Why Transparency Is the New Standard in Logistics

For modern shippers, transparency isn’t just about visibility. It’s about creating trust, enhancing efficiency, and enabling meaningful collaboration with their logistics service providers (LSPs). Let’s explore why transparency has become the new standard and what forwarders can do to deliver it.

The Demand for Transparency

Transparency is no longer optional for shippers. According to a recent Indago survey of supply chain executives, 90% of shippers rank technology capabilities as a key factor when selecting a freight forwarder or LSP. Among the most sought-after capabilities, real-time shipment tracking leads the pack, with 67% of respondents identifying it as their top priority.

One executive summarized the importance of transparency:

“As the pace of business continues to increase, so does the need for direct, near real time digital connections into our 3PLs,” said one supply chain executive. “It is no longer acceptable to live in a ‘black box’ environment where 3PLs only feed limited information to my organization. We need transparency to collaborate and improve processes together. If we do not have this, the benefits of utilizing 3PLs diminishes and I have a much stronger case to bring warehousing [back in house] where I can fully control improvements.”

This sentiment highlights a key shift: shippers will no longer blindly tolerate “black box” operations. Instead, they expect their forwarders to act as transparent, tech-enabled partners.

Why Transparency Matters

Transparency offers clear advantages for shippers and forwarders alike, including:

• Building Trust: When shippers can see the status of their shipments in real-time, it creates confidence and reduces uncertainty. This trust strengthens partnerships over time.
• Proactive Problem-Solving: Real-time tracking and communication allow forwarders to identify and address issues before they escalate, ensuring smoother operations and fewer disruptions.
• Improved Collaboration: Transparency fosters stronger collaboration between shippers and forwarders, enabling both parties to work together to optimize processes and meet goals.

The need for transparency goes beyond visibility. It’s about giving shippers the tools and data they need to make better decisions, reduce their costs, serve their end customers better, and improve overall efficiency.

The Transparency Gap

Despite its importance, many forwarders still fall short of delivering the transparency shippers demand. The Indago survey revealed that 38% of shippers are either “Slightly satisfied” (24%) or “Not satisfied at all” (14%) with their forwarders’ technological capabilities. Alarmingly, none of the respondents said they were “Extremely satisfied.”

This gap isn’t just a missed opportunity—it’s a business risk. One executive put it bluntly:

“Every freight forwarder/3PL should have a system that provides GPS tracking and sends regular reports. We shouldn’t have to beg for real-time data. If it’s automatic, then I don’t have to do the work for them and I have a better use of my time doing my job, not theirs.”

Another gave some sage advice to forwarders:

“Freight forwarders [believe that] investing in technology will justify cost increases to clients. Most of them should focus on implementing technologies that provide clients with visibility as well as reduce their operational costs. As they focus on efficiency and reduce their costs, the value goes up, which will bring additional business to them and increase their revenue and overall profit.”

The writing is on the wall: forwarders who fail to provide transparency risk losing business to competitors who can deliver.

How Forwarders Can Deliver Transparency

For forwarders looking to close the transparency gap, here are three actionable steps:

1. Invest in Real-Time Tracking Technology: Implement systems that provide accurate, real-time updates on shipment locations and statuses. This visibility is a top priority for shippers and a cornerstone of transparency.
2. Enable Seamless Integration: Ensure your technology integrates smoothly with your customers’ supply chain systems. Integration eliminates silos, creates a unified flow of information, and makes collaboration easier.
3. Automate Communication and Compliance: Streamline documentation and compliance processes with automation. By reducing manual tasks and improving accuracy, you’ll create a smoother experience for your customers.

How Magaya Can Help

Magaya provides the tools forwarders need to meet shippers’ transparency expectations. With solutions like real-time shipment tracking, seamless system integrations, and automated documentation, Magaya empowers forwarders to:

• Build trust by providing clear, real-time visibility into shipments with solutions like Container Tracking and Air Tracking by Magaya. 
• Proactively solve problems before they disrupt operations with a centralized view of the business across warehousing and shipping using Magaya Supply Chain.
• Enhance collaboration with customers through seamless technology integration thanks to Magaya Connect.

By leveraging Magaya’s innovative solutions, forwarders can close the transparency gap, improve customer satisfaction, and gain a competitive edge in the market.

Conclusion

Transparency is no longer a differentiator—it’s a requirement. Shippers expect real-time visibility, seamless communication, and collaborative partnerships from their forwarders. Those who deliver on these expectations will not only retain their customers but also attract new business in an increasingly competitive market.

For forwarders, the path forward is clear: invest in the technology and processes that enable transparency, or risk being left behind. With the right tools, like those offered by Magaya, forwarders can rise to the challenge and set a new standard for the industry.

To learn more about what shippers want most in 2025 and how to leverage technology to increase visibility without drowning in bureacracy, download the free report.