Operational Excellence for Freight Forwarders

  • The Importance of a Realistic ROI when Implementing Technology in SME Freight Forwarders

    Small and medium-sized freight forwarders operate in one of the most margin-sensitive industries in the world. With razor-thin profits, unpredictable market cycles, and constant pressure from global players, every dollar spent must deliver measurable value. This financial discipline — while commendable — often becomes a barrier when it comes to digital transformation.

    Most SME forwarders are self-financed. They invest only what they earn, rarely turning to banks for funding. Their capital allocation decisions are driven by immediate operational needs: hiring an extra operations clerk when shipment volumes rise, or leasing additional warehouse space for a new customer. Investments that don’t directly contribute to visible revenue growth are often deferred — especially technology projects that promise “efficiency” or “future readiness” without a tangible link to new business.

    The ROI Challenge

    This mindset is understandable. In a business where gross margins often hover between 5–10%, forwarders can’t afford expensive missteps. The problem is that many technology initiatives are pitched in broad, aspirational terms — “digitalisation,” “automation,” “AI-driven insights” — without clear, quantifiable outcomes. For SME decision-makers, such projects can feel abstract, risky, and detached from daily operational realities.

    That’s why defining a realistic and specific ROI is crucial. Technology investments must be backed by solid use cases that directly address operational pain points:

    • Reducing invoice errors by automating billing and EDI exchanges
    • Shortening quote turnaround times through rate management tools
    • Improving shipment visibility with integrated tracking systems
    • Enhancing compliance accuracy via automated document checks

    When the ROI is defined in measurable terms — such as saving 3 man-hours per file, reducing invoice disputes by 50%, or winning additional RFQs through faster response times — the investment conversation becomes grounded and credible.

    Why ROI Drives Adoption

    The lack of clear ROI has long contributed to the industry’s status as a digital laggard. Many forwarders still rely on email, spreadsheets, and legacy systems because “the old way works.” However, as the logistics ecosystem evolves, the baseline for participation is changing.

    Technology is no longer a competitive advantage — it’s a minimum requirement. Shippers and global 3PLs now expect forwarders to submit electronic bids, provide online visibility, and exchange data seamlessly through APIs or digital platforms. Without these capabilities, even the most reliable forwarder risks being excluded from major RFQs.

    Making Digital Investments Work

    The path forward isn’t about adopting every new tool. It’s about strategic prioritisation — identifying where digital investments align with business outcomes. For SME forwarders, this means:

    1. Start with process pain points. Focus on bottlenecks that consume time or cause customer dissatisfaction.
    2. Quantify the benefit. Translate improvements into financial or capacity gains — e.g., freeing staff hours that can support more shipments.
    3. Validate through pilots. Begin small, measure the impact, and scale what works.
    4. Track ROI continuously. Treat technology as an ongoing business initiative, not a one-off project.

    The Bottom Line

    For SME freight forwarders, digitalisation isn’t a luxury — it’s the ticket to staying relevant. But survival depends not on buzzwords, but on realistic ROI. Forwarders who approach technology with the same financial discipline they apply to every other aspect of their business will find that well-planned digital investments can strengthen both margins and competitiveness — not by replacing people, but by enabling them to do more with less.

  • A2A: The Future of Corporate Agents

    In the emerging age of agentic AI, the next revolution in enterprise technology will not be about connecting systems — it will be about connecting agents.

    For years, corporations have relied on APIs, middleware, and data pipelines to integrate their business applications. These mechanisms, while powerful, are rigid and costly to maintain. The next wave — Agent-to-Agent (A2A) architecture — replaces technical integration with cognitive collaboration.

    From Automation to Autonomy

    Leading enterprise platforms are already embedding intelligent agents within their ecosystems:

    • Salesforce has introduced Agentforce, capable of interpreting user prompts and generating contextual CRM actions.
    • Workday integrates BP Optimize Agents to streamline workforce and process efficiency and Contingent sourcing platforms now use AI agents to autonomously match talent to projects based on skill and availability.
    • Cargowise, long known for logistics automation, is now advancing into agentic AI functions that reason across workflows rather than merely execute them.

    The difference is profound. Automation follows instructions; autonomy understands purpose. Each of these systems now hosts specialized agents capable of perception, reasoning, and communication — forming the foundation for true A2A ecosystems.

    Role-Based Agents: The Next Layer of Intelligence

    The natural evolution of this trend is the rise of role-based agents — AI entities designed to perform specialized corporate functions within defined boundaries.
    A few early examples illustrate the concept:

    • Financial Audit Agent for Workday Adaptive: constantly monitors ledgers, forecasts, and anomaly reports, ensuring compliance with internal controls and external standards. It flags inconsistencies, queries variances, and even drafts summary notes for CFO review.
    • Procurement Compliance Agent: embedded within ERP systems to ensure all supplier actions adhere to sustainability, ESG, and cost policies.
    • Sales Forecast Agent: within CRM systems, dynamically adjusting pipeline projections based on market sentiment and customer behaviour.
    • Logistics Coordination Agent: in platforms like Cargowise, continuously assessing shipment milestones, carrier reliability, and exception risks.

    Each of these agents operates within its system domain — interpreting local data, reasoning over role-specific goals, and interfacing with others via A2A orchestration.

    A2A: Agents That Talk to Agents

    In the coming landscape, there won’t be a single universal communication protocol connecting all corporate software. Instead, A2A agents will emerge as intelligent intermediaries that interpret intent, select the relevant domain agent, and coordinate the exchange.

    Consider a scenario:

    A regional operations director asks, “Provide a profitability forecast for next quarter.”

