In the information age, it is difficult to hide things you’d prefer to remain undiscovered. This rings true for all businesses, particularly in shipping and logistics owing to soaring e-commerce activities. Consumers, entrepreneurs, activists, and stakeholders increasingly want to know the goods and services they buy are sourced sustainably and ethically. They are demanding more and more transparency in the supply chain.
The accelerating amount of data, people, processes and technology has given rise to complexities in the container shipping industry which is no longer linear and simple like it was a decade ago. Industry experts believe that sharing information within complex global supply networks with all tiers of the supply chain as well as tracking and tracing the goods, is increasingly difficult to manage now.
From lost shipping consignments to bad record keeping with no proper data or documentation, the freight industry is fraught with a lack of visibility in their business operations. But here are its consequences-
- Increased Losses and Forwarding Costs
The lack of adequate visibility in transit operations can lead to supply chain disruptions, enhancing the costs of working capital as well as transit expenses to cover up damage and shipment losses.
- Negative Consumer Experience
With the growing number of options, clients have the liberty to demand more. They are intolerant to later deliveries or deteriorated quality of products after transport. This negatively impacts consumer experience and leads them to look for other alternatives that provide a clearer picture on the flow of data and information.
- Damage To Brand Reputation
Non-transparency in the shipping process can not only garner bad press with businesses coming under the spotlight from governments, NGOs and other stakeholders to divulge more information, it can also fester mistrust which will erode employee engagement with top performers.
- Threat To Security
Businesses are exposed to risks in transportation security and threats of mid-transit terrorization if the obscurity in the shipment process is not removed. Freight forwarders are held directly responsible for such lapses which can sink age-old business partnerships.