Best Freight Forwarding Software

Digital transformation has changed the face of many industries around the world for over many years. The supply chain and logistics industry has been no exception. In fact, many supply chain businesses, freight forwarders, logistics companies, and so on are depending on freight forwarding software to make their supply chain management more efficient.

No wonder the global freight forwarding market is growing at 4.1% CAGR from 2022 to 2031 and is expected to reach $285.15 billion by the end of 2031. The need to invest in an outstanding freight forwarding tool is increasing day by day. This software is designed to help companies with their freight management activities and logistics operations for optimizing their shipping processes.

Hence, we have compiled this exclusive post that discusses the top 5 freight forwarding software for freight forwarders. Besides, it provides a detailed guide on how to choose the best software for your organization. Read on to learn more.

What Is Freight Forwarding Software?

Freight forwarding software is an intelligent tool that is built for freight forwarders or logistics companies to oversee and manage their entire freight operations. This includes managing and controlling all types of freights, such as land freight, air freight, rail freight, and sea freight. It helps businesses by providing them with the fastest route to simplify their operations while tracking every detail of incoming and outgoing shipments.

The freight management system brings together all crucial information in a centralized dashboard and improves the shipping experiences for businesses and their customers. Also known as logistics software, this software manages various aspects of the logistics process, such as shipping, tracking, quoting, documentation, reporting, and more.

What Are the Benefits of Freight Forwarding Solution?

For a unified effort between procurement, inventory management, dealing with vendors, shipping with carriers, and dealing with government regulations, cloud-based freight forwarding software is available across all aspects of the logistics process. Freight forwarding software offers numerous benefits that help logistics companies, freight forwarders, and others to save ample time, effort, and money. Let us quickly have a look at these benefits.

1. Efficient Shipment Management

   A freight forwarding solution streamlines various tasks related to shipment management, such as shipment tracking, documentation, invoicing, and so on. It is designed to automate manual repetitive tasks to free up the team's time for other important tasks. By doing so, this software helps companies improve their operational efficiency by minimizing the number of manual errors and ensuring an uninterrupted flow of goods to the chosen destination.

2. Cost Optimization

   A freight forwarding solution leverages artificial intelligence and machine learning technology for processing shipments and managing supply chain activities. For example, it uses route optimization techniques to suggest the best delivery paths and shipment carriers thereby ensuring excellent cost savings.

3. Improved Customer Service

   Freight forwarding software provides customers with real-time updates about their shipments. This includes information about the shipment location, the route, and delivery timelines. Besides, it facilitates proactive communication with the customers by providing accurate answers to their queries and resolving issues, if any. This transparency in sharing shipment details and delivery updates improves customer satisfaction and forges strong customer relationships.

4. Data Analytics and Reporting

   Freight forwarding solution offers intelligent insights into operational performance and analytics metrics through comprehensive reports. Companies can analyze various KPIs, such as shipment volumes, transit times, and more to streamline the existing process workflows and make informed business decisions. It also helps companies identify the trends in the shipment data to devise a strategy to overcome the bottlenecks and ensure a smooth flow of shipments.

5. Risk Management

   Freight management system offers built-in features to manage and mitigate the risks associated with the transportation of shipments. For example, it is responsible for documentation, insurance, and customs clearance of the shipment. By ensuring all the necessary paperwork is in place, a freight forwarding tool minimizes disruptions and ensures the shipment transition is done without any errors while ensuring its safety.

6. Global Reach

   Lastly, a freight forwarding system is regularly updated with the new policies, trade regulations, and offers of countries across the world. It supports multiple languages and currencies thereby enabling companies to expand their operations across borders without any difficulties.

7. Automate and Streamline Your Logistics Operations

   As freight forwarding software is closely related to logistics and transportation management software, it can be considered an industry-specific ERP solution for freight forwarders. These solutions are intended to allow your business operations to be managed in a fully integrated way.

   When all internal modules are connected, freight forwarding systems eliminate the need to enter data twice since data can be imported and exported smoothly from one functionality to another.

   The sales department can turn a quote into an order, which is then sent to a shipyard so the fulfillment process can begin. The accounting department can track paid and unpaid invoices from these orders to ensure no payments are owed.

   In addition to keeping your data secure and safe, moving all shipping information electronically (through a freight forwarding platform) will also help by providing real-time data and reports.

   Shipping manually involves a great deal of paperwork, such as original quotes, sales orders, bills of lading, warehouse documents, and any other needed documents. It is hard to respond to any changes made along the way when these pile up quickly.

8. Gain A Competitive Edge

   Ideally, cloud-based freight forwarding software must be flexible and scalable, so you can add capabilities as your business grows. This means many solutions allow you to start with what you need and then add the rest as needed.

   If your business is scalable, you can save on initial costs and expand as you grow. You may initially use your freight broker software one way, but you'll learn how to improve your business in critical areas through built-in analytics features.

