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Transformation of freight forwarding and logistics services through digitization

Freight forwarding is a growing economic activity and an essential branch of all serious economies, especially those for strengthening exports, which means its realization in the fastest and most efficient way.

Stable technological infrastructure and essential digital supply create the preconditions for participation in supply chain management. All participants in the transport chain need to optimize logistics steps and the entire transport process.

Logistics is increasingly present in everyday life. Trends in logistics operators' business must develop continuously and adjust to qualitatively and optimally satisfy the global market demands. Companies engaged in logistics activities and developing their logistics services are more competitive within the supply chain and make higher profits.

By applying various methods, modern technology and knowledge, logistics operators strive to provide the highest quality logistics service while ensuring customer confidence and future business relationships.

Digitization shapes almost all modern industries around the world, and the logistics industry is no exception. With the increase in digital literacy and consumer awareness of various online platforms and tools, the digitization of the freight forwarding and logistics industry is becoming a key trend.

Digitization in the logistics industry leads to a significant reduction in supply chain costs, increasing the speed and transparency of work processes and the competitiveness of logistics companies.

The global transport and logistics sector is facing a dramatic transformation due to new digital technologies and changes, business models and customer expectations that are changing the market. It is essential to keep in mind that the key to any transformation is to adopt of new technologies by listening to what customers and clients want.

Digitization of logistics processes

Digitization of logistics activities and processes is based on certain components such as automatic identification, real-time location, automatic data collection, integration. Their realization comes through various technologies, such as the Internet of Things, Cloud Computing and Blockchain technologies. IoT and Cloud Computing technology enables monitoring and recording data, case and process management and the use of many Internet services, increasing flexibility, transparency and speed for logistics companies.

It is still early to say that solutions like these will revolutionize the freight forwarding industry, but blockchain technology based on decentralized and distributed data collection and processing is well on its way. Blockchain enables everything, from secure transactions and verification, all the way to tracking goods and smart contracts with signature authentication.

A wide range of applications of blockchain technology within logistics can help companies to optimize processes, gain much improved transparency and cut administrative costs that reach as much as 20% of total transportation costs.

The role of digitization and trends in the freight forwarding sector

Digitization in logistics follows the trend of development of IT services and ensures time optimization of the supply chain. When it comes to savings and losses, time in transport is the most important economic factor that cannot be compensated by anything.

There is a need for global digitization of different documents in all different modes of transport to achieve significant logistics improvements. These include the practice of digital data exchange in the Cloud, investing in automation and networking, developing their services, shipment tracking, and introducing mobile data communication and digital platforms. All this enables faster and more efficient, more transparent communication and easier download and data transfer.

As the need for transport and logistics services is continually growing, the European Commission estimates that freight transport will increase by 40% by 2030 and by as much as 80% by 2050, while sales via e-commerce will exceed 735 billion dollars by 2023.

Trends have a significant impact on the logistics industry, but if combined into an intuitive, scalable and customizable solution, the benefits and possibilities are endless. With the right logistics provider, ready to tailor solutions to your needs, as the Hubbig digital platform does, you can be sure you’re one step ahead.

Visibility and tracking

Knowing the exact location of a shipment has long been a problem in the logistics industry because there was no complete visibility. With blockchain and GPS technology, tracking solutions are becoming more accurate, allowing full visibility of goods with real-time data. This will enable companies to visualize the locations of vehicles, cargo and goods easily.

Most online shopping happens overseas, where customers want to know the shipment location and arrival time. That is why the tracking of goods and containers has become the industry norm.

Due to lost or delayed packages, to help correct mistakes, customers can track their orders online. The direct result is an increase in customer trust and a higher percentage of completed orders.

Providing essential information on distance and time, shipping status and other logistical details lead to higher-level transparency and professional courtesy between merchants, shipping companies and end customers, creating a sustainable, informative and affordable ecosystem for all participants.

Flexibility in delivery options

Depending on the urgency, scope and sensitivity of the ordered items, different delivery options should be available to customers. For example, for some customers, delivery time is not an important factor, while for others, it is a priority. Therefore, a business model should be created depending on the order details and customer expectations. Such an initiative would result in greater investment in technology that will ensure that packages reach their destination faster.

