Digital marketplaces are now becoming increasingly popular. For logistics, they are a great opportunity for further automation and digitalization, which is beneficial for companies of different kinds. Transport marketplaces boost effectiveness and save companies time and money. For business owners, they are a chance to manage finances more wisely and increase customer satisfaction. But what does it take to build such a marketplace and what challenges may arise?
In this article, we will discuss the benefits of digital transport marketplaces, the challenges associated with them, and the process of creating a logistics marketplace.
What Is Transport Marketplace?
Online transport marketplaces are transparent and adjustable collaborative platforms. These tools are great for boosting the efficiency of operations and reducing costs due to their structure. In a nutshell, they match demand and supply in the logistics industry. Different kinds of businesses are present on such online platforms to offer their services, and all the processes are optimized.
Digital marketplace are especially valuable for various companies within the transportation sector due to the automation and processes they provide. For various companies, using online logistics marketplaces means performing operations quickly, and more productively.
A logistics marketplace encompasses a large number of transportation service providers for collective work. These tools provide visibility on information and services of various businesses and have many benefits for different companies. They have the potential to digitize logistics processes like contracting, delivering, and payments in the future.
Benefits of Logistics Marketplace
Besides the fact that these digital platforms are very convenient for automating logistics processes and increasing their productivity, they have a number of important features that make them indispensable tools in the transportation industry. They are very effective in providing better management and allow you to increase the level of service delivery, and, as a result, customer satisfaction.
Some of the additional benefits of such marketplaces include:
optimized processes of freight transport and distribution save a lot of time;
these marketplaces offer the possibility of shipment tracking, which is very convenient;
the solutions are effective in saving money and effort.
tools like mass loading of orders and the creation of cargo removal receipts allow to keep everything in one place;
the platforms have advanced reporting capabilities.
Thus, many features of B2B transport marketplaces are highly advantageous for logistics companies and provide a huge potential for the future of transportation. Instead of wasting hours and effort on tedious searches, you can greatly optimize your efforts with a single digital platform.
It is also important that such B2B trucking marketplaces have a wide and flexible functionality that allows you to reduce costs. Thus, transport marketplaces have benefits for both your finances and higher performance efficiency. As for reporting, in the shipping process, quality reports allow you to have more control over all processes and thus enhance them. In addition to saving time, such platforms, thanks to convenient search terms, allow you to find exactly those options that really suit you, and not to compromise your needs.
Challenges of Logistics Marketplace
When it comes to potential marketplace challenges, there are several areas that create issues. One of the major problems is the imbalance of demand and supply, which assumes that demand induces certain categories of users to come to the platform, and there are not enough supply providers to cover it. In order to fix the balance of supply and demand, it is necessary to select a new method and this requires an individual approach to platform users.
Another important issue is that the mentality of many businesses is relying on old methods of performing logistic operations. It is simply very difficult for them to accept the need to automate and optimize these processes. Despite the fact that the world is now dictating the transition to a much more technologically advanced level, it is very difficult to change the mindset of these people. However, it is necessary. And explaining the benefits of automation will help in this.
And finally, one of the challenges of such marketplaces is the responsibility that companies have to make decisions. When a big decision is made, it usually takes longer. Accordingly, sales cycles are also getting longer.
How to Create Transport Marketplace
Building a transport marketplace addresses a wide range of needs in transportation. This tool is central for decision-making, as well as for increasing efficiency. This is why the process of creating it must be taken seriously.
Basically, before creating the marketplace you need to know if it addresses the needs of the potential audience. If it addresses the necessary issues, go ahead! Then, after researching the competition and securing the financing, invest time in design, taking into account all the features of the marketplaces as a business model, and deliver an MVP of the platform. Then, you can grow your product. Creating a transport marketplace does not require you to start from scratch as there are many ready-to-go solutions.
Technical Integration or Non-existing Data Standards
Besides the fact that many companies are still using old software, a significant problem is that data standards are non-existent. Having data quality standards and meeting them is essential for ensuring efficiency. The process of technological integration can be done through API and EDI but there are various solutions to this problem. Technical integration is necessary and has its advantages, so it is important to explain this procedure to your customers, as well as to talk about how their data is used.