19 Apr Online Logistics Marketplace – making the industry agile and competitive
According to 60 per cent of business leaders, there needs to be more transparency between finance/commercials and procurement functions. Taking a closer look, this lack of transparency often reflects in identifying competitive prices for cargo space booking. Reportedly, this leads to delays, increased costs, and other key challenges that shun the growth prospects that impact profitability.
Hence came the advent of digital brokerage platforms or electronic Logistics marketplaces. These platforms are centralized and offer the best competitive prices from multiple sources to all Logistics service requestors, which increases their profitability and competitiveness. In simple terms, it is a common platform that connects logistics suppliers and buyers in need to move cargo from one destination to another with the best possible rate, route, and capacity utilization. But as an electronic Logistics Marketplace only meant for increasing profitability? Taking a closer look, this platform offers a host of other benefits too that could make the overall process seamless and let the ecosystem achieve its true potential.
Service ratings
Every service requester can share, review, and rate the service offered by a service provider. This way, a new service requester can make an informed business decision about choosing the right partner. Also, it allows the service provider to improve his/her offerings to avoid negative ratings in the future.
Tracking
An electronic Logistics Marketplace offers end-to-end tracking of cargo movement right from the shipper to the consignee. A marketplace is built with Blockchain and other cutting-edge technologies that make the overall process transparent. Every single update is recorded on the platform. Most importantly, all stakeholders can stay updated on cargo movement, addressing visibility cues.
End-to-end document exchange
The most important factor to consider in a marketplace is paperless trade and end-to-end document interchange between all parties. For example, documents for customs and other regulatory authority validations can be submitted online digitally. It reduces the dependency on physical documentation and eliminates the cumbersome physical approval processes that lead to delays.
Load and capacity boards
In most new-age electronic Logistics Marketplaces, load and capacity boards are a unique feature. With this, the empty cargo spaces in any airline departing from a specific airport can be identified seamlessly, which leads to proper capacity utilization.
Automation
An efficient and competitive supply chain stands out with the automation of processes. The industry can create supplier pre-selection rules based on price, route, ratings, and reviews using a logistics services marketplace.
Are Logistics e-Marketplaces becoming the preferred medium?
Some leading ports and airports are already deploying an electronic marketplace to utilize 100 percent of the existing capacity. This way, the gap in supply and demand can be met seamlessly, according to industry experts. However, the platform becomes more viable when an e-Marketplace becomes a norm in all port and airport ecosystems.