A new report on the freight services industry by Accenture says that two things separate the best performing freight companies from other shipping companies- mastery of standardised processes and the use of integrated IT.
By applying automated processes, companies can cut the costs of freight transport, reduce errors and accelerate speed to market.
Meanwhile, the use of integrated IT creates transparency for both freight companies and their customers as well as streamlining processes, increasing efficiency.
Nowadays, customers looking to arrange shipping have increasingly high expectations of transparency. This has largely been created by their experience of other markets online. For example, passenger airlines now routinely offer flexibility, choice and transparency as standard.
Few companies in the freight forwarding industry are able to meet these expectations yet.
The only way of providing the speed and agility that customers want is to make significant changes to IT systems and put technology at the heart of the business. This can enable, for example, regular freight transport updates to customers as well as ensure that all critical data is available at all times to all concerned. A good freight company will automatically update the final recipient of the goods on progress related to the delivery, saving the customer time and trouble. This level of customer service creates a competitive edge, separating the winners from the losers.
The freight transport companies that make the investment in IT and technology will be the ones that prosper in future.
Another way that a freight services supplier can use IT to deliver what their customers want is to provide advice and guidance. With the growth of China import and trade with other emerging markets, many UK businesses are moving into international freight for the first time. These businesses want to be able to turn to their shipping company for a guiding hand. So as well as providing advice by telephone, the smart company is making increasing use of email newsletters to help provide the general information their customers want.
And by making use of a virtual private network, freight companies can offer flexible working to staff, so that staff can work just as effectively wherever they are at the time. This can mean a faster, better freight service for customers as well as making it easier for companies to provide the 24/7 service customers increasingly demand.
In future, as broadband speeds increase, it is perfectly likely that shipping companies will make regular use of video conferencing in their discussions with customers, even using video to introduce agents in their network in other countries, making their freight services feel more personal.
Freight forwarding companies will also be able to include the use of video in their websites, perhaps to feature overviews of particular shipping destinations or to illustrate technical details.
Use of video over broadband in this way will help customers better understand the international freight industry as well as help create differentiation for the individual shipping companies that seize the initiative.
So through the integration and imaginative use of IT, a freight transport company can stay ahead of the game, giving their customers what they want.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services
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