IS YOUR FORWARDING BUSINESS RELEVANT?

Did you get a look at the latest update Maersk sent out to the Industry? 

We've been told a lot of forwarders are pretty angry and upset about this. Maersk's new announcement is yet another confirmation of a trend that's been gaining momentum for a few years now. New players like Flexport, Beacon, Twill, Forto, and Cargo.one are ready to take your business. 

The logistics industry is changing profoundly, and if you don't have a response to this change, you will be left behind.

For the longest time, the forwarding industry was focused on providing competitive rates and service. This was the playing field we competed upon. No longer will better rates and service be enough.

Flexport's phenomenal growth, the arrival of Beacon, and the emergence of other well funded digital forwarders, confirms that our industry is shifting to a digital and data driven space.

Those who are out in front of this have an almost overwhelming advantage over those who aren't prepared, or don't have these tools. If you're not truly competitive in this space, you have to ask the question, are you relevant any longer?  And, what does not being relevant mean for client retention?

It's becoming increasingly downright risky for your client retention to not have the tools to compete. We're not saying this is the end, we're saying that going forward you will feel like you have one hand tied behind your back, if you're not starting to feel this way already. Remember, it took Expedia roughly 4 years after it launched to get to a critical mass, after which it was too late for travel agents to respond.   

It's been very hard to find a way to respond. The big software suppliers like CargoWise, Descartes, and many other companies are offering expensive and somewhat difficult options given the cost and the complexity. And we are left with the thought that spending lots of money with unsure responses, especially at this time, doesn't seem wise, but is it worse than doing nothing? 

After a number of years working on this issue, we are pleased to introduce you to a new platform that provides you with a way forward not only to compete, but to do so in a way that helps drive profitability for your business, in a way none of the other options offer.  

So what does it have to offer?

• A full 360 degree supply chain visibility, with a state of the art digital platform that tracks all your clients data in a very easy to use interface.

• This platform costs you nothing to acquire, and is less than $200.00 a year, flat, for each client you load on the system. There are no user licenses and no limits. 

• It is very easy to interface with your existing systems, or it can stand alone. Set up is easy.

• It offers an array of supply chain optimization apps built into the platform that clients can easily access to lower their landed costs and increase efficiencies.

• These supply chain optimization apps creates revenue, which are shared with the forwarder, opening up revenue streams forwarders traditionally could never access before.

This approach is unique and this will be rolled out for our networks before any other network.

Please consider that whomever gets to the client first, controls the clients data and recommendations to the client. If you are second in line, those recommendations may not include you!  It's critical that you consider how important this is for client retention. 

Better yet, if you elevate to this new capability, you have an instant advantage in your sales efforts which differentiates you from your competitors

The operational and physical benefits Maerks alludes to are not nearly as important as the control of the client's supply chain data. We all know we can find ways to compete on rates and service. But without a digital supply chain visibility solution, we're really not in the game.  

For 20 years, GLOBALINK and GLOBAL VALUE networks has consistently proven we can increase new business for independent cargo forwarders with custom sales tools and programs. When it comes to international freight forwarding, we believe good relationships with good companies builds great business! Email willsiemens@glnk.com or click here.

Want to read more interesting posts about freight forwarding? We recently wrote about FINANCIAL PROTECTION VS QUALITY IN FORWARDER NETWORKS and CLIENT ACQUISITION COST FOR FREIGHT FORWARDERS.