#United States #Miami #Magaya Corporation #Adelante SCM #Logistics Services

The State of Digitization in Freight Forwarding: A 2025 Outlook

In an era marked by technological advancements, the logistics industry is at a critical crossroads. Recently released findings from a collaborative report by
Adelante SCM and Magaya Corporation shed light on the pressing issue of digitization within freight forwarding. Conducted in late 2024, the survey included insights from executives across logistics services and supply chains, revealing a stark disparity in digital expectations and capabilities.

Background of the Research

The research aimed to uncover the existing digital gap between shippers, who are the clients utilizing the logistics services, and freight forwarders, who facilitate the movement of goods. According to Adrian Gonzalez, CEO of Adelante SCM, the expectations from shippers are crystal clear: they desire enhanced visibility, streamlined usability, and quicker response times from their logistics service providers (LSPs). The report emphasizes that companies that fail to align their technological offerings with customer expectations will likely witness a downturn in business.

One logistics executive summed this sentiment perfectly, stating, "We have some logistics partners who utilize top-notch technology, while others are stuck with outdated systems that offer little visibility and slow communications. We're actively seeking to improve our partnerships by parting ways with those lagging behind."

Key Findings from the Report

The report outlines a few striking statistics that illustrate the digital divide in the industry:

• - Importance of Technology: An overwhelming 90% of shippers indicated that technological capabilities are crucial when assessing potential 3PLs and freight forwarders.
• - Desired Features: Shippers ranked their top technological needs, naming real-time tracking, integration capabilities, and automated documentation as the most crucial features for their LSPs.
• - Low Adoption Rates: Despite the clear demands, only 23% of freight forwarders reported having digitized over 75% of their business processes. Furthermore, less than 40% of the surveyed companies are utilizing a dedicated freight forwarding management system.
• - Drivers of Digitization: The primary motivators behind digitization for freight forwarders are increased productivity and efficiency, followed closely by enhanced customer experiences and cost reduction.

Implications for Future LSPs

The findings signal not just challenges but significant opportunities for forwarders willing to innovate. As Gary Nemmers, CEO of Magaya, stated, “This report highlights a critical gap between shipper expectations and what many forwarders currently deliver. This presents a unique opportunity for forwarders to differentiate themselves.” By integrating modern technologies, even smaller firms can enhance visibility and customer satisfaction, thus positioning themselves strategically in the marketplace.

The report's revelations could not have come at a better time, considering how competitiveness is increasingly dictated by technological adeptness. Shippers seeking better visibility, ease of use, and quicker service have no shortage of choices in the digital age, making it crucial for LSPs to adapt quickly.

Looking Ahead

To further discuss these findings and explore actionable strategies that forwarders can implement to bridge the digitization gap, Adrian Gonzalez will participate in a detailed webinar hosted by Magaya on February 25, at 2 PM ET. This session will be invaluable to logistics professionals looking to refine their digital strategies.

For more detailed insights and to download the full report, interested parties can visit Adelante SCM’s official website.

About the Companies Involved

Adelante SCM, rooted in the Spanish verb meaning