Freight management firms are companies that specialize in the moving of cargo or freight from one place to the other. The demand for freight services is mainly driven by the increase in domestic manufacturing outputs and growth in international trade. However, large companies benefit from advances in logistics technologies; whereas, the smaller firms offering freight management services compete effectively by specializing in cargo transfer with specific countries, serving a local market, and facilitating the transport of unusual goods.
Let’s look at some of the trends that are transforming the future of the global freight sector:
- The shift towards sustainability: Leading freight service providers are going green by implementing strategies to reduce the carbon footprint and conserve energy. The freight management sector is saving thousands in pursuit of protecting the environment, right from making the carrier fleet more energy efficient to limiting the number of empty trucks traveling to the distribution centers.
- Incorporating automation: Automation technologies such as robotics is helping freight management service providers save time and energy by reducing the manual work. Robotics technology plays a significant role in bridging the gap between customer demands and business needs.
- Deploying data analytics: Data analytics offer relevant insights that can be integrated with third-party logistics and customer systems for improving operational efficiency. Digital management has also made it easier to store and access data.
- Expanding service capabilities: Adopting third-party platforms that facilitate real-time sharing of load information help freight management service providers develop their service capabilities.
In the freight management sector, there is an increasing need to adopt advanced technology and implement a strategic approach to freight management. Implementing such capabilities for your organization’s logistic management system can help in improving the standard operating procedures to survive in a highly competitive marketplace.
The Business Challenge
The client– A leading freight management firm
Objective- To identify and access the growth opportunities in the global freight management market.
The client, a leading freight management services provider, wanted to evaluate the current market trends and identify the essential growth opportunities in the freight management market space. The client wanted to leverage the use of Infiniti’s market opportunity solution to understand their penetration levels in different geographic segments. The client also wanted a detailed report on the entry barriers, new market opportunities, risks, and competition in the transportation industry.
Results- Helped the client in establishing ongoing trends. Also, identified future growth areas in the transportation industry by drawing conclusions on customer preferences and market opportunities.
The market opportunity experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the freight management market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and transportation industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
Implementing Infiniti’s market opportunity engagement helped the client identify potential areas to advertise and market their services. It also enabled them to uncover and identify potential threats in the market space. The market opportunity solution offered also helped the firm in determining the market trends to evaluate their market saturation and penetration levels. Moreover, this helped them in devising a scalable approach to discover new growth opportunities.
The Future of Freight Management Services
With the growing competition in the transportation sector, existing companies should implement new technologies and extensively improve the quality of services offered to remain in the business. The key to developing a successful strategy in the freight management sector revolves around offering efficient, flexible, and cost-effective services. Moreover, future market opportunities in the sector are set to outweigh their challenges, driving significant changes in this sector. Therefore, those who carefully anticipate and access future challenges and opportunities to address them proactively, will be better positioned to succeed in this sophisticated market space.
A must-read case study for strategy specialists and decision-makers looking to develop an understanding of the freight industry.