Logistics typically involves three primary players, just like a Marketplace. An Amazon buyer is like a shipper. An Amazon seller is the equivalent of a carrier. Amazon, the marketplace operator, is the equivalent of a broker or Freight Forwarder. Connecting the buyers with the sellers can be compared to connecting shipments with trucks, Airlines and Shipping lines. Of course, this is an oversimplification. There are nuanced differences between these business models. But when we see shippers as buyers, carriers as vendors and brokers as operators, suddenly, Marketplace technology is unlocked as a viable solution for tech-starved agents. By acknowledging this congruence, agents can imagine a world where matching shippers to carriers is supported by automation, interconnectivity and scalability previously unavailable.
Logistics technology: historically, an oxymoron
For most service providers, tech has either been non-existent or undeveloped. Most Logistics processes are done relationally, not digitally. Every time you negotiate a request, travel to sign a contract or call a driver for a tracking update, you spend time and resources on low-value administration instead of on high-value business development.
This isn’t to say that Logistics is technology aversive. It’s just that the use of tech is one-sided. Carriers use fleet management systems. Agents use TMSs. Shippers use ERPs. While these tools can certainly help, they delink the shipping experience, limiting each player to an incomplete view of the greater system at work.
Proof in the Profit
Marketplace tech can bring all stakeholders under one roof, aligning them with fintech, e-commerce and automation required to optimise shipments, fleets and delivery options. As a one-stop-shop for end-to-end shipping, marketplaces can give carriers self-determination, shippers selection and brokers increased capacity. The platform leverages algorithms to match shippers with carriers, eliminating complex processes. It enables price discovery, user reviews and ratings, route optimisation, schedules, e-contracts, Post Boards & Post Trucks, track & trace and paperless trade.
The booking data is reusable for further shipment processing by connecting to other supply chain stakeholders. The platform is equipped with comprehensive modules for a quote, quote management and reverse auction, and multi-channel booking with EDI communication. The platform can further connect carriers to the carrier for cargo capacity utilisation. Airlines will benefit from reduced incidence of partially filled or empty bellies on returning aircraft.
In a Nutshell…
Until now, the digital transformation of Logistics has been elusive. Traditional players in the space didn’t know how to leverage tech that wasn’t aimed directly at them. But, the Logistics market, like the one offered by Kale Info Solutions, is a unique platform that could facilitate trade and simplify the complex structure of the Logistics industry. The efficiency of each stakeholder improves significantly and takes their business to the next level. However, the platform is more beneficial if all stakeholders in a given environment unanimously choose the platform.
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