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Digital Freight

Freight software Quotiss

5-Step Guide to Choose The Best Freight Software

Automation & Digitalization, Digital Freight, Sales Automation, Simplicity & Efficiency / By

Warning: the best freight software doesn’t exist.

 

Every freight forwarder is now bombarded with messages about the inevitable digitization of freight and the equally inevitable death of traditional analog forwarding. Chances are, you’ve already reviewed a couple of software options for your sales team. Maybe, you’ve implemented some tools by now, but still, monitor the market for better freight software solutions.

Software solutions on the market are very different in terms of their features, functionality, price, and many other factors. Some of these solutions are (technically) the “most-used” or “highest-reviewed” of all the available tools—although, it varies greatly depending on the source you turn to. The truth is you don’t want to look for the “best of the best.” Rather, you want the best-fit freight software solution for your business.

Finding the right freight software for your sales team isn’t something that’s going to happen overnight. But, by investing the proper amount of time and energy, you’ll ensure this will pay off in the future. And our 5-step guide will help you navigate in the sea of options.

 

1. Start with your team

 

First, get an idea of what a “day in the life” looks like for your sales rep. Ask questions regarding their efficiency and impact on customer experience, as this is what you want to maximize with the new software. Ask for input regarding the desired features in freight software for them. For example:

  • What tasks do they typically perform every day?
  • Where do they regularly face slowdowns or obstacles?
  • What actions or efforts on their part are most appreciated by customers?

Next, review their current tools. Generate discussion around topics such as:

  • Where does your current solution allow them to be most effective?
  • Where does it fail or cause frustration?
  • What tasks do they find themselves doing over and over?
  • What features most benefit the customer experience, and what do not?

Don’t forget to cross off the unrealistic expectations.

 

2. Determine your specific needs

 

This next step follows the previous – consider how the use of a new freight software fits into your current sales processes. Ask tactical, customer-centric questions such as:

(a) What formats do you need to use?

Speaking of sales & procurement process, think about the channels and formats that your customers & suppliers use. Is it an e-mail with a detailed freight quote in attachment or a quick all-in indication? Is it a message in WhatsApp (WeChat) or a large Excel freight ratesheet with all possible port-port combinations and costs? Or maybe, a link to their online self-quoting platform, like Maersk Spot?

The right freight software should allow you to be very efficient with managing your suppliers and very flexible with catering to your clients’ needs in a format that they want to use.

(b) What specific features and functions do you need?

Sales automation software is meant to streamline your sales processes as a whole. How these tools do so depends on the individual tool in question. Most freight software solutions have their own fixed set of functions and features. It’s up to you to determine which combination will benefit your organization the most. The bare minimum is this (for all the obvious reasons):

Most freight software solutions come with the above features, so you will have to consider the quality and simplicity (ease of use) of these features.

(c) What other tools need to connect?

Chances are you already use other digital tools, like CRM or TMS. Your new freight software solution should integrate well with the software you currently use. Your commercial business data should be synced to ensure the most accurate information.

 

3. Make a list of options and narrow it down

 

Make a list of all of the software solutions that could potentially benefit your sales team. You can use software discovery and comparison tools like Capterra. Select the right software category: Freight Software, Shipping Software, Logistics Software. Apply filters to sort the results. Read the verified user reviews.

Add important information about each solution: price, contract terms, key features, etc. Go through the list with your team, and focus on the features each software solution highlights.

Narrow the list down to at most five choices:

  • remove any software that is not designed for freight forwarding.
  • remove any software that doesn’t have the features you’re looking for.
  • remove any software that is too complex.
  • remove any software that is too expensive.

 

4. Test-drive your shortlist

 

Contact each software provider to schedule a demo of their product. These demos are created to show exactly what potential customers should expect from the software. Additionally, you get to engage with the provider and gather more information about them.

To further help you come to a decision, you’ll likely be able to sign up for a trial. It’s important to implement each tool within your sales team instead of testing it only on the simulated situations. While it may seem a bit risky to undertake this sort of “trial by fire,” that’s the point.

The best solution for your team will be the one they’re able to easily pick up and run with. On the contrary, if your sales team isn’t able to quickly get along with the new tool, chances are this will be only the beginning of your troubles with this software.