    The A2A layer springs into action:

    • The Financial Audit Agent in Workday Adaptive analyzes revenue and cost projections.
    • The Sales Forecast Agent in Salesforce Agentforce provides order pipeline probabilities.
    • The Logistics Coordination Agent in Cargowise estimates capacity utilization and transport cost exposure.
    • The A2A Orchestrator Agent interprets the results, reconciles inconsistencies, and generates a unified executive summary — without any human needing to manually transfer data or align formats.

    This is cross-agent reasoning, not just cross-system integration.

    Security and Risk Management by Design

    Traditional integrations expose multiple endpoints to external networks. Every connection is a potential vulnerability.
    A2A architecture simplifies and secures this: only one orchestrator agent — the “frontline negotiator” — is accessible via the internet.

    All role-based agents (finance, HR, operations, logistics, etc.) remain behind internal firewalls, accessible only through the orchestrator’s verified handshake.

    This model minimizes the attack surface, enhances auditability, and satisfies zero-trust policies by enforcing compartmentalized access. In effect, the enterprise becomes a network of trusted agents rather than a web of exposed APIs.

    Why It Matters for Operations and Supply Chain

    For logistics and supply chain operations, where multiple applications coexist — from TMS and WMS to ERP and CRM — A2A unlocks enormous potential.

    Agents within each system can perform their own reasoning: forecasting volume trends, identifying bottlenecks, or validating customs documentation. The A2A orchestrator then synchronizes the insights across departments.

    This architecture enables modular transformation — companies can evolve system by system, replacing or upgrading individual applications without disrupting the overall intelligence network.

    The Road Ahead

    Over the next five years, we will see enterprises deploy layered agent frameworks:

    1. System-native agents (Salesforce, Workday, Cargowise, SAP, etc.) performing role-based functions.
    2. A2A orchestrators interpreting intent, delegating tasks, and consolidating outputs.
    3. Governance agents ensuring traceability, security, and compliance across all interactions.

    This is not just the future of automation — it’s the future of enterprise cognition.

    Just as APIs defined the last decade of digital transformation, A2A will define the next: a world where intelligent, role-based agents collaborate seamlessly, securely, and autonomously to deliver real business outcomes.

  • Operational Excellence: The Differentiator in Air & Ocean Freight Forwarding

    In the fiercely competitive world of air and ocean freight forwarding, success is not just about bold strategies or expansive networks – it’s about how well you run the ship on a day-to-day basis. Research shows that companies often undervalue the power of competent management and superior execution. In fact, a landmark Harvard Business Review study concluded:

    “Neither great leadership nor brilliant strategy matters without operational excellence.”

    This thought leadership piece explores why operational excellence – the alignment, discipline, and continuous improvement in how a business is run – is the long-term game-changer for freight forwarders. We’ll start with an analytical look at management practices and then shift to a visionary perspective on achieving excellence in freight forwarding, covering alignment across departments, digital systems, process discipline, people capabilities, and pragmatic tech innovations like AI. The goal is to inspire leaders in freight forwarding to see operational excellence not as business-as-usual, but as a strategic differentiator that drives cost efficiency, service quality, and sustainable growth.

    The Undervalued Core of Competent Management

    Too often, C-suite leaders pour their energy into high-level strategy while treating day-to-day management as a back-burner issue. However, extensive research by Raffaella Sadun, Nicholas Bloom, and John Van Reenen (Harvard Business School) reveals that core management practices – such as target setting, performance monitoring, talent management, and rigorous operations – have a dramatic impact on performance. Companies vary widely in how well they execute these “basic” tasks, and those differences matter: firms with strong managerial processes “perform significantly better on high-level metrics such as productivity, profitability, growth, and longevity.” Even in strategy-driven industries, superior execution separates the high performers from the rest. Importantly, these advantages are persistent and hard to copy – a rival can’t simply clone your culture of operational excellence overnight.

    In other words, brilliant strategy alone is not enough. As the HBR study argues, operational excellence should be treated as a crucial complement to strategy. If a company “can’t get the operational basics right, it doesn’t matter how brilliant its strategy is.” Conversely, “if firms have sound fundamental management practices, they can build on them” to develop more sophisticated capabilities (like analytics or cross-functional agility) that are essential in volatile markets. The takeaway for freight forwarding executives is clear: excellence in execution is not “table stakes” – it’s a differentiator. Competent management in target-setting, process discipline, and talent development creates a foundation that competitors struggle to imitate.

    LinkedIn Pull Quote: Great strategy is useless without great execution – in freight forwarding, it’s the forwarders who excel at the “nuts and bolts” of operations that consistently outperform on profit, growth, and service.

    Execution as a Differentiator in Freight Forwarding

    Air and ocean freight forwarding has historically been a relationship-driven, margin-squeezed business. In such an environment, one might assume that “strategy” (e.g. securing capacity deals or opening new trade lanes) is the main success factor. But the reality on the ground shows that execution – cost-effective, reliable, and efficient operations – is what separates industry leaders from laggards over the long run. High-performing forwarders distinguish themselves through superior coordination, processes, and use of technology, not just through negotiating savvy or market positioning.

    Consider the current state of the industry: Many traditional forwarders are burdened by siloed departments, manual workflows, and legacy systems. They face rising customer expectations for transparency and speed, yet often struggle with fragmented data and reactive problem-solving. Meanwhile, a wave of digitally driven startups and progressive incumbents is proving that better execution can rewrite the rules. According to Boston Consulting Group, a “digital imperative” is hitting freight forwarding – startups and even customers are leveraging technology to eliminate operational inefficiencies and vastly improve the experience (bcg.com). Traditional forwarders that fail to modernize internal processes risk being left behind. By BCG’s estimates, simply “automating manual processes now could reduce certain back-office and operations costs by up to 40%,” and digitizing parts of the sales and quoting process can cut those costs even further (bcg.com). In an industry obsessively focused on expenses, such efficiency gains are game-changing.

