The Potential of Software-led Freight Marketplaces – KlearNow

Unlocking the Potential of Software-led Freight Marketplaces

The road freight industry is transforming as we start shifting towards a digitised freight marketplace. By accessing freight data, route planning as well as AI-based matching models, digital marketplaces can identify optimal routes and reduce the number of trucks making empty or half-empty journeys. 

This opens up the opportunity to significantly cut costs whilst also reducing carbon emissions in the process. This digitisation provides three-pronged benefits to the industry – they help develop and popularize new business models and offerings, digitalize the industry’s core operations, and contribute towards building a reliable internal foundation for freight marketplaces.

But what are the disruptive forces affecting freight marketplaces? 

And where does smart logistics fit in to help ease damaged supply chains?

These are the kinds of questions that we ask ourselves as logistics experts – and at KlearNow, we want to help you understand why becoming technology-led will yield significant benefits for the future of the road freight industry. 

If you’re looking to jump to a specific area, just click on any one of the sections below and it’ll take you to wherever you want to go. Have we got your attention? Keep on reading, because the solution is right in front of you.

Unlocking the Potential of Software-led Freight Marketplaces

Disruptive Forces Affecting Freight Marketplaces

How Can Smart Logistics Transform Freight Marketplaces?

Enables a Wider Reaching Network

Increases Linear Efficiency

Key Things to Consider

Digitise Your Freight Marketplace with KlearNow

Disruptive Forces Affecting Freight Marketplaces

There are complex issues that need to be addressed for established transportation, logistics companies and tech entrants seeking to digitise the market before software-enabled marketplaces can reach their full transformational potential.

The European road freight industry has played a pivotal role in the delivery of door-to-door goods during the Covid-19 crisis. Yet margins are (still) low, and this is a deeply fragmented industry, as many parts of it remain offline and relationship-based.

Freight marketplaces are also facing another significantly disruptive force in the shape of autonomous trucks. Using digital marketplaces to match supply and demand through algorithms will be even more effective because automation will remove driver-related restrictions (such as qualifications, rest times and availability) as well as unexpected complications where drivers have accidents or fall ill.

We won’t be surprised when automotive manufacturers (OEMs) start offering ‘trucking as a service’ through their automated vehicles – and to gain access to shippers and freight, OEMs may look to form strategic partnerships with digital road freight platforms or maybe just buy them outright. And this, in turn, will end up creating powerful rivals to established transport and logistics companies.

How Can Smart Logistics Transform Freight Marketplaces?

Software-enabled freight marketplaces will generate unprecedented efficiency gains, reducing costs throughout the value chain of road freight by designing and enabling transactions more efficiently than the intermediaries that currently exist today. And these gains fall into two buckets.

Enables a Wider Reaching Network

Disruptive network effects are achievable if software-enabled marketplaces succeed in producing a ‘better’ match than traditional freight forwarders or any other intermediaries in the market. This type of improvement is defensible and lies at the core of the marketplace operators’ visions. 

In regards to the road freight industry, the quality of the match is measured primarily in terms of optimal routing and freight consolidation. So, in this case, reducing empty runs between loading points by means of optimised journeys will increase utilisation, which then creates a high amount of added value.

Increases Linear Efficiency

Rather than focusing on transportation itself, linear efficiency focuses on the processes. At KlearNow, we work closely with freight forwarders to add much-needed support in helping importers and exporters with supply chain planning. Our smart Logistics as a Service platform (LaaS) offers quick and efficient real-time visibility, saving companies time and money in their already fragmented supply chain. 

Klearnow helps and improves the key elements to the supply chain, processes and documentation, to allow full visibility, all on our web-based platform. This means freight marketplaces can work in a constant, efficient manner, whilst being able to tackle any unexpected circumstances such as shipment delays or accidents that occur with your drivers.

Especially with constant visibility, this enables quick action to be made if these circumstances do occur.

Key Things to Consider

With these factors in mind, we have come up with these key points in regards to software-led freight marketplaces:

  • Digital entrants need to develop scale in customer coverage by focusing on specific segments and geographies, taking into account the digital capability gap faced by smaller trucking companies.
  • Disruptive levels of efficiency improvements are captured through a combination of liquidity and scale, which depend on customer coverage with data and technology, which also depend on the depth of data and superior algorithms for freight matching.
  • In order to achieve this, incumbent transport and logistics companies must adopt the mindset and ways of working with software-enabled freight marketplaces whilst leveraging their customer access and presence on the ground.

The key to “better” matches lies in customer access (on the supply side), marketplace liquidity and the highest quality matching algorithms, as well as control over freight and planning data. So in hindsight, linear efficiencies and network effects combine to create a virtuous circle for the road freight industry

More shipments mean better matching and routing. This, in turn, means higher earnings for carriers, which can increase your size and potentially lower prices since you have better services, resulting in more shippers turning to you for help.

Digitise Your Freight Marketplace with KlearNow

At KlearNow, we provide the perfect digital customs clearance and document management software built for importers, exporters, freight forwarders, haulier and logistics managers. Our Smart Logistics as a Service platform has zero IT costs or integration fees, so getting set up is quick and simple!

Simplify and automate your customs entry and processes with KlearNow’s Smart LaaS platform.

For more information, you can request a demo or simply contact us.