   You can track each shipment's cost and service level, for instance, using analytics to identify key supply chain segments to improve.

   With your freight management software, you can better track your shipments at any given time by incorporating all shipping methods your business uses (road, rail, ocean, and air).

   Combining and optimizing loads for cost-effectiveness and time savings allows you to differentiate between repeat business from clients and ensure your freight moves efficiently through the required supply chain channels.

9. Improve Tracking of Shipments

   You can minimize judgment errors when you know where your freight is at all times. In addition, informing your customers of accurate shipping statuses will hopefully lower the administrative costs of tracking shipments and discovering bits of information.

   If a customer wants to check the status of their freight, you can provide them with an accurate time frame and reassurance.

Who Uses Freight Forwarding Software?

Now that we have learned about the benefits of the freight forwarding system, let us understand who utilizes this tool in the freight forwarding industry. Transportation and logistics industry professionals are the primary users of freight forwarding software.

1. Freight Forwarders

   Freight forwarding companies use freight forwarding systems to manage the entire transportation process of the shipments while coordinating through all the stages of the logistics journey.

   Serving as an intermediary between a logistics company, a custom clearance agent, and businesses, freight forwarders leverage this software to manage their company operations and track shipments while maintaining proper documentation and seamless communication with the respective parties.

2. Manufacturing Businesses

   As transportation is one of the crucial functions of manufacturing companies, using freight forwarding software is a must to ensure the smooth transfer of raw materials, item parts or components, and finished products. This software helps them monitor and coordinate the details of the shipments to optimize the logistics processes for the timely delivery of goods.

3. Importers and Exporters

   Freight forwarding software enables importers and exporters to process and manage their international business operations. It is primarily responsible for ensuring compliance with customs regulations, handling the required shipment documentation, and coordinating the status of the shipment across borders.

4. Warehouse and Distribution Centers

   Warehouse and distribution centers use freight forwarding software to manage and monitor their inbound and outbound logistics processes. It helps them with crucial activities, such as inventory management, shipment tracking, customer communication, and more.

5. Supply Chain Partners

   Supply chain partners have to work together with numerous organizations, such as vendors, carriers, customs brokers, and third-party logistics providers to ensure an uninterrupted movement of goods within the country and abroad. Freight forwarding software helps them manage the entire communication and collaboration process by offering deep visibility into supply chain activities.

6. Retail Businesses

   Most retail businesses utilize freight forwarding software to manage their logistics operations. Activities like tracking the goods sent by the suppliers, managing the inventory, sending out the products to customers, and ensuring timely delivery of products to the customers are taken care of by this all-in-one logistics management tool.

7. ECommerce Businesses

   All eCommerce companies rely on a freight forwarding system to manage their company operations. It offers them a unified solution for handling order fulfillment, tracking shipments, coordinating with multiple 3PLs, and more. Besides, it allows them to share real-time package tracking information with their customers.

8. Logistics Companies

   Freight forwarding software is also used by logistics companies to streamline their operations and automate repetitive processes to improve various aspects of their service offerings, such as transportation management, customs clearance, freight consolidation, and so on. It facilitates the efficient transportation of goods from the sender to its destination.

How Does Freight Forwarding Management Software Work?

A freight forwarding software provides businesses with a centralized platform for managing, monitoring, and automating various aspects of the freight forwarding process.

Here is a short step-by-step guide that makes up the freight forwarding management process.

• Request creation - The user enters crucial details about the shipment like origin, destination, product information, transportation mode, and more.

• Carrier selection - Based on the shared shipment details, the intuitive software looks up relevant carriers that meet the customer's expectations and budget. Besides, it links up with the relevant customs regulations and other governing bodies to ensure the shipment contents are accurate and comply with the necessary terms.

• Route optimization - Next, the system researches the most efficient shipping routes for the shipment. It considers essential aspects for route selection, such as transit time, delivery schedule, shipment costs, and more for finding a route that suits the customer's requirements accurately.

• Documentation management - Once the route is decided, the system prepares the required paperwork that includes invoices, insurance, and other documents to be submitted to the relevant authorities when the shipment is released.

• Compliance and regulations management - At the same time, the system also generates documentation concerning the compliance regulations of goods transportation.

• Shipment tracking - The system offers real-time updates on the shipment status to the customers enabling them to track its location at any point in time. This delivers a smooth customer experience that instills a sense of trust and solidifies customer relationships.

• Analytics and reporting - Lastly, the system monitors and tracks shipment across various data points, such as delivery schedule, GPS data, transportation costs, and others to build an intelligent system to further optimize the freight forwarding process.

What Are the Common Features of the Best Freight Forwarding Software?

That being said, let us understand the key features your freight forwarding management software must offer.

Remember the best freight forwarding software must take care of all the major processes, including client communication, supplier management, invoice management, documentation, and more.