    It’s telling that digital-native freight forwarders (the ones built on modern tech stacks) still only represent about 8% of the market, yet they are growing at over 23% annually (versus ~4% for traditional forwarders) (unicargo.com). They are pulling ahead by offering better visibility, faster service, and leaner operations – all fruits of operational excellence enabled by tech. To illustrate, digital forwarders automate tasks like quote generation, documentation and shipment tracking, which free up human staff for more strategic work and exception handling. The lesson for legacy forwarders isn’t to chase every shiny new technology, but to recognize that superior execution is itself a strategy. Firms that invest in integrating their teams, upgrading systems, and refining processes will not only cut costs but also deliver more consistently for customers. And consistency builds reputation and market share.

    LinkedIn Pull Quote: Automating the “busy work” in freight forwarding can slash operating costs by up to 40% – the forwarders who seize these efficiencies are redefining industry standards on service and price. bcg.com 

    Breaking Down Silos: Aligning Sales, Procurement, and Operations

    One of the most practical steps toward operational excellence is aligning all departments toward shared goals. In many forwarding companies, different teams – sales (commercial), procurement (carrier management), and operations (execution) – operate in their own silos. This misalignment breeds inefficiency and internal friction. For example, sales reps might promise a customer an ambitious delivery time or rate without real visibility into operational constraints, while procurement managers negotiate carrier contracts without input from frontline operations or sales forecasts. The result is all too common: “Sales reps might promise a delivery date they can’t meet, or operations might order more inventory than needed… These inefficiencies chip away at profitability.” Siloed data and communication make it harder to respond to issues, often leading to blame games instead of solutions. salesnow.com

    Achieving cross-department alignment involves both cultural and systemic changes. Culturally, leaders need to foster a mindset that sales, procurement, and ops are all part of one value stream, ultimately serving the customer together. Practically, this means establishing regular interdepartmental meetings, shared KPIs (e.g. customer satisfaction, gross margin per shipment), and collaborative planning. For instance, forwarders can implement Sales & Operations Planning (S&OP) adapted to freight: sales forecasts inform procurement’s capacity planning; procurement’s carrier commitments inform sales on what services/rates to sell; operations provide feedback on service issues to both. Adopting integrated software can also break down silos – a CRM or TMS that gives all teams real-time access to the same data (quotations, bookings, shipment status, costs) ensures everyone is working off a “single source of truth” rather than disconnected spreadsheets.

    Critically, alignment requires shared objectives. As one industry expert noted, procurement and commercial teams often have differing mandates (cost-cutting vs. revenue growth), which leads to friction – “but when both functions recognize that cost efficiency and revenue growth are two sides of the same coin, they can align around shared goals like profitability, customer value, and long-term sustainability. True business impact happens not when one side wins, but when both functions move in lockstep.” In freight forwarding terms, that could mean structuring incentive plans so that salespeople are rewarded not just for top-line volume but for profitable growth and customer retention, while procurement is measured not just on securing low rates but on enabling service reliability and capacity for sales. Joint accountability creates unity. enable.com 

    When sales, procurement, and operations collaborate closely, a forwarder can, for example, respond to a large customer RFP with a solution that balances competitive pricing (thanks to procurement’s input on carrier costs), achievable service levels (thanks to ops input on realistic transit times), and a clear value story (thanks to sales). Internally, this alignment reduces costly miscommunications and ensures resources are used optimally. The payoff is stronger project outcomes, deeper customer trust, and long-term success – all hallmarks of operational excellence.

    Building a Digital Backbone: Systems and Process Discipline

    Alignment must be supported by a solid digital backbone – the core systems and processes that run the forwarding business. In 2025, it’s alarming that “only 23% of freight forwarders have digitized more than 75% of their processes, and less than 40% are using a dedicated freight forwarding management system.” Many forwarders still rely on email, spreadsheets, and paper for critical workflows (quoting, booking, documentation, tracking, billing). This lack of digitization not only drives up labor costs and error rates, but also makes it nearly impossible to scale or gain real-time visibility. Operational excellence demands moving away from ad-hoc manual methods to integrated, efficient systems. info.magaya.com

    The core digital tools for a modern freight forwarder include: an Enterprise Resource Planning (ERP) system for finance and administration, a Transportation Management System (TMS) or freight forwarding software for planning and tracking shipments, and specialized platforms for areas like procurement (e.g. spot rate platforms, carrier management systems) and customer service (online track-and-trace portals, electronic documentation). By adopting these systems – and crucially, integrating them – forwarders can eliminate redundant data entry, reduce mistakes, and gain end-to-end visibility of operations. For example, a TMS can automatically consolidate shipments and suggest optimal routing, while an integrated procurement tool can automatically compare carrier rates and capacities, flagging the best options for each lane. TMS software automates functions like carrier selection, routing and rating, helping users cut shipping and labor costs through smarter decisions. descartes.com.

    However, simply buying software is not a silver bullet. True operational excellence comes from process discipline and documentation layered on top of these systems. A best-in-class forwarder will invest time in mapping out and standardizing processes: from how a sales lead is handed off to pricing, to how bookings are made and monitored, to how exceptions (like delays or cost overruns) are escalated and resolved. These processes should be clearly documented, taught, and continuously improved. In fact, “process documentation” and regular KPI reviews were identified in the HBR research as key aspects of strong performance monitoring. When everyone follows well-defined standard operating procedures, there is less room for error or individual workarounds. New employees can be onboarded faster, and management can more easily pinpoint where issues occur.

