Technology is changing the logistics business at lightning speed putting pressure on forwarders to make the interaction with end customers as seamless and interactive as possible. Those who adapt to this new operating environment using improved customer facing systems will survive, while those who can’t or don’t will simply disappear.
That’s the view of Mark Gatenby, CIO of Tigers Limited, who believes that technology is one of the main drivers of commoditisation of the freight industry. “This means that only those companies that can serve their customers cheaply or find additional revenue sources through valueadded services will survive,” he said. “It is both driving that commoditisation and offering a way out for those adaptable enough to find and adopt the opportunities it offers.”
According to Gatenby over the years progress in technology has been quite modest for most freight applications - until recently that is. “The new tech environment is bringing increases in power, more applications, reductions in cost and increased security,” he told FTW. “
This means that all aspects of freight IT have to be completely rethought. Tigers has created its Azure-based SmartHub innovation portal, which allows us to rapidly assimilate new tech as it becomes available or even create our own new products as the market requires. We can then leverage this access to advanced features to better serve our customers. Therefore, with one link to Tigers’ SmartHub, customers get full access to our entire portfolio of freight and logistics systems.”
According to Gatenby two competing trends can be seen. “Firstly, those tech advances that seek to cut out or reduce the role of forwarders, such as Blockchain or Uberisation. Secondly, as a counter-balance to the first trend, there are new systems that allow forwarders to perform a greater range of services – tracking, eCommerce, and supply chain systems – all of which allow forwarders to move further up and down the value chain.”
Gatenby said while it was unlikely that forwarders would ever be cut out completely, it was important to emphasise that if they wanted to remain in business they had to embrace revolutionising technology.
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Tech advances that seek to cut out or reduce the role of forwarders, include Blockchain or Uberisation. – Mark Gatenby
