Here’s the freight forwarding reality check you didn’t ask for: 43% of a sales exec’s time is swallowed whole by pricing and RFPs. Spot quote requests are stuck in limbo for 91 hours on average, and invoicing errors are quietly siphoning off $700 million a year.
Sounds like a lot, right?
Forwarders juggle data from every direction – shippers, carriers, customers, and internal teams – making bottlenecks inevitable. That’s why forwarders globally have been turning to integrations to rethink how a unified tech. stack for pricing, quoting, real-time data and seamless automation can streamline workflows to save time and boost efficiency.
This is where APIs can help.
From streamlining quoting, to enabling instant eBooking and end-to-end shipment management, we’ll take a deep-dive into how API integrations free forwarders from mundane tasks to let them focus on what matters: delivering superior customer service and scaling their businesses.
Why Forwarders Are Switching to Platform Integrations
But just using APIs alone isn’t enough. Here’s an example where using APIs can cost more. Imagine a world where every freight forwarder builds custom integrations with each carrier – a tedious, expensive endeavor that results in a mess of fragmented systems.
That’s the reality of point-to-point integrations in logistics.
While they may work in theory, the practical challenges – including high costs, security vulnerabilities, and ongoing maintenance – are staggering. Let’s break down the numbers:
Development: Building a custom integration for just one airline can cost upwards of €243,665, factoring in scoping, development, and testing. Multiply that across dozens of carriers, and the expenses skyrocket.
Ongoing Maintenance: APIs change frequently, requiring updates, monitoring, and fixes. For forwarders managing 50 integrations, annual maintenance fees alone can exceed €459,020 – a financial burden few can justify.
Downtime Risks: In early 2024, airline APIs experienced unscheduled downtime every 2.5 workdays on average. Each incident required unique troubleshooting, often causing delays and inefficiencies.
All-in-all, forwarders are looking at a total cost upwards of €2.4 million over five years with point-to-point integrations.
There’s a Better Way to Integrate
That’s where the hub-and-spoke approach to integration offered by third-party platforms comes in. In contrast to the traditional point-to-point approach, platforms like WebCargo offer a single API that connects freight forwarders to 55+ airlines representing over 70% of global air cargo capacity. One API, delivered on demand, eliminates the need for costly custom integrations while allowing forwarders to connect their rate management systems to their TMSs or their rate management systems to their sales portals for seamless automation, real-time data, and 99.9999% uptime.
This means platform integrations don’t just save money – they give time back to your team. Forwarders using platforms report booking speeds up to 20x faster, shaving off an hour of manual work per team member every day. That’s an hour they can spend winning clients instead of chasing data. Raz Ronen, CEO of Wisor.AI explains what that means for forwards on a day-to-day basis,
Wisor can access…connectivity and capabilities, such as quoting, searching for rates, checking availability, scheduling, and booking – all from a single platform.
This means forwarders no longer need to juggle multiple tools like TMS, carrier websites, and other solutions. Everything they need is centralized, saving time and improving operational efficiency.
Workflow Redesign: 5 Steps To Move From Chaos to Cohesion
Let’s face it: Many logistics workflows are a patchwork of manual processes and siloed systems. This complexity bogs down operations and frustrates teams.
Here’s how to fix it.
Start by mapping out your current processes. Identify redundancies, like double data entry or the need to switch between multiple platforms. Then envision a future where these inefficiencies are replaced with integrated solutions.
Step 1: Map Your Current Workflow
Start by auditing your existing processes. Are team members duplicating efforts across systems? For example, how many times is shipment data being entered manually across platforms like a TMS, carrier websites, or quoting tools? This audit often reveals inefficiencies you didn’t even know were there – like double data entry that eats up hours each week or manual rate comparisons that delay customer responses.
Step 2: Centralize Your Tools
Replace scattered systems with a unified tech. Stack that lets quoting, booking, rate management, and shipment tracking all happen within a single interface. That’s exactly what third-party platforms like WebCargo make possible, and the results are compelling even at a glance:
Forwarders using WebCargo’s API integrations saw response times to customer inquiries drop by 65%, thanks to real-time pricing and booking capabilities.