At this point, you’ll have covered pretty much all the bases:

  • Assessed your options from a variety of perspectives and angles
  • Viewed demos of each of your top options in action
  • Experienced hands-on the tools that most aligned with your needs

All that’s left now is to sign the deal and start the onboarding of your team with your new freight sales software!

 

5. Evaluate your decision

 

After you’ve had time to integrate your new freight software, you’ll want to evaluate whether you made the right decision or not. This involves revisiting everything we’ve discussed thus far, and determining whether your tool of choice has:

  • Lived up to your expectations
  • Helped your team overcome their initial pain points
  • Positively impacted your team’s productivity and your company’s bottom line

Collect the input from your sales team, managers, and customers. There are several areas you should focus on:

  • Ease of use
  • Flexibility
  • Scalability
  • Communication
  • Cost

Ideally, your experience in all these areas should be positive. Realistically, there will be some issues, but if you are overall satisfied and ready to recommend this freight software to others – you made the right choice!

Best Freight Forwarding Software

What is the Best Freight Forwarding Software?

Automation & Digitalization, Digital Freight, Logistics Software, Sales Automation / By

 

Freight forwarding software for the sales teams enables freight forwarders to easily manage, organize, and automate freight rates and quotes.

The ultimate goal of freight forwarding software is to automate sales and improve experiences for the people who matter most for your business: your sales team and your customers.

It may sound obvious, but your sales team is the first department to meet & greet your clients. It is very important to ensure that they have the right digital tools to efficiently interact with clients.

Freight software relates to the following commercial business processes:

  • Freight rate management
  • Automation of freight quotes
  • Automated follow up on deals
  • Sales performance stats

 

1. Excel as Freight Forwarding Software

 

Forwarders with small to mid-size businesses typically rely on Excel and email to manage their freight tariffs and quotes, and they do so for a reason… First of all, it’s free. Second, until the organization reaches a certain size of the client database, there is no pain in maintaining Excel files and templates. Third, Excel files are very flexible and have no limits in editing possibilities.

The basic features and functions offered by Excel and email may be sufficient … until they’re not. If you’re reading this, you likely already know that. There will come a time when relying on a simple Excel file can lead to disaster.

As your client database and the sales team grow, you’re going to face the limitations:

  • Hard to track quote requests: which ones are already addressed, which are still pending, which have been accepted, and more. This is causing frustration for both – your sales team and your customers.
  • Hard to track freight rate revisions: maintaining your actual freight rates in Excel file can lead to disaster faster than you think.
  • Hard to collaborate: you’ll eventually need to assign multiple customers to your sales teams. This makes it easy for quote requests to go ignored, with each team member assuming someone else is taking care of it.

Using Excel and email can be ideal through the initial stages of growth. But, it will eventually become an ineffective solution as your customer base grows larger and more complex.

 

2. Less-than-Optimal Freight Software

 

Perhaps you’re a bit further along and are currently using a freight forwarding software solution that, well … isn’t exactly optimal for your company. There are a number of freight forwarding tools on the market, not all of them are created equal. And, really: they’re not supposed to be.

Some tools are developed with small businesses in mind; others are created for enterprises. Some tools cater to those with complex needs, while others are more holistic. And some solutions are built for companies operating in a specific niche.

Freight software solutions objectively high in quality can be worthless in your situation. In fact, using freight software that isn’t a great fit for your company can actually do more harm than good:

  • If the software is too technical, your team might not have the ability to use it to its highest capacity.
  • If the software is too feature-heavy, you’ll likely be paying for features you’ll never end up using.
  • If the software is too expensive, it may not actually be worth the value it provides your company in the first place.

And, of course, your current software simply might not meet your current standards or needs. Perhaps it’s lacking in more advanced features, or it doesn’t integrate with some of your other tools.

Whatever the case may be, the last thing you want to do is continue using it. Start looking for a better fit moving forward.

 

3. No Freight Forwarding Software

 

If you haven’t been focused on sales optimization processes at all, you’re simultaneously at an advantage and a disadvantage. On the plus side, you haven’t invested in any wrong tool. The downside – you’re losing on sales automation benefits.

