The logistics industry experienced a slump during the previous years because of sluggish adaptation to technology. Nowadays, the industry has reshaped itself with various programs and innovations that not only simplifies processes but eliminates most of the manual processes so it should cope with other threats like trade wars.
As such, freight services rose from the ashes, becoming one of the most dominant players with technology for shippers that improve every aspect of operations. Freight forwarding has joined the bandwagon of change, proving resilience despite its once-through demise.
Trends & Innovations
The latest trends and innovations being followed by the whole forwarding business has been the industry’s ticket to survival. The information revolution removed all additional human resources and the millions of equipment needed to run an entire system.
This time, the efficiency of freight forwarding does not rely on manual labor and processes, but faster and smarter churn of information that equates to more significant investment returns. Some of the expected technologies we will see with logistics in the coming years are conceptual sprouts of technology.
Internet of Things (IoT).
IoT is a particular tech model slowly creeping into the facades of our daily living. Though the technology is still in its fragmental stages, its roots are seen to shake up the shipping industry.
The Internet of Things is particularly keen on autonomously realigning every process through the web. So, in a sense, using IoT to simplify processes with tools that speak to each other. Parcels and containers will be able to send real-time information about their locations, giving shippers quantitative information to base their decisions.
Cloud-based solutions currently shape the whole technology industry because of its efficiency in limiting infrastructure investments. Freight companies are also benefiting from this technology because they allow simultaneous consolidation of reports and real-time connections.
This technology also allows companies and their customers to get first-hand information from shippers so they can realign their business strategies. Businesses can ask for immediate repositioning of an empty cargo without investing in an in-house IT infrastructure.
Advanced Machine Learning (AML).
Advanced machine learning is also currently the buzzword in the computer technology sector. Wiki has a layperson’s definition so we all can grasp its function. You’re probably more familiar with the term ‘artificial intelligence’ and machine learning is a subset of it, where it’s role is to learn patterns and take action of on its own accord without human intervention.
Freight Services companies powered by AML get a competitive edge because of their ability to make reliable decisions based on market movement and enforced logistic patterns. By using pre-determined analysis tools, reports are given an accurate reading, and business decisions are formed based on reliable insights. Actively powered by industry algorithms, AML can accurately solve conditional problems and pinpoint process inefficiencies.
The Future Of Freight Forwarding Businesses
The need for stability and indeed consistency is why technology like AML is taking over some of the repetitive tasks in a lot of sectors.
The catalyst of change is usually a threat to existence and survival and the freight sector has had its fair share of challenges in recent years, both in shipping and air freight and more recently with the political sparring between the US and China.
Technology is said to be the enabler of change, and AML, artificial intelligence are now leading the way forward in so many areas of so the demand for automation in the freight service industry is inescapable.
Reducing costs, and improving profit lines will alway the challenge business leaders and they will deal with it any way they can to stay relevant.