    With digital systems in place, data becomes an asset for improvement. Forwarders can track performance metrics such as transit times, quote-to-booking conversion rate, on-time delivery, cost per shipment, and productivity per employee. Monitoring these in dashboards (and reviewing them in team meetings) turns management into a fact-based discipline. Teams can set targets (another core practice from the HBR study) and course-correct when metrics slip. For instance, if on-time delivery is dipping, a root cause might be uncovered (perhaps a particular carrier or trade lane underperforming) and addressed proactively. If sales quote conversion is low, maybe pricing processes need adjustment or sales training. Performance monitoring closes the loop of operational excellence – you can’t improve what you don’t measure.

    LinkedIn Pull Quote: Less than 40% of forwarders have a modern TMS in place info.magaya.com. Yet those who do enjoy real-time visibility, fewer errors, and scalable processes – the backbone of efficiency in an industry where every minute and dollar counts.

    People and Proficiency: Training for Excellence

    Even the best systems and processes won’t deliver results without the right people skills and organizational culture. Operational excellence in freight forwarding is ultimately driven by teams of humans – from the sales reps and pricing analysts to the operations coordinators and branch managers. That’s why talent management is a core pillar of competent management. Forwarders must ensure their people are not only capable and well-trained, but also empowered and motivated to follow best practices and seek improvements.

    A critical area is proficiency in using operational systems. It’s common to see freight forwarding companies invest in a new TMS or CRM, but a year later many staff are still clinging to old habits (e.g. manually building quotes in Excel because they find the new system cumbersome, or keeping their own customer notes outside the CRM). To avoid this, leadership has to champion robust training programs and change management. Every employee should understand why the new process or system is beneficial and receive hands-on training to become comfortable with it. Additionally, companies can designate “power users” or champions in each department who can support colleagues and continuously identify ways to leverage more system features. Remember, technology adoption is as much about people as tech – as one report noted, successful digital transformation requires rethinking processes and culture (info.magaya.com). Investing in reskilling your workforce is part and parcel of investing in operational excellence. As a recent freight procurement study advised, “Focus on change management and reskilling initiatives to ensure your team embraces the new tools effectively.”(freightender.com)

    Talent management in an operational context also means hiring and developing the right mindset. Freight forwarding has traditionally been managed by industry veterans whose expertise is invaluable, but the future demands blending that domain knowledge with analytical and continuous improvement skills. Leaders should encourage a culture of ongoing improvement: for example, empower front-line staff to suggest process tweaks, reward teams for finding cost-saving or service-improving ideas, and cross-train employees so they understand the end-to-end flow (improving cross-functional empathy). Setting stretch goals can motivate teams – HBR’s research found that companies with a “talent mindset” at top levels, which set challenging goals and actively managed performance and development, tended to excel. In practice, a forwarder’s leadership might set a goal like “improve documentation processing productivity by 20% this year” and then involve teams in finding solutions (perhaps through better software use or eliminating duplicative steps).

    Crucially, leadership must set clear goals and provide a roadmap. Employees take operational excellence seriously when they see that top management genuinely cares about it. This means the CEO and other leaders should articulate a clear vision (e.g. “We will become the most efficient and reliable forwarder in our market”), translate that into specific objectives (cost targets, service level targets, technology rollouts), and communicate a roadmap of how to get there. They must also lead by example – for instance, by rigorously reviewing performance dashboards, asking managers tough questions about operational metrics, and celebrating wins when process improvements yield results. When leadership treats operational excellence as a strategic priority (not just a project du jour), it signals to everyone that “management quality” is as important as sales figures or strategic deals. Indeed, organizations need competent management just as much as they need analytical brilliance. A forwarder where the CEO talks as passionately about on-time performance and system adoption as about new customer acquisition is a forwarder on the way to excellence.

    Embracing Practical Innovation: AI and Data Analytics in Forwarding

    No discussion of operational excellence today would be complete without addressing emerging technologies like Artificial Intelligence. But let’s be clear: freight forwarders as a whole have been laggards in IT maturity, so the aim here is not to paint a sci-fi picture of autonomous logistics running on AI (a scenario that many in this sector would find far-fetched). Instead, the focus is on realistic, actionable applications of AI and analytics that augment human decision-making and drive practical improvements in cost and service. These technologies, when layered on the solid foundation of people, process, and systems discussed above, can be powerful catalysts for efficiency.

    Here are a few examples of how forwarders can leverage AI today in a sensible way:

