Digital transformation is difficult, especially if we talk about the freight sector. It took a while to involve technology in international logistics processes, but it is now increasingly common to see freight forwarders and digital platforms to simplify or optimize the procedures of international logistics. This is something no business in the industry can avoid, it's time to adapt and follow the evolution.
Changes take your time. Throughout the history of humanity, we can find many adaptation periods before major changes occur. If we compare the way we live today with the way we live in the last century, we can notice that there is a big difference, but it has not happened overnight or effortless. This is exactly what the evolution is about.
In 1963, ONLY 1 % of countries had ports to operate with containers. Twenty years later, in 1983, they already represented 90 %. Yes, it took several years to establish transport through containers, but finally, the way to transport loads between countries and continents has been changed.
Taking into consideration how technology has been adopted in the last hundred years, we can think it was a long time until the containers dominate the oceans. However, over time, the speed with which other technologies were adopted increased increasingly quickly.
As we can see in the previous image / chart, 10 years were needed for the internet to reach 50 % membership, while the tablet needed about 5 years. In this way, membership rates will probably continue to accelerate with the emergence of new technologies. Thus, the accession process may have been a bit slow compared to other sectors, but the digital transformation in the freight world is to come and certainly will not take the same 20 years of the containers.
If we look at the international logistics sector, we can say that it has evolved and intends to It's been a while and we still have most logistics services done manually, but this paradigm will change very soon. We can say that it is a matter of time until we have the entire industry
Let's see the example of travel agencies. A while ago, they were considered a very good business once people needed help planning their travels: buying tickets, making reservations and everything they wanted for their holidays. As the internet began to dominate the world, the agencies fought to survive. Today, we all have access to buying tickets and planning any online trip. Consequently there is no longer a need for travel agencies services.
What did they do then? As you all know, those who remained operating in a traditional way probably disappeared. However, some smarter were able to adapt to the new technologies and changed their way of operating to keep aligned with what the market required because they knew it was the only way to survive and grow.
The Forwarders will not disappear from the market. The main difference when comparing them with travel agencies is that a passenger can organize a whole trip alone, but with the containers they can't do it once they need people with experience and know-how the complexity of logistics International requires. However, there may be forwarders left aside in the market due to the strengthening of those who become digital Today customers want to have online experiences and prefer faster and updated services.
How are the forwarders facing digital transformation?
Today, there are already several forwarders looking for the best way to go through the digital transformation process. Here we can see some of the strategies that are being applied with examples for each of them
Develop Digital and autonomous forwarders:
A Maersk lançou a Twill Logistics.
Create internal teams focused on digital transformation and even hire experts in the area:
Allcargo hired a former Paypal employee to lead his digital transformation process.
Support or ally with startups:
Created an investment fund and a startup acceleration program.
Db Schenker invested in uship
Include new software or tools that simplify and simplify your processes:
Euroatla with cargofive.
As I said before, it's only a matter of time until this whole wave invades the freight industry and manages the inevitable and unstoppable digital revolution. However, that will not happen from one day to the other. Digital transformation is not just having the tools, but there must also be a real change in the working methodology and processes and that takes your time.
It may be a slow process, but when it finally happens, those who have remained linked to the traditional methodology will face a very difficult moment and So, will you wait for the digital revolution and leave it out of the market or go to work to be part of the market and this You can start by: Simplify Rates Management, get real-time itineraries, generate budgets quickly and have more visibility of your entire business.
* this article was originally published in issue 138 of the logistics & transport magazine today
Source, Logistica & Transportes Hoje.
