banner-img

Learning can be easier with EX - Library.

Explore our newest feature, a reliable informational resource you've been looking for!
Join |
Freight Forwarding Innovations and New-age Logistics
312 views
0 comm

Freight Forwarding Innovations and New-age Logistics

Freight forwarding is the coordination and shipment of goods from one place to another via single or multiple carriers via air, marine, rail, or highway.

With the founding of the Canadian International Freight Forwarders Association in 1948, Canada acknowledged the significance of freight forwarding for international trade (CIFFA). To guarantee that commodities move in a timely and effective manner across borders, over water, and around the world, CIFFA realized that freight forwarding, whether by land, marine, rail, or air, needed coordination, regulation, and agreed-upon best practices.

The basis of freight forwarding is the practical and economical movement of commodities kept in reasonable condition along their journeys. To achieve this, freight forwarders develop their skills in managing the logistics software and solutions required to guarantee that goods arrive on schedule. Having the appropriate instruments at your disposal is essential for successful trading and transportation in developing international markets.

The successful shipment and delivery of commodities depend on understanding freight forwarding rules. Even though understanding customs laws is crucial, the freight forwarding industry's service sector is what moves things successfully. To ensure that items arrive at their destination quickly and efficiently, freight forwarding depends on having the right people whose dedication to quality and customer satisfaction ensures that goods reach their final destination.

Difficulties of Today's Freight Forwarding

The recent pandemic has affected every part of the value chain, from raw material sourcing to the end customer. It is testing the commercial, operational, financial, and organizational resilience of most companies across the globe and has highlighted risks and resiliency gaps for many organizations. CEOs are looking to get on the front foot when it comes to disruption and innovation, with 67% saying they will increase investment in disruption detection and innovation processes. Below are some of the significant disruptions affecting supply chains:

Logistics disruption. The ongoing global logistics disruptions stemming from the COVID-19 pandemic continue to impact businesses and consumers as the flow of consumer goods into key markets, such as North America and Europe, Southeast Asia, and India, is restricted by the continued shutdowns of major global ports and airports, mainly in China, South Korea, and the US.

Digital technologies, software and innovations used in a logistics company

The significant logistics disruptions create a ripple effect across global supply chains and freight forwarding that ultimately cause goods to pile up in storage, impacting ships on their way to ports — in the form of diversions or delays as they arrive at major transit hubs, restricting global trade flows and limiting access for businesses to import products and refill their inventory stocks. Government and industry leaders seek to define strategies that build resilience and boost our domestic capabilities to become less reliant on regional and global supply chains. Companies should look to redesign alternative supply chain flows, build inventory storage capabilities closer to their customers, and determine how to enhance last-mile deliveries and returned goods best.

Production delays. Production delays during COVID-19 have become headline news. Manufacturers compete for a limited supply of critical commodities and logistical capacity, leading to empty shelves and long purchase lead times for consumers. However, it's not all doom and gloom. The pandemic has intensified the focus on supply chain evaluation and evolution, with the industry evaluating and investing in long-term supply chain strategies to pave the way for a new post-pandemic normal.

The days of buffering inconsistent supply with excessive inventory at the lowest purchase cost are also quickly becoming a relic of the past as manufacturers evaluate risk as a critical decision point in their supply chain development.

Through increased awareness and a need to maintain competitiveness, the industry must address many long-standing supply issues and re-engineer product specifications. Together, these are shaping more resilient and cost-effective supply chains that can position their respective organizations as leaders in this new normal.

Overreliance on a limited number of third parties. Despite the inherent risk associated with focusing on `one major trading partner,' many businesses have strong relationships with just one major supplier, one large customer (or export market), and one major supply chain partner. As we emerge from the COVID-19 slowdown, many businesses recognize the need to better equip their supply chains by identifying alternative trading partnerships. They seek a broader list of suppliers, alternative markets/customers, and alternative transport and logistics software providers. Supply chain leaders are also turning the attention of their organizations toward third- and fourth-party risk monitoring to address inherent and residual risks in near-real time and  cyber and counterfeiting risks.

Next-Generation Logistics Solutions

To stay afloat in difficult times, you need to respond to changes promptly and focus on the market's needs. There are five key trends in next-generation logistics:
Supply Chain as a Service (SCaaS). Cloud computing technology redefines business management, mainly how supply chains work. Similarly, SCaaS allows businesses to achieve much faster Return on Investment (ROI) by relying on a virtual partner to meet some or all of their logistics needs. This collaboration is done through cloud-based software. Thus, companies using the supply chain as a service model reduce their costs, use more resources, and have highly scalable supply chains.

NFT and Blockchain. Blockchain technology, used to improve the speed and security of the exchange of information, began to take shape as a trend in 2021 and will become a full-fledged trend this year, as it will make communication between supply chain stakeholders more secure, transparent, and efficient. Blockchain has also given rise to NFTs (non-fungible tokens), contract-like digital documents registered using blockchain technology. In the field of logistics, this can increase the security of the transmission of all information related to a particular product. Blockchain will also help automate logistics management, simplify the verification of goods, reduce the number of documents and provide end-to-end traceability.

Artificial Intelligence and Digital Twins. In logistics, AI is unlocking the true potential of big data. Using big data, logistics companies can make accurate forecasts and improve their efficiency. Artificial intelligence in logistics has a positive impact on the management of warehouse operations. Intelligent robots can identify, move, sort, and track inventory. AI allows you to optimize the delivery routes of goods in real-time, increase the efficiency of urban logistics and reduce transport costs.

Internet of Things and Digital Twins. With IoT, companies automatically measure their inventory as millions of sensors instantly send reports to a central hub. On a larger scale, the Internet of Things provides a massive amount of data for supply chain management, which helps optimize logistics processes, which can reduce business operating costs.
Supply chains are now so detailed that companies can create virtual versions of them, called digital twins. They can be changed and tweaked to find better work methods, which can then be implemented in the real world.

Anti-theft GPS. Anti-theft GPS technology in the transportation and logistics business today goes beyond a simple tool to help drivers navigate different locations. With the development of mobile technology and mobile applications, logistics companies focus on increasing transparency. Thus, the introduction of tracking technologies is one of the significant trends in  new-age logistics. For example, Anti-Theft GPS is a near-real-time tool for obtaining location information for an entire fleet and vehicles. Additional security protocols will also help avoid losses across the board.

Stay Tuned with EXIMA
Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

You May Also Like

Oct 19
2022
How Manufacturers Can Sidestep Inflation Woes

The COVID-19 pandemic, combined with the Russia-Ukraine war, has triggered inflation in various industries around the world....

Staff
Comments (0)
Mar 25
2021
Border Reopening and the AfCFTA Will Provide Relief for Nigeria Manufacturers in 2021

Read our blog to find out how the reopening of Seme, Ilela, Maigatari, and Mfun borders, along with the AfCFTA’s full...

Staff
Comments (0)
This website uses cookies. By using this website, you consent to our use of these cookies