How SAP innovations are revolutionizing Cargo Forwarding in era of Supply Chain Disruptions

In today’s fast-paced economic environment, global supply chain disruptions pose significant challenges in cargo forwarding and shipping. From container shortages and rising consumer expectations to changing laws and regulations, the industry is facing unprecedented pressures. Digital solutions like SAP for enterprise resource planning and transportation management help freight forwarders navigate these challenges. Further to that, there are SAP partners who augment SAP’s capabilities in providing incremental value.

About SAP partner innovations 

InnovTrack is one such add-on from Innovapte, an SAP silver partner. It is a logistics risk tracking add-on for SAP, available on the SAP Store, that amplifies the value on the technology investment.  It comprises smart trackers, SAP integration and custom analytics dashboards to guide logistics team on current and upcoming risk with their operations.  

Container Shortages: 

The pandemic-induced decrease in shipping vessels and port congestion has led to heightened difficulty in securing shipping space. SAP offers solutions for predictive shipping processes, enabling freight forwarders to optimize predictions and secure space ahead of time, mitigating the impact of container shortages on their operations. InnovTrack not only tracks container locations, but also container conditions to help you forecast availability. 

Rising Consumer Expectations: 

Consumer expectations for fast and transparent shipping have increased, driven by tech-forward e-commerce giants like Amazon. SAP provides real-time data access and centralized communication channels, allowing freight forwarders to meet these expectations and provide enhanced visibility to shippers, ultimately improving customer satisfaction. Consumers shipping sensitive goods under controlled conditions expect real-time oversight. The SAP add-on from InnovTrack delivers on these expectations. 

Changing Laws and Regulations: 

The logistics industry is subject to frequent policy changes and regulatory updates, which can disrupt operations and increase compliance burdens. SAP enables freight forwarders to stay up to date on regulatory changes, incorporate them into standard processes, and make proactive decisions to maintain compliance and competitiveness.  

Increasing Competition: 

Freight forwarding companies face intense competition, particularly from digital-first agents like Flexport. SAP helps differentiate businesses by combining digital advantages with reputation and industry knowledge, allowing freight forwarders to stand out in a competitive market and attract and retain customers. Not only is logistics risk monitoring a key operational attribute, InnovTrack’s customers among forwarders and shippers worldwide have also discovered that the capability is a value-add that can be up-sold to their customers as a competitive advantage.  

Labor Shortages: 

Labor shortages continue to challenge the freight forwarding industry, impacting recruitment and operational efficiency. SAP offers solutions for automating manual tasks, optimizing processes, and providing flexible work arrangements, helping freight forwarders address labor shortages and improve workforce productivity. 

Volatile Shipping Prices: 

Freight rates fluctuate due to various factors, leading to uncertainty and challenges in cost management. SAP facilitates better negotiation with carriers, transparent communication with shippers, and data-driven decision-making, enabling freight forwarders to manage price volatility and maintain customer trust. 

Unexpected Delays: 

Delays in shipments are inevitable but can result in customer dissatisfaction if not handled effectively. SAP provides enhanced visibility into shipments, allowing freight forwarders to monitor cargo in transit, identify delays, and communicate updated timelines to shippers, minimizing disruptions and improving service quality. 

Miscommunication with Stakeholders: 

Miscommunication can lead to delays and customer dissatisfaction. SAP offers centralized communication channels and real-time updates, reducing the risk of miscommunication and improving customer service. Freight forwarders can maintain direct, personal contact with customers while streamlining communication processes. 

Conclusion: 

In conclusion, SAP plays a crucial role in helping freight forwarders navigate the challenges of global supply chain disruptions. By leveraging SAP’s digital solutions, freight forwarders can enhance operational efficiency, improve customer satisfaction, and stay competitive in a rapidly evolving industry landscape. With SAP, freight forwarders can turn challenges into opportunities and thrive in today’s dynamic business environment. And InnovTrack is one of the cutting-edge SAP addons that help businesses extract even more value out of their SAP investment. Contact us using the form below to discuss your needs. 

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