Parnity Logo Blog

What is a digital logistics network?

Created on | Last updated on November 30, 2022 at 12:43 pm

Even though, in the last few years, the global logistics industry has expanded its use of technological innovations. There is still a common misunderstanding about digital logistics networks.

Without fully understanding how digital networks operate and differ from traditional ones, some logistics companies still search for freight partners manually, using spreadsheets and phone calls…

Digital logistics network: what it is and how it can benefit your forwarder

Digital logistics networks basically operate as global communities of freight forwarders who engage with each other according to established guidelines to promote their companies and increase their business generation by connecting with other members.

In a large sector like freight forwarding and logistics, they also allow independent freight forwarders to compete in a certain way with the international big players.

Joining a digital logistics network offers you an appropriate environment for building partnerships and exchanging business opportunities in an easier and faster way. Likewise, you can not only easily find partners who offer the service you need but also gain a lot of visibility in the international logistics market.

Being part of a digital network is also perfect for forwarders that have no connections in other regions of the world. 

Within a digital network, these freight forwarders are able to expand their shipments to destinations that would be less manageable if they didn’t have access to such connections. A digital logistics network connects your forwarder with more qualified companies, and above all, also offers tools to optimize business generation between its members and algorithms to facilitate matchmaking.

Basically, they use technology to improve the quality of what traditional logistics networks have offered. That’s why a logistics network can play an essential role in a freight forwarder’s success within the international market.

Now that you know what a digital logistics network is and the benefits it can bring to your freight forwarder, it’s time to learn how it differs from a traditional network!

What is the difference between a digital logistics network and a traditional network?

The difference between a digital logistics network and a traditional one may not be as clear as you think. However, if you want to join a network to increase your forwarder’s business generation and make new freight partnerships, you need to be aware of this distinction.

To better explain this difference, I will use Parnity – the digital logistics network – as an example. So, let’s get to it…

Parnity is a digital logistics network updated to today’s freight market, that allows forwarding companies to find new partners worldwide, manage their current and future freight partners, analyze the quality of their partnerships, generate new business from day one, and also talk to other freight forwarders in REAL-TIME.

Filtering your search by cargo type, country, city, services, company name, branch, or headquarters, you can find a forwarder’s complete profile in just 5 seconds – 60% less time compared to other logistics networks.

Combined with this, in Parnity, artificial intelligence is used in a search algorithm that organizes the search results by the probability of being a high-quality agent, rather than alphabetically, as in traditional logistics networks.

We can also identify that the other difference between Parnity and a traditional logistics network is the elimination of restrictions on the number of agents per country. 

New companies join Parnity each month, which means more business opportunities for its members.

Not to mention that Parnity offers forwarders the possibility to exchange business inside the network itself, something no other network does. Inside Parnity’s Business Hub, forwarders can add their quotation requests and answer the requests made by other forwarders. Using Parnity’s real-time chat the transaction gets even faster and easier, you can do it all inside the network, with no need to exchange a bunch of emails, as it is done in the traditional networks.

In addition, Parnity members can view the validated documents of other forwarders so they can make their own choices based on their own criteria, and although it is a digital logistical network, it also offers human close support.

In comparison, meanwhile, traditional logistics networks, although offer global coverage, this coverage is limited because they contain a restricted number of members in each country. This, consequently, can also result in a lower quote rate.

Similarly, as already mentioned, traditional networks list their members in alphabetical order and use a validation process that does not allow their members to have access to the documents that other freight forwarders have submitted to join that network.

This takes away from the forwarder the possibility to deeply analyze that forwarder during the process of choosing a new freight partner.

To sum up, traditional logistics networks currently behave essentially like contact lists in which their members can search for freight partners without actually comprehending how much business is in fact being generated through the services they offer.

Parnity is always developing new tools that facilitate business generation among its members.

Through Parnity’s Chat, for example, you can contact forwarders in REAL-TIME to exchange shipments and build new partnerships faster than ever. Meanwhile, in traditional logistics networks, freight forwarders can’t talk to each other in real-time and also have access to limited contact information, usually just a single email address and phone number.

Also, using Parnity’s freight management system, you can organize your forwarding partners and analyze the quality of your partnerships, making your quoting process easier, and allowing you to understand how profitable each one of your partners is.

Parnity members have access to all these benefits for the best membership fee in the industry, which means they can use all the tools to grow their forwarding business for much less than most traditional logistics networks offer.

If you want to learn even more about Parnity and the differentials it offers compared to a traditional logistics network, check out the conversation with Parnity’s member, Gabriel Castilho from Linc Group, in the video below.

Now that you know how Parnity is always bringing the power to choose, manage and analyze forwarder partners to YOUR forwarder, what are you waiting for to take advantage of all these benefits?

Click here and start improving your freight forwarding business through Parnity, the digital logistics network.