No matter which of these three categories you fall into, your commercial business processes probably aren’t currently running at their highest capacity. Even if nothing is going wrong in this area, your sales team can absolutely benefit from switching to a freight automation solution tailored specifically to their needs.

The truth is you don’t want to look for the “best of the best.” Rather, you want the best-fit solution for your business. In our next article, we’ll explain how to choose the best freight software for your business. In the meantime, you can register for a free trial with Quotiss software.

Click here to register your company online. We’ll activate your company’s profile and help with the initial settings and user onboarding. You can start uploading your freight ratesheets and quoting freight instantly on the same day we sign the deal.

Quotiss freight software

6 Steps for Freight Software Onboarding Success

Automation & Digitalization, Digital Freight, Logistics Software, Sales Automation / By

Moving your team to a new freight software system is a complex project in itself. Combining that with remote work, creates a recipe for deep anxiety. In this post, we’ll give you a few tips on how to make switching to a new freight software as painless as possible even when your sales team is remote.

 

Step 1: Start with the right motivation

 

Some employees might be hesitant or nervous about the process of switching to new freight software. Try to think about the real root issues that might be causing it. Our guide will help you to create a positive and welcoming environment. Usually, the main reasons are the following:

  • They are worried that learning new software is complicated;
  • They don’t see what’s in it for them personally;
  • They don’t see how the new solution is better than the old one;
  • They don’t see what the benefit is for the company’s bottom line.

For a successful onboarding, all of the above shall be addressed before the rollout starts. You need to understand that every change takes time and effort from the team. This means that nobody should feel pressured, to start using new software overnight. Especially if you’re coming from using MS Excel and email as your quoting tool.

 

Step 2: Create and share the onboarding process with your employees

 

The best way to plan smooth onboarding to a new freight software is to do it gradually. Instead of switching everything at once, start with a smaller team or a designated group of clients. Here’s an example of a transparent process for onboarding the team to new software like Quotiss:

  • Schedule a meeting with your team⁠ to introduce and discuss the new tool.
  • Schedule another meeting to demonstrate the software and what it can do (this should be done by someone who knows it really well).
  • Discuss, address immediate questions and concerns.
  • Appoint the Project Manager.
  • Set the date when everyone will sign up and play around.
  • Hold another short call or meeting to ask if anyone has questions.
  • Set the date to switch over completely, allowing some more time for the test mode.
  • Keep checking back to see if anyone’s having issues.

 

Step 3: Explain the personal benefits of new software

 

Start by understanding what your sales reps really want and address each point translating it into the benefit. Let your team know that their personal happiness and productivity is a very important factor. There’s a good chance that everyone on your team wants to:

  • Be productive and get more done:

New freight software will eliminate a lot of repetitive and time-consuming tasks, which will allow them to get more done and feel great about it.

  • Gain new useful skills:

The software will be another tool to add to their list of skills. They have the opportunity to become an expert and get valuable on-the-job training.

  • Feel valued and appreciated by other team members:

Getting more done and collaborating more efficiently will benefit the whole company, and it won’t go unnoticed.

 

Step 4: Highlight the company-wide benefits

 

“How is it better than what we were using before?” This is one of the main questions the team might be wondering. And it makes sense⁠—if the new solution isn’t clearly better than the old one… why even switch? Document all benefits and discuss them in person with your team⁠ to create a positive mindset.

Focus on two main topics:

  1. Pain points you had with your previous solution (and how the new one removes them)

Example: With Excel, we had cases when sales reps never attended to the freight quote request because there was no easy way of knowing if the quote was already being handled by another team member. With Quotiss, you can immediately see if a freight quote has already been sent to a customer or is currently in the process of preparation.

  1. Features the new solution has that the old one didn’t (and why they’re awesome).

Example: With Quotiss, you can see when the client has opened the freight quote and follow up immediately to close the deal. This will improve our efficiency as a team.

