With advancements in AI and automation, many 3PLs, brokerages and other freight companies are tempted to automate everything possible.
Customer experience, not automation, sets any freight company apart from its competitors, says Frank Kenney, director of industry solutions at Cleo.
“Many freight companies make the assumption that digitizing and automating everything they can is ideal, but shippers make decisions on customer experience, not just price and automation,” Kenney said.
When there is abundant capacity, shippers have greater say in what to prioritize. As the trends show, shippers value relationships and manual support from staff when it comes to problem-solving and communication.
“In our race to automate, we have found that shippers still value a personal level of customer service,” Kenney said. “You can eliminate some noise with automation, but it’s a fine line.”
Depending on the process, automation can reduce the workload for certain roles, but that doesn’t mean companies should reduce workforce. The best use of automation, says Kenney, is enabling the people in your organization to maintain relationships with partners and clients.
“Finding the valuable use cases where AI can improve what we do is the best way we can leverage technology,” Kenney said.
Cutting through excess data and email communications is a cost-effective way of leveraging automation. 3PLs and brokerages are often faced with large volumes of data tracking, and not all of that requires manual oversight.
“You have to pick and choose where you automate or digitize,” Kenney said. “Prioritize providing data visibility to your customers, but make sure you talk to people on some personal level at every crucial step in the process,” he said.
Over and over, freight companies choose the vendors with greater transparency, better integrations and more personal connectivity. “Visibility and communication are the differentiating features,” said Kenney.
Particularly in the case of 3PLs and brokerages, which have to maintain slim margins, investment decisions are made based on sales drivers.
Companies in this competitive freight market only make significant investments in new technology when there is a return. “No carriers, brokers, software solution providers or any other company in the freight space adopts tech for tech’s sake,” said Kenney. “They only do what they have to do.”
“If I had to heavily invest in any technology for 2025, it would be making processes as transparent as possible,” Kenney said. “Don’t try to interpret all of the data without making it available to your customers.”
As sales have shown, customers appreciate having more data and more communication over generalized solutions. “Digitization, AI, APIs and other tech may solve problems, but visibility is the best value you can provide to your partners,” Kenney said. “Let those solutions come from customers. You don’t know their models better than they do.”
“Put your cash into providing more visibility and better customer service, and the sales will follow,” Kenney said.
Click here to learn more about Cleo.
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