Cloud based logistics software boasts of various benefits, which include:
- It makes managing operations in real-time possible and prices scalable
- resources are handled better with cloud computing, also because it offers real-time communication
- It can be customized to suit various shipping requirements such as warehousing, freight forwarding, etc.
- It helps the company minimize risks and gives freight forwarders and shippers good insight into the state of the business at every point in time.
Although cloud computing is not a new technology, many freight forwarders still seem to have a hard time catching up on it. To these forwarders, the traditional methods are still delivering the results they think they want, and the uncertainty of integrating cloud computing and getting their staff to adapt to its usage is fueling the delay even more.
Recent statistics have shown that in 2020 alone, about sixty-one percent of businesses relocated their organization workload to the cloud, either partly or full. To crown it all, experts predict that by 2025, we can expect the cloud computing market to be worth $800 billion, and that says a lot.
How Freight Forwarding Is Fast Changing
Take it or not, freight forwarding is fast-changing, and logistics companies that cannot integrate cloud computing software in their operations will soon be left behind.
That is because legacy systems can no longer compete with the demands for complete transparency, on-demand consumer expectations, real-time reporting. Talk more about providing customized solutions for logistics aspects such as import-export regulations, freight-forwarding, etc.
4 Major Challenges In Modern Freight Forwarding Operations
Some of the common challenges among modern freight forwarding operations are:
Security: Failure to use modern systems such as cloud computing software puts most freight forwarders at the risk of compromised databases. And when that happens, shipments could be held back at ports. It would then cause further delays and damage the reputation of the logistics company.
Likewise, a breach in data security can translate to customer data infringement and cause a dent in their reputation with possible legal battles as clients seek compensation for damages.
Speed: Speed is a common challenge that we can see with logistics companies that are still attached to paper processes and other forms of legacy operations.
This outdated way of doing things has made it more difficult for freight forwarders to respond in real-time to changes in shipping details, rates, and so on.
Because of this delay, it takes longer to inform customers of these changes and adjust operations internally to ensure that profitability is not affected.
Simplicity: Freight forwarders already have many complex phases to get through while shipping goods from one place to another either by marine, air, highway, or rail.
Some of which include the processing of streamlined goods at seaports, checkpoints, and so on, down to the ultra-ultra-massive container ships that are to be filled up as soon as possible to produce enough revenue.
However, the good news; is that freight forwarders can simplify these processes and achieve results faster, using shipping software solutions.
Accuracy: Legacy processes can; indeed, be used for general supply chain management like tracking data updates, dimension recording, etc. However, it still leaves room for not-so-accurate information.
Sometimes it even happens that more than one staff must record this data to increase the chances of getting accurate information, but not only does this cause operational delays, it wastes money as well.
Important Benefits of The Cloud
It Saves Costs : Because cloud-based logistics operate on a pay-per-use model, forwarders are not required to pay again to upgrade or maintain the software.
That’s because everything that concerns maintenance, hardware acquisition, etc, is handled to the full by the IT partners of the company you’re hosting your operations on.
On the other hand, legacy systems cost more in the long haul because the hardware and software will have to be replaced sooner or later when they ‘wear out.’
Easy Access To Events: With the cloud-based freight forwarding software, you’ll be able to respond to events in real-time and keep customers informed on time if there are any changes in rates, fees, or other kinds of delays.
This will earn you the trust of your clients and reflect in the profitability of the company.
Dependable: The cloud-based logistics provides reinforced security for your data and daily data backups so that your data is easily accessible yet, secured when you need it.
It also comes with various metric tools that help users develop a more effective reporting system and keep track of cargo at every point.
Regular Improvement: Aside from the fact that Cloud-based shipping software solutions are affordable, this freight management software undergoes constant improvements to ensure customers are getting the best possible services.
More so, features that do not yield results are replaced by newer functions. And you get to choose when you want the updates processed to reduce system downtime.
With these regular updates available for hardware and software, you can rest assured of optimal performance all year round while using the NVOCC shipping software.
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