    • Predictive ETA Adjustments: Rather than relying solely on static transit times provided by carriers, forwarders can use machine learning models that analyze real-time data (vessel locations, port congestion, weather, historical trends) to continuously update shipment ETAs. These AI-driven predicted ETAs are far more accurate and dynamic. In fact, specialized platforms have shown they can predict ocean freight arrival times 30% more accurately (even 2-4 weeks out) than the estimates carriers provide (portcast.io). By integrating such predictions into their operations, forwarders can proactively inform customers of delays, re-route shipments, or adjust downstream plans – improving reliability and customer satisfaction. In essence, AI can give forwarders and their clients a heads-up weeks before a problem hits, turning agility into a competitive advantage.
    • Dynamic Pricing and Yield Management: Freight rates in both air and ocean markets can swing rapidly with supply and demand. Traditionally, forwarders set pricing using static margins over cost or periodic rate sheet updates, which can lead to lost opportunities (either leaving money on the table in tight markets or losing business in soft markets). AI-powered dynamic pricing changes that. Algorithms digest real-time market conditions – freight capacity, demand surges, fuel costs, even competitor rate data – and can suggest optimal price adjustments on the fly. This means during a capacity crunch, the system might nudge selling rates upward to maximize margin, whereas during a slow spell it might lower certain lane rates to win volume, all within parameters the company sets. As one logistics firm described, AI-driven pricing analyzes vast real-time information (demand, available capacity, operational costs) and adjusts freight rates instantly to reflect current market conditions, ensuring rates remain competitive yet profitable. (pgs-log.com. This adaptive approach not only protects margins but also improves win rates. Several forwarders and digital platforms already use instant quoting tools that leverage AI to give customers dynamic spot rates. The key is these systems can factor in more variables than a human ever could – from weather to warehouse space – to optimize pricing in a way that maintains service and profitability balance (pgs-log.com). Early adopters of such adaptive pricing have reported better capacity utilization and improved customer satisfaction due to more consistent, transparent pricing.
    • AI-Assisted Procurement & Operations Planning: Perhaps the most impactful near-term use of AI for forwarders lies in automating and enhancing procurement decisions. This involves using AI agents to crunch through huge datasets of carrier rates, performance history, shipment patterns, and even external factors like economic indicators or fuel trends. The AI can automate routine procurement tasks – for example, automatically generating an RFQ to carriers based on upcoming capacity needs, or scanning incoming carrier bids to flag anomalies and suggest the best options. According to one analysis, AI-based procurement platforms can “examine carrier proposals for anomalies, perform lane-by-lane cost benchmarking, and even generate counter-bid recommendations based on current market intelligence.” (freightender.com) By continuously analyzing performance, such systems might also highlight, say, that Carrier X’s on-time rate has dropped this quarter or that a certain contract is coming up for renewal and market rates have fallen – prompting the procurement team to renegotiate proactively. The gains from AI in freight procurement are tangible: early adopters have seen about a 15% reduction in logistics costs and a 65% improvement in service levels through smarter, faster decision-making (freightender.com). Similarly in operations, AI can assist with load planning (consolidation and routing optimization algorithms) and exception management (e.g. predicting which shipments are at risk of delay or which customers might experience a service failure this week). Importantly, these tools augment your team’s capabilities – they take over grunt work and surface insights, so your human experts can focus on high-value tasks like carrier relationship management or custom solutions for clients.

    It’s worth noting that implementing AI solutions should be done judiciously. Quality data is a prerequisite – forwarders must clean up and integrate their data (another benefit of the digital backbone) for AI models to be effective. Moreover, change management is critical; your staff should trust and understand the AI’s role. The best results come when AI is introduced as a co-pilot for employees, not a black box. A great approach is to start with pilot projects in one area (say, automated quote pricing or an AI lane cost analysis) and measure the impact, then iterate. This targeted experimentation prevents overwhelm and builds confidence in the tools. And always keep the customer in focus: any AI deployment should ultimately enhance the customer experience (through better on-time performance, faster quotes, fewer errors, etc.). If it doesn’t, reconsider the effort.

    In summary, AI and analytics are rising in freight forwarding – not to replace the human touch that the industry prides itself on, but to amplify operational excellence. They enable forwarders to anticipate rather than react, to optimize rather than guess, and to deliver more value with the same resources. A freight forwarder that has aligned teams, digitized processes, and skilled people is ripe to reap the benefits of these emerging tools, whereas one that hasn’t laid the groundwork will find AI to be just hype. The message to leadership is to envision a future where your company is data-driven and AI-assisted, and take tangible steps toward it, one use-case at a time.

    LinkedIn Pull Quote: Predictive analytics are turning data into gold for forwarders – for example, AI can improve ETA accuracy by 30% (portcast.io), enabling proactive re-routing and communication that saves money and keeps customers happy.

    Conclusion: Excellence as a Long-Term Differentiator, Not a Quick Fix

    Operational excellence in air and ocean freight forwarding is a journey, not a destination. It requires persistent focus, investment, and leadership commitment – but the rewards are profound. In an industry buffeted by price pressures, capacity swings, and external disruptions (from pandemics to trade wars), the forwarders that thrive are those with resilient, efficient, and agile operations. By aligning departments toward common goals, building a robust digital backbone of systems and processes, nurturing talent and a culture of continuous improvement, and leveraging practical tech innovations, freight forwarders can transform their operational capabilities. This is not about a one-time cost-cutting initiative or a flashy tech project. It’s about weaving a fabric of excellence through the organization that drives incremental improvements every day.

    Leaders must champion this cause. They need to make the business case that operational excellence is a long-term differentiator – it’s what will set the company apart in service quality, in cost leadership, in adaptability to change. This is especially true when strategic differentiation is hard to achieve in forwarding (many forwarders offer similar global networks and services). Execution becomes the edge. As the HBR study reminded us, world-class management practices are “a powerful way to become more competitive” and could be the best route out of the doldrums in a low-growth environment. Moreover, because excelling at management and operations is difficult and requires sustained effort, it’s an advantage that competitors can’t easily steal. In practical terms, a forwarder known for its reliability, efficiency, and proactive service will win customers and weather downturns better than one known for inconsistent execution – even if they have similar rates or coverage.

    For too long, competent management in freight forwarding has been undervalued – often overshadowed by the chase for the next big customer or the next strategic expansion. It’s time to correct that undervaluation. Superior execution should be part of the brand you present to the market. It should be part of the story you tell customers (“We consistently deliver because our operations are second to none”). And it should be a source of pride internally, where employees at all levels understand their role in a high-performing machine and are recognized for contributions to efficiency and service.

