Digital freight networks (DFN)—also known as digital freight brokers—serve as an online matchmaker, bringing together shippers with available loads and trucking companies with available capacity. For years, DFNs have competed by saying they are able to make these matches faster than traditional brokers.
According to the May 2020 Hot Topic publication from the Council of Supply Chain Management Professionals, DFNs also benefit their customers by providing data and analytics that can reveal operational inefficiencies occurring throughout the shipping process.
Written by the digital freight network company Convoy, the Hot Topic, titled “Supply Chain Visibility and the Digital Freight Network,” outlines how DFNs collect a large amount of operational data throughout the brokering process and while they are tracking a customer’s shipment. DFNs can then share that data with shippers to identify potential inefficiencies. They can also look at the data across all their customers and carriers to provide industry benchmarks.
Data and insights, argues Convey, have become “the new currency of the modern supply chain.” Those who continue to operate without analysis and insights, the company warns, will pay the price by way of wasted spend, unchecked carbon emissions, and carrier dissatisfaction.
This Hot Topics is free to CSCMP members and nonmembers by visiting cscmp.org.