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3 challenges faced by freight forwarders

Created on | Last updated on November 18, 2021 at 01:10 pm

The logistics sector has already gone through many automation processes. A lot was improved with technology, but due to the complexity of the industry, some processes still need to be improved, and that is when we see the challenges faced by freight forwarders. Such as:

Poor partners and clients management 

The lack of partners and clients management is one of the biggest challenges in the logistics and freight forwarding industry, due to its fragmentation and inconsistency of the many parties involved in the process. Which makes it difficult to have all information consolidated in one place, but not impossible.

For that kind of problem, a freight forwarding management software that gathers the information of these different parties could be a solution, and for this, we recommend that you look for a platform that will allow you and your team to have the main information of your partners and clients in one place.

At the end of the day, forwarders are just trying to connect with other forwarders around the world. And of course, they will try to make the best connections and partnerships out of it. In order to fasten the partnership process, a management system is really helpful.

To help your freight forwarder company with freight partnership management Parnity is the best option in the market, with Parnity’s management system forwarders are allowed to have all their partners in a single place, organize them in a board by country, city, modal, service, or whatever makes sense. Along with ranking partners to know which are the best options to quote in a country, analyze them to improve partnerships, and share it with the whole team.

Difficulty of connection 

Because everything happens so fast in the freight forwarding industry and finding a qualified forwarder partner to work with is not as fast as the job flows, the connection and communication can get lost and delayed. That is why some forwarders choose to be a part of a logistics network, in order to fasten and improve the process of finding forwarder partners.

The reason is that inside a logistics network is possible to find more information about the forwarder than it is on a Google search. Parnity’s digital logistics network is the best option for forwarders to find future partners, that is because all forwarder members inside Parnity have a complete profile with all the information you will need to make your decision and the possibility of sending a message to the direct quotation contact.

Furthermore, a freight forwarder management system is also a big help in this case, and that is because if you already have mapped potential partners in a country or city you will only have to get in touch them and ask for a quotation.

Analyze the processes

Having all aspects of your forwarder company’s processes controllable through an analytics system provides not only the ability to simplify and optimize work processes but also the potential for better analytical, anticipatory strategies and improvements. 

Using freight forwarder analytical tools, the forwarder companies will not only solve problems but also prevent them, and improve the quality of their partnerships. Companies that adopt this mindset and improve this kind of system will eventually stand out from those who can’t keep up.

Learn more about how to make data-informed decisions in your freight forwarder here.

Parnity’s analytics system helps freight forwarders to visualize all the business data between their forwarder partners and understand if they are making win-win partnerships. Here is how you can learn to analyze your forwarder partnerships.

How to improve the daily challenges 

Now that we have understood the challenges faced by freight forwarders, it’s time to see how you can start working on the improvements.

The most important step to start improving your freight forwarder business is to have great customer service.

Once you put good people in the right position to assist your partners and clients in the best way possible you will for sure enhance your forwarder business.

  • Customer Sucess (CS)

Focusing on guaranteeing high customer performance is the main objective of CS and this is only possible when the company establishes strategies to interact with their client’s and partner’s needs.

“Customer Success is when your customers achieve their Desired Outcome through their interactions with your company.” Lincoln Murphy

In freight forwarding, Customer Success is as important as any other market, by making sure that your client is being well attended it could generate more business. After all, a successful customer means a successful company.

In order to continue making your forwarder more successful, technology should be the second most important step, this way you will be able to save time, money, besides optimizing the workflow. 

  • Startup mindset

Adopting a startup mindset to implement technological solutions is a great way to start improving your forwarder. Combining the startup’s agility with the structure of bigger organizations provides the innovation that a company needs to be more efficient. 

To have a startup mindset is to be open to changes, innovation, and challenges. Once you have analyzed the main needs for improvements in your company you have to think about the options and what will be best suited for you.

Is it starting your own software? Or is it hiring a platform? 

After you’ve made your decision is time to work with the startup mindset. Start the innovation strategy, let your employees know about the improvements so that everyone is on the same page, align goals and ideas with the team, and consult with every department what are their suggestions for improvement. 

Having the startup mindset and being open to new ideas and new points of view will definitely help you grow your business.


In case you want to have more perspective about those topics watch our conversation with Afonso de Los Rios from nowports below.