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SME forwarders must invest in high tech to stay alive: Ti-Kewill study

SMALL and medium sized forwarders deploy new technologies if they hope to keep up with logistics giants, according to a study by the UK's Transport Intelligence in association with Manchester technology provider Kewill.

As recent acquisitions show, big forwarders are increasing their scale and geographic scope develop a range of services that add value and increase margins, said the report.

If the small and medium-sized independent forwarders are to compete they will need to evolve, said the paper.

"Not only will they have to become smarter and more efficient - in an environment where manual data entry is still widespread - but they will have to enhance their commoditised offerings," said the Ti statement.

"For some, this means developing their levels of expertise in niche sectors in order to differentiate their services," it said.

Others will evolve from pure forwarders to fully developed logistics providers, increasingly serving customers with integrated logistics services. The technology systems they offer will be critical to their customer proposition.

"For today's forwarders, the pathway to profitability lies with process automation and value-added services," said Kewill chief marketing officer Evan Puzey.

"The best way to achieve those goals simultaneously is through technology. Cloud computing gives freight forwarders, particularly the small- to medium-sized companies, the logistics toolkit they need to remain nimble," he said.

"In the future, highly functional systems, operating as a single application - covering every aspect of operations from pricing, order management, shipping, warehousing and transport management - will emerge," said Ken Lyon, one of the white paper's authors.

"These will be available as subscription services in the public 'cloud,' accessible via a variety of computing platforms."