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In the last few years, it's become increasingly clear that businesses in all industries need to adapt to stay relevant and survive. Post the Covid-19 pandemic, every year-end serves as a reminder to ponder on our preparedness for the New Year.
The global political conditions and rising inflation hint at slower economic growth. IMF expects the rate to drop to a weak 2.7% in 2023. For freight forwarders, this means finding ways to transform and innovates to meet the needs of a constantly changing market.
Whether it's adopting new technologies, finding new paths to streamline operations, or embracing new business models, it's evident that the forwarders who can adapt and evolve will be the ones who come out on top in the years ahead.
As you prepare your organization's plans for the upcoming year, here are a few pointers to consider transforming your company.
1. Uncomplicated to have better control
Multiple software scatters data, leaving decision-makers stuck even when a small problem arrives. Freight ERP eases the monitoring of financial activities and coordination of freight movement. With a single database, you don't have to worry about managing multiple logins or inputting data multiple times.
Why your current methods won't work in 2023
Juggling on multiple systems means inconsistencies between the same data. Inputting data multiple times in the system is tiring for employees and leads to errors.
As the competition tightens and customers demand faster service, redundant methods slow down your processing.
How you can start
Define clear processes with assigned roles and responsibilities software can integrate
Implement cloud-based freight management software that organizes all department data into a single accessible database
2. Supply chain data security
Without tight security, hackers and your competitors can misuse your freight data. Freight forwarders must use the latest security measures to keep customer data safe. Cloud-based software comes with secured storage with the highest data safety standards.
Why your current methods won't work in 2023
Desktop-based software is at risk of data loss in case a system crash
If security patches are not timely updated, you stand at risk of data vulnerabilities
How you can start
Cloud-based freight software have multiple layers of protection.
Implementing cloud solutions means data remains secure in storage and transit.
3. Tighten your grip on finances
With complete financial control, you can stay competitive, manage risk, and drive long-term growth. The logistics industry can be volatile, and unexpected events such as natural disasters or economic downturns can have a major impact on your business. By keeping a close eye on your finances, you can protect your bottom line.
Why your current methods won't work in 2023
Financial data that's not integrated with your logistics operations data makes it unusable
Without visibility of all data, your decision-making and keeping operations get delayed
How you can start
Apply credit limits to restrict your spending and keep cash flow intact
Real-time insightful reports help identify your areas of overspending or where you could be more efficient
4. Don't delay technology adoption anymore
As customers get more comfortable with newer technology solutions, they expect you to provide more ease when using your services. By relying on manual processes, you limit your growth due to duplicate coordination and outdated data. Adopting technology keeps you at pace with automation and the latest demands of your customer.
Why your current methods won't work in 2023
Technology facilitates scaling up or down as per your customer's demand.
Without facilities like online tracking, e-documentation, and access via a mobile app that most forwarders provide today, your company could become obsolete.
How you can start
Invest in logistics technology is the ability to gain a competitive edge
Streamline and automate your operations, saving you time and money
5. Start moving toward sustainability
Customers are becoming more conscious of the environmental and social impacts of the services used. About 71% of consumers are moving towards living sustainably or buying more sustainable products. By providing shippers with greener options for freight movement, you can help your customers with what they care about.
Why your current methods won't work in 2023
As regulatory bodies prioritize green initiatives, not offering your customers green shipping options may put you out of favor.
How you can start
Carriers with slower travel may cut shipping costs and help reduce emissions
Increase your network with carriers using greener fuels. Customers are willing pay more for greener delivery means increased revenue.