Home » IT in Logistics » Technology the Key Differentiator

The enormous challenges that the freight and logistics industry is facing today brings both risk and opportunity. Freight and logistics companies have to deal with new technology, dynamic customer expectations, new business models and increasing competition both from established players and new entrants. Overcoming these challenges requires some serious strategizing and planning.


With the supply chain tuning itself to the customer demands they expect faster delivery, more flexibility and lower cost from their logistics service providers. Many shippers are looking for customized solutions which put the logistics service providers under tremendous pressure to deliver a better service at an ever lower cost. To fulfill customer demands, freight and logistics companies will have to rely to a great extent on technology.


By making the most of technology, companies can lower costs and improve efficiency. But technology has been a major challenge for the sector which currently has put it in a flux. Embracing technology is important, but making intelligent use of it and developing the right strategy is even more vital.


Technology makes possible meeting the demands of the supply chain for greater transparency, collaboration, real-time visibility and tracking. To offer comprehensive solutions that encompass everything from order to delivery effective use of technology is prerequisite. Technology facilitates data collection and analysis to provide information that can be used to diagnose and resolve issues that business efficiency. You can even predict and prevent the potential pitfalls and strategize future plans. Information gathered can be used to automate analysis and provide a highly efficient delivery of services.


For a service-driven industry like freight forwarding and logistics, to sustain and grow in the complex supply chain ecosystem is a challenge. There is no hope to survive without the optimum ad intelligent use of technology. Evolutionary and revolutionary ideas can enable even smaller players to compete effectively the larger players.


In the increasingly competitive market conditions, an effective freight management solution will be the key differentiator in customer service capabilities. Technology will play an increasingly important role in the sustainability and growth of the business. Be it driving down costs, improving service quality, or increasing revenue, technology and innovation will be key for the freight and logistics business.

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