NGMP: Utilizing new Technology for efficiency in the Shipping Industry
New generation marketplaces (NGMPs) often develop as a means of addressing prior market shortcomings. The freight shipping industry, an amalgamation of various service providers and service seekers of different specializations, is ripe for such disruptive development. Today’s technological advancements have paved the route for the freight industry’s transformation, resulting in the form of a trustworthy, fair, and wide-ranging NGMP for shippers and carriers.
LEVERAGING TECHNOLOGY TO ENHANCE THE FREIGHT MARKETPLACE EXPERIENCE
Freight marketplaces, albeit helpful for both shippers and carriers, are far from perfect solutions for any party involved. In fact, here are a number of ways in which freight markets could transform into NGMP, and the technology that would enable them to do so.
Fair spot rates for all— As opposed to contract rates, spot rates are becoming increasingly relevant in the freight industry. With their volatility by the minute, offering consistent and fair spot rates would issue a highly-valued sense of security and reliability both for shippers and carriers.
This security could be achieved through intelligent algorithms aimed at probabilistic pricing that would create instant, accurate spot quotes for shippers, taking into account supply, demand, fuel prices, and other price-influencing factors. This would eliminate the uncertainties of budgeting and availabilities on both sides of the market. Teleroute, a freight exchange platform, even offers shippers, logistics service providers, and freight forwarders an opportunity to commit to spot bids for a certain period and certain number of shipments, making the market less volatile.
Trust thy carrier— Marketplaces, in nearly all cases, attract service and product providers from varying industries who have yet to become familiar with their counterparts. As such, ensuring trust between shipper and carrier is essential in establishing a well-known freight marketplace.
Luckily, today’s technological advancements, particularly in regards to the establishment of blockchain, can offer transparent processes in tracking, feedback, invoicing, etc. without the fear of ill-intentioned or accidental alterations across each function. Through blockchain technology, trust can become the default understanding between two or more parties.
Options to choose from— As mentioned in our article on specialization, carriers often specialize in certain types of freight transport. As such, wide-ranging choices of particular or general transport vehicles can be difficult to gather in a way that meet an exceeding demand for carriers in freight marketplaces.
Nonetheless, telematics and mobility enable carrier maximization in NGMP. If carriers report their current locations, they can easily be matched with loads that are closest to their location, as well as with best-suited wait times and rates. In other words, the ability to broadcast the location of vehicles and freights increases the range of available carriers for respective loads. Teleroute, for example, decreases empty running for carriers by an additional 5% as they become more accessible through the platform.
Omni-channel presence on all sides— No industry can escape the need to digitalize – not even the freight industry. Taking this into consideration, establishing omni-present digital channels in which shippers and carriers can connect is key to a NGMP’s success. Keeping today’s drivers engaged will require more than a mere website or application.
Growing trends in digitalization include plugins, chatbots, voice-control, virtual reality, widgets, etc. The opportunities to digitalize are only growing in possibilities and necessity. These tools will create ease of communication regarding location, availability, enquires, quotes, and more.
Adapt to the gig-economy— Uber, AirBNB, AmazonFlex, Foodora – all examples that the gig economy in a world increasingly dominated by millennials is thriving. If carriers can offer part-time load transport to individuals living in particular parts of the country, they offer both shippers and drivers a sense of flexibility. Routes can be divided and the supply of carriers can thus grow exponentially, increasing profit while reducing costs.
Give credit where credit is due— Reward and recognition programs can establish a sense of trust and credibility in marketplaces. Loyalty programs can continue to attract carriers and shippers, making note of their professionalism and commitment to customers and service providers. Add on opportunities of insurance, fuel, and maintenance, and your freight marketplace is the place to be.
Issuing these sorts of benefits through analyzing driving behavior and feedback help establish a loyal driver community intent on being their best professional selves for shippers. Teleroute itself offers subscription bundle offers where members have increased access to the platform and its many members.
NEW GENERATION FREIGHT MARKETPLACES: THE WAY FORWARD
Leveraging today’s technological capabilities towards building an efficient, trustworthy, and effective freight marketplace ultimately increases options of transport for shippers while minimizing empty travels for carriers. This NGMP, embodied by freight exchange platforms such as Teleroute, enables the industry’s rebirth through the establishment of a go-to marketplace that ensures quality service and reliable customers. Blockchain, advanced algorithms, artificial intelligence, and a multitude of digital channels essentially clear the industry of minor and major logistical setbacks, paving the road for smart logistics solutions.