E-commerce is booming, but specifically, which segment is the biggest driving force behind this growth? Is it B2B or B2C? We tend to find an answer in B2C segment owing to the astronomical evaluations of B2C e-commerce giants such as Amazon, Alibaba and other A-list companies. And thus it may be obvious to conclude that B2C segment is affecting the freight industry and its freight software solution trends more decisively than any other segment. But the reality needs us to dig a little deeper. The B2B segment is all set to reach a staggering figure of $ 6.7 trillion by 2020. This will be counted as 27% of the global manufacturing trade. Hence, the impact of freight software solution trends and changes from the B2B market is as high on global freight industry.
B2B segment is all set to reach a staggering figure of $ 6.7 trillion by 2020. Click To Tweet
Since freight software solutions cater to the general needs of freight transportation customizations are inevitable for the parties using them. Freight software services can range from freight forwarding system to the freight dispatch services, i.e. it counts for a plethora of solutions which can be needed for any phase of freight transportation. Hence, rather than looking for segment specific trends, a more wholesome outlook would be to look for industry-wide trends. The most significant and optimistic change across the freighters is their evolving openness towards ideas which needs collaborating with the other entities into the market to deliver more efficient results.
Few freight software solution trends which are supporting the evolving freight transportation practices are discussed below.
Freight software solutions with online sales platforms
Freight forwarders, who are considered as backbone of freight industry, have evolved over the years on operational as well as strategy level. They are embracing freight software solutions which can prove to be consequential for them in the longer run. To make these smart judgements, freighters are not shying away from digging more into the latest freight software solutions. When it comes to similar freight software solutions and trends as online sales platforms, freight forwarders are showing a cautious approach. Online sales platforms for freight business is a disruptive business practice which earlier caused few negative remarks for being a threat to the business prospects of forwarders. But with a greater understanding of the model and awareness about utilising it for their own benefit, forwarders are becoming more confidence about the freight software solutions for online sales platforms. In fact, 62% forwarders consider online freight sales platforms as opportunity while only 15% see online sales platforms as a threat. Â62% forwarders consider online freight sales platforms as opportunity while only 15% see online sales platforms as a threat. Click To Tweet
Freight software solutions for collaborative growth
Whether it is mergers & acquisitions or aggregator models such as platooning, no industry expert can deny that there is a need for collaborative business practices in the freight business. Freight industry is highly fragmented with a majority of the companies operating with a fleet of fewer than 10 carriers. In such scenario, it is imperative to move towards collaborative freight transportation practices in order to efficiently fulfill the requirements of a $ 6.7 trillion market.
It is not only about making operations cost effective or targets achievable, it is also about leveraging the existing options to provide better services. In the era where omnichannel freight transportation is growing rapidly, customers have more shipping options than ever before. As suggested by Barclays, the number of logistics companies providing 5 or more shipping options to their customers rose from 16% in 2008 to 22% in 2013. This might not look as steep rise, but we have passed 4 dynamic years after 2013 and the trend is more visible now. Â Â Â Âthe number of logistics companies providing 5 or more shipping options to their customers rose from 16% in 2008 to 22% in 2013. Click To Tweet
Developing freight software services to expedite â€śLast Mile Deliveryâ€ť
50% of the delivery cost is incurred over the â€śLast mileâ€ť phase of deliveries. That doesnâ€™t mean that the investment isnâ€™t worth it. Irrespective of the segment, e-commerce business works on tight timelines. â€śLast mileâ€ť is one of the most costly phase for the transporters because the speed of delivery is generally prioritized higher in this phase over cost effectiveness. The same can be achieved by adopting the right freight software solutions which are able to expedite the process from the very beginning. Such that the transporters are in a better position to bargain between the costly and cost effective resources by the â€ślast mileâ€ť phase with ample time in hand to make a delivery successful. By removing the loopholes of the delivery in the very beginning and continuing performing on optimum level, the freight software services can turn the tables for any freighter. Â50% of the delivery cost is incurred over the â€śLast mileâ€ť phase of deliveries. Click To Tweet
Route optimization, geofencing and real-time status updates for product delivery intimation are becoming more common these days. These services are no longer â€śoptionalâ€ť and are becoming one of the most basic demands of an efficient freight transportation system. Apart from developing a completely reliable delivery pipeline with efficient results, these freight software solutions are also helping in delivering higher customer satisfaction.
With the growing market, the challenges for freight industry are also rising. It is true that the number of orders is increasing with a boom in e-commerce, but the same isnâ€™t the story with the people involved in the business side. The freighters need to still work with dynamic factors such as fuel prices, stricter regulations, and fixed spot rates. Technology in the form of advanced freight software solutions has helped the transporters in the past to survive the industry-wide challenges, the same is expected in the future. But since the challenges have changed, the new trends in the freight software solutions are evident. These freight software solutions trends are packed with the needed intelligence to overcome the next generation challenges and provide a profitable business environment to the freighters.
With a keen eye on the industry trends, top logistics companies are able to adapt themselves quickly. Thus keeping their business strategies always ready for the future, nailing every opportunity hidden in the upcoming industry changes. Dreamorbit is been working with similar companies having distinct requirements for efficient freight software solutions of the future. If you want to know more about the freight software services which are going to sustain in these changing times, drop a line, we will figure out the rest.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. Â With theÂ support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.