Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today’s theme is about digital forwarder.
Some people may still be skeptical about the digitalization of the forwarders. However, I believe that this digitalization will become the standard in the future.
Daily Logistics Radio by IINO san in 28th Sep. 2021
No longer a venture
You may feel that digital forwarders are still one of a venture. But even major forwarders are moving forward with digitalization.
It is Nippon Express and Yusen Logistics in Japan, Kühne & Nagel and DAMCO, a forwarder that is a subsidiary of Maersk in the U.S. and Europe that have developed their own IT platforms and are implementing them.
Schedule booking service in other industries
In fact, I myself sensed this wave of digitalization and started preparing for it at the end of 2019.
Then, I proposed it to our group companies, however, unfortunately, it has not yet been developed or implemented.
Nowadays, many people probably use Booking.com, Agoda, Expedia, etc. for individual travel. There is more convenient app service than going through a travel agent in this industry.
I personally think that it is common thinking that digital platforms will be used for schedule bookings, especially for regular ship and plane for such as cargo flights.
Digitalization of forwarders entering a growth phase
In the product cycle of a new service, there is phases of introductory, growth, maturity and decline.
In the introductory phase, venture companies aggressively take on new challenges and aggressive large company would enter to it.
After that, due to enter of general small and medium-sized companies and large companies, the market will grow and mature.
I think that the digitalization of forwarders will be in the growth phase from now on.
Determining the right timing for implementation
However, timing is important. During the introductory phase, a new product or service is not yet known to the market. It takes time and money to spread awareness.
In that introductory phase, many venture companies solicit investment from investors and invest people and money to scale up.
On the other hand, large companies have more money and human resources. In the digitalization of forwarders, the fact that those large companies are already developing and implementing the system is a trend that will create a market.
Summary and video introduction
Here is a video with detailed information and my thoughts about digital forwarders. Please take a look.