Why Is Digitization Imperative For Freight Forwarders And Logistics Service Providers?
Editor’s Note: The following is an excerpt of a research report published recently, “The State of Digitization in Freight Forwarding 2025.” The research, conducted by Adelante SCM and commissioned by Magaya, highlights digitization trends and priorities in the freight forwarding industry. The report includes data and insights from a survey conducted in November 2024 with 71 qualified and verified freight forwarders and logistics service providers. We also surveyed members of the Indago supply chain research community to get their perspectives on the technological capabilities of their freight forwarding and LSP partners. Please download the full report for all the research results, and register for the webcast on February 25th at 2:00 pm ET where Adrian Gonzalez, Alfred Murgado, and Gustavo Gomez will analyze and discuss the findings of the report.
“The art of progress is to preserve order amid change and to preserve change amid order.”
That quote by the English mathematician and philosopher Alfred North Whitehead encapsulates nicely the difficult balance freight forwarders and other logistics service providers (LSPs) must achieve to remain relevant and successful in today’s dynamic and unpredictable business environment.
On the one hand, they have to maintain operational excellence in executing the fundamentals of their business regardless of the change happening around them, but on the other hand, they also have to keep innovating and transforming their ways of working. If they focus too much on one and not the other, they either risk getting left behind by the competition or they risk going out of business by investing too much time, money, and resources on things that don’t deliver meaningful business benefits.
Achieving the right balance between operational excellence and continuous innovation is also at the heart of digital transformation. Unfortunately, many freight forwarders and LSPs remain laggards when it comes to digital transformation.
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