Chaos to Control: The Power of Partnerships in Freight

Freight touches every aspect of our lives, from our clothes to the food we eat. It is the driving force of global trade that connects producers with consumers, ensuring that goods reach their destinations on time and in good condition. Whether shipping containers cross oceans or trucks and delivering packages to our doorsteps, freight is vital for modern economies.

Despite this, freight management is fraught with challenges. Fluctuating rates, global disruptions, and the changing nature of our regulatory landscapes make it difficult to maintain efficiency and profitability. Addressing global supply chains' increasing complexity demands imagination and innovation!

Over the past decade, the entire trade industry has transformed owing to technological advancements, geopolitical events, and economic fluctuations. The Texas Freeze and the Ever Given grounding have highlighted the importance of contingency planning in supply chains. These concerns are further exacerbated by the strained geopolitical landscape , characterized by the limited availability of certain commodities in specific regions, longer shipping routes, and rising insurance costs for shipments in certain areas.

Freight forwarders have had to navigate these challenges by finding alternative routes, negotiating favorable rates, and implementing risk management strategies. I believe partnerships play a crucial role in this.??

Today, Jayson Peterson (VP of Global Channels & Alliances and Global Supply Chain Executive — Magaya) and I will explore the importance of Freight in supply chains, its challenges, and how strategic partnerships can drive innovation and efficiency.

Freight Forwarding: A Team Effort

At the very start of our discussion, Jayson talked about the changing industry requirements, saying, "Today, the freight forwarders I speak to are 100% focused on?cost reduction. Post-COVID global shipment volumes have been down year over year for two years now, making freight more scarce. This makes customer service paramount, and delivering on customer expectations now means?collaboration is more important than ever.??

So, investing in technology is necessary to gain fluidity in those efficiencies.?Customer portals, including visibility, automated workflows, and AI functions, help reduce headcount; advanced APIs connect to partners' systems needed to meet customer SLAs."

Of course, speed and efficiency are paramount these days. In my own experience, this makes partnerships a necessity for freight forwarders as they adapt to new challenges and opportunities.

The freight industry's desire for advanced collaboration has led technology companies to rethink their go-to-market strategy and further rely on an unprecedented ecosystem of partners to deliver on customer demands and drive growth through scale.

Working with reliable carriers, logistics providers, and technology partners can help freight forwarders streamline operations, reduce costs, and improve customer satisfaction. These are only some of the ways in which partnerships with various entities impact the supply chain:

• Shipper: According to the International Trade Council , forwarders provide shippers with various services, including transportation coordination, customs clearance, cargo insurance, and supply chain visibility.
• Carriers: Freight forwarders negotiate contracts with carriers to secure capacity, stable rates, and priority service, improving efficiency and reducing costs.
• Logistics providers: Freight forwarders collaborate with them to offer additional services like warehousing, distribution, and customs clearance, providing a more comprehensive solution to customers.
• Technology providers: Their technological expertise allows freight forwarders to develop digital platforms that enhance visibility, efficiency, and customer experience. The most advanced tech companies utilize 'stacks' of compatible technologies that communicate through advanced API connections. Together, these technologies deliver higher value to their clients, creating a competitive advantage for them.

By forming these strategic partnerships, freight forwarders can significantly enhance their operations and gain a competitive edge. They can streamline supply chains, reduce costs, improve service quality, and expand their global reach. These collaborations are essential for navigating international trade's complex and competitive landscape.

Is Tech the Future of Freight?

It's also the present! Technological advancements have been pivotal in transforming the freight forwarding industry in recent years. A Deloitte report on the power of digitalization explains how the digital era has led to restructuring industries, with platform companies disrupting traditional business models. Freight forwarding is a centuries-old industry that is also vulnerable to such disruption.

Amid this disruptive nature of the digital era, freight forwarders have had to adopt a proactive approach to technology adoption, leveraging innovations such as AI, IoT, and blockchain to gain a competitive advantage. FedEx acquired TNT Express in 2016 , expanding its global network and capabilities. This partnership allows FedEx to offer its customers a more comprehensive range of services.

This is true even for governments. In fact, according to CNBC , the US government has partnered with several companies, including FedEx and DHL, to create a digital platform for supply chain monitoring that will provide a real-time snapshot of port and inland network congestion and monitor unexpected cargo shifts caused by world events.

Jayson believes that technology can also make freight more resilient, "Technology is the catalyst for a new era of efficiency and sustainability in the freight forwarding industry. Tech companies have increased their spending to meet customer demands as freight forwarders continue to play a pivotal role in environmental sustainability.? Digitization provides advanced visibility, optimal routing, and increases efficiency." By optimizing routes, consolidating shipments, investing in fuel-efficient vehicles, and adopting sustainable practices, freight forwarders are reducing their carbon footprint and improving their bottom line.

Platforms like Uber Freight are doing just that, allowing shippers to connect with carriers directly, reducing intermediaries, and improving pricing transparency. Leading shipping and logistics companies use blockchain-based solutions to track and trace shipments, improving supply chain visibility and reducing paperwork. AI-powered algorithms analyze great amounts of data to identify patterns and trends, even weather conditions, traffic congestion, and port congestion.

The widespread adoption of digital freight platforms has improved visibility, efficiency, and collaboration among supply chain partners. Additionally, optimizing warehouse operations not only enhances efficiency but also minimizes waste.

Turning Challenges into Success Stories: A Cybage Specialty

Cybage Software has proven to be a valuable partner for freight forwarding companies seeking to modernize their operations. One such company, a leading US-based freight forwarder and customs brokerage firm grappling with data limitations, found a solution in Cybage-built track-and-trace technology solution. By tapping into over 80 ocean shipping sources, this solution empowered the forwarder with real-time container status information.

Another client, a global transport and logistics company based in Europe, sought enhanced visibility. Cybage responded by developing a responsive web and mobile application that streamlined the entire process, from job assignment to driver tracking. Integrating client systems and building real-time dashboards enabled end-to-end transparency.

In Asia, a forwarding and logistics provider benefited from Cybage's automation expertise. By implementing automated workflows and providing real-time visibility into inventory and billing, Cybage helped the company improve customer service levels and reduce costs.

These three cases, separated by continents but united by technological innovation, showcase Cybage's ability to turn complex challenges into streamlined solutions.

Freight is essential to supply chains, and effective management is crucial for business success. Businesses can overcome freight transportation challenges and drive innovation by forming strategic partnerships with reliable carriers, logistics providers, and technology partners. Trust, collaboration, and a shared commitment to excellence are vital ingredients behind successful partnerships that can help companies thrive in today's competitive environment.

#freightforwarding #partnership #sustainability #Cybage #digitaltransformation #SupplyChain #Logistics #PartnershipLeaders #FutureofPartnerships?

Ready to turn your freight challenges into success stories? Let's talk! I am available for a consultation to discuss how you can leverage the power of partnerships and technology to optimize your supply chain.

David Houser (EVP?—?Cybage | Pro-to-Know)

linkedin.com/in/david-s-houser or@davidhouser

Also, discover what our expert thinks about the role of technology in freight forwarding:

Jayson Peterson (VP of Global Channels & Alliances and Global Supply Chain Executive — Magaya)

linkedin.com/in/jaysonppeterson