For temperature-controlled shipments, WebCargo solved one of the most frustrating issues – non-standardized data. By streamlining data mapping across carriers, forwarders avoided costly errors and reduced manual intervention.
In other words, platform integration doesn’t just simplify processes – it also enables better decision-making. As Raz from Wisor.AI explains,
Forwarders can instantly access the data they need to make informed decisions. This saves time and ensures accuracy in pricing and planning.
Step 3: Leverage Actionable Insights
Once workflows are centralized, the next step is leveraging data for smarter operations. Platforms like WebCargo offer real-time rates and capacity, aggregated trend insights and volatility on key lanes. Instead of playing catch-up with fluctuating rates, forwarders can proactively adjust their pricing strategies to deliver customized, cost-effective solutions for their clients.
This granular visibility into real-time rate and capacity data, alongside advanced data analytics for actionable insights, keeps forwarders ahead of the curve with data-driven decision making and efficient workflows even in high-pressure scenarios.
Step 4: Enable End-to-End Visibility
When systems are connected, visibility improves across the board. Forwarders can track shipments in real-time, manage air freight rates efficiently, and automate AWB generation – all from a single platform. This eliminates the need for fragmented tracking tools or back-and-forth communication with carriers.
Step 5: Automate and Innovate
Finally, automation becomes the cherry on top of your redesigned workflow. Quoting, booking, and even operational reporting can be handled without manual input. This streamlined workflow doesn’t just save time – it transforms how teams operate. With the mundane taken care of, forwarders can focus on building stronger relationships with clients, exploring new routing options, and ensuring top-tier customer service. Raz sums it up,
This allows forwarders to focus on providing better service to their clients and growing their business, instead of spending time calculating prices or communicating with carriers. Ultimately, they gain more time to build relationships and enhance their customer experience.
Mastering The Human Side of Digital Transformation
Change is hard. Transitioning to new systems can be disruptive, and team buy-in isn’t guaranteed. That’s why managing the human side of digital transformation is just as important as choosing the right technology. To truly unlock the value of a unified tech. stack, you need a flawless rollout – from setup to training. Here’s a breakdown of WebCargo’s Customer Success team’s integration strategy for just how to do it:
1. Pilot Program Validation
Initiate a small-scale pilot rollout to validate success and refine rollout strategies.
Define and execute a targeted pilot program with clear objectives and KPIs for success.
Focus on training power users and establish a feedback loop for continuous improvement.
2. Gradual Phased Rollout
Establish best practices based on insights from the pilot rollout.
Develop a dedicated timetable for a phased rollout with potential on-site support.
Secure C-level buy-in and enlist managerial support for a successful rollout.
3. Champion User Engagement
Identify champion users from the pilot rollout to advocate for the platform.
Begin gradual rollout by sites or regions, ensuring ongoing feedback and performance tracking.
4. Agile Rollout Management
Track and improve the rollout process using agile, sprint-based methodology.
Conduct regular meetings for feedback collection and adjustment of rollout strategies.
Best Practices for Successful Rollout
Data Quality Assurance
Ensure data integrity by providing clean, accurate, and updated data to the provider.
For rate management integrations, implement clear pricing rules to avoid confusion and ensure accurate rate management.
Quality Testing and Training
For rate management integrations, employ double-layer quality testing for rate uploads or updates.
Utilize automation for scalable and comprehensive testing.
Prioritize training for all employees, offering both external and internal resources.
Incentivize Usage and Change Management
Incentivize platform usage among target audiences to drive engagement.
Ensure management buy-in and commitment from day one.
Opt for short transition periods and prioritize change management for smooth workflow realignment.
The Big Picture: The Future of Freight
Freight forwarding is at a crossroads: Stick with fragmented systems and reactive operations, or embrace platforms that offer seamless integration, powerful automation, and data-driven decision-making.
And the industry is already seeing the shift. The question for forward-thinking freight forwarders has now moved from “do we need integrations?” to: ”which one and how quickly can we get started?” As more and more forwarders leverage platform integration for smarter tools, they’re not just keeping up – they’re setting the pace.
