5 Myths About Freight Forwarding Software
Myth #3 – Legacy Systems Work Fine and Don’t Need to Change
Countering Commonly Held Myths
Many freight forwarders have relied on the same freight forwarding operational systems for years. These legacy systems have served well, managed thousands of shipments, and become deeply embedded within day-to-day operations. As a result, organizations may reasonably ask, why replace them?
It's a fair question. Shipments continue to move, customers are being served and employees know how to use the software. While legacy systems may still support core forwarding operations, however, the logistics industry has changed dramatically.
The Reality: Systems That Still Work May No Longer Support the Way Forwarders Need to Operate
Continuing to operate with legacy, outdated systems creates a competitive disadvantage. When many of these platforms were introduced, customers relied on phone calls and emails for shipment updates. Data was exchanged through manual processes. Integrations between business systems were limited, and regulatory requirements were less complex. So, even though these systems still work, they do so in isolation and there are better alternatives today.
Customer expectations have also changed significantly. Shippers increasingly expect real-time shipment visibility, faster quote responses, digital document access, and proactive communication throughout the shipment lifecycle. Forwarders are now expected to exchange information seamlessly with carriers, customs authorities, transportation providers, ports, terminals, and business partners.
Meeting these expectations requires technology that automates manual processes, connectivity across functions, and real-time information sharing between enterprise systems.
Why Does the Myth Persist?
Familiarity and sunk cost are two big reasons behind the perception that legacy systems work well enough. For example, employees understand existing workflows. Additionally, forwarders have invested significant time and resources maintaining these systems, making it difficult to justify replacing technology that still appears to function. These factors, coupled with the concern that modernizing a core business platform will introduce unnecessary disruption or require a lengthy implementation project, can make a compelling case to stay the course.
What’s often overlooked, however, is the opportunity to gain a competitive advantage and save significant operational costs that stem from the businesses continuing to work around the limitations of aging technology.
What Has Changed in Freight Forwarding?
Perhaps the biggest change in freight forwarding has been the growing importance of digital customer experiences. Customers increasingly evaluate freight forwarders on more than price and service. They expect near-real-time access to information, shipment visibility and responsive communication. They also gravitate to self-serve portals that provide accurate, timely information 24 hours per day.
Internally, forwarders are now managing increasingly complex supply chains due to more rigorous customs regulations, security requirements, and evolving automated entry filing systems. As a result, externally, the rate of data exchange is quickening. Forwarders depend on a growing network of carriers, government agencies, logistics providers, and technology partners that require the digital exchange of information in near real-time.
Where Do Legacy Systems Create Hidden Costs?
It is not uncommon for the inefficiencies of legacy systems to become status quo over time. Companies tend to develop workarounds that feel normal because employees have followed the same processes for years.
Activities like entering the same shipment information into two different systems, managing rates and quotes on spreadsheets, or updating shipment milestones manually and sharing information with customers via email have simply become the way the operation runs.
Individually, these activities may seem minor but collectively they consume valuable employee time, increase the likelihood of errors, slow down customer response times, and make it more difficult to increase shipment volumes without adding additional staff.
Technology Has Changed Too
Cloud-based freight forwarding platforms are designed to eliminate many of these operational inefficiencies.
Automation can streamline manual, repetitive activities such as quoting, documentation, milestone tracking, and compliance workflows. Information entered once can be shared across multiple operational processes, reducing duplicate data entry while improving data accuracy. Modern platforms also improve connectivity by integrating with carriers, customs agencies, transportation providers, and customers through standardized digital processes.
Artificial intelligence is becoming more of a change factor. AI-assisted tools can now enhance and accelerate tasks such as quote creation, extraction and validation of information from shipping documents, and identify potential exceptions before they become operational issues.
In addition, while cybersecurity is not something that older systems focused on, these threats are a real part of doing business today. New freight forwarder software is designed with capabilities to help freight forwarders better protect customer data from cyber-attacks.
Perhaps most importantly, newer platforms provide organizations with a technology foundation that can scale rapidly as customer expectations and business requirements continue to evolve.
Customer Perspective
Freight forwarders often shop for a new system when their existing software can no longer grow with them, cannot adhere to new compliance requirements or is no longer supported by the provider. It’s during this process that they realize how much systems have improved and better understand the advantages and opportunities that modern solutions.
A Customs Brokerage shares how leveraging a modern platform from Descartes helped them achieve stellar growth
“We have seen a 25% increase in volume since implementing Descartes TMS. Descartes currently manages 95% of our business operations, and the technology and automation offered by Descartes helped us not only increase the volume of customers but also gave us an opportunity to grow our range of services offered. This has helped drive our business to a higher level of operational efficiency and added to our mission of being a cargo concierge.”
Gabriel Rodriguez – President at A Customs Brokerage
How Can Descartes Help?
Descartes Freight Forwarding Software enables logistics service providers to improve operational efficiency by reducing manual work and digitizing key customer interactions.
Descartes also helps simplify customs operations by automating routine clearance activities and enabling the electronic exchange of information with customs authorities. Integrated rate management and quoting capabilities leverage connected carrier services and spot market pricing, allowing forwarders to generate accurate quotes in real time through self-service customer portals, email, or directly with sales teams. Key capabilities include:
Productivity Through Automation
Reduce time spent on repetitive operational tasks by automating activities such as quote generation, document processing, milestone updates, and compliance workflows. AI-assisted capabilities help accelerate data entry and quote preparation, allowing operations staff to handle higher shipment volumes while dedicating more time to customer service and exception management.
A Single Platform for Freight Operations
Replace disconnected applications with a unified solution that combines freight management, customs compliance, and financial operations. Working from a single source of truth eliminates duplicate data entry, improves collaboration across departments, and gives both management and customers greater visibility into shipment status and business performance.
A Connected Logistics Ecosystem
The Descartes Global Logistics Network™ (Descartes GLN™) provides direct connectivity to carriers, customs agencies, ports, terminals, and other logistics partners around the world. Rather than building and maintaining numerous point-to-point integrations, freight forwarders can leverage an established network that streamlines communications, enhances shipment visibility, and simplifies regulatory compliance.
Modular Deployment
Deploy the capabilities that address your immediate business priorities for freight forwarding, customs compliance, customer portals, or rate management and quoting. Expand the platform over time as operational needs evolve.
Scalable Platform Architecture
Support multiple offices, currencies, and country-specific regulatory requirements from a single platform. Whether growth comes through new customers, acquisitions, or expansion into additional markets, the solution scales alongside your business without the need for a disruptive or expensive system replacement.