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Will small, digital Forwarders dominate the market at the expense of current giants?

We hand an exciting debate on the above mentioned topic on hyperLog forum (Lodz,24.10.2019) with Arkadiusz Glinka (C.H. Robinson) and Maximilian Schaefer (InstaFreight), moderated by Karol Sulinsky

I firmly believe in digitalisation of the transport & logistics sector, but we can’t underestimate the role of traditional forwarding in the supply-chain such as:

  • consolidate of the fragmented orders
  • consolidate of the fragmented capacities
  • Optimise the supply.chain(waiting time, empty run, seasonality, LTL consolidation)
  • bridge the financial gap between shippers & carriers (pay earlier, factoring)
  • document management (POD, invoicing)

On the other hand the carriers needs are very focused on:

  • access to the volumes
  • fair price
  • efficiency & productivity (less waiting time, less empty run)

The technology (new, super-efficient software) can support the carrier’s needs, but could not solve one major factor: the critical mass of VOLUME

Currently the small digital Forwarders has state of the art software solution, but the traditional Forwarder Giants keeps in their hands the customers and the VOLUME.

Unfortunately, without Volume none of the super-efficient software can be good enough to replace the current Forwarders.

I believe, the future is in between the worlds!

Some of the small, digital forwarders became strong enough to collect he critical mass of VOLUME, and some of the traditional giants became smart enough to develop their own digital platforms.