New businesses always begin with vigor and enthusiasm. They are eager to explore new methods of conducting operations and attract customers. The freight forwarding business has seen many startups disrupt the freight industry even as others have failed to take off.
Although earning profit and market share is essential for businesses, this alone cannot form the basis of forwarders’ plans. Forwarders looking for a foolproof way to ensure a smooth ride will find there isn’t one available. At least, not yet. But there is much to learn from the pitfalls other forwarders have fallen into. Avoiding some of the most common errors can prevent new forwarders from experiencing major setbacks. Let’s explore some of the mistakes that new forwarders must be made aware of.
Not Establishing a Niche for Oneself
Forwarders that wish to build a customer base must try to understand the market well. Once customer demand is summarized, forwarders must prepare their offering in a way that fulfills the demand and defines forwarders’ specialty as well. New forwarders that attempt to do it all end up as “Jack of all trades but master of none.” Carving a niche makes it easier to concentrate on a narrower market. Forwarders with a niche are also preferred by shippers.
Complete Cash Flow Not Being Accounted For
There is a good reason why companies, especially the new ones, craft budgets for their expenditures. It prevents them from going overboard and suffering cash burnout. Since freight forwarding involves making and receiving several payments, the company carries the risk of losing visibility of the cash flow. A healthy cash flow boosts your financial relationships with customers and vendors. Not having a stronger grip on finances also causes companies to miss out on newer opportunities.
Choosing a Sub-Par Freight Management Software
Forwarders shy away from investing in technology, not realizing its importance in increasing a company’s agility and performance. This one decision to not opt for trusted freight solutions hurts companies in the long run. As software for the various functions adds up, data exchanges between functions become more complex. Cloud-based solutions are modern-day forwarders’ first choice as they bring flexibility in accessing internal and external data. Solutions like Logi-Sys have helped over a thousand forwarders manage their air, land, and sea freight as well as customs clearance, accounting, and much more, with just any web-based browser.
Unmanaged Leads Are Lost Opportunity
Capturing sales leads and having a systematic action plan can generate strong revenue. New forwarders may consider CRM tools unworthy of building a source for leads management. Freight solutions with in-built CRM capture information about all interactions with your prospects and customers. A patient buildup of leads can produce amazing results for freight professionals. On the flip side, neglect could mean losing several potential customers.
Managing All Jobs Manually
The complexities of managing shipments and multiple stakeholders can strain the forwarder’s ability to work efficiently. New forwarders, eager to stand apart from the competition, motivate their workforce to produce exceptional results. But motivation alone cannot do wonders. If hardworking personnel are given the tools to maximize their potential, the outcomes can be extraordinary. This means adopting automation using technology and robust processes as you work towards the company’s goals.
Avoid Mistakes that Stop Your Growth
By following industry best practices, forwarders can drive up sales, save on direct operational costs and increase productivity. Forwarders of all sizes would do well to choose the right freight management software so they can meet their goals and prevent costly errors.