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Why Digital Transformation of 3PL Management Inevitable?

The future of third-party transportation management is now centered on creating digital experiences and optimizing service performance.

In 2019, the domestic transportation management (DTM) segment of the third-party logistics market accounted for $83 billion, or 39% of total 3PL market revenue. It focuses on the management of truckload, less-than-truckload, and rail shipments.

Does digitalization really improve freight services?

Current DTM looks very different from a manual-process based freight brokerage model of old times. Today, most of us brokers have a transportation management system that many have adjusted to improve shipment visibility, carrier onboarding, freight bill payment and document processing.
With a traditional brokerage issues with a shipment are often recorded, but they are hard to analyze. With digital freight booking, the brokerage has a detailed record of every load, which can allow it to find pain points previously difficult to see. Customers can work with multiple digital brokerage systems based on the concept and value they provide. 
This improvement of the brokerage system leads to slow, but inevitable digitalization of all means of transportation.

Standard functions of digitalized freight broker include:
  • communication through app;
  • track-and-trace;
  • automated pricing;
  • task automation;
  • digital document storage;
  • push notifications and more.

The increased competition from freight brokers has paved the way for widespread digitalization throughout the industry. The modern day services are now available through traditional freight brokers like Double Power Logistics Inc. that digitize their service and provide ample benefits to shippers during a time where doing tasks with limited resources has become a necessity.

What is the main profit of this new digital reality?

Digitalization of freight brokerage is carrying many advantages for shippers:
  • Freight brokers are developing enhanced applications for shippers creating an improved user experience
  • Up-front pricing eliminates the time to determine if a freight broker is competitive
  • Digitally matching freight to carriers increases the amount of available capacity to a freight broker, and in-turn provides shippers with quality carriers to cover loads even faster
  • Visibility systems monitor data to help improve service
  • Images of shipment documents, proof of deliveries, and freight bills are captured and converted into data without manual data entry
  • Carrier freight bills are processed always on-time
  • Shippers are invoiced accurately for their cargo and have online visibility to all shipment documents

The future is now centered on creating digital experiences and optimizing customer and carrier focused service performance. Freight brokerage is made up of carriers and customers, both who want a mix of the best price, best service and user experience ― and we, Double Power Logistics, are here to provide all of this.
Logistic industry