How to simplify freight quotes with technology

Do you know how to simplify freight quotes with technology?

As you already know, freight trends for the coming year focus on improving the supply chain, especially through technology. 

The use of Artificial Intelligence (AI) in logistics is one of the major trends for the market in 2024. 

Through algorithms based on data, the use of AI can automate procedures and thus make supply chains more efficient.

The basic concept of efficiency is most often described as the relation between the expected time and the time spent performing a task.

Achieving efficiency in certain processes depends mainly on the commitment, dedication, and engagement of the employees with the activity in question.

Freight forwarder efficiency: what is it?

Successful freight forwarding depends on a large number of processes.

Consequently, the more complicated an industry, the more difficult it can be to figure out where to streamline processes while respecting quality, budget, and deadlines. 

However, there is good news because automated freight processes are here to make it much easier for managers and companies to reduce time-consuming and inefficient processes.

The logistics industry has already gone through many automation processes. 

They are allowing operational management to focus on value-adding activities such as customer service, exception handling, and working toward timely and accurate invoicing. 

All of this will contribute to lower operating costs, which increases profitability.

How you can make your forwarder more efficient

Since the entire freight document workflow often consists of steps involving complex operations and various types of data, the processes can easily become more and more complicated. 

Much of the logistics processes have already started to be improved with technology.

However, due to the complexity of the industry, some processes still need to be improved.

When we talk about reducing clutter, be it paperwork or the electronic equivalent, it has always been difficult to think of new solutions.

Freight forwarders rely heavily on paper documents for most of their accounting process requirements.

Considering that freight forwarding operations involve large volumes of documents and data.

The rapid growth seen in digital automation using artificial intelligence (AI) technologies, can give you a starting point.

Using this technology has made it possible to properly automate and digitize processes. 

Digitized data can lead to a whole new world of improvements, for example:

• Accruals can be reconciled with remittance invoices;
• Account statements can be reconciled with what was posted by freight forwarders;
• Knowing quickly when an account needs to be paid;
• Creation, modification of delivery and consolidation files;
• Clean up the processing of commercial invoices and packing lists;

By automating the documentation process, forwarders can eliminate that pile of unnecessary paperwork and free up many hours to help businesses thrive in other ways.

Simplifying quotes using artificial intelligence

AI solutions can help identify exactly which steps can be improved to improve profits, manage carrier contracts, negotiate shipping rates, and even simplify quotes.

When we talk about forwarders, the process of quoting overseas agents is always a crucial part of a company’s operations. 

As you may already know, most freight opportunities begin with a freight quote request. 

Therefore, having an efficient and organized quoting process is very important when you are shipping goods internationally.

Otherwise, you may miss valuable business opportunities.

Knowing how to simplify freight quotes with technology, especially using AI, can be a big game changer for your company. 

Especially since some steps in the quoting process can make things slower and less efficient. 

With the fast pace of the market, freight partners increasingly demand answers that are fast, efficient, and contain the final price established.

The use of Artificial Intelligence brings two huge advantages to the quotation process: optimization and efficiency.

The goal behind using AI is not only to alleviate the hustle of e-mails and improve communication between forwarders but also to automate the quoting process. 

This means that instead of constantly monitoring and managing the email inbox to find/reply to quotes, a forwarder would use an intelligent system to provide him with a formatted quote ready to be emailed to the customer.

In other words, AI in the quotation process is responsible for intelligently extracting details using natural language processing from common RFQ emails to create accurate quotations within minutes or even seconds.

Artificial Intelligence in Logistics

Investment in advanced supply chain technology has increased in recent years, with the market for AI-related solutions estimated to reach $16.7 billion by 2027.

Most industries, including logistics, have been transformed by the advancement of new technologies, such as artificial intelligence (AI).

Artificial intelligence (AI) will be key in making supply chains more efficient.

By eliminating possible human error it can identify patterns in which companies can predict purchase demands and manage inventory, taking the guesswork out of planning and purchasing.

AI allows the software to automatically learn from patterns or features in data by combining large volumes of data with fast repeat processing and sophisticated algorithms.

When it comes to the benefits of AI in logistics, there is never a shortage of compelling justifications as to why this is the best option. 

That’s because using Artificial Intelligence in logistics can:

• Improve demand forecasting;
• Improve the customer experience;
• Assist in efficient planning;
• Assist in resource management;
• Optimize routes in real-time;
• Automate warehouses;
• Optimize sales and marketing.

Expand your knowledge!

As mentioned above, the use of technology in logistics can optimize many processes within your forwarder, including your quotation process.

Furthermore, according to the Global AI Survey, the use of AI in logistics can increase companies’ profits by more than 40% per year.

There is no reason to ignore the growing influence of technology in the logistics market.

Now that you know how to simplify freight quotes with technology, you have a good place to start!