 

Step 5: Explain how it affects business goals and KPIs

 

The core elements for larger financial returns when you invest in the right freight software are the following:

  • Reduced time to send freight quotes leaves more time for actual selling
  • 100% accuracy of quoted freight rates means no lost revenues on manual errors
  • Automated follow-up on deals brings more won deals

Simply put – automation of the sales process drives more sales and improves customer experience.  The research published in the Harvard Business Review says that customers who had the best past experiences spend 140% more compared to those who had the poorest past experience. By helping customers get the most out of your service through amazing sales support, you create an experience they’ll be willing to pay for.

 

Step 6: Appoint a Project Manager

 

Last, but not least – appointing a Project Manager turns out to be extremely important. This person should be an expert in your internal sales process, also passionate about tech and innovation. The main responsibilities of the Project Manager are the following:

  • being an internal super-user and coordinator for the onboarding process
  • being an internal go-to person and consultant for all new software-related matters
  • being an external communicator and a single point of contact for the freight software vendor

Practice shows that companies with the Project Manager have smoother and faster onboarding and higher satisfaction level.

 

Quick-Start with Quotiss Software

 

Onboarding your sales team on a new freight software doesn’t have to be painful, ⁠—but you have to take the right approach and most importantly, choose the right software!

Click here to register your company online. We’ll activate your company’s profile and help with the initial settings and user onboarding. You can start uploading your freight ratesheets and quoting freight instantly on the same day we sign the deal.

The Best Freight Rate Management Software: 4 Unique Ways To Use Quotiss

Digital Freight, Instant Freight Quotes, Online Freight, Sales Automation / By

A totally biased article on why Quotiss is the best freight rate management software for small and medium-sized freight forwarders.

 

At his previous corporate sales job, Quotiss CEO Marcin Zarzecki had never had practical software to send instant freight quotes to his clients but he knew it was crucial to be fast and efficient to achieve his sales targets.

He tried using the corporate tools, but they were not efficient and more so, added complexity to his sales routine. Then he tried good old Excel & Email combination, but that was lacking basic automation. Then he tested some of his own ideas, based on Excel templates automated by a moderate homemade macro. It was overwhelming.

The recipe for success is simple: you’ve got to create a million freight quotes yourself to feel the pain => become an expert in the field => find a solution => test & analyze => remove 90% of complexity => digitize => create Quotiss.

This is the principal moment where Quotiss is different from other startups in the field:

If no one at the C-level of your company ever quoted a freight rate, you can’t claim to be a freight automation startup.

Rather than provide a vague comparison list of freight sales automation platforms, we’re breaking down how our clients use our software to grow their business and how it could work for you too.

 

4 Unique Ways to Use Freight Rate Management Software

 

We’ll save you the time of describing the basic features. Quotiss rate management software includes all the essential functions a freight forwarding business needs.

With the shift to remote work due to COVID-19, we see the increasing interest in the software that can boost sales in freight forwarding. And businesses that never even heard of sales automation software are finding Quotiss. They’re using it to help them collaborate easier and work through quote requests as a remote team.

Below, we will list the not-so-obvious benefits of Quotiss that you can use to boost your sales:

 

  1. Automate Marketing & Communication

You can use our powerful quote distribution engine to streamline and target your marketing message directly to the clients. Group and segment your customers by using custom #hashtags to create mailing lists.

 

  1. Enhance Follow-up on Quotes

Did you know that Quotiss shows the exact date & time when your client opened the freight quote that you’ve sent? Use this data for a targeted follow-up with your customer!

 

  1. Use Sales Dashboard

Your sales performance stats are LIVE. Know your average margins per segment, know your win rates per sales team, know how many sales leads each team generates. Make informed business decisions.

 

  1. Monitor Quotiss Weekly Trends

Clients who’ve been using Quotiss for freight quote distribution since day one, show significant growth in the number of sent freight quotes since the beginning of the lockdown. We started sharing the weekly statistics of sent quotes on our LinkedIn page. Follow us to be up to date with the sales activity trend across the industry.

Would You Like a Quick Start with Quotiss?

 

Click here to register your company. We’ll activate your company’s profile and help with the initial settings and user onboarding. You can start uploading your freight ratesheets and quoting freight from Quotiss on the same day we sign the deal.

freight ratesheets

Freight Forwarding in the Time of Corona

Digital Freight, Automation & Digitalization, Online Freight, Sales Automation / By

In just one month our world changed so much, that it will never be the same again. The majority of the offline activities switched to online: meetings, events, education, entertainment, wellness, shopping. Those businesses that were not online are either pivoting or closing down.