    In conclusion, operational excellence is not a cost center – it’s a value creator and a strategic asset. Freight forwarders that embrace this mindset can turn what is often seen as “ordinary work” into extraordinary results. They’ll enjoy lower costs, happier customers, engaged employees, and a future-ready business. As you lead your organization, remember the simple truth that opened this article: great strategy alone won’t carry the day if execution falters. But when you marry a sound strategy with world-class execution, there’s little that can’t be achieved. In the complex, ever-changing arena of global logistics, that marriage – of vision and operational excellence – is what will propel the winners of tomorrow.

    LinkedIn Pull Quote: Operational excellence isn’t a one-time project or a fancy slogan – it’s a culture. It’s the hard work of running a freight forwarding business right every single day. Do that, and no market storm can sink you.

    Sources:

    Freightender (2024). “Why AI Freight Procurement Is Making Supply Chains Smarter.” – Discusses AI in freight procurement, noting 60%+ of tasks still manual, and that early AI adopters saw ~15% cost reduction and 65% service level improvementfreightender.comfreightender.com. Also stresses change management for successful AI tool adoptionfreightender.com.

    Sadun, R., Bloom, N., & Van Reenen, J. (2017). “Why Do We Undervalue Competent Management?”Harvard Business Review – Research findings on how core management practices (target setting, performance monitoring, operations, talent management) drive performance.

    Boston Consulting Group (2018). “The Digital Imperative in Freight Forwarding.” – On the impact of digitization in freight forwarding and potential cost reductions from process automationbcg.combcg.com.

    Unicargo (2023). “Digital Freight Forwarding Trends for 2024: What to Expect.” – Industry stats on digital forwarders’ market share (8%) and growth (23% annually) vs traditional, and benefits of digital platforms in efficiencyunicargo.comunicargo.com.

    SalesNOW Blog (2023). “Breaking Down Silos: How CRM Integration Connects Sales and Operations.” – Example of misalignment between sales and operations leading to poor decisions and inefficienciessalesnow.com.

    Enable.com Blog (2025). “The Power of Commercial-Procurement Alignment.” – Insight into aligning procurement and sales goals; shared vision of profitability and moving in lockstep for true business impactenable.com.

    Magaya/Adelante SCM Report (2025). “State of Digitization in Freight Forwarding 2025.” – Survey findings that only 23% of forwarders have heavily digitized their processes and <40% use a forwarding management systeminfo.magaya.com.

    HBR – Sadun et al. (2017). Core managerial practices sidebar. – Emphasizes process documentation, KPI usage, target clarity, and talent development as fundamentals of operational excellence.

    PGS Logistics (2025). “Adaptive Pricing in Freight Forwarding: Using AI for Real-Time Rate Adjustments.”– Describes how AI enables dynamic pricing based on real-time data (demand, capacity, etc.) to optimize rates and profitabilitypgs-log.compgs-log.com.

    Portcast (n.d.). “Predictive ETA and Transportation Visibility for Ocean Freight.” – Reports that AI-driven predicted ETAs can be ~30% more accurate than carrier-provided ETAs 2-4 weeks in advanceportcast.io.

  • Customer Service in the Freight Forwarding Industry

    Elevating Freight Forwarder Performance Standards

    In today’s volatile global trade environment, shippers no longer see freight forwarders as transactional service providers—they expect them to be proactive partners. Research by Drewry shows that 42% of shippers cite service reliability as a bigger concern than cost when selecting logistics partners, while Transport Intelligence highlights responsiveness, technology adoption, and visibility as the top differentiators in forwarder performance.

    To assess excellence, eight core performance areas define a best-in-class forwarder:

    1. Responsiveness – Timely acknowledgements and clear turnaround times build trust.
    2. Shipment Management – Proactive milestone updates and recovery plans protect supply chains.
    3. Documentation – Accuracy and timeliness in B/Ls, AWBs, and invoicing ensure compliance and avoid disputes.
    4. Customer Experience – Named contacts, issue ownership, and vertical expertise provide confidence to shippers.
    5. Technology Process – Digital integration, visibility tools, and KPI reporting drive efficiency.
    6. Reliability & Execution – Consistent on-time pickup/delivery and low claims ratios differentiate forwarders.
    7. Proactivity & Insight – Forwarders must guide clients through rate trends, geopolitical shifts, and routing alternatives.
    8. After-Hours Support – 24/7 escalation channels are a strategic advantage for critical shipments.

    Shippers increasingly use structured benchmarks to compare providers. Platforms like LogiScore.net introduce accountability by scoring forwarders across these dimensions, bringing transparency to a traditionally opaque sector.

    As supply chains face disruptions ranging from Red Sea attacks to pandemic-related bottlenecks, forwarders that excel in these eight pillars will secure long-term partnerships. In a market where reliability is scarce, measured excellence becomes the new currency of trust.

  • Customer Service in the Freight Forwarding Industry

    🌐 After Hours Support in Global Logistics

    In today’s interconnected economy, supply chains never sleep. While not every industry requires 24/7 oversight, the ability of a freight forwarder to provide after-hours escalation and control tower visibility can be a decisive competitive advantage.

    Why After-Hours Support Matters

    Critical shipments—whether pharmaceuticals requiring temperature control, high-value electronics, or just-in-time automotive components—do not conform to a 9-to-5 schedule. Delays caused by customs holds, port congestion, or equipment breakdowns can arise at any hour. According to the World Economic Forum, unplanned logistics disruptions can cost businesses up to 10% of annual revenues if not addressed swiftly.

