5 Myths About Freight Forwarding Software
Myth 1 - Freight Forwarding Software Is Only a Good Fit for Larger Enterprise Forwarders
Countering Commonly Held Myths
Historically, freight forwarding software solutions were tailored for large, enterprise forwarders. Traditional platforms are complex, expensive, heavily customized and, consequently, not a good fit for mid-size or small forwarders.
The Reality: Digital Operations Are Required for Every Forwarder
Today, operating digitally is a competitive requirement for forwarders of all sizes versus a “nice to have” reserved for enterprise forwarders.
Whether you manage 100 shipments per month or 10,000, the expectations are the same. Forwarders need to provide customers with real-time price quotes, offer shipment visibility as table stakes, and demonstrate that the business adheres to the latest regulatory compliance requirements.
Forwarders that rely on manual processes or disconnected systems are at a competitive disadvantage from rising operational costs due to manual processes that apply ever increasing margin pressure.
Why Does the Myth Persist?
The myth persists for a number of different reasons. Many forwarder solutions still target large enterprise audiences. As a result, it’s not always easy for smaller companies to understand how the full scope of capabilities and pricing applies to them. In addition, the belief persists that solutions must be customized, which is often costly, and that a minimum number of seats must be purchased. Implementation is also viewed as disruptive and time consuming.
What Has Changed in Regard to Technology?
Freight forwarding software has evolved toward more modular capabilities that allow forwarders of various sizes to easily tailor solutions to business needs. This approach not only enables faster initial deployment timeframes but also provides the flexibility to expand the solution to scale with the business as forwarders grow or their needs change.
The shift to cloud-based platforms is largely what has eliminated the need for heavy Informational Technology (IT) infrastructure and enabled geographic independence that allows greater accessibility. This centralized approach removes the limitations of premise-based solutions such as higher cost, slow deployment, and geographic challenges.
Modern solutions automate key processes such as document management, shipment tracking, pricing, quoting, and data management while centralizing operations within a single platform. With access to powerful capabilities that were traditionally available only to large enterprises, solutions today help freight forwarders of all sizes operate more efficiently, serve customers better, and grow their businesses.
Shane Paddington, Global Sales Account Executive, has seen the myth-to-reality shift play out repeatedly with customers:
"Customers often perceive the software as being designed primarily for larger freight forwarders because of its breadth of capabilities. But once they see it in action, there's a real lightbulb moment when they realize it gives them the ability to compete far more effectively with larger organizations."
This realization often stems from seeing how a single platform can replace multiple disconnected systems. Rather than managing separate tools for quoting, operations, Customer Relationship Management (CRM), customer communications, and warehousing, forwarders can seamlessly manage these processes using one integrated solution.
Why Do Small and Mid-Size Forwarders Benefit the Most from Freight Forwarding Technology?
Small and mid-sized forwarders often see the greatest impact from technology because they tend to have more manual processes and deal with tighter margins all while having to compete with both smaller and larger forwarders. Technology levels the playing field by enabling them to compete on speed, service, and efficiency. Shane also notes that smaller forwarders migrating from legacy, disparate systems frequently discover they're better positioned to pursue larger customers and support more complex business opportunities.
How Can Descartes Help?
Descartes Freight Forwarding is a cloud-based platform that delivers the capabilities needed to compete in today's logistics environment while allowing organizations to tailor the capabilities best suited for their specific needs. Descartes forwarder back-office solution helps logistics service providers digitize processes to better coordinate shipments, clear customs, and create “stickier” client relationships.
Our global solution set enables efficient coordination of shipments from origin to destination, facilitates real-time customer tracking, streamlines communication between stakeholders, automates documentation processes, and provides the capability to control and manage transport rates for ocean, air, and land all from one consolidated global database.
A Connected Logistics Ecosystem
Descartes Global Logistics Network™ (Descartes GLN™) connects forwarders with carriers, customs authorities, ports, terminals, and logistics partners among others. Instead of developing and maintaining hundreds of individual connections, forwarders gain immediate access to a broad logistics ecosystem that improves visibility, accelerates communication, and simplifies compliance.
Automation That Increases Productivity
Automate repetitive, manual tasks including quoting, document management, milestone tracking, and compliance workflows. With AI-assisted capabilities that help to streamline quote creation and data entry, operations teams can be efficient and accurate while focusing on higher-value customer activities.
A Unified Operational Platform
Alleviate the pain of applications that aren’t well-integrated with each other with a single source of truth. By bringing together shipment management, customs compliance, and accounting into a single solution, freight forwarders can eliminate duplicate data entry, improve collaboration across teams, and provide management and customers with greater operational visibility.
Modular Development
Implement the functionality you need today, whether that's freight operations, customs compliance, warehousing, customer portals, or price management and quoting, and expand with additional capabilities as they are required. This phased approach minimizes disruption while delivering value faster.
Scalable Platform Architecture
Support multiple locations, entities, currencies, and regional regulatory requirements from a single platform. As your business grows through new customers, acquisitions, or geographic expansion, your technology grows with you without requiring a costly system replacement.
Customer Success Story
Vlad Nikalayeu, Chief Executive Officer from Skypace shares his Descartes experience:
“By integrating Descartes into our pricing ecosystem, we’ve cut rate processing times by 85%, with updates completed in under 48 hours. This allows us to deliver quotes with 99% pricing accuracy, ensuring our customers receive the most reliable freight rates. The solution has also helped Skypace achieve a 5% increase in accuracy on surcharges across 16 million rates."
Enterprise Capabilities Without Enterprise Complexity
Today's market rewards organizations that respond quickly, deliver exceptional customer experiences, and operate efficiently regardless of their size. By dismantling the myth that freight forwarding software is the exclusive domain of enterprise organizations, forwarders of all sizes realize that the tools to compete with larger organizations are available and accessible today. With enterprise-grade capabilities and technologies, freight forwarders can preserve the agility and personalized service that often differentiates them while serving as a low-risk platform for future growth.