Freight Digitization Market
Introduction
With the advent of e-commerce, the demand for faster delivery and the ability to manage larger number of shipments with minimal errors has made way for digitized supply chain. Digitization will enable tracking real time data for cargo movement while they are in transit and to be evaluated in real time. This will make it conceivable to find the correct position of the cargo and recognize rising specialized defects at the earliest while proactively enhancing the unwavering quality and security. We believe, block chain can play a pivotal role in achieving transparency at every stage of freight movement.
Market Dynamics
There’s a lot of noise, globally about truck capacity shortage. Matching trucks for available loads is getting more challenging than ever for shippers and brokers alike, which is where the new digital freight matching start-ups come into picture. However, the fact of the matter is that there’s a lot of inefficiency in the way that matching takes place today.
There has been a lot of interest and demand for real-time freight visibility solutions off late, enabled by smartphones, and other GPS-enabled devices. This real-time visibility enables shipping companies to take proactive measures if things go awry, allowing them to reschedule, or re-route pickups or deliveries, and simultaneously notifying the customers. The new variables which hold the key in today`s supply chain is process digitization, opportunistic inventory allocation and shipping speed.
Market Size
The two biggest freight generating industries, Automotive and apparel are looking up to digitization in a big way.This is the biggest growth driver of freight digitization market. Toyota Motors, Japan is about to switch to a cloud-based supply chain management system from a manual set-up, to better manage its automotive demand and supply chain. In apparel industry, digitization makes things much easier for apparel companies in both forward and backward supply chain. The backward supply chain is rather more critical to the apparel industry as more than ~25% online shipments are returned back to the seller.
Competitive Landscape
Despite huge recent surge in online B2B sales,only about ~70% of forwarders have an online contact form, and only 50% of them provide instant quoting or an ad hoc request for quotation forms.The two leading freight forwarders DHL Supply Chain and Kuehne + Nagel have announced new digital platforms as their USP..The “Mysupplychain” from DHL, provides customers with 24/7 online visibility to its supply chain networks, giving full visibility. Kuehne+Nagel launched a global warehouse management system, KN SwiftLog which will transform some of the most complex supply chains around the world.