    Industry Best Practices

    Leaders in logistics have recognized this need:

    • DHL’s Resilience360 platform emphasizes real-time risk monitoring and 24/7 crisis response teams to mitigate disruption.
    • Kuehne+Nagel’s Integrated Logistics Control Towers offer global visibility, ensuring clients know the status of shipments anytime, anywhere.
    • Maersk’s Global Service Centers provide weekend and holiday contact channels, reflecting how customer expectations now demand continuity.

    The Competitive Advantage

    While small and mid-sized shippers may not always require around-the-clock attention, the assurance that escalation paths exist provides peace of mind. Forwarders with strong after-hours protocols demonstrate:

    • Commitment to service reliability – ensuring critical cargo isn’t left stranded.
    • Operational maturity – showcasing control tower capabilities.
    • Customer trust – aligning with shippers’ risk management strategies.

    Looking Ahead

    As global trade faces increasing volatility from geopolitical shifts, labor disputes, and extreme weather, after-hours responsiveness will shift from a premium service to a baseline expectation. Shippers will increasingly factor “always-on support” into forwarder evaluations, not just for critical industries like pharma or aerospace, but across all high-value supply chains.

    Forwarders who invest now in robust escalation procedures, global service centers, and digital control towers will not only retain customer confidence but also differentiate themselves in an industry where responsiveness defines loyalty.

  • Customer Service in the Freight Forwarding Industry

    Proactivity & Insight: From Reactive Forwarding to Predictive Partnership

    In today’s turbulent logistics environment, shippers no longer view freight forwarders as transactional service providers. They expect strategic partners capable of anticipating disruptions, guiding decision-making, and offering actionable insights.

    Proactivity & Insight is a defining measure of a forwarder’s maturity. According to McKinsey, companies that integrate predictive supply chain capabilities can reduce costs by up to 15% while improving service levels by 65% (McKinsey, Supply Chain 4.0). Proactive forwarders don’t wait for issues to occur; they forecast, warn, and suggest alternatives well before disruptions impact cargo.

    Examples include:

    • Market Intelligence: Providing timely analysis of rate trends, capacity shifts, and geopolitical developments that may affect global trade.
    • Regulatory Foresight: Notifying customers of upcoming General Rate Increases (GRI) or Bunker Adjustment Factor (BAF) changes—while offering mitigation options such as contract renegotiations, advanced bookings, or alternative routings.
    • Operational Optimization: Advising on consolidation opportunities, mode shifts, or improved routings that lower costs and emissions while safeguarding reliability.

    DHL’s Global Connectedness Index (2023) highlights that supply chain resilience increasingly depends on foresight and adaptability rather than raw capacity. Similarly, Gartner notes that 79% of supply chain leaders prioritize “insight-driven decision-making” as a top capability for 2025.

    In this context, forwarders who consistently deliver foresight build trust and secure long-term partnerships. Shippers want assurance that their logistics partner not only responds to today’s challenges but also prepares them for tomorrow’s.

    At LogiScore, Proactivity & Insight is a core scoring dimension, separating forwarders that merely manage shipments from those that safeguard supply chains.

  • Customer Service in the Freight Forwarding Industry

    Reliability & Execution: The Bedrock of Freight Forwarding Performance

    In freight forwarding, reliability is more than a KPI—it is the foundation of trust between shipper and forwarder. A forwarder may win a contract on price, but long-term retention depends on consistent execution: on-time pickup, accurate customs declarations, and shipments delivered exactly as promised.

    According to a McKinsey survey of supply chain leaders, over 70% rank execution reliability as their top priority, above cost optimization. This is particularly critical in industries like pharmaceuticals, automotive, and high-tech, where late deliveries can halt production lines or compromise product integrity.

    Key indicators of reliability include:

    • On-time pickup & delivery: The most visible and measurable elements of service.
    • Shipment integrity: Cargo must move as contracted, without last-minute rollovers or routing changes.
    • Compliance with SOPs: Especially vital for regulated verticals such as healthcare, chemicals, and aerospace.
    • Customs accuracy: A single declaration error can trigger penalties or delays at the border.
    • Claims ratio: The proportion of claims versus shipments is a direct reflection of operational discipline.

    Industry benchmarks show best-in-class forwarders operate with a claims ratio below 0.5%, while lagging performers exceed 2%, eroding client confidence.

    Reliability is not built overnight. It requires investment in process discipline, digital execution tools, and continuous performance monitoring. Platforms such as LogiScore provide shippers with transparent visibility into a forwarder’s reliability track record, shifting procurement decisions from promises to proven performance.

    As supply chains face greater complexity—geopolitical shifts, capacity crunches, and sustainability requirements—execution excellence will increasingly define competitive advantage. Price may open the door, but reliability keeps it open.

  • Customer Service in the Freight Forwarding Industry

    Driving Trust Through Technology in Freight Forwarding

    In today’s hyper-competitive logistics landscape, technology is no longer a differentiator—it is a baseline expectation. Shippers demand visibility, accuracy, and integration, and forwarders that cannot meet these standards risk being sidelined. According to a McKinsey & Company report, digital adoption in logistics has accelerated by more than five years since the COVID-19 pandemic, with track-and-trace systems now considered essential rather than optional.

