The freight forwarding industry is in the middle of intense disruptions. The tech-wave is sweeping through companies transforming the way they are approaching everything. From day-to-day operations to complicated processes, it’s all going through a paradigm shift. And, while it may seem like it’s only the larger global players that are
emerging as digital forwarders, and that it may be too late to ride the digital wave, let us tell you that is not the case.
Why? The answer lies in the age-old lesson of Economics called Barriers to Entry. What most people commonly forget is that the barrier to enter goes down with time, not up. Confused? Don’t be. Here’s a quick explanation of what that means.
The Adoption Curve explains that there are 5 stages of entering a new area of business. It classifies the entry of users
who are willing to accept a new technology or idea.
During the internet boom in the early 90s, while most of the ‘Innovators’ (tech-driven companies at the time) saw the immense potential of the technology and its uses. Most of their time went into first explaining to their customers what the internet was and why they should care about it! Just imagine the legwork they’d have to do
in setting up the groundwork, but it all paid off in the end.
‘Innovators’ and ‘Early Adopters’ actually set the foundation for the technology. These were companies like AOL and Yahoo.
After that, it was the ‘Early Majority’ (Like Google, Facebook, and Snapchat) that dominated the market based on this foundation.
Now, at this point in time, all the players in the freight forwarding industry can be classified into three major categories.
Right now, we’re just scratching the surface of what the application of technology is and can be in the freight forwarding sector. And, as far as the behemoth companies are concerned, there are two major factors affecting them.
The first is the fact that global players usually have transformation constraints because of their sheer size. The use of legacy technology restricts them from changing their strategy and making it digital-first.
The second and the most important reason is the fact that no organisation, no matter how big, can stop the number of disruptors
that will enter the market.
Only those companies that embrace the digital wave will be in a position to quickly take advantage of the scenario and have an advantage over their competition.
It is our mission at FreightBro to help forwarders not just understand what this wave of digitisation has in store for them but even provide them with the tools to access it and leverage it. With a state-of-the-art platform and feature-packed solutions, FreightBro will show you just how you can transform your business and take freight forwarding to a whole new level.