Disruption: The ‘Big Fish’ in Logistics Space?

No sector today stands to tap the opportunity of turning disruption into an opportunity as much as logistics. As efficiency improves across sectors, logistics is at the cusp of a change that it cannot help but embrace if it has to give customers a seamless experience. I think there are pretty obvious opportunities for the young start-ups to look into this space like we did by innovating HashMove platform, thanks to the $67bn industry claimed only in the GCC region.

Many studies point towards an immediate need to ensure better services at lower costs. Mindful of this scenario, traditional freight and logistics business relationships are being transformed as a result of what can be called “digital invasion”. At the time when we were contemplating to start HashMove, we carefully identified the customer experience and later the services rendered to them through the ancient way of handling their logistics from start till its final delivery. The main reason we identified was the disconnection between all the actors who involves in handling Logistics at both ends, hence the innovation of a smart multi-model connected platform by us. This was the obvious reason!

The changes are happening at the hands of newly low cost and low maintenance connected platforms, availability of connected data & cloud technologies. Ease of access, price transparency, quick and integrated services are the obvious benefits should disruption leads to transformation. It’s a frightening scenario on the other side of the aisle. Persisting with the “business as usual” strategy would mean loss of competitiveness as well as value. Unfortunately, I see a total demise of traditional freight forwarders in less than 5 years unless they hop on the digital journey from today.

Breeding ground: So where are these disruptions likely and what would they mean for the logistics industry? Let us consider customer-centric business models that are becoming available. Not only are they sustainable, but they also seem to have the potential to unlock remarkable value generation opportunities.

Another way of looking at this disruption is trying to understand the usefulness of technologies available for logistics business. Any platform which offers seamless connectivity with other peers, provide secure data distribution among external platform and cloud-based technology not only promises to improve shipment & cargo visibility but also brings trust into sale and movement of global cargo. At least this is a mindset of consumers during Covid who expect their cargo movement known to them from the start to finish.

As it usually seems challenging to anchor freight business in the oncoming wave of digital disruption that is set to hit the ocean and air freight forwarders. Digitalization is improving the overall customer experience while eliminating entrenched operational inefficiencies. HashMove’s Digital Logistics Platform has been carefully designed to provide a perfect solution for freight forwarders. We facilitate Freight Forwarder with an immediate digital presence and capability that translates to elevated revenue and cost savings. Most importantly make them capable to connect with their principals in real-time.

Warehousing is an imperative facet of logistics management and plays a vital role in the supply chain process. Storing goods isn’t as simple as it sounds. The warehouse owners might own top of the line warehouses but lack the exposure and opportunities to operate profitably due to customer inaccessibility. HashMove’s warehouse marketplace presents them with the advantage of going digital instantly. Not only do they enjoy global reach, but also avail several online tools and marketplace features that can take their business to the next level. Increase inbound and outbound functions, communicate efficiently, track inventory, ensure accurate paperwork and purchase orders through digitized documentation and speed up operations.

Supply chain According to a PWC report, 90% of global transportation and logistics companies see data as the key drivers in redefining the sector over the next five years. Almost half of these companies consider the absence of digital culture in the organization as the biggest challenge.

We are already witnessing a trend wherein new entrants become significant players and — if the aforesaid report is to be believed — take market share from the incumbents through new business models based on data analytics, blockchain, or other technologies.

Transforming logistics from being a pain point to a selling point

HashMove is transforming the logistics industry through its smart, multimodal, end-to-end digital platform where shippers and logistics providers can connect and transact seamlessly. Our independent digital platform for the Freight Forwarder, Shippers, Shipping Lines, NVOCC’s, Warehousing Owners, Trucking Industry powers with our smart logistics marketplace, provides digital portals for logistic providers and provider networks and offers enterprise closed-loop and cold chain logistics solutions.

It is also obvious that the players in the logistics arena still follow the “big fish eats small fish” approach which may consolidate the businesses of some major players but cannot ensure the overall growth of the industry. The “big fish” in the pond is indeed called disruption.

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Image Courtesy of: “Boston Globe” | https://www.podstar.co.uk/blog/lastmiledelivery| https://visitbelfast.com/partners/big-fish/

The article first published at medium

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