Prolonged global supply chain disruptions, underdeveloped transportation infrastructure, and slow bureaucratic processes continue to weigh heavy on the Malaysian freight and logistics players. But the Malaysian freight and logistics sector has much to look forward to.
The industry demonstrates a huge potential to grow in the coming years, thanks to highly active internet users, a booming eCommerce industry, government initiatives for infrastructure development and policy reforms, and other factors. According to Mordor Intelligence, the sector projects a growth of 4.5% between 2023-2028.
However, rising customer expectations around fast and cheaper or no-cost deliveries, even for foreign products, have freight forwarders searching for cost-effective and innovative ways to navigate these challenges. The right technology is critical to addressing these and identifying and tapping into newer opportunities. Here are the top three things’ businesses in Malaysia need to consider when choosing a freight management solution.
Intelligent End-to-End Management Functionalities
Although the freight and logistics industry witnessed rapid growth, emphasis on service quality stayed missing from the scene. Therefore, a focus on service quality and the need for cutting-edge solutions that further accelerate the sector’s growth is necessary. It necessitates greater visibility into operations to identify optimization pockets to improve cost and resource utilization. For instance, innovative freight management solutions increase deliveries per driver by 14% and vehicle capacity utilization by 31%.
Legacy freight management software offers limited functionalities and targets specific use cases. The need of the hour is a dynamic freight management platform that simplifies local and global freight movement.
New-age Technological Capabilities
AI and ML-powered solutions help businesses manage their operations better and streamline workflows. Dynamic route planning and optimization engines facilitate more deliveries with reduced fuel consumption/logistics costs.
Advanced quote management, spot inquiries, freight procurement, and other critical modules make freight management a breeze. Moreover, they empower designated stakeholders to get real-time visibility over container movement. Such tools enable businesses to obtain the most competitive freight rates across multiple carriers and allow for one-click re-negotiation. It accelerates order-to-ship time and reduces incidental charges via predictive alerts while managing compliance. It helps lower SLA breaches by 37% and overall transportation costs by 12%, increases savings on freight costs by 10%, and saves time in route optimization and planning by 18%.
Forecasting Inventory
Rising commodity prices due to supply chain disruptions impact consumers’ buying patterns. This leads to volatility in demand and makes it difficult for supply chain managers to accurately forecast inventory to meet evolving needs. There’s nothing better than having predictive insights into the inventory, market demand, and other fluctuations to tide over the challenge.
The journey from mediocre to highly tangible business outcomes rely on highly agile, mature, and easy-to-implement technologies. AI-powered freight management systems can get you to your desired business goals.
This article is written by Soham Chokshi, CEO, and Co-Founder – Shipsy
