The online marketplace will instantly compare freight services from multiple logistics providers, taking into account global pricing, booking and management of freight online while limiting overpaying and an often lengthy wait for freight quotes.
Booking flights online is often used as an analogy between the slow pace at which the logistics industry has embraced technological advances and the rapid rise of platforms such as Expedia, Travelocity etc. Booking a flight has been electronic for 50 years, but the cargo on airplanes, trucks, and ships is still booked manually.
Growing global trade, ecommerce B2B sales, and sprawling dynamic supply chains demand the transparency and efficiency of online freight.
With small-and medium-sized enterprises making up 97% of US importers, the lengthy waiting periods and inflated prices significantly limits potential for growth especially seeing the logistics industry is the backbone of global trade. At $4 trillion it accounts for about 10% of the world’s GDP but this foundation of the international economy is slow, opaque, and offline.
Logistics technology investments in supply chain software have grown by 150% from $150 million in 2014 to $378 million in 2015.
Not all the diverse players in the sector will survive, but there is plenty of business to go around if they do. China-US trade data shows there is a vast platform of opportunity for companies offering the right value proposition.
A version of this appeared in JOC on July 26. Read the full version here.