The Impact on Carriers

How does coronavirus impact the transportation of goods? At the moment there are no strict limitations on cargo transport. So what is causing the chaos in the supply chains?

The global transportation market is fueled by the supply-demand principle. What we see on the market now, illustrates it perfectly.

At the time of uncertainty, people tend not to spend their money unless they have to. So they save, preparing for the hard times ahead, buying only food supplies and other things to keep their basic needs covered.

When the demand goes down, supply follows shortly. As a result – hundreds of blank sailings from Asia to Europe and America. We do not know yet how deep into the red zone the carriers will get, but we should get the idea pretty soon.


The Impact on Freight Forwarders

Freight forwarding companies are in a much better situation compared to the shipping lines. They don’t have heavy fixed costs allocated into the long-term assets, and their business model is more flexible and agile.

In simple words, freight forwarders operate the model of ‘Buy Cheap and Sell with a Healthy Margin’. This model allows making money regardless of supply-demand fluctuations on the market, as long as they can offer tangible benefits to their clients.

These days, efficiency becomes a very strong competitive advantage for forwarders. Since there is less cargo on the market, it’s important to win as many bookings as possible.


The Best Strategy to Boost Sales for Freight Forwarders

Transparency and efficiency of the sales process become very important.

  • Easy access to freight rates

When sales teams are remote and work from home, they have to have easy access to freight rates. MS Excel file with rates on the shared office drive is the opposite of ‘transparency’.

  • Instant freight quotes

Salespeople need a simple and fast solution to send freight quotes to clients. The more quotes they send, the more bookings they win. This is simple math.

  • Follow up on open deals

It’s not enough just to send the quote, someone needs to do the follow-up and close the deal – is it won or lost booking? Many quotes get lost without the proper tools to follow on the progress.

  • Know your numbers

Being flexible and agile is the best strategy in times of uncertainty. Sales managers need access to numbers in real-time. They can monitor sales performance and win rates to be able to set the right direction for the team and adjust when needed.

 

Sales teams in freight forwarding companies can be very efficient with the right set of sales automation tools. Quotiss software could be the right solution to digitize your sales process. You will increase your sales productivity without increasing headcount. When your business is driven by efficiency, it directly impacts your company’s bottom line.

Contact us and go digital today.

freight ratesheets quotiss

How to Simplify Freight Ratesheets in 2020?

Digital Freight, Freight Rate Management, Freight Ratesheets & Tariffs, Sales Automation / By

Three years ago, I wrote a blog post about the complexity of freight ratesheets distributed by the shipping lines to the market and the problems they create. This year, it remains one of the most popular posts on the Quotiss blog.

Turns out, a lot of logistics companies are still looking for ways to simplify and digitize their freight rate management process. So, I decided to study the changes in the industry of the last 3 years and update the article.

 

Ocean Freight Rates Online

 

The biggest step in the digital direction has been taken by some shipping lines – they finally started to offer instant freight quotes online.

Maersk Line, Safmarine, Hapag Lloyd, CMA CGM, and a few other carriers now offer ocean freight rates online. These rates are no longer some random unusable indications – they are workable, and ‘bookable’.

It became possible with the personalization of the inquiry. Each person (company) needs to register and create an account on the carrier webpage. The algorithm checks the company profile and knows what rate level to offer. The rate obtained online is the same rate that would come via email request. The online rate is faster. The choice is simple.

It’s, of course, very good news for the industry, and this trend will continue with more carriers offering their (workable) rates online.

The downside, however, is that each carrier is developing its own platform for online freight quotes, making it difficult for the freight forwarders to compare the offers. A person has to open each carriers’ webpage, enter login / password / shipment details into different forms on several platforms to choose the best rate.

It is also more difficult for tech companies to integrate the spot rates, as they have to integrate each platform separately.

 

What About the Freight Ratesheets?

