How Digitalization Of Logistic Solutions Can Reduce Freight Costs?

The logistics industry has entered into a new era of digitalization where all the transactions are carried out online and with the help of cloud computing and other innovative technologies. The latest trend in logistics is to use information technology solutions to offer customers more than just freight transportation services and freight management.

Three Business Use Cases of Commonly Overlooked Hidden Freight Costs

In the logistics network, there are occasionally overlooked expenses that can swamp expenses quickly. Freight tracking can rapidly derail the excellent logistics network, and profits may diminish.

1.  Beat The Demand-Supply Problem

The early bird receives the worms, a reality that is also a reality in the freight transportation market. Once the freight market increases, be sure to be aware of this indisputable fact: the demand is high while the supply i.e. truck supply is limited.

The more time that is wasted in having to negotiate the price, getting the prices, comparing them, and negotiating afterwards there is another supplier out there who has made the decision, and truck(s) has been allocated. This means there is a supply of goods or services.


Digitize this process. A single platform where bidding takes place, real-time ranking of transporters’  fees, reverse auction, and above all transparency. No more uncertainties in finding the right courier, no time wasted on evaluating, fastening up the transaction, economising on freight costs, catch the transport opportunity.

2.  Transparency With E-Auction

Not sure if you have got the best quote for your freight? With the aid of technology and data, this issue can be solved easily. Having a transport management system (TMS) in place, a forum is created where real-time quotes from our transport options are collected for you. This transparency between suppliers and providers enables them to create a culture of reverse auction where the estimated prices are visible to all, therefore offering fair rates. Requiring you to check with several different providers is much more a thing of the past, you won’t need any more phone calls to them, no more spreadsheets with conflicting info.

It doesn’t end there, it is important to keep a tracker of all the data points and analyze the trends of your freight costs: the average freight cost, locations where bottlenecks exist, how receptive carriers are, etc. so that you have the necessary information for your next freight marketplace. But be sure you select the right technology partners:

  • Real-time tracking
  • Transparency, and
  • Data-rich dashboards

…will help you to reduce freight expenses.

3.  Data + technology is power

Access to reports composed of information about:

  • Distribution trends
  • Detention charges
  • Lead time
  • Bay capacity
  • Freight expenses, etc.

…can help you find optimal pricing. Your creative logistics system requires high-precision collaboration and planning. Regardless of whether you have played out every contingency, there’s still the possibility of unforeseen issues that will increase freight expenses.

But empowered to support an automated logistics management system (TMS) where your end-to-end logistics process is digitized, empowers you, all the stakeholders in the process, and the TMS tool itself with valuable information relevant to effective planning, decision-making, accurate data analysis, and ultimately reduced expenses. Don’t dismiss any of the aforementioned situations, don’t create a blanket acceptance of “business as usual” rules and policies, between internal departments, and between the shipper and the transporter.


Digitization of the logistic solutions can reduce freight costs by using real-time information, increased connectivity, and improvements in technology. The use of digital innovation in logistics can help improve business processes, reduce costs, and increase the cost-effectiveness of the supply chain.