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Customer expectations are forcing SME forwarders to adopt new technologies, even as the most valuable applications may never be seen by those customers, threatening the qualities the operators offer over their larger rivals.
Sophia Huluta, president of one such forwarder, GLC, said changing everyday relationships with technologies, including AI and real-time visibility, was leaving forwarders with no choice but to provide the same digital speed and visibility as much larger logistics companies.
She told The Loadstar: “Customers absolutely expect technology. They want visibility, at their fingertips, quick quotes, fast answers. They don’t care we’re smaller than some of our competitors. Their expectations are based on how tech works everywhere else in their lives.
“Tracking, visibility, online documents, and basic digital capabilities are quickly becoming the price of admission. I don’t think a customer is going to be impressed much longer because you have a portal. They are just going to wonder what is wrong if you don’t.”
All this, she added, was putting pressure on SMEs to ensure they have the services to remain competitive, but noting that “forwarders have an unbelievable amount of information inside their organisations”, Ms Huluta questioned whether the tech could be better used.
Forwarders would be more likely to benefit from systems affording greater visibility of their own business, she suggested, including the profitability of individual customers and tradelanes, as well as where opportunities and resources are being wasted.
She explained: “I want to be able to ask ‘where are we making money?’; ‘which customers require 10 touches when another requires two?’; ‘which tradelanes are we quoting constantly, but not converting?’; where are we having the same operational problem over and over again?’.”
This, of course, leaves SMEs facing something of a dilemma when it comes to spending the money earmarked for technological expansion, and raises questions as to how they can meet their needs while meeting customer demands for tools increasingly considered standard.
Ms Huluta warned that it was a conversation SMEs needed to be having with themselves, and noted: “You can buy the best system available, but if your processes aren’t good, all you’ve done is put bad processes into a better system.
“The competitive advantage is what happens behind the portal. I don’t think the forwarder with the most technology is going to win. I think the forwarder that gets the most out of its people because of technology will,” she added.