- Freight forwarders are beginning to embrace digitalization and supply chain infrastructure-related innovations as a slew of potential trade agreements comes to the fore, Logistics Management reported Tuesday.
- Increased access to markets with poorly developed trade infrastructure will force forwarders to shift from capacity-building strategies toward asset partnerships to retain market share.
- Meanwhile, a new generation of startups with unified technology platforms is prompting some industry giants to respond in kind, although some — like DHL — have had hiccups along the way, the magazine reports.
Some would say the supply chain is defined by movement: goods are constantly traveling across borders as they transit from supplier to distributor to retailer and back again. As a result, various parts of the supply chain were siloed into specific roles, from procurement to inventory or logistics to customs brokerage. Relationships were key at every step of the way.
But recently, the supply chain has been moving in a different direction as digital integration makes it possible to connect the links without existing relationships. Rather than just use DHL's global services, for example, shippers can shop for the cheapest price in segments of the supply chain through a marketplace.
“Logistics is notorious for being an old-fashioned business,” according to a Freightos survey which found that 86% logistics decision-makers see technology as the best way to drive efficiency and reduce costs. As needs rise, globalization will force more technology upon freight forwarders.