Based on the qualitative and Quantitative Analysis report on the global digital freight forwarding market from 2019 to 2027, the global freight forwarding market may grow with a CAGR of 23.92% over the next 5-6 years. A study on the digital market covers the analysis of the supreme geographies including North America, Asia-Pacific, and RoW over a set period of time.
This report offers insights into the competitive landscape, supplier and buyer positions in the market, and opportunities for the new entrants in the global digital freight forwarding market in the future.
Moreover, the growth of the digital freight market is hugely driven by various factors such as the extension of the e-commerce industry and free trade agreements. It is because of poor infrastructure and higher international logistics costs and strict regulations for digital freight forwarders.
Instead, the rise in the adoption of DTC i.e. Direct Consumer e-commerce logistics and thrifts, and lead time depletion due to the adoption of a multi-modal system are expected to open new avenues for the market growth during the forecast period.
Expansion of the E-Commerce Industry Overall
E-commerce is a fundamental store where goods and services do not need any physical space and are sold through websites. The e-commerce industry uses logistics services to manage and oversee the supply chain of e-commerce organisations, thus allowing the organisations to focus on marketing and other business activities.
Focusing on marketing activities helps businesses with easy accessibility, heavy discounts, and multiple attractive offers as e-commerce is a convenient medium for the purchase of huge quantities.
Challenges Relevant to the Adoption of Digital Technologies
Given the vastness of the country and the absence of penetration infrastructural support, investing in digital technologies is still considered to have a very high migration fence. The ability to create an easy and quicker adoption of digital technologies includes:
- Availability of skilled resources
- Affordability of skilled resources
- The ability of digital technologies to create customised models
- The immediate impact on revenue
- The time cost of the implementation and adaptation clearly mapped out
- The actual cost of application proportionate to productivity gains
- Technology constraints include limitations imposed by various levels of evolving flawed hardware and software
Benefits of Adopting Digital Freight Services:
Below are some of the benefits logistic companies will derive from digitisation:
1. Enhanced Efficiency
The latest digital technology is helping multiple logistical organisations improve efficiency.
For example, multiple organisations turn to cloud-based software from suppliers to digitise their supply chain. Doing so is necessary for centralising their operations.
With time, logistic organisations have understood the importance of a merged technology platform to ensure the automation of their information flow. Eventually, they can provide customers with quality and consistent services.
2. Helps Build Trust Between Trading Partners and Involved Parties
Most shipping organisations are joining blockchain that are enabled with various digital shipping solutions. It’s a smart move that builds trust between two trade partners. It’s also an amazing step toward the logistics industry realising its vision to accommodate technological development in every aspect of its operations.
Digital technology has also made it easy for customers as well as producers to track their orders from start to finish. Tracking shipments is one of the best benefits for both customers and logistics firms as it saves a lot of time and money.
Organisations are no longer required to answer clients when they can expect their delivery. Instead, customers can obtain their information online. Switching to digitalisation will enable you to send an automated message to clients if required. When information is relayed to all the parties involved in the shipping process, trust builds, and bottlenecks are eliminated.
3. Improved Routing
Trucks on a highway with digital elements investment in new technology has brought another change in the logistics industry through which it has improved routing.
Companies are investing in state-of-the-art software that ensures drivers don’t get lost along the way, resulting in delivery delays.
Digital technology has also made identifying the most efficient routes for drivers to get to their destinations easier. Unsurprisingly, such software comes in handy when routes face congestion issues because of road works, traffic accidents, and unexpected delays. The driver gets advice on other roads to use.
Efficient routing helps most logistic companies to save money by helping their vehicles use the shortest routes, drive fewer miles, and use less gas.
4. Precautionary Fleet Maintenance
Digital technology makes it possible for logistics companies to perform preventive maintenance on their vehicles. Predictive maintenance tools allow firms to analyse their cars remotely. This way, they can work out which vehicle requires maintenance.
Early identification of vehicles in need of maintenance brings many benefits. For example, downtime of vehicles reduces because potential issues are resolved before they can occur. The result is cost reduction.
Customers can also count on the logistics firm for reliable services.
5. Intelligence in Logistics
Digitalisation of logistics processes has resulted in huge data expansion. There is a need to invest in state-of-the-art technologies such as business intelligence and advanced data analytics for better decision-making.
Although decision-making is not difficult in a typical business environment, there are still few strategic decisions, including decisions on marketing strategy. These decisions depend on Cognitive Computing-based solutions and Artificial Intelligence support.
Cognitive Computing and AI-enabled digital technologies allows the logistics industry to overcome various challenges like process optimisation, end-to-end communication, supply chain management, customer experience improvement, and cost control.
Digital Technologies with Huge Impact on Logistics Sector
Below are a few digital technologies with the most remarkable impact on the logistics sector:
- Big data and machine learning: Machine learning technologies allow the practical application of data so organisations can plan and forecast efficiently and take a better decisions
- Artificial Intelligence
- Cloud logistics
- 5G technology
- Internet of Things (IoT)
- Mobile applications
Conclusion:
As a professional, you should understand that the entire global economy is sustaining digital transformation. Modern digital technologies are the tools that make the entire process successful. Thus, the importance of digital technologies in the logistics industry is translucent for everyone to see.
Some organisations are currently avoiding the active application of digital technologies, and perhaps it is time they consider switching their positions to enjoy the multiple benefits of digitalisation. There is still a chance for improvement so that digital transformation can be effective and technology’s importance can be more obvious in the industry.
Advance your logistics capabilities with IoSCM. From level 2 through to level 7, we have a wide-range of qualifications, courses, and expertise that can help you get ahead in an exciting, fast-paced, and growing industry. Call 0800 1422 522 today to find out more.