Forwarders and shippers unwilling to implement digital supply chain solutions will increasingly be left behind by rivals able to generate cost savings and service improvements through new technologies, warns an industry executive.

“It’s not about choosing whether or not to adopt new technology and working practices. It is about when you do so—change is inevitable,” said Alex Ruf, CEO of logistics marketplace book-cargo.com, a freight rate search platform.

Ruf said all supply chain stakeholders—whether procuring or providing air, land, or ocean forwarding services—can now reduce costs and improve supply chain transparency by deploying new technological solutions.

“And, of course, customers also want lower quotes and improved transparency so it’s win-win,” he added.

“Whether now or in the near future, failing to embrace digitization and the automation of supply chains and freight bookings will have an impact on profits and customer relations.”

Ruf also claimed it was wrong to frame the discussion about new technologies entering the logistics space as a battle between incumbents and disruptors.

“New technology does not have to be negatively disruptive to the traditional ways that forwarders and shippers conduct business,” he said, noting that logistics marketplaces can enhance the businesses of users, not detract from them.

“An information revolution is taking place and companies are demanding greater visibility, more sophisticated analytics and the ability to make better and faster decisions.”

Ruf added that logistics marketplaces can facilitate this. They can enable searches, comparisons, and bookings to be made with just a few clicks by forwarders and shippers. And it can vastly reduce the time and resources required to effectively manage supply chains for both buyers and sellers of air, ocean, and land freight services.

Photo: Martin Pueschel Eastberliner

You May Also Like

Indonesia’s Garuda to reformat passenger planes to hold more freight

Garuda Indonesia said it will restructure its passenger planes to make room for more cargo in response to what it sees is the rising…

Container ports to see growth slowdown but remain profitable

Container port demand will slow down to a compound average global growth of 5.4 percent per annum through to 2017, a decrease from the…

SG releases technical guidance for ships ahead of IMO 2020

The Maritime and Port Authority of Singapore (MPA) continues to prepare the Port of Singapore and Singapore-registered ships for the International Maritime Organization’s (IMO)…

Hyundai Merchant officially joins 2M

South Korean shipping line Hyundai Merchant Marine (HMM) said it has signed a deal for a strategic cooperation with 2M Alliance, paving the way…