 

Well, here nothing changed much in three years. Freight forwarders still receive large Excel files with freight rates, spend their days analyzing and maintaining their ‘own’ Excel files with the selling rates. Even the largest global freight forwarding companies struggle to set up an electronic exchange of buying rates with the shipping lines.

Wondering, what about the online freight quotes? Well, online spot rates are good for spot shipments. The majority of the world’s cargo is moved on contracts, which are negotiated individually and are not available online. The progress is not there yet.

 

What About the Digital Freight Forwarders?

 

Freight forwarders get access to more and more digital tools each year. There is a big interest in digitizing the customer interface: offer online freight quotes, online bookings, online tracking, etc. All these customer-facing digital initiatives are very necessary, but hardly possible without digitizing the back office of the freight forwarder.

It’s not possible to offer online freight quotes if your selling rates are maintained in Excel. You run a big risk of low data accuracy, which can cause financial loss and/or reputational risks.

It is necessary to start from the basics – automate and digitize your freight rate management internally, and after that integrate your automated freight quotes online.

 

Sales Automation Software for Logistics

 

Quotiss software could be the right solution to digitize freight ratesheets using a simplified upload mechanism. Quotiss is a practical tool, which automates all kinds of freight ratesheets in a smart and simple way. All freight rates from all suppliers in one place, available instantly to everyone in the organization.

With Quotiss, you can increase your sales productivity without increasing headcount. When your business is driven by efficiency, it directly impacts the company’s bottom line.

 

Would You Like a Quick Start with Quotiss?

 

Click here to register your company. We’ll activate your company’s profile and help with the initial settings and user onboarding. You can start uploading your freight ratesheets and quoting freight from Quotiss on the same day we sign the deal.

Are Freight Rates 100% Safe in the Cloud?

Automation & Digitalization, Digital Freight, Logistics Software / By

In the previous article, we’ve listed the numerous benefits of using Software as a Service for freight rates management and why it would be one of the best solutions for your freight forwarding business nowadays.

The first and most important question is always about data safety. You literally have to trust with all your sensitive commercial business information to your software provider. You need to be 1000% sure that your freight rates are safe and secure.

Let’s look at the safety and security risks of cloud computing, and compare them to the most popular business solution used by the Freight Forwarders for their internal freight rates management and sending freight quotes to their customers.

 

Excel Spreadsheet is King

 

There are no official statistics as to how many logistics companies are using Excel as their main tool to manage their commercial information, but it is safe to assume that it is around 90% of business globally.

The majority of the freight forwarders manage their freight rates in Excel internally and use MS Word or Excel to distribute their rates externally. The benefits of keeping and managing your commercial data in Excel are quite obvious: it’s (relatively) free of charge, it’s available, it’s simple, it’s familiar. When it comes to the risks, we have covered them extensively in the article called “Freight Forwarders Deserve Better Tools”, which speaks for itself.

This ‘spreadsheet madness’ in the industry is led by the shipping lines. Historically, over time the pricing structures got so complicated, that it was not possible to translate it into the digital language. Hence, Excel spreadsheets are all over the place.

freight rate excel

How Safe are Your Freight Rates in Excel?

 

The answer is it is not full-proof, even if you use password protection and own discs for storage. Here are some tips for you to be safe and secure:

  • Always upgrade to the latest version of MS Excel when available;
  • Save your files as “.xlsx”, not “.xls”;
  • Choose strong passwords to protect your workbooks, sheets, cells;
  • Choose safe storage places;
  • Backup your data regularly.

The Cloud Software Alternative

 

Cloud-based solutions for business are in high demand right now, and the trend is growing fast. These solutions include everything from secure data storage to entire business processes.

Email is a simple example. Most users don’t save emails to their devices because those devices are connected to the Internet. Any time you access the emails stored
remotely, you are accessing a cloud.

The cloud is simply a collection of servers placed in massive complexes that are owned by some of the world’s largest corporations: Microsoft, Amazon, and Apple have all invested huge sums in creating homes for our personal and business data.

The end result is a service that is convenient, portable, and reduces the need for expensive hardware in our offices. That important business email from your partner is easily accessible on all of your devices, no matter where you are.

How Secure is Cloud Storage?

