Traditional and digitized freight forwarding companies have a lot in common. They both offer the same services, such as customs clearance, inland transportation, and cargo insurance. But there are some critical differences between the two that you should consider before choosing which one to work with.
Most freight forwarders have evolved and have implemented digitization however, there are still some freight forwarders that have not embraced the new ways. Are they missing out? Does the customer know the difference? Let’s explore the contrast.
What are the main differences between a traditional and digitized freight forwarder?
The primary difference between the two of these is that conventional freight forwarders do not utilize modern technology and instead are using older ways of doing things. Such as having to call to find out where your product is instead of being able to track it online.
Technology such as software has made it possible for freight forwarders to operate more efficiently thus increasing profits, while improving customer service with real time information. Below are some key areas in which the gap between traditional and modern are the most apparent.
Contact with the Customer
The way traditional freight forwarders primarily use phones as a way to contract their clients and their contract companies. On the other hand, digital freight forwarders understand that people want answers right away and don’t want to wait for hours or days to be contacted back.
That’s why most of them offer online chats and other contact information. This helps to improve the flow of communication and get the customer an answer in a much shorter time. Even complicated questions can be answered in a relatively short amount of time due to their online presence.
Customers also want fast shipping, an accurate shipping quote, and to know how long it will take for them to get their item. With digitized freight forwarders, you get the answer instantly, while with traditional ones, you have to call them, and they’ll have to find which methods are the fastest and cheapest, increasing your wait time.
Tracking in Real Time
Consumers also want to be able to track their packages online without having to contact the shipper and wait for them to search for their items. Traditional freight forwarders have struggled to find ways for customers to know where their product is and when it’ll arrive.
Record Keeping
Documentation is another area that traditional freight forwarding services struggle. Traditional freight forwarders may have to look through several emails to find the correct documentation for each shipment which may cause delays in finding information. On the other hand, digital freight forwarders have the option to instantly share the documentation needed for every freight on their platform.
What Are Some Drawbacks of Traditional Freight Forwarders?
Traditional freight forwarders have some drawbacks that can affect your business.
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- First, they are often more expensive than other options. They charge a percentage of the total value of the shipment, which can be very expensive if you’re sending a large number of goods.
- Second, traditional freight forwarders don’t always offer the same types of services as other shipping providers, making it hard for you to get precisely what you need from them in terms of pickup, delivery, and insurance coverage.
- Finally, traditional freight forwarders are not always flexible when it comes to scheduling pickup and delivery times—they generally require that shipments be picked up or delivered at specific times during regular business hours.
Why Is Technology Essential for Freight Forwarding?
Technology is essential for freight forwarding because it is what enables you to stay ahead of the competition. While your competitors may rely on manual processes, you can leverage the latest in technology to achieve faster, more efficient results.
This means that you will be able to offer your customers better service, which will help you become a leader in your industry and attract new customers. It also means that you will be able to operate more effectively and efficiently than ever before, so you can save money and increase profits.
Technology allows you to take advantage of web-based services like electronic data interchange (EDI), which provides real-time data transfer on various formats. This allows businesses to share information about orders and shipments without having to manually reconcile invoices or manually enter information into a system after they have been received by email or fax.
In addition to improving efficiency and reducing costs, using technology also helps reduce errors in shipment tracking systems. It allows companies who use these types of services to easily monitor their shipments online through web portals where they can view progress reports that include details such as transit times, locations along with estimated arrival times based on current weather conditions, including temperature changes over time.
Embrace Freight Forwarding in 2022
While traditional and digitized freight forwarders do the same thing, they do them very differently; if you want to know where your freight is at all times as well as save money and optimize your business you want to go with a company that uses the latest freight forwarding technology.
CSA Software can help your freight business work smarter so that you stay competitive and profitable with our freight forwarding software products. As a developer of state of the art, Cloud-based freight software for more than 35 years, we have the solution to your transportation management, including air freight, ocean freight, warehousing, accounting, logistics and so much more.
Take your freight forwarding business to the next level and call for your Free Software Demo today!