Freight forwarders, as well as their shipper clients, face a challenging operational environment. This includes geopolitical unrest and high inflation, along with port closures, and other physical and politic challenges. Shippers are looking for more flexibility and vigilance in the face of these challenges.

Freight forwarders are now looking for ways to improve the visibility of their shipments and customer experience. As supply chains become more complex and consumer expectations rise, freight forwarders need to be able to track and monitor shipments live in order to maintain their competitive edge.

The logistics industry has traditionally been plagued with a lack automation. It relies on manual, paper based systems to track shipping status and set pricing. There is no way to get real-time updates.

In order to be able to see the location of the vessel, forwarders must manually access the websites for each rail, terminal, and carrier. They also need to access the website for the automatic identification system. They must enter the bills of lading at each of these sites. Then, and only then, can they report back to their customer. This is a lengthy process that can be fraught with data entry mistakes.

The use of Internet of Things (IoT), sensors and cloud data storage has revolutionized shipment visibility and reporting. With the integration of GPS tracking and sensors, freight forwarders are now able to provide clients with up-to-date information on the location, condition, and estimated arrival time of their goods.

This level of detail helps to build trust with customers and allows forwarders to optimize routes. They can also reduce delays, better manage resources, and take proactive measures in the event of delays caused by customs, weather disruptions, or port congestion.

Software applications from different vendors can use cloud data to give a better view of the shipment progress. They range from custom software development to cloud-based software-as-a-service (SaaS) options.

But the industry is slow to adopt. Although exact market figures are difficult to obtain, it is estimated that only 20% of freight forwarders in 2024 will have a system for visibility.

Here are two case studies that highlight the benefits of this technology for freight forwarders.

Visibility: A Competitive Edge

A freight forwarder that had fewer than five staff members was looking for an edge to help it grow. Management did not want to compete solely on price, so it invested in visibility software that allowed them to offer shipment status reports and real-time access to portal services. This information was valued by customers, allowing the forwarder to charge a slightly higher rate in the market. The extra margin and customer satisfaction that resulted from this strategy has helped the company grow to 25 employees in 18 months.

Customer Retention via E-Mail

Another freight forwarder has a more established business. They offer a wide range of services, including air freight, truck transport, warehousing and customs clearance. They also provide cargo insurance. The company has been operating for more than three decades and handles tens thousands of shipments each month.

The forwarder was told by its customers that more visibility of shipments would be beneficial, but it was difficult to implement this across a large customer base. The company decided that e-mail would be the best way to communicate with customers.

The company started an e-mailing campaign to send shipment reports automatically all customers. More than 30,000 reports have been emailed with a 73% open rate. The feedback led to the forwarder opening a portal so that customers could have direct access to shipment details. The result was an increase in customer retention.

Visibility software helps shippers overcome the challenges currently facing the industry and can lead to growth and profitable relationships with customers. These two case studies demonstrate how shipment visibility can improve customer retention and increase profit margins.

Trenton Chen, chief executive officer of and co-founder GoFreight .