The ever-changing dynamics of e-commerce shipping and the pandemic’s effects created a challenging logistics process for shippers and carriers. Digital freight matching, or DFM, provides one way for freight shippers to find the best carrier options and meet customer demand. Advanced technology paves the way for effective DFM that improves logistics for all parties.
What Is Digital Freight Matching?
Digital freight is a term for the digital processes and systems involved in the supply chain, and digital freight matching is part of this logistics digitization. When information about shippers, carriers, and the various systems involved in logistics is available digitally within useful platforms or software, it makes it easier to find relevant information to improve shipping processes.
Shippers and carriers search through available options on a platform or application. Shippers can match according to the best capacity for their freight shipment needs. Carriers can match with loads that suit their trucks and services. Technology like machine learning and automation help to create the best matches, so the process becomes more manageable, faster, and more likely to result in the right fit for both parties.
Digital freight matching mostly plays a role in the spot rate market. This spot freight market had scarce capacity from late 2020 through 2021, which made DFM platforms extremely helpful for shippers and 3PLs working on behalf of shippers. Nonetheless, there’s a move toward more contracted freight and building ongoing relationships. As markets change, some contract pricing may be higher, so companies can compare to fit their needs.
What Are the Benefits of Digital Freight Matching?
Digital freight matching helps shippers find spot truckload capacity from the best available resources. It provides process automation, streamlined communication compared to previous methods, and digital freight services. You gain opportunities for new lanes, equipment, and potential cost savings.
Digital freight matching allows more efficient transactions with spot truckload carriers to pick up loads, creating more on-time deliveries. These efficient deliveries benefit your company’s processes and your customer service. Further, DFM introduces shippers to more carriers through the platform and software, which complements existing carrier networks.
DFM helps you plan routes, schedule loads, monitor shipments and deliveries, and continually track and analyze data to constantly improve logistics. Digital freight matching solutions still hold value in a soft market. Plus, delaying the adoption of this type of platform and software can leave shippers behind their peers who have adopted the technology. This problem occurs when the market shifts to favor carriers, leading to increased competition.
The Power of a TMS + Digital Freight Matching
You can access spot freight via various digital freight networks within a transportation management system, or TMS. This system has the technology for omnimodal and multimodal transportation management plus digital freight matching, so it provides the best way for shippers and carriers to match freight and spot market capacity quickly.
Even when the market turns, shippers and carriers benefit from DFM with the advantages of a TMS. This advanced technology supports overall goals to improve logistics processes. This way forward uses technology to remove outdated and time-consuming methods like ongoing phone calls and negotiation talks. Everything is much more efficient through digital freight matching.
Calculate your potential Saving While Using an enterprise TMS
Adapt to Challenges in Freight Management
In modern times, the complex challenges of freight management sometimes seem overwhelming with no solution. DFM and better digital freight networks help you adapt as the world and logistics change. Learn more about the State of Digital Freight by downloading our MercuryGate eBook.
