By Samir Lambay, CEO and Director of FreightCrate Technologies Pvt. Ltd.
In the recent years, digitisation has led to disruption of major industries and sectors, transforming business processes and functions. Logistics, however, has been one of the least impacted sectors. This is slowly changing as the next generation entrepreneurs from the freight forwarding community are taking up the challenge of disrupting the sector through innovative digital solutions.With a fresh focus on organising the sector, streamlining pricing and operations and introducing automated and transparent processes, the new age digital logistics start-ups are bringing in a fresh wave of reforms, even as the sector continues to hold on to the set systems and processes of the past.Some key challenges that start-ups in logistics are facing, include:
Transition from Offline to Online:
For decades, the logistics sector has been dominated by cumbersome manual processes where export/import managers have been required to compare individual email quotes and conduct lengthy negotiations over the phone. This has led to a large task force that is not digitally savvy. Apart from quotations and negotiations, shipping updates and operations are also dependant largely on telephonic conversations with multiple contact persons. As a result, these systems and processes have been deeply ingrained as a set way of functioning.This has made it difficult for online logistics start-ups to push their digital platforms even though they offer online freight rates for easy comparisons and shipment management on a single dashboard. However, the quick proliferation of web and mobile consumer appsin day to day servicesmay help accelerate the digital adaptability of the task force.
Pre-existing Business Relationships:
Just as in most B2B industries, the logistics sector in India has also been functioning on strong interpersonal relationships. Loyal and long standing relationships between logistics providers and clients are often difficult to break, despite having access to more efficient online freight service offerings. Additionally, lengthy credit periods are difficult to turn down for most businesses, even when receiving discounted prices. Having said that, several online logistic start-ups are now forging newer and mutually beneficial relationships with clients, by illustrating to customers how access to all-inclusive freight pricing and schedules and transparent shipping updates allows them to save time and make more efficient decisions while reducing logistics costs for their businesses.
Creating Value for Logistic Service Providers (LSP’s):
Since the benefits of digitisation and organised logistics are yet to make their way into mainstream logistics business, getting LSP’s on-board is equally as challenging as getting importers/exporters on-board a digital platform. With a largely experienced task force that has, for decades, been successfully growing and shaping the sector through trusted processes, the transition to a digital framework is met with scepticism. Hence, even though customers cannot make efficient decisions due to lack of information such as total freight cost, schedules and multiple carrier options, the LSP’s are yet to take a step to move to an online platform that will help them share complete online freight quotes to their clients. Through a collaborative approach and creating a win-win business opportunity for LSP’s and a committed service oriented approach for importer/exporters, online logistics start-ups are trying to address the issue effectively.
Cessation:
While the shift from offline to online is imperative, the logistics sector is a marred by multiple limitations that can slow down the process. With a calculated and transparent approach to accelerate growth, new age online disrupters in logistics need to address limitations faced by all stakeholders involved, and help them see value in the transition. Through consistent and result oriented strategies coupled with adequate technology support, logistics in India is slowly but surely transforming into a dynamic sector poised for exponential growth.
About FreightCrate Technologies Pvt Ltd.
FreightCrate Technologies is a Logistics Technology company focused on improving the international freight/shipping process for both logistics service providers (LSP’s) and exporters/importers. “FreightCrate” is a web based market-place, initially focused on Indian customers, where exporters/importers can view and compare freight quotes and manage shipments from multiple logistics service providers. The concept is similar to market-places such as Cleartrip, or even Flipkart and Amazon where customers can get access to rates and make bookings for multiple products/services from several vendors. However, our focus is the international shipping and freight industry.
We offer online freight quote, booking and order management solutions to all types of export-import businesses and manage shipments via Air and Sea, Door-Door to over 500 international ports.
We cater to all exporter/importers including:
- Manufacturers/Suppliers
- Wholesalers/Retailers
- Service Providers
- Traders
- E-Commerce Sellers
Service Proposition:
- Door-Door service via Air & Ocean including international shipping, customs handling and local transportation.
- All-Inclusive & Standardised Quotes and Shipping Schedules Online.
- Online Shipment Management, Tracking and Analytics Dashboard.
- Dedicated Customer Service.
The company is run by well-experienced professionals with over 15 years’ experience in sales, marketing, customer service and operations across global firms such as, DHL, Kuehne & Nagel & DB Schenker.
Our team has worked across the top global logistics/supply chain companies and is experienced in strategy, sales, performance management, rate management, customer service and shipment handling processes. Hence, through our experiences with both small and enterprise level customers from several industries we are well positioned to revolutionize the international freight and logistics industry.
