or decades, freight forwarding has churned along using the same old manual, relationship-driven processes – but winds of change are starting to stir. Slick new online platforms are hitting the scene – and they’re rapidly dragging freight forwarding into the digital age.
These platforms are automating everything from booking to tracking to payments. With real-time data and analytics, they can provide lower costs and better service. For forwarders, it’s evolve or get left in the dust.
In this article, we’ll look at how online platforms and AI are disrupting the status quo, why some are resisting the change, and what the future holds as digitization becomes inevitable. We’ll also explore how freight forwarders can embrace technology while retaining human expertise and relationships.
Change is coming either way – let’s dive in!
Old-School Freight Forwarding Clings to the Past
For a while now, freight forwarders have operated the same old-school way, relying on personal relationships, individual expertise, and manual processes. Oftentimes, they negotiate rates and partnerships through one-on-one conversations and handshake deals. All the booking and paperwork is handled by employees typing into legacy systems. Shipments are tracked by frequent unstructured email and phone exchanges.
As a result, there’s an obvious lack of transparency in tracking and fees. If a customer has a question, they have to call their account rep. The forwarder is the sole source of truth, keeping all the details in their head or scattered across siloed systems.
Many of these traditional forwarders are resistant to change and hesitant to adopt new technology. They cling to the argument that their industry knowledge and connections can’t be replicated by a digital platform. In their minds, they provide an irreplaceable human touch and customized service. But is that still what customers value most today?
The Rise of Online Freight Forwarding Platforms
While the old guard sticks to their tried and true manual methods, online freight forwarding is rising up and disrupting traditional practices.
These new digital platforms appeal to both shippers and carriers by simplifying interactions and automating time-consuming tasks. Everything from booking freight to scheduling pickups, tracking shipments, and managing documents is handled on one centralized online portal. Their dashboards provide real-time visibility into shipment locations and status.
For shippers, online freight forwarding platforms offer increased efficiency, lower costs, and on-demand flexibility. For carriers, they provide backhaul opportunities and streamlined order management. By leveraging technology, these platforms are delivering data transparency, operational agility, and customer service that old-school forwarders struggle to match.
The Role of AI in Online Freight Forwarding
Artificial intelligence and machine learning are critical ingredients powering the rise of online freight forwarding platforms. AI allows these platforms to digest huge amounts of data and optimize complex logistics operations.
As you might expect, platforms are using AI for predictive analytics – to forecast upcoming supply and demand changes and adapt freight rates accordingly. Algorithms can detect patterns in past shipping data to recommend ideal routes, carrier pairings, and shipment consolidation opportunities.
AI tracks real-time shipment events and supply chain disruptions. It automatically adjusts plans when unexpected delays or bottlenecks occur. Machine learning algorithms also refine route and load optimization over time as more data is accumulated.
As for managing client relationships, chatbots and virtual assistants powered by natural language processing handle customer inquiries and provide 24/7 automated support. Documents are machine-read for quicker data extraction and booking.
The scalability of AI enables companies to expand operations and absorb increasing volumes of data as their business grows. By harnessing AI/ML technology, online freight forwarding platforms can deliver smarter, faster service and higher efficiency than traditional manual methods.
As such, it’s safe to say AI is a foundational driver of the industry’s digital transformation.
Resistance from Traditional Freight Forwarders
It’s understandable why some old-school freight forwarders are dragging their heels when it comes to adopting new digital platforms. They built their businesses on expertise, relationships, and customized services – things technology can’t completely replace.
Sure, automation and data analytics are shiny and powerful, but they worry it’ll turn freight forwarding into just another impersonal, transactional industry – and that’s a fair concern. Software can’t totally replicate the human touch and nuanced problem-solving ability.
Customers still care about personal rapport and connections.
But, let’s be real – the benefits of digital platforms are game-changing improvements shippers now expect. Real-time tracking, transparency, instant booking – you can’t ignore what this tech enables.
The smart play isn’t framing this as a choice between high-tech or high-touch. It’s about blending both. The most forward-thinking forwarders are finding ways to leverage digital capabilities while still delivering bespoke, white-glove services. Think proactive updates and data-backed recommendations – augmenting human strengths with automation.
Rather than resist progress, traditionalists need to get comfortable with digital platforms if they want to stay competitive. There will always be room for relationships and expertise in this high-tech future.
In Summary
There’s no denying it – freight forwarding is entering a new digital era thanks to online platforms and AI. New tech brings killer gains in efficiency, visibility, and flexibility. Shippers are hooked on the lower costs and better service.
But even with more automation, people still crave an authentic human touch and strategic guidance. So smart forwarders are focusing on high-value consultative support as routine operations get digitized.
The most successful forwarders will blend cutting-edge tech with genuine customer relationships and industry savvy. When done right, this high-tech and high-human combo is a winner.
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