Avoiding the Pitfalls of Inefficient Freight Forwarding Practices With Freight Software

Companies that pursue growth and a faster return on the investments back themselves with meticulous planning. For freight forwarders too, planning is crucial to steadily achieve sales targets while keeping the costs low. 

Forwarders that understand the dynamic nature of the industry, know that things can quickly slip out of control, if not already considered in planning. Inefficient planning is one of the traps that forwarders wish to avoid. The lack of visibility, refraining from the use of technology, and disjoint processes are some of the reasons that could prevent you from achieving optimum growth.

Unreliable Platform for Processing

The first touchpoint of a new business for a forwarder is when a quotation is received. Shippers tend to request quotations from multiple forwarders and, more than 75% of them finalize the forwarder that responds first. 

It may be hard to believe but, few forwarders even take days to respond to a forwarder. So if you're one of them, you know you've already lost numerous opportunities.

Get at par in the competition with a platform that serves to impress your customers and your users as well. Opt for a freight forwarder solution that can quickly estimate the ETA and charges for the requested quotation. Technology can even be used to set up automated responses to quotations.

Billing Problems Causing Delays

Incorrect manual data entries are causes of several shipments delays. Consistent wrong or insufficient information in processing shipments may result in affecting your credibility with the stakeholders. If you are among those forwarders using spreadsheets extensively, unknowingly, it is the cause of several errors in your bills and invoices. 

By reducing manual data entries, the instance of errors can be brought down to almost zero. Logistics and freight management software handle automation in billing based on invoices and the master data stored in the system.  

Not Prioritizing Your Customers

If your customers are to trust you, you must incorporate transparency in your practices. No customer appreciates surprise added costs, therefore to provide accurate invoicing is paramount. Shippers are likely to have lesser queries if they are provided with the information upfront.

For example, when you share Daily Status Reports with your customers, transparency is established about any outstanding or updates that the customer ought to know. Enhance customer visibility with notifications sent every step of the way, eliminating manual time spent providing updates to the customer.

Freight solutions can be set up for customers to receive auto-alerts on shipping milestones completion and any unnatural delays. This fosters trust and reliability between you and your customers.

Poor Information Sharing between teams

As freight forwarders, you want to make maximum use of the vessel/containers booked. Overrun the time at the port or terminal and you risk paying demurrage charges that are effectively penalty charges. At some locations, fines can easily exceed $100 per container per day.

Lack of a standard communication channel and poor planning can be a few reasons for this lapse. Logistics ERP software makes it possible to send instant pre-alerts and delivery notices as the shipment progresses. Real-time data about shipping must be available to all parties, whether accessed from the port or the office. 

Summary

Recent strides in technology have made it easier to handle domestic and international freight forwarding seamlessly. With the apt freight forwarder solution, you can establish stable means to win new business and the trust of existing ones.