New businesses always begin with vigor and enthusiasm. There is an eagerness to explore new methods of conducting operations and attract customers. The freight forwarding business has also seen many startups that have disrupted the freight industry and others that have failed to take off.
Although earning profit and market share is essential for businesses, they alone cannot form the basis of forwarders' plans. For forwarders looking for a fool-proof way to ensure a smooth ride, there isn't one available. At least, not yet. But there is much to learn from the pitfalls that other forwarders have fallen into. Avoiding some of the most common errors can prevent forwarders from major setbacks. Let's explore some of the mistakes that forwarders must be aware of.
Not establishing a niche for oneself
Forwarders that wish to build a customer base must try to understand the market well. Once the customer demand is summarized, forwarders must prepare their offering in a way that 1) fulfills the demand and 2) defines forwarders' specialty as well. New forwarders that attempt to do it all end up as "Jack of all trades but master of none". Carving a niche makes it easier to concentrate on a narrower market. Forwarders with a niche also get a preference from shippers.
Complete Cash Flow Not Being Accounted
There is a good reason why companies craft budgets for their expenditures, especially the new ones. It prevents them from going overboard and suffering a cash burnout. Since freight forwarding involves making and receiving several payments, it carries a risk of losing visibility of the cash flow. A healthy cash flow boosts financial relationships with your customers and vendors. Not having a stronger grip on the finances also causes companies to miss out on newer opportunities.
Choosing a sub-par Freight Management Software
Forwarders don't realize the importance of technology in increasing a company's agility and performance. Thus, shy away from investing in it. This one decision to not opt for trusted freight solutions hurts companies in the long run. As multiple software for the various functions adds up, data exchanges between functions become complex. Cloud-based solutions are modern-day forwarders' first choice as they bring flexibility for internal and external data access. Solutions like Logi-Sys have helped over 1000 forwarders to manage their air, land, and sea freight along with customs clearance, accounting, and much more with just any web-based browser.
Unmanaged leads are lost opportunity
Capturing sales leads and having a systematic action plan can bring strong revenue generation. New forwarders may consider CRM tools unworthy of building a source for leads management. Freight solutions with in-built CRM capture information about all interactions with your prospects and customers. A patient build-up of leads can produce amazing results for freight professionals. On the flip side, neglect could mean losing several potential customers.
Managing all jobs manually
The complexities in managing shipments and the multiple stakeholders can strain the forwarder's ability to work efficiently. New forwarders, filled with eagerness to stand apart in the competition, motivate their workforce to produce exceptional results. But motivation alone cannot do wonders. When hardworking personnel is given tools to maximize their potential, the outcomes can be extraordinary. This means automation using technology and robust processes to work towards the company's goals. Logi-Sys handles up to 45 percent of repetitive work and reduces job turnaround time drastically.
Avoid mistakes that stop your growth
0 Comments