How to Better Handle Risks In Freight Forwarding With Technology

Freight Forwarders are often thought of as facilitators of cargo movement from point A to B only. In reality, there is a lot of planning, awareness, and maneuvering required to tackle known and unknown risks for successful deliveries.

When shipping goods and cargo across the city, state, and country, the risks associated include:

• Damage to the cargo
• Losing the cargo partially and completely
• Added costs for extended storage or re-routed shipping
• Penalties due to incorrect or insufficient documents

A freight forwarder also has to go through seasonal slack in demand and encountering trade strikes. When looking for ways to mitigate risks, technology is the front runner. Demand forecasting, accurate and timely information about transport, container availability, etc. can be the reason for the difference between profit and missed opportunities.

Incorrect or Insufficient Documentation

To move your goods internationally and adhering to the compliance, freight forwarders must understand the complete documentation requirement. Customs clearance is a process that requires care at every step along the way. Since the Covid-19 pandemic, a major part of the compliance has been made paperless and will eventually be entirely paperless.

Freight management software helps organize documents like invoices, declarations, permits, Bill of Lading handy for each shipment to be present for customs clearance. Technology help generates the list of documents needed along with the correct HS Code.

Protection against rising and drop in demand

Efficient use of technology enables organizations to become agile and ready for changes and impact. Visibility plays an important role in forecasting and better planning. A peek at your historical data can help you know which lanes are most in-demand.

Data analytics of the current market trends can alert forwarders of any major disruptions expected. The feature of scalability makes a software solution equipped to handle volumes when the demand volume is up. Cloud-based solutions take the weight off on additional spending on infrastructure.

Better Collaboration With Improved Communication

Clear communications are vital to undertake risk management. Making sure that detailed information is provided promptly can help prevent loss of time and money. If transport misses the cut-off at the CFS or dock, re-scheduling the delivery takes a toll on the planned estimates. Logistics software ensures that an intimation is sent to the transport and receiving station in case some special handling instructions are required.

For fail-safes in the process, escalation alerts for missed deadlines can be configured with technology. Communication can be improved with workflows and assignments that allow for easier tracking.

Shippers In the Loop of Communication

A few logisticians consider shippers to be the last in the queue for information. This keeps the customer in the dark and adds a burden on responding to customer queries on the freight forwarder. A better way of managing queries is to provide timely updates about shipping to the customer through automation. Also, customer portals give flexibility to your clients to check their shipment status at their convenience, thus a satisfied customer.

Logistics and freight forwarding business cannot be devoid of risk. However, cloud-based freight solutions bring you the clarity needed for managing risks and keep your organization’s ship steady. Speak to the solution experts specializing in the industry to get started on your journey.