Get started on a digital Freight Exchange platform
Historically, developing business opportunities from freight forwarders was sometimes more effort than it was worth for small to mid-sized road freight transporters. However, the arrival of digital Freight Exchange platforms has been transformational. And it’s never been easier to work with a freight exchange platform for carriers and freight forwarders!
Underused trailer assets
In 2016, the utilization of road freight capacity in Western Europe was only 60% because trucks returned from journeys either empty or with partial loads. Unused capacity is estimated to cost industry in Western Europe about €100 billion. (source: BCG)
Encouraging the digital rush
In its “The Digital Imperative in Freight Forwarding” report, consultants BCG identify two major issues with traditional freight forwarding which has stimulated incumbents and start-ups to look at ways of digitising the freight forwarding process. One issue is the poor customer experience including a lengthy and tedious process to obtain a quotation and booking. According to Freightos, a shipper can wait up to 100 hours for a quote. The second issue is the manual processes involved in traditional air and sea freight forwarding.
Types of digital marketplaces
Fleet managers can find new business on a range of digital marketplaces. TI Insight categorises them into five types (source: TI Insight):
- ‘E-Forwarders,’ ‘digital’ or ‘virtual forwarders’ which “actively intermediate the process and take on the execution and pricing risk”. Examples include: DHL’s Saloodo, Schenker’s Drive4Schenker, Instafreight, Freighthub, Cargonexx, Colo21.
- ‘Load boards,’ or ‘market places’ which provide an exchange between shippers, freight forwarders and carriers but do not take responsibility for the execution of the delivery. These include Teleroute, TimoCom, Cargoclix, DAT, Truckstop.com, Loadfox
- ‘Tender platforms’ create longer term relationships between carrier and shipper. These include: TIContract, Logistitrade, Tendereasy.
- ‘Data connectors’ or ‘aggregators’ which provide standardized connections and data between market players typically about pricing, freight allocation, cargo tracking, etc. These include: Transwide, Transporeon, FourKites, Project 44, Sixfold.
- ‘Traditional freight forwarders’ such as Kuehne+Nagel which are developing their own proprietary customer portals including quote engines.
5 steps to getting started on a digital freight exchange platform
It’s easy to get started. Using the example of Teleroute, here are 5 steps to obtaining your first business opportunity through a digital freight exchange platform. These basic steps are typical of most providers.
- Registration - You register and share details including your identity card or passport, transport licence, VAT number, insurance certificate and, depending on the country, undergo a basic financial check.
- Set up the technology - A freight exchange platform such as Teleroute is aimed at transport planners who work from their desks on PCs, tablets or smartphones linked to the internet. Owner drivers on the road can access the platform via a mobile app.
- Find the freight opportunities - You find freight or vehicle space by targeted searching on lanes and type of merchandise in the freight exchange, a process that is also supported by automatic matching.
- Agree the deal - You make the deal yourself with the shipper, freight forwarder or carrier. You agree on the price, exchange documents such as transport orders and deliver the consignment of goods.
- Get paid – This varies according to the provider. In the case of Teleroute, the carrier or the freight forwarder gets paid in accordance with the payment terms agreed between them. Teleroute has a debt mediation service which supports its customers in case of non-payment. It also provides an objective customer rating of all its customers. This objective customer rating tool is based on payment behaviour and activity on the freight exchange and supports customers’ decision-making.
Good luck with your new orders coming through a digital Freight Exchange platform!
Trailer reliability is key to fulfilling cargo deliveries through digital freight exchange platforms. At TIP Trailer Services, we are experts in providing outsourced trailer maintenance and repairs, enabling you to maximise your trailer uptime on the road and seize those new business opportunities.
Let TIP maintain and repair your trailer
At TIP, we have more than 50 years of experience in maintaining trailers. Our extensive network of workshops and supplier network across Europe provides our customers with a wide range of maintenance and repair services, to help you reduce unplanned trailer downtime and ensure the compliance and safety of your trailers.
Whether on the outward or return leg of your delivery, we can come to your rescue whether your trailer is on the way to Limoges, Lisbon, Łódź , Luzern or any other European destination. Our Europe-wide breakdown recovery service operates 24/7 365 days per year.
Benefits of TIP maintenance services
Our customers appreciate many aspects of our maintenance and repair services. They include the plannable and predictable costs due to fixed prices. Customers know that they will benefit from the expertise of a specialist, well-trained and dedicated team of technicians. We help them maximise the asset utilisation of their trailer fleets. We ensure that our customers’ safety and compliance requirements are met.
Are your trailers ready to capture new business through digital freight exchange platforms?
To find out how you can maximise the reliability of your trailers with TIP Trailer Services maintenance and repair programmes, please contact us.