Greater quality control of goods

Product quality control has become necessary in recent years. Ensuring that the product has arrived at the destination as advertised will create a positive image of the brand and the shipping company. Also, the emphasis on quality can contribute to marketing stability, enable customer retention and further business recommendations.

Opt for a freight forwarding company that will allow you reliable and timely delivery at an affordable price. This way, you will achieve a better reputation and customer retention. Follow industry trends and your customers and clients will appreciate it.

The difference digitization makes in providing an excellent user experience

Digitization in the freight forwarding industry is an evolutionary change that presents new challenges and opportunities for freight forwarders. Internet technologies that allow customers to order things from the comfort of their homes are a big challenge for the freight forwarding industry.

Over time, freight forwarders are moving from traditional processes to faster and more responsible digital solutions with better data protection. The implementation of the latest technologies has become necessary to solve many problems that the industry faces.

The ultimate user and client experience is essential in the marketing and sales of a digital freight forwarding company. Freight forwarders must ensure a high level of transparency and ease of tracking shipments to provide a positive experience.

Shipment tracking still depends mainly on the exchange of electronic messages between different partners. As logistics partners begin to combine data from IoT solutions (such as maritime automated identification system and electronic sensors built into containers for ocean-going ships or even attached to products), freight forwarders will have more accurate monitoring. If customers gain such solutions through digital freight forwarder platforms, they will have insight into the real shipment life cycle. They will be able to track their goods' condition, which is especially perishable products and sensitive items.

Some of the ways digital solutions can be applied to improve the user experience include:

  1. Fulfilling customers’ quotation requests in minutes

  2. Increasing the transparency of quotations by providing a full breakdown of fees and surcharges

  3. Increasing visibility and access to information

  4. Providing customers with a fully integrated package of services, from supply to delivery

Other steps to improve the user experience that international freight forwarders are taking to build customer relationships include developing simple interfaces and a larger virtual presence that consists of a content marketing strategy and more social media activities.

What does technology bring to freight forwarders?

Logistics is the sector that often benefits most from digitization. The answer to how technology is changing the world lays down in available open communication channels. From social media to chatbots and e-commerce platforms, customers have greatly facilitated contact with suppliers. Lost shipments, change of data order and product quantity - potential problems and questions are endless. Nowadays, it is imperative to provide timely, professional and informative customer support to clients worldwide.

The ability to quickly, easily and reliably get key information is a pillar of 21st-century digitization. It says a lot about the tools available and how they are used to give the customer a genuinely digital experience.

Trends determine the future of logistics and every freight forwarder and logistics service provider should accept them. In addition to the several trends already mentioned, there is also mobile and data communication. Integrating digital channels into the logistics industry is another trend that gives logistics service providers a competitive advantage and greater efficiency over the competition.

With the Hubbig digital freight platform, you can:

  1. Register for free and use your account anytime and anywhere

  2. Select the most suitable mode of transport

  3. Solve the transportation of goods in just a few clicks

  4. Get the updated status of the shipment in real-time, from transport carrier to delivery.

The platform automates import and export processes through choosing the optimal transport option. It offers customers all additional services in one place, simplifies use, saves time, speeds up logistics processes, enables digitization, and directs communication and cargo tracking.

The digital transformation is unstoppable. To digitize is to improve competitiveness. The flow of information between all participants is optimized, and work processes are faster and more transparent at the same time.

Greater interest in digitization has especially increased due to the new situation caused by the COVID-19 pandemic. That is why the challenges of the future are enormous: from sustainable growth in e-commerce to the progressive digitization of logistics processes. The demand for innovative products and technologies is greater than ever, and the goal is to connect people, markets, and goods faster and more sustainably. To keep up with the accelerating development of technologies, logistics experts will need new knowledge and program skills.

All technologies and possibilities of digitalization passed all tests. They are widely available and implemented by successful companies. Successful digitization always depends on setting clear company goals, identifying current and recurring problems, and smartly selecting the specific technologies, services, solutions or systems that will benefit you most.

Following modern trends, the digital platform Hubbig keeps pace with the demands of the market. It continuously improves its business processes and introduces new technologies, and is fully committed to the digitalization of business.

Consider the best way to combine new technological possibilities and choose a freight forwarder who is ready to adapt to your needs to achieve the highest possible return on investment.

Choose Hubbig and ensure a better quality freight transport service with a full range of logistics products and new technologies.



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