Take the Quiz: Digital Maturity Index for Freight Forwarders

In fact, one report found that complex, multimodal shipments can take as many as 40 e-mails on average to execute from start to finish. 

You can be a whiz at managing your inbox, but at some point, failing to modernize and digitize is going to catch up with you. 

The reality is, doing business with manual tools has become a significant impediment to growth, allowing errors to slip in, slowing down shipments, and negatively impacting customer satisfaction as well as organizational efficiency.

“Traditional forwarders that wish to survive have no choice but to digitize. By our estimate, automating manual processes now could reduce certain back-office and operational costs by up to 40 percent, while digitizing significant parts of the sales process could reduce related direct costs even more.”

– Boston Consulting Group

Because there are so many moving pieces to managing a shipment, there are also many opportunities to digitize. In this maturity index, you’ll answer six simple questions to get a picture of how your company is doing in terms of putting technology to good use. Let’s get started!

1. I can visualize and manage all of my freight rates and quotes in one place, including amendments, as well as search and compare accurate, up-to-date rates online.

A. Yes, I’m using a cloud-based rate management solution that helps me automate and streamline the rate and quoting process.

B. No, I mainly rely on emails, phone calls, and carriers’ portals to obtain rates and send out quotes.

2. I have a single platform for multimodal shipping where I can manage all my electronic cargo bookings in one connected system that’s directly integrated with my carrier and NVOCC partners.

A. Yes, my booking process is automated, and I can manage all the associated documentation, including shipping instructions, bills of lading, invoices, and more in a centralized system.

B. No, I have a spreadsheet and an email template for every purpose. I never have fewer than a dozen browser tabs open. I’m a whiz at multitasking, but sometimes I wish I had more time to catch my breath.

3. I use digital customs compliance software that enables real-time data exchange and incorporates AI to expedite customs clearance and release of shipments.

A. Yes, all of my key customs compliance documents, such as ISF (Importer Security Filing), are managed digitally with an electronic record of the filing, and I can easily share documentation with the necessary trading partners.

B. No, I spend a lot of my day on the phone and sending emails to check statuses and keep track of approvals. I worry about missing a CBP request, payment, or filing deadline because I’m juggling so many moving pieces all the time.

4. I have a comprehensive digital logistics platform in place to manage the full origin-to-destination supply chain in a single solution.

A. Yes, I have the technology I need to ensure an efficient flow of information, automate processes, and meet my productivity goals all day, every day.

B. No, I’m aware that my business has silos where different departments or systems don’t communicate operationally. We sometimes have to enter the same information in more than one place, and we need to be more efficient in our operations.

5. I have a comprehensive view of my shipments from door to door, and my customers can access tracking information without having to call or email me.

A. Yes, I know where my cargo is in real time, not just when the carrier website or U.S. Customs finally updates. Plus, my customers can access this information on a self-service app or website. They love the freedom and visibility it gives them.

B. No, I often spend time searching carrier and terminal websites for tracking updates and then emailing those updates to customers. We get a lot of phone calls and emails from customers who want shipment updates.

6. I routinely connect and electronically exchange transactional information, including documentation such as bills of lading, air waybills, packing lists, and commercial invoices, with my agents and partners.

A. Yes, I’m part of an online network that facilitates reliable origin-to-destination cargo flows and fosters new business relationships. I enjoy secure online communication with shipping industry participants, anytime, day or night, to support timely document sharing and peer-to-peer dialogue.

B. No, I’ve had to learn all of my agents’ preferred ways of working. Some do business by email, others over the phone, a few have their own web portals, and I even have one or two that still want me to send faxes.

7. I use data analytics to forecast demand and optimize routing, helping us make informed decisions and improve efficiency across our operations.

A. Yes, we use advanced data analytics tools that allow us to forecast demand and optimize routes for better efficiency and service.

B. No, we primarily make routing and demand decisions based on experience and historical data, without dedicated analytics tools.

8. My systems are connected to those of carriers, suppliers, and customers, creating an integrated and efficient supply chain that ensures seamless data exchange.

A. Yes, I leverage a connected supply chain with digital integrations across carriers, suppliers, and customer systems, enabling real-time data sharing.

B. No, my system is not fully integrated with carrier and supplier systems, so we often rely on manual processes to keep everyone updated.

9. My organization uses a cloud-based solution with strong cybersecurity measures in place to protect our data and ensure safe, anywhere access.

A. Yes, we use a secure cloud-based platform that provides data protection and allows us to operate remotely with confidence.

B. No, we rely on traditional systems, and our cybersecurity approach mainly involves in-house IT management.

10. We automate repetitive tasks like invoicing and documentation, using AI to streamline processes and enhance accuracy.

A. Yes, we utilize AI-driven automation for routine tasks, reducing manual effort and allowing our team to focus on more strategic work.

B. No, our processes are mostly manual, and we handle tasks like invoicing and documentation without automation.

11. All teams involved in customer service and shipment operations work from a single source of data, ensuring a consistent and positive experience for our customers.

A. Yes, we use an integrated platform that provides all teams with access to the same real-time data, allowing us to deliver a seamless customer experience.

B. No, our teams often operate with separate data sources, which sometimes leads to inconsistencies in customer service and shipment management.

Get your score!

8-10 As: You’re doing great. You’ve put some excellent technology in place to help you operate at the height of productivity. The sky’s the limit for you. That said, there’s always room for improvement. It’s a good idea to audit your system once or twice a year to make sure that you have it configured optimally to meet your needs. Technology is always changing, and just because you have invested in software doesn’t mean it’s working for you.

5-7 As: You’re on your way. You’ve put some tools into place to benefit from technology, but there is still room for improvement.

0-4 As: You’re not currently benefiting from all that technology has to offer. Selecting the right solutions for your business can seem daunting, but we’re here to help. Magaya has been helping freight forwarders use software to grow their businesses for more than 20 years.

“The era of doing B2B business “the old-fashioned” way is gone. Now customers expect a high level of involvement and really high-quality digital services when making a B2B purchase. The differences between B2C and B2B are blurring, as customers are eager to have the same smooth modern experience in all areas of their lives, including their work lives. At least 80% of B2B buyers are not only looking for but expect a buying experience like that of a B2C customer.” 5 Trends in B2B Customer Experience Management

Integrating digital technologies to streamline your forwarding and logistics business’ operations, increase efficiency and data accuracy is an important step in transforming your business and offering customers a great experience. There’s no time to put this off. Digital freight and logistics technology adoption is accelerating and new tech solutions are entering the global shipping industry every day. Ultimately, the end goal is to offer customers the best experience possible.

Get to know Magaya

As the #1 freight platform for customs brokers and freight forwarders, Magaya is trusted by more than 2300 businesses located in over 90 countries. The flexible and hyper-configurable Magaya Ecosystem makes digital logistics solutions accessible to businesses of any size, and that support your business operationally and the end-to-end freight logistics needs of your customers.

With robust functionality, the Magaya Supply Chain platform has a broad range of modern apps and extensions, including customs compliance and rate management. The Magaya Ecosystem provides you with the ability to customize your technology with modular, interoperable solutions, giving you a system that perfectly meets your unique requirements.