 

All files stored on secure cloud servers benefit from an enhanced level of security. Cloud storage security vendors do not just rely on password protection, but secure
data using other means as well.

Some of these include firewalls, intrusion detection, action logs, encryption, and advanced physical security of the data centers.

When it comes to cloud data ownership, the contract between the company providing the storage service and the client has a clear distinction that the provider has the right to store and process the data but the ownership is retained by the customer at all times.

The end result is a service that is convenient, portable, and reduces the need for expensive hardware in our offices. That important business email from your partner is easily accessible on all of your devices, no matter where you are.

How to Apply Blockchain Technology in Logistics? TradeLens explained.

Automation & Digitalization, Digital Freight, Freight Rate Management / By

In the previous article, we’ve started the topic of Blockchain – what is blockchain technology, how it works, and what are the main benefits. We hear a lot about the blockchain application in the financial industry – everyone knows the digital currency, Bitcoin. Now let’s see how the same technology can be applied to shipping.

 

What is TradeLens?

 

Blockchain became the buzzword in the logistics industry in 2018, when Maersk Line and IBM announced the partnership project called TradeLens which was established to build and apply the blockchain to the world’s global supply chain. Over time, the project became actively supported by other organizations, and at the moment there are about 100 players who agreed to participate in building the common industry standards. 

 

Who is part of TradeLens?

 

The list of TradeLens partners now includes:

  • Shipping Lines: Maersk Line, Hamburg Süd, MSC, CMA-CGM, Hapag-Lloyd, ONE and PIL
  • Freight forwarders: Agility, CEVA Logistics, DAMCO, etc
  • Ports and terminal operators: Singapore, Hong Kong, Rotterdam, Halifax, Bilbao, naturally the global APM Terminals, etc
  • Beneficial cargo owners (BCOs)
  • Customs authorities in the Netherlands, Saudi Arabia, Singapore, Australia, and Peru

This accounts for approximately 250 marine gateways worldwide. This sounds like a lot, but in reality, is just a small share of the global logistics map.

 

How does TradeLens work?

 

The core idea of the TradeLens platform is to promote the efficiency and security of global trade, ensure transparency, and boost innovation across the industry. All of that via blockchain-enabled technology.

Many processes for transporting and trading goods are expensive, in part, due to manual and paper-based processes. Reducing the cost of documentation will ultimately affect the transportation costs, and consequently, reduce the price of the goods that appear on the counter. Replacing the unreliable and outdated information exchanges, the platform transparent collaboration across the shipping supply chain ecosystem. 

The main projected benefits of blockchain:

– Data transparency and reliability

– Time-saving on data collection and processing

– Increased safety and security

– Cost reduction (due to the above) 

 

Will TradeLens work?

 

“Expanding digital collaboration is critical to the evolution of the container shipping industry,” said Martin Gnass, Managing Director of Information Technology at Hapag-Lloyd. 

TradeLens was launched to help modernize the world’s supply chain ecosystems. And we believe that the only way to ensure sustainable innovation in shipping is to have ALL industry players to adopt the same technology solution and become inter-connected. Blockchain seems to be the best technology to ensure that. But there is a long way ahead until we see that enough industry players have joined the cause to get the real benefits for the connected global commerce. 

Think of it this way: when your container is shipped from Rotterdam to Nairobi, then every single party on the way, including the customs in Mombasa, has to be connected to blockchain to ensure transparency and safety of the shipment.

Also, when we speak about blockchain applications in shipping, we consider the operations and documentation processes. 

At this moment, it is not clear if the TradeLens solution will be used in the freight rate management or applied to other commercial processes in shipping – as this is sensitive data that is not openly shared between competitors. Especially, with Maersk Line being at the top of this blockchain pyramid, it is doubtful that this technology will be used as a sales automation tool.

Why Is There So Much Hustle Around Blockchain?

Automation & Digitalization, Digital Freight / By

Blockchain is a technology created as a modern XXI century alternative to the transactional market reality. The increased risk of fraud and extortion has pushed the IT community to develop a secure transaction system. It turned out to be a business disruption from different points of view.

