SMB Freight Forwarding for the Digital Age

A recent Freightos Group report on the state of online digital sales among logistics service providers (LSPs) found that more enterprise forwarders than ever before offer instant online freight quotes. Two thirds of all LSPs surveyed and half of the top twenty largest forwarders now offer instant online quoting compared to none ten years ago.

More and more top forwarders, carriers and digital startup forwarders have added instant online quoting capabilities in the last decade. 

So What’s the SMB Forwarder Play?

For SMB forwarders – who generally serve smaller shippers and differentiate on service or niche capabilities – investment in digital tools may represent an especially important opportunity to differentiate, increase reach, win rates and efficiency, and improve customer experience through low-touch, scalable tech. This is particularly true as tech solutions become more available at more affordable prices.

And while large forwarders often develop these capabilities in-house over a number of years, the recent growth in dedicated, customizable digital solutions for forwarders, means that even small forwarders can access digital tools and do so within a short time frame.

Challenges Remains

But SMB forwarders who integrate digital tools can face some unique challenges along the way. 

One common hurdle is getting shippers – used to, content with, or preferring service by phone and email – to embrace a new way of interacting with their LSP.  As digital tools represent a new way of doing business for the forwarders too, the ways to leverage and realize the full benefits of those solutions are not always obvious either. 

And most importantly, digitalization requires a forwarder balancing act between enjoying the efficiencies of quick, tech-driven, transactional interactions, and maintaining the human-touch, relationship-based shipper trust and loyalty still key to forwarder success.

Going Forward: Six Tips For SMB Adoption

What follows are digital sales best practices – shared by and including quotes from several forwarders already taking this approach – for SMB forwarders ranging from tips on how to get shippers on board with digital tools to guidelines on getting the most out of tech while still striking that balance.

1. MAKE IT EASY  – Many shippers can find a shift to online freight confusing or risky, concerned they might make a mistake or overlook fine print. For this reason, forwarders should aim to make their online offering easy to access and keep it as simple – and as easy to understand, navigate and use – as possible.
   
   “Digital capabilities need to continue to be easily accessible and understood without training.”
   
2. BACK IT UP WITH GREAT SERVICE – Shipper confidence in digital solutions grows when they know those tools – and their needs in general – are supported by real people who know them and their business needs and are available to help whenever the shipper may need them.  
   
   “As more digital tools become available, it is crucial to ensure that communication, problem-solving, and creative solutions stay primary activities in account management strategies.” 
   
3. MAKE IT MOBILE –  Decision makers are almost always on the go, so increasing access to rates, quotes, and booking via mobile devices will help drive more adoption and the ease of doing business, especially among shippers already eager to go digital.
4. MEET WHERE THEY ARE, GUIDE WHERE YOU PREFER – Forwarders can continue to engage those shippers less ready to take a digital plunge by manual channels like email. But be sure these channels can still guide them back to the digital journey via cues like a ‘Book Now’ button or other tools that incentivize low touch options or showcase how easy the digital solutions are to use.
   
   “The online tooling is just that. It is a tool in the arsenal of the account owner, it should not be a replacement for one.”
   
5. AUTOMATE THE BACKEND – Even if some customers prefer manual interactions, digital sales tools can still increase efficiency on the forwarder end of things. Many forwarders, for example, leverage AI tools to ingest open text email quote requests, and trigger instant, automated quote replies by email.
   
   “Do customers actually want self-service tools from their nominated providers? All day, every day, yesterday. They can’t get self service tools fast enough!”
   
6. DO MORE WITH DATA – Forwarders interacting digitally with their customers should use the digital footprint of how shippers use the platform to understand their customers better, test new ideas, and continuously iterate based on this feedback to improve the customer experience and retention.