rate of 23% over the next few years, according to Allied Market Research, starting at $2.92 billion USD in 2020 and estimated to reach $22.9 billion USD in 2039.
At the same time, increasing revenue, cutting costs, and elevating supply chain visibility has become more pressing than ever, and the calls for efficient and technologically advanced platforms have grown louder.
From coordination issues between stakeholders to the limitations of outdated software systems, these technological advancements create a slew of new problems for BCOs and Forwarders to deal with. Countless hours are lost in manual processes, leading to overworked employees and escalating overtime costs.
Without integration between new and old systems in their supply chain ecosystem, BCOs and forwarders will face a massive influx of manual data entry, delays in communication or shipping goods, and potential errors when implementing new technology, causing teams to work overtime to keep up with the competition and industry demands.
What's Causing So Much Overtime for Freight Forwarders and BCOs?
In the intricate world of freight forwarding and shipping, overtime and inefficiencies often feel like unyielding obstacles, hindering progress and profitability. Unraveling the causes behind these challenges reveals a web of interconnected factors plaguing the industry. Some key contributors include:
Manual Processes
Despite technological advancements, many freight forwarders and BCOs still rely heavily on manual processes. From laborious data entry to the time-consuming tasks of booking and tracking shipments, these manual endeavors open the door to potential errors and delays, which inadvertently lead to inefficiencies and overtime.
Complex Supply Chains
The very essence of freight forwarding and BCO operations lies in being integral parts of vast, global supply chains. However, managing these multifaceted relationships and coordinating activities can take substantial time and effort, leaving businesses grappling with operational complexities.
Lack of Integration
Freight forwarders and BCOs often resort to multiple systems for various facets of their operations. The lack of seamless integration among these systems necessitates manual transfers of critical information, inadvertently introducing inefficiencies and roadblocks into everyday processes.
Communication Delays
The wheels of the supply chain turn smoothly when communication easily flows. Unfortunately, in an industry where various parties may operate with different systems and processes, communication between systems can become a hindrance, causing delays and errors that ripple across the supply chain.
Regulatory Compliance
Navigating the labyrinth of regulatory compliance is an inevitable facet of freight forwarding and BCO operations. Staying up-to-date with ever-changing regulations across different ports and countries can be time-consuming and labor-intensive, posing additional hurdles to smooth operations.
Fluctuating Demand
The demand for freight forwarding and BCO services is subject to fluctuations in the global economy, rendering effective resource planning a challenging task. When demand spikes, businesses often grapple with overtime demands to keep operations afloat during peak periods.
The Power of Integrations to Enable Digitization and Freight Automation for Forwarders & BCOs
Imagine a scenario where customer needs, preferences, and expectations are seamlessly communicated through integrated systems, empowering businesses to strategize their service offerings and pricing accordingly. Equipped with real-time insights, BCOs and forwarders are empowered to become the architects of customer-centric experiences, elevating customer satisfaction and loyalty.
By connecting various supply chain management systems like a TMS, ERP, or WMS, Chain.io empowers businesses to create a cohesive technology ecosystem. This integration allows for a smooth flow of data, eliminating the need for arduous manual data entry and reducing the potential for errors that might arise from such processes. When forwarders and BCOs integrate their data, benefits can include:
- More informed decision making thanks to real-time data availability
- Hours of time saved each week with automated data flowing between previously disconnected systems
- The ability to focus on strategic endeavors rather than simple execution, fostering innovation and elevating customer experiences
By connecting the systems used to keep businesses and freight moving, integration platforms like Chain.io empower forwarders and BCOs to achieve unprecedented levels of efficiency, productivity, and collaboration. As the logistics industry continues to evolve, embracing the transformative potential of integrations becomes crucial in staying ahead of the competition and shaping a future defined by excellence and innovation.
Chain.io’s Integration Platform in Action
Magnate Worldwide, an international and domestic freight forwarder and customs brokerage, experienced two major systems-related issues:
- The executive and operational teams were frustrated that they had to go into so many different systems to get an overview of their business, which in turn impacted their efficiency and decision-making.
- Customers with disparate data sources and platforms wanted a single view of their data.
Using the Chain.io Platform, Magnate Worldwide integrated a business intelligence platform with their existing ecosystem for executive visibility, and to give customers direct access to their own data in an easily digestible format. Learn how Magnate Worldwide leverages Chain.io for integration so they can focus on being a premier freight forwarder.
Watch Magnate’s TestimonialUnlocking Time & Cost Savings for Freight Forwarders and BCOs with Chain.io
Chain.io recognizes the industry's challenges in making disparate systems work together efficiently and cost-effectively over time. Our integrations empower forwarders and cargo owners to navigate the complexities of their long-term IT roadmaps seamlessly. By leveraging our platform's best practices, businesses can successfully implement software and maintain integrations more effectively.
With pre-built integrations to the leading logistics software companies, we optimize supply chain operations, boost positive customer experiences, and improve bottom line. If you’d like to learn more about integrating your supply chain ecosystem, get in touch with our team today!
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