Wednesday 19th May, 2021

Digitalization: When freight rates are readily available on line, will YOURS be there?  

Many thanks to the many SCN members who joined us in our SCN Cybermeetings on 19th of May.

As usual, the meetings took place in THREE different times to allow members from different time zones to join the conversation when most of interest to them. It is strange how the same conversation can take on different focuses with different audiences!

For the first two meetings, ASIA+AUST+ME and later EU+Af+ME+US we were joined by maritime analyst Lars Jensen who lead the group to some interesting conclusions

Later, during the LATAM cybermeeting, Ernesto Cordero of EVERGREEN MARINE CORP joined us to discuss the experiences of a shipping line in digitalization and its acceptance (or lack of it!) by clients both large and small. Many interesting reflections for forwarders considering that same path.

• Is it time NOW to buy into new technology?

First, its certainly not “new” as on-line pricing tools have been available for over 20 years. After a learning curve, more and more forwarders are digitalizing prices and other aspects of their business, leaving you little option but to join in. Now with the pandemic, many have their eyes on other matters but when the phase is over, it is important to be in the running. Currently, with so many rates being negotiated individually and contract space not being respected, there are cases when space and equipment availability are more important, but this will end….some day. If you have not started already, NOW is the time to progress, at least partially, with making your company more digital

• Will digital pricing generate a “race to the bottom” of rates ?

This has not been seen where applied. Service levels and recognition of brands become more apparent as some aspects are made to be more efficient. The aim should be for greater transparency of rates, which is for the benefit of the client. However, there are always many additional services and variables.

Some members mentioned “freight only” quotes being of great value to agents in other parts of the world, who can access freight rates out of office times. An idea solution for importing on FOB basis, which is often the case.

• Do digital prices mean the service is less human and personalised?

Not at all. There is an automated part, allowing human factor to focus on the exception and specific client needs. Saving time to answer all those status e-mails and repeating tariff rates frees time for improved humanised contact with clients.

• …But my clients like my personalised service..

OK, but in fact, there is no such thing as a client making a personalised choice, instead it is a person on behalf of an exporter who one day will change, retire, move…and increasingly the new hires will want a larger and larger traceable and digital component. Digitalization drives quality and sustainability

• What should be my next step?

Now is the time to get the pieces in place. Identify the product or products that can take you forward a step and allow you to get your feet wet. Do not plan for or look for a perfect all round solution in one cheap and easy step. that will just be an excuse for perfectionism and lack of action. It is probable that neither you, nor your clients know what they need yet, so you need to start testing possibilites and getting feedback of your successes and failures.

CLICK HERE TO SEE LARS JENSEN PRESENTATION!

• What is SCN’s next step?

The debate was much more a generalised look at digitalization, especially of pricing, in forwarding. We’d now like YOUR help to network more. Our next SCN Cybermeeting will be looking at the digital offer. If you have a good IT partner, we’d like your contact to come and make a pitch to SCN members around the globe. We hope this will give them more clients (and improve your relationship with them). If you don’t have a good IT partner, then come along and listen to what is on offer

7th July – SCN Cybermeeting – IT for Freight Forwarders – PITCH TO SCNers. 

Remember, there are many aspects and many solutions to digitalization. We already have some great partners at SCN – we’d like to help to show you more!

If you want to improve the relationship with your digital provider, contact us: hello@securitycargonetwork.com