Understanding Freight Technology: A Beginner’s Guide

The Emergence of Freight Technology

Freight Technology (FreightTech) refers to the technological solutions that software companies develop to improve the logistics services of freight brokers and forwarders. Their aim is to improve shipping efficiency, analyze logistics-specific data, reduce manual tasks, and increase sales conversions. Specifically, FreightTech positively impacts many areas of the business, such as operational efficiency, sales productivity, and better communication between stakeholders.

As a distinct technological category, FreightTech emerges as a magnet for investors and users. Investment in this sector rose from $1.3 billion to $2.9 billion in 2018 (Mercer Capital). The growing trend in FreightTech indicates a clear and expanding market demand for this technology.

Undoubtedly, freight technology advances the logistics industry as more businesses allocate resources towards newer technologies. Moving forward, we can expect more companies investing in freight technology.

How Freight Technology Advances the Logistics Industry

Logistics companies now view software technology as an investment rather than an expense, as freight technology shifts the way they draft their strategies.

• With logistics service providers investing in freight technology, they are being introduced into a new era of enhanced visibility. Freight technology provides a centralized platform to access and share relevant logistics data such as customer profiles and logistics sales KPIs. It also promotes collaboration and transparency among stakeholders.
• One of the most profound impacts of this advancement lies in its ability to reduce manual errors and optimize processes. Optimization reduces manual intervention and minimizes errors. By streamlining routine tasks, logistics businesses can redirect resources towards strategic initiatives, paving the way for a more agile and competitive industry.
• Freight technology empowers logistics professionals with robust data analytics tools, enabling them to derive valuable insights from datasets. By using data, companies can make informed decisions. This data-driven approach enhances sales efficiency and contributes to the development of proactive and adaptive logistics strategies.
• The integration capabilities of logistics technology extend beyond individual logistics processes. These solutions facilitate seamless collaboration among stakeholders. The interconnectedness improves coordination and fosters a more synchronized and efficient logistics ecosystem.

The success of freight technology marks a profound revolution in the industry. As we navigate this era, the impact of technology on the logistics industry is monumental, promising a future where efficiency, innovation, and customer satisfaction stand as the hallmarks of success.

Challenges and Solutions in Choosing Freight Technology

While the benefits of freight technology are undeniable, there are challenges that logistics service providers may encounter when choosing new systems. We listed some challenges that can arise in choosing FreightTech:

Weighing the Cost Over Potential Return on Investment

Challenge: Expenses such as maintenance, support, updates, and additional requirements are critical factors to consider when choosing the right freight technology. With that, companies are cautious about investing in technology that can’t deliver its promises and will incur more expenses for the company.

Solution: It is crucial to evaluate the cost implications against the promised returns and competitive advantages these technologies offer. This critical evaluation process requires a comprehensive analysis of the investment's alignment with the company's goals, business trajectory, and industry positioning. Only after such a thorough analysis can businesses determine if innovation is a priority.

Ensuring Efficient Training of People

Challenge: A new technology will fail to provide you with results if your team is not skilled enough to keep it running. Some companies fail to acknowledge that everyone in the team must know how to operate the new technology. For instance, a manager cannot be the only person who knows how to operate the sales CRM for logistics in the sales department.

Solution: To effectively leverage logistics technology, it is imperative to train your team to navigate and understand its features proficiently. Thorough training is crucial to ensure a substantial return on investment and prevent unexpected integration issues. So, invest in your team's training and equip them with the necessary expertise to bring your company's aspirations to life.

Integrating New Technology with Existing Systems

Challenge: Integrating new technology into your existing systems can be a challenging task. There's a possibility that the new software may face compatibility issues with your current systems. Additionally, the transfer of data may vary, depending on the capacity of your existing systems to export data in an organized manner.

Solution: Thorough assessments must be conducted to identify potential conflicts and compatibility issues between the new and existing systems. Any modifications or upgrades necessary to bridge the gap must be addressed to ensure a smooth integration process. Failure to do so will hinder the efficiency and benefits promised by the freight technology.

What To Look for in a Freight Technology

When considering adopting freight technology, there are several crucial aspects to consider. These factors should guide businesses in selecting the right freight technology solution for their specific needs:

Scalability

Scalability in freight technology refers to its ability to expand in response to increasing demand and evolving business needs. For logistics businesses, scalability is essential as it determines the flexibility of the company to scale without compromising performance.

Ease-of-use

Ease of use pertains to the simplicity and intuitiveness of the technology's interface and functionalities. Intuitive technology can accelerate your adoption process. When a system is easy to understand and use, employees are more likely to embrace it quickly, minimizing training time and maximizing productivity.

Cost-effectiveness

Cost-effectiveness involves the efficient use of resources, where the benefits and value of the technology outweigh the incurred expenses of its implementation, maintenance, and operation. A cost-effective technology solution produces a positive ROI, demonstrating its value to the logistics company.

Strong support system

With comprehensive assistance and troubleshooting, businesses can ensure seamless implementation and continuous operation of technology solutions. This level of support not only resolves any challenges that may arise but also builds long-term partnerships and customer loyalty.

By prioritizing these key factors, companies can make informed decisions that not only meet their current operational requirements but also lay the foundation for sustained success in the ever-evolving logistics landscape.

CRM as a Freight Technology

As highlighted earlier, freight technology encompasses cutting-edge solutions designed for the supply chain and logistics industry. These innovative solutions enable logistics enterprises to refine their sales operations and elevate efficiency in their processes.

Given this context, a customer relationship management (CRM) tool is a good example of a freight technology that can significantly benefit logistics service providers. With freight CRM technology, companies can efficiently manage customer relationships and enhance customer satisfaction.

Moreover, logistics service providers are empowered by CRM technology through client acquisition opportunities.

How can freight technology do this?

Freight CRM technology enables logistics providers to track customer preferences, historical transactions, and specific requirements, facilitating personalized services. Personalized customer experience becomes a distinguishing factor for new prospects looking for tailored logistics solutions. This personalization based on their individual needs can convert them into loyal customers.

With no customizations needed, Supply Chain Relationship Management (SCRM) can help you grow your freight business. Now, watch your leads turn into customers with the complete visibility that the sales pipeline feature provides. Additionally, secure more deals through the consistent sales interactions you maintain over email and calls. No need for different applications – SCRM has everything you need, from sales to customer service.

Conclusion

Freight technology offers logistics businesses the opportunity to thrive in this competitive industry. Logistics providers can secure more shipments and increase revenue by embracing innovative solutions, increasing efficiency, and enhancing visibility. With the right freight technology partner and adopting tools like a logistics CRM, 3PL CEOs and salespeople can streamline operations, optimize customer relationships, and achieve long-term success.

If you want to learn more about freight technology built for 3PLs, request a demo here.

Thank you for reading our article. For more educational content, you can explore all our blogs here. You can follow us on LinkedIn, Twitter, or Facebook to get supply chain industry trends and efficiency tips. If you have other inquiries or suggestions, do not hesitate to contact us through this link.