    Key Technology Processes That Matter

    1. Online Track-and-Trace
      Shippers expect real-time shipment visibility. Deloitte’s 2023 Global Supply Chain Survey found that 79% of supply chain leaders rank end-to-end visibility as a top priority. Failure to provide online tracking erodes trust and increases customer service costs.
    2. Document & Invoice Portals
      An online portal for shipment documents and billing reduces administrative bottlenecks, eliminates version errors, and accelerates dispute resolution. Gartner highlights that companies with automated documentation processes see a 30% reduction in billing disputes.
    3. Systems Integration (EDI/API)
      In an era of API-driven ecosystems, forwarders must be able to connect directly to their customers’ systems. According to Accenture, shippers that adopt integrated EDI/API solutions report 15–20% faster cycle times and fewer manual errors.
    4. Reporting & Analytics
      Regular reporting—weekly shipment summaries, KPI dashboards, or exception reports—has shifted from being a “value-add” to a non-negotiable standard. Shippers increasingly benchmark forwarders on the timeliness and accuracy of their reporting, using it as a measure of operational maturity.

    Why It Matters

    LogiScore emphasizes that forwarders are now judged not just by performance, but by transparency and accessibility of data. Technology processes underpin trust: they ensure accountability, reduce friction, and provide shippers with the control they demand.

    Forwarders that fail to offer these capabilities risk exclusion from RFPs and long-term contracts. By contrast, those that invest in robust digital processes position themselves as partners of choice in a data-driven supply chain.

    ✅ Industry References:

    • McKinsey & Company (2021). How COVID-19 has pushed companies over the technology tipping point.
    • Deloitte (2023). Global Supply Chain Survey.
    • Gartner (2022). The State of Supply Chain Digitalization.
    • Accenture (2022). Supply Chain Resilience through API Integration.

  • Customer Service in the Freight Forwarding Industry

    Customer Experience as a Differentiator in Freight Forwarding

    In global logistics, technology and networks are often viewed as the ultimate differentiators. Yet research consistently shows that customer experience (CX) remains the decisive factor in retaining shippers and winning new business. According to PwC, 73% of customers cite experience as an important factor in their purchasing decisions, second only to price and product quality. In freight forwarding—where margins are tight and services are commoditized—CX is increasingly the battleground.

    Why Customer Experience Matters in Logistics

    Shippers expect seamless, proactive, and industry-specific support. Delayed responses, lack of accountability, or unresolved issues directly affect supply chains, which in turn erode trust. McKinsey notes that companies delivering consistently excellent B2B experiences grow revenues 4–8% above their market. In logistics, this translates into measurable outcomes: reduced churn, higher wallet share, and stronger long-term contracts.

    Five Cornerstones of CX Excellence in Freight Forwarding

    1. Proactive Issue Management
      Forwarders who follow up without reminders demonstrate ownership. This reduces downtime and shows commitment to the customer’s business continuity.
    2. Fast and Accurate Rectification
      Documentation errors or invoice discrepancies must be corrected within 48 hours. Slow remediation not only damages trust but also risks customs penalties and cash-flow disruption.
    3. Named Points of Contact
      Having identifiable people responsible for operations and customer service—not generic mailboxes—adds accountability. Gartner research highlights that “named relationship managers” improve customer satisfaction scores by up to 30%.
    4. Single Point of Escalation
      Escalation paths must be clear and responsive. Shippers value not just problem solving, but the confidence that issues won’t vanish in a maze of departments.
    5. Professional, Sector-Specific Support
      Using the right language matters. A pharma shipper expects knowledge of GDP compliance; a chemicals shipper expects REACH awareness. Customer service should be vertical-specific, professional, and free of unnecessary jargon.

    The Competitive Edge

    Customer experience is not a “soft” differentiator; it is a hard metric tied to financial performance. For instance, Bain & Company reports that B2B companies excelling in CX grow revenues 10–15% faster and achieve higher margins. In forwarding, where many players offer the same port pairs and rates, the experience delivered at each touchpoint becomes the true differentiator.

    In short: CX in logistics is no longer optional—it is the foundation of resilience, retention, and reputation.

  • Customer Service in the Freight Forwarding Industry

    Documentation – The Invisible Backbone of Freight Forwarding

    In freight forwarding, speed and visibility often take the spotlight. Yet, behind every seamless shipment lies an element that too often goes unnoticed: documentation. Bill of ladings, house airway bills, and final invoices are not mere formalities—they are the invisible backbone of global trade. When documentation fails, supply chains stall. When documentation excels, trust compounds.

    According to the World Bank’s Logistics Performance Index, accuracy and timeliness of documentation are among the top enablers of efficient cross-border trade. In fact, a 2023 McKinsey study highlighted that incomplete or incorrect documents account for 15–20% of global shipment delays, leading to millions in demurrage, storage, and penalty fees annually. Documentation is not just an administrative function—it is a critical performance differentiator.

    Best-in-class forwarders demonstrate four consistent behaviors:

    • Issuing draft B/L or HAWB within 24 hours of departure ensures shippers can reconcile cargo movements with finance and compliance teams early.
    • Sending final invoices within 48 hours of shipment completion accelerates cash flow and eliminates uncertainty.
    • Submitting documentation accurately and completely on the first attempt, reducing costly customs queries or cargo holds.
    • Aligning the final invoice to the quotation, guaranteeing transparency, avoiding hidden costs, and building trust.

    For shippers, forwarders who excel in documentation are not just “vendors”—they are strategic partners. In an era where digitization and compliance are converging, shippers increasingly evaluate forwarders on their ability to deliver paperwork as efficiently as they move cargo. As digital trade corridors expand and e-documentation (such as eB/L) gains adoption, the leaders will be those who treat documentation not as a back-office function, but as a core component of customer experience.

    Documentation is precision. Documentation is accountability. And in logistics, documentation is the ultimate proof of reliability.