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MANAGING A HIGH TOUCH BUSINESS Freight Forwarding is a high-touch activity. Most bookings are made well before the cargo is ready to ship. This leads to scenarios where various adjustments need to be made to a booking. It is critical for freight forwarders and shippers to partner with each other to record accurate cargo details in a timely manner and request for/ provide the necessary services. Many times, several other individuals need to be looped in and it leads to several

Schedule In part IV we saw how rates on different days on the same route and carrier can differ. And they can vary considerably depending on what the consol looks like. Freight quotations are time definitive by nature and could be applicable for the day or for a defined time-range. Competitive rates are certainly important but equally important is the arrival, departure and freight receipt cut off schedule. Imagine a scenario where a booking was made online because the rates

Competitive rates In part III, we took care of the issue of shippers not having all the information needed to make a booking on some of the popular quotation tools out there. Now that we made it easy for shippers to find forwarders and built in many conveniences, forwarders need to be able to provide rates that make shippers want to book them instantly! Adding margins to carrier rates is an existing practice that is also carried over to the digital realm. Configuring quotatio

Time of Booking In Part II we talked about the difficulties of maintaining a rate database, where in the end forwarders often have to reach out to carriers for several bookings. Now, imagine that after getting it right (or as right as it can be), a shipper seeks out rates from a forwarder. The first data point an online system will need is the weight and volume of the consignment booked. But shippers mostly do not know that and can only provide best estimates. That’s because

The pain of the rate database In part 1 we talked about how freight forwarders create and maintain a rate database of all their carrier rates for the different routes that they operate in. Alternately, they Use an automated process/ software/ platform that fetches them updated carrier rates on a regular basis. This is typically the first step (and as we will see, the first pain) to delivering quotations online. Creating and maintaining rate databases is a tedious, time consum

The inconvenient quotation Shippers are looking for better rates. Better means low, accurate, and quick. Shippers are constantly on the lookout for cheaper rates, all-inclusive rates, or fastest routes, depending on the need of the hour. They no longer are willing to wait for days or even hours to receive a tailor-made quotation. And this is the first touch point of typically high touch shipping processes, so it plays an important role in shaping your relationship. So, when i

If you are a shipper, you probably catch yourself frequently asking if the freight rate quoted by your provider is competitive enough and if you would call it a “good” rate. From your perspective as a shipper, good amounts to low. Lower rates are better rates. Having said that, freight rates are never perpetual and are “time-definitive”. The same rate at another time may not be the lowest. Or rates may substantially increase for the same route at another time. Therefore, a gi

Beyond ‘Online’ In today's world that is revolutionized (read: shook up and slightly confused) by digital technologies, it is important to take a step back and evaluate what it means for us before we jump in feet (or head) first. There’s a rush to go ‘online’. Is that enough? We would like to present a point of view that urges freight forwarders to not only digitalize their business operations, but also think about a productization strategy. What is productization? Packaging