The beginning of blockchain popularity was directly related to Bitcoin – the virtual currency. However, it soon became apparent that blockchain has many more applications and can serve as an effective security shield for any business transactions, including transactions related to online freight.

 

How does the Blockchain work (in very simple words)

 

Let’s take a look at a very simple example:

Imagine that you have a shared drive with your colleagues in the office. You just saved an Excel spreadsheet with the list of your company’s transactions there and shared access with your colleagues. 

Your colleagues now can open & review the file you’ve shared. They are also free to add new information, but they can’t make any changes to the data which is already there. The result is that the information is open and shared with the group of authorized peers, but at the same time, it is also protected from any manipulation. This is how the blockchain works, in short.

 

Why is it called Blockchain?

 

The technology is called ‘Blockchain’ because it consists of a chain of blocks. Each block represents a piece of data. Blocks are connected in chronological order and are linked to each other.

 

How does the Blockchain really work?

 

There are a few things you should know about the Blockchain:

  • No data manipulation is possible

There is no central authority to control or manipulate the data. This allows for data exchange to be made directly with third parties.

  • The data is crypto-safe

Cryptography is used for the security services

  • Deleting the data is not possible

Once the block is added, it’s there forever – again, no manipulation possible.

  • Consensus

All the parties involved have to validate the data in the block. No one is in control means that everyone is in control.

In the next post, we will cover the possibilities for blockchain application in logistics software and sales automation tools. 

Stay tuned!

The Future of Technology in Freight Forwarding

Instant Freight Quotes, Automation & Digitalization, Digital Freight, Online Freight / By

The progress in technology development doesn’t stand still, constantly improving user experience in every field – no exception for the freight forwarding industry.

Everyone is talking about the application of digital technologies in logistics which has to revolutionize the business, and many industry players are getting lost in the amount of information on the subject.

At the same time, nobody wants to miss out on the next ‘UBER’ that will disrupt the traditional industry with the brand-new business idea based on the brand-new modern technology.

We have prepared an overview of the ‘hyped’ technologies, using simple words. Below you will find the list of the hottest trends when it comes to the future in the logistics industry.

 

The Blockchain in Freight Forwarding

 

Blockchain became the buzzword in the freight forwarding industry in 2018, when Maersk Line signed the contract with IBM and started working on developing the common platform for the world’s supply chain called the TradeLens. 

Since the start, more and more players who represent different supply chain sectors have been joining the initiative, making it the largest collaborative project in the industry since Inttra. However, some big companies are concerned about Maersk sitting on the main chair and enforcing the rules on everyone else and are naturally hesitant to share their data with the competitor.

You can read more about the blockchain and its applications in logistics in our articles.

 

SaaS and Cloud Technology

 

Cloud Computing is about placing and storing your data in a virtual space, a.k.a. a cloud. This technology is very popular among private users. Think of Dropbox or iCloud on your iPhone. In the business world, companies were required to buy, build, and maintain their IT infrastructures despite the exponential costs. Until the SaaS. 

SaaS (Software as a Service) has a lot to offer to the business. If it’s used properly, it can help save money, time, and human resources. But what about data safety? Usually, SaaS companies use Cloud platforms from large service providers, such as Google, Amazon, Microsoft, etc. making it the safest possible storage space.

You can read more about SaaS (Software as a Service) and Cloud Technology in our articles.

 

The Artificial Intelligence (AI) and the Internet of Things (IoT)

 

Over the past several years, the logistics industry has started to invest in Artificial Intelligence solutions. The AI includes intelligent transport & route planning, supply & demand planning, sales automation tools — but this is only just the beginning. 

Internet of Things (IoT) means connecting to the Internet any item equipped with sensors and communicators, with the ability to control it automatically and remotely.

From last-mile delivery robots and smart ports, to warehouse automated systems and business optimization software, AI and IoT are already making a difference in logistics. In addition, 5G opens up fundamentally new possibilities, including broadcasting data at a speed of 20 GB/s.

Shippers, carriers, suppliers, and consumers can all expect to benefit from these logistics technology trends in the 2020s.

We have prepared a number of articles about the future of technology in freight forwarding. We will cover the hottest trends and their potential application to logistics and freight rate management.

Stay tuned!