Customer Relationship Management (CRM) in Logistics & Freight Forwarding

CRM And Logistics - A Look At The Present Scenario

Customer Relationship Management (CRM) is one of the most critical aspects of the logistics and freight forwarding industry. Today's highly competitive business environment demands that companies provide refined customer experiences to achieve that ever-elusive competitive edge. With e-commerce rising at unprecedented rates and the increasing demand for faster delivery services, the logistics industry is witnessing substantial growth. Logistics and freight forwarding companies are keeping abreast of these technological revolutions by exploring advanced tech-based solutions that enhance their routine operations and help them offer better customer experiences.

The logistics industry has undergone significant transformation in recent years. With the rise of e-commerce, consumers increasingly demand quick and efficient delivery services. This has resulted in the need for logistics and freight forwarding companies to adopt innovative solutions to meet customer expectations. Logistics CRM software helps customers track their shipments in real-time, and logistics companies can communicate with customers more efficiently, resulting in improved customer experience.

However, providing exceptional customer experience is still a challenge for the logistics industry. For instance, companies are often unable to furnish timely and accurate information about shipment statuses. This can, and does, lead to unsatisfied customers. Company reputation is also negatively impacted. Additionally, communication gaps between logistics companies and their customers can lead to missed delivery deadlines, which in turn leads to financial losses.

Why Does CRM Matter To The Forwarding Function? What Are The Reasons To Implement CRM In Logistics & Freight Forwarding?

Logistics and Freight CRM are critical tools for logistics and freight forwarding companies to improve their customer engagement and provide exceptional service. Here are some reasons why CRM matters to the forwarding function:

• Enhanced Customer Experience

CRM enables logistics and freight forwarding companies to provide refined customer experiences. Companies can communicate with customers more efficiently and provide accurate intel on shipment statuses. 

• Increased Customer Loyalty

Through Logistics CRM implementation, companies can build long-term relationships with customers. By providing exceptional customer engagement and service, companies increase their customer loyalty, leading to repeat business and positive referrals.

• Streamlined Operations

What CRM software does is that it automates the routine tasks of a freight forwarder, for example, automating the multiple similar forms that a forwarder has to fill. The CRM system will auto-fill the various recurring fields within the forms, and store all information for future application. 

• Insights Creation

A good Logistics and Freight CRM software will provide added intel into customer behavior which service providers can use to tailor their services to meet customer expectations. It enables companies to formulate roadmaps that align with the customer’s needs. With the power of such insights, internal teams are also presented with potential opportunities for cross-selling and upselling.

As discussed, it is extremely important for companies to have a strong CRM system in place. However, implementation can be daunting. Let’s look at some of the 

Common CRM Integration Obstacles

• Lack of integration with existing systems 

Legacy systems that are unable to integrate with modern CRM solutions is a common obstacle. Especially in geographies that do have the surrounding ecosystem to be compatible with the new-age CRM, this could be a real deterrent to go ahead with CRM implementation.

• Data quality issues 

On a similar note as the previous point, another obstacle that companies face when implementing CRM is data quality issues. Logistics and freight forwarding companies deal with large volumes of data, and ensuring data accuracy and consistency can be a challenge.

• Resistance to change

Even when the systems are updated and the tech infrastructure is prepared for integration, the hesitancy to actually go ahead with something new that, in the minds of traditional businessmen, can negatively disrupt their mode of working, is a barrier.

A radical shift needs to be brought about in the way of such thought processes, by educating them about the benefits of CRM integration, and demonstrating how such integration would not disturb their current way of working. Showcasing a positive future roadmap can also be an impetus to change. Practical ways to ensure management and employee buy-in and increase the rate of adoption must also be discussed.

• Cost

For small and medium-sized logistics companies, implementing CRM software for logistics can be expensive. The cost of the software, as well as the cost of training employees and integrating the software with existing systems, can be a significant financial burden for some companies.

• Security concerns

As logistics and freight forwarding companies deal with sensitive customer information, security concerns are a significant obstacle to implementing CRM. Companies must ensure that the CRM software they use is secure and complies with industry regulations.

How India’s Leading Freight Forwarding Software Benefits Freight Forwarders And Other LSPs

Logi-Sys, a comprehensive logistics software solution developed by Softlink Global, has been India’s leading logistics software provider for 20+ years. The range of features within Logi-Sys lep freight forwarders and other LSPs manage their logistics operations optimally. 

Logi-Sys specializes in providing CRM software for freight forwarders, but benefits other LSPs as well. Here are some detailed pointers:

• A Centralized Customer Database 

Tracking customer interactions, analyzing customer behavior, and providing personalized service has been made easier via Logi-Sys’ centralized customer database. Companies can now store and manage all customer information in one place. 

• Automated Communication 

Forwarders and LSPs can now send notifications and updates to customers on an automated basis. This helps to improve communication with customers and enhance their overall experience.

• Order Tracking 

Logi-Sys includes an order-tracking feature that enables LSPs to provide customers with real-time updates on the status of their shipments. This helps to increase transparency and build trust with customers.

• Customer Feedback 

To enhance the customer experience and increase customer loyalty, Logi-Sys includes a customer feedback feature that allows LSPs to gather feedback from customers and use it to improve their services. 

• Analytics and Reporting

Informed decision-making is the crux of any strategy. Analytics and reporting tools from Logi-Sys allow LSPs to analyze customer behavior and gain valuable insights into their business operations. This helps LSPs to make data-based decisions and improve their overall performance.

In summary, Logi-Sys benefits freight forwarders and other LSPs by providing a centralized customer database, automated communication, order tracking, customer feedback, and analytics and reporting tools. By using Logi-Sys, LSPs can enhance their customer experience, increase customer loyalty, and improve their overall performance.

Conclusion

The future of CRM in logistics and freight forwarding looks promising. While implementing CRM can be challenging, the benefits far outweigh the obstacles. Embracing trends like AI and ML, IoT integration, a mobile-first approach, and personalization will surely help companies enhance customer experience, increase customer loyalty, streamline operations, and gain valuable insights into customer behavior. Right now, traditional forwarders and LSPs need to move towards digitalization of operations, with a keen eye on the trends of tomorrow. 

CRM is and will continue to be a critical tool for logistics and freight forwarding companies to provide exceptional customer service and engagement and stay ahead of the competition.