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How Digitization and E-Commerce Are Reshaping Freight Forwarding

Introduction

E-commerce is revolutionizing the logistics industry, transforming it from the ground up. With unique standards and innovative technologies, e-commerce has reshaped logistics and supply chains, making them more dynamic, coordinated, and tech-friendly than ever before. One notable area of transformation is how digitization and e-commerce have reshaped the freight forwarding sector in recent years.

Let’s explore the impact of digitization and e-commerce on the freight forwarding industry and understand what the future holds for modern-day freight forwarders.

The Industry Pressures of E-Commerce and the Call for Greater Tech

Over the last few years, the freight forwarding market has experienced steady growth. The scope of freight forwarding services has become quite similar to the way ecommerce shipping solutions operate.

Industry experts foresee that higher global trade would open new avenues for the freight forwarding market. However, the shift towards ecommerce shipping and fulfillment is inevitable due to technological demands and the need for efficiency; which is why, freight forwarders are under pressure to adopt more advanced technologies to stay competitive.

Digitization

Digitization is crucial for the freight forwarding market, especially as customer expectations shift. Millennials, who will soon make up a significant portion of the workforce, favor technology-driven business practices. This demographic has grown up using online interfaces for both business and pleasure, making them more likely to prefer ecommerce shipping companies that leverage technology.

A survey conducted by Logistics Trends & Insights revealed that 92% of respondents believe digitization adds value, and 58% of shippers plan to digitize in the next five years. Interestingly, 58% also felt that digitization would not eliminate traditional freight forwarders but would rather complement them.

Traditional freight forwarders can benefit from partnerships with digital solutions. For example, DHL’s online marketplace, CILLOX, matches full truckload and less-than-truckload shipments with available transportation providers, showcasing how traditional and digital methods can coexist.

Digitization levels the playing field, benefiting both forwarders and shippers of all sizes. Shippers can utilize online marketplaces like Freightos to obtain rates, book freight, and track it from start to finish, enhancing the efficiency of ecommerce shipping and fulfillment.

Continued Pressure on the Industry and More Visible Technology

Despite the digital revolution, transitioning from traditional to advanced freight forwarding remains challenging. The industry still has a long way to go, having faced obstacles like cyber-attacks that hindered transparency efforts.

The response has been to introduce more visible technology into the market. For example, DHL’s Ocean View provides real-time tracking updates on maritime deliveries, while SupplyWatch sends alerts for supply chain disruptions. These advancements are crucial for maintaining competitiveness in the ecommerce shipping services sector.

However, margins in the freight forwarding business are still thin, and industry professionals are hopeful for increased profitability soon. The massive growth in capacity has not been matched by pricing and revenue generation, highlighting the need for technology to boost operational productivity.

The Future of Freight Forwarding in the E-Commerce Era

The future of freight forwarding lies in the seamless integration of technology and traditional practices. E-commerce and digitization are driving this change, making it essential for freight forwarders to adopt advanced solutions to stay relevant.

About Qafila

Qafila is a leading e-commerce shipping company, offering comprehensive logistics solutions tailored to the unique needs of online businesses. We specialize in delivering efficient and secure ecommerce shipping & fulfillment services, ensuring your products reach customers promptly and safely. Discover how Qafila can streamline your ecommerce shipping solutions needs and elevate your business to the next level.

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How Digitization and E-Commerce Are Reshaping Freight Forwarding

Introduction

The Industry Pressures of E-Commerce and the Call for Greater Tech

Digitization

Continued Pressure on the Industry and More Visible Technology

The Future of Freight Forwarding in the E-Commerce Era

About Qafila

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Table of Contents

The Latest

Just-In-Time Fulfillment Excellence for a Consumer Electronics Retailer

Scaling Peak-Season Fulfillment for a Consumer Electronics Retailer

From Warehouse to Living Room: Qafila’s White-Glove Packaging and Delivery For Consumer Electronics Brand

Enhancing Last-Mile Delivery for a Smart Home Tech Retailer

Zero Backlogs, Faster Deliveries: Qafila’s Peak-Season Fulfillment Success Story for an Electronics Brand

Seamless Fulfillment for Rapid Growth: A GCC Beauty Brand’s Success Story with Qafila