Digitalization Wave - Are you being left behind?

The shipping and freight industry, being over 5,000 years old, is one of the oldest industries in the world. Notwithstanding, it remains a most vital component for a country’s trade, growth and economic viability. It is responsible for approximately 90% of the world trade and is the life line of the global economy. Although it has gone through several changes throughout the years, from bigger, faster ships to containerization of cargo, it still lags behind in embracing new technologies that have become second nature in other markets. In the 1960s that containerized cargo transformed the shipping industry, creating a boom in world trade and made significant contribution to the concept of trade globalization.

In this new era, digitalization offers the opportunity for players in the shipping industry to strengthen their relationships with customers and lower their operational costs. The industry should seek to adopt a structured approach to defining a digital vision and identify ways of integrating new technologies and capabilities into its traditional operations. Consumers have become accustomed to instant satisfaction when engaged in business transactions, and therefore there is increased consumer demand for speedily delivered goods, and continuous means of communication. Any gap in communication can lead to serious loss in the value of service provided to the consumers and stakeholders. Many industries now recognize the power and importance of technology in this era of digitalization.

It is not too late to get started

The industry is still in the early stages of digitalization which is increasingly considered one of the key solutions to the many challenges being faced today. A variety of key players are adopting digital technology to provide a seamless flow of information and documents among all stakeholders including shippers, carriers, terminals, forwarders, and port authorities. Effective coordination and collaboration among these various entities are essential if a supply chain is to function properly.

Game-changers in the industry are transforming the lackluster customer experience by adopting an interactive online portal. Companies are focusing on consumer-demands for end-to-end visibility, digital documentation handling and gaining access to information virtually anywhere and at any time, allowing them to stay in control of all their shipment and cargo. These improvements are the foundation of the customer's journey and a key contributor to an enhanced customer experience. Moving away from the traditional offline quotation and manual booking process, businesses are undertaking progressive digital business models to overcome operational challenges. For instance, by implementing a digital portal for 24/7 accessibility by all stakeholders, suppliers and customers providing real-time cargo data, digital dashboards, automatic notifications and online document sharing.

Resistance

Despite such significant achievements in digitalization, there are many who are slow to embrace technology due to their resistance to change. This contributes to the shipping industry lagging behind other industries in the adoption of innovative technological solutions, hence creating bottlenecks in the supply chain. Embarking on the digital journey does not require an immediate large-scale and expensive overhaul of IT systems. Organizations should begin by gradually enhancing and integrating their different systems. Digitalization will continue to gain momentum in the upcoming years and will shape the industry’s future in every respect.