Some of the essential features are as follows -

1. Documentation and Compliance

   This helps streamline the process of creation and management of important shipping documents, such as commercial invoices, packaging slips, insurance certificates, bills of lading, sea waybills, air waybills, and so on. Besides documentation, freight forwarding software must assist with compliance requirements for customs clearance and international trade regulations.

2. Customs and Trade Compliance

   The software must offer features to manage the customs clearance process by handling customs duties, taxes, trade regulations, and more. It must also provide businesses with access to the latest regulation information and customs procedures.

3. Customer Relationship Management (CRM)

   The freight forwarding management software must offer an intuitive CRM to store customer/supplier information and manage communication. It must help with customer inquiries and requests while providing them with personalized customer service.

4. Multi-currency Support

   The software must allow multi-currency support for seamless transaction handling and financial management. This will help manage all financial operations including invoice management tools for faster invoice processing, expense tracking, budgeting, and reporting. It is a must-have feature, especially for companies serving international markets.

5. Invoicing

   Manage your shipping, land, and air freight by creating documents detailing what you owe to your shipping partners, agents, customs, and others. It also handles multi-currency payments within the primary accounting software.

6. Quotations

   You can generate and send quotes for all modes of transportation. You can track the status of sections and convert them into orders whenever needed. You can include one-click shipments, templates, and shipping rate calculations.

7. Order Management

   The best freight forwarding software helps capture, track, and fulfill multiple sales channels. Managing invoices, recurring orders, integrating with shipping carriers, cloning orders, detecting errors, managing backorders, returns, and reconciling purchase orders.

8. Air/Ocean/Land Shipment Management

   Organize consolidations and direct shipments towards inbound or outbound destinations, generating all necessary documentation such as waybills, cargo manifests, booking confirmations, TSA letters, loading plans, etc.

9. CRM

   CRM system provides an integrated view of your prospects and customers so that you can increase the efficiency and effectiveness of your marketing, sales, and customer service operations.

   It includes email tools, phone call notes, and user behavior tracking to score leads and determine which prospects are ready to purchase.

10. Supply Chain Planning

    By coordinating data from separate business units, you can anticipate customer demand and plan resources or production accordingly.

    You can procure what is needed using your sales representatives' historical data on order volumes, inventory turns, and forecasts. As a result, you won't have to store too much raw material or finished product.

11. Warehouse Management

    Warehouse management ensures coordination of inventory and actions in warehouses or distribution centers, optimization of picking and shipping, and ensuring that orders are fulfilled accurately.

    The freight forwarding management system also provides faster delivery times and efficient labor management, the status of an order is more visible, storage space is optimized, inventory movement is minimized, and yard and dock productivity is enhanced.

Types of Freight Forwarding Management Software

Let us now explore the different types of freight forwarding management tools that are available in the market today.

1. Supply Chain Management Software (SCMS)

   The Supply Chain Management Software is responsible for managing the entire supply chain operations, such as supplier relationships management, goods procurement, inventory management, order management, logistics management, returns management, and more. Being responsible for controlling the operations of the entire supply chain processes, this software offers enhanced visibility into the supply chain procedures and boosts their efficiency.

2. Transportation Management Systems (TMS)

   As the name suggests, a transportation management system oversees the transportation operations of the company. It manages and monitors various transportation-related tasks like carrier selection, route optimization, load planning, shipment tracking, and delivery planning. It is responsible for planning and executing the physical movements of goods thereby ensuring their timely deliveries.

   Whether it is land, air, or sea, a TMS streamlines the shipping process for businesses making it easy for them to efficiently plan transportation activities across various geographies.

3. Enterprise Resource Planning Systems (ERP)

   Enterprise Resource Planning Systems are designed to monitor core business functions, such as finance, human resources, project management, risk management, compliance management, and others. Leveraging freight forwarding software in ERP can help in handling specific logistics and transportation requirements, resource planning and allocation, and workforce management.

4. Warehouse Management Systems (WMS)

   Warehouse Management Systems are designed to oversee the entire warehouse operations that includes inventory management, order fulfillment, and warehouse optimization. A WMS is responsible for organizing and managing the activities in the warehouse thereby ensuring that it operates at the best of its efficiency. Using this tool with a freight forwarding system can streamline the movement of goods from the warehouse to fulfillment centers, shipping partners, 3PLs, or other transportation channels.

5. Financial Management Software (FMS)

   Financial Management Software focuses on managing the financial transactions of businesses which includes invoicing, billing, and financial reporting. It helps in managing the business income, expenses, and assets with the purpose of maximizing profits and ensuring long-term business sustainability.

   An FMS when integrated with freight management software can be utilized to calculate freight transportation charges, generate invoices, determine taxes, and more to manage the business expenses and revenue.

   Although this software is available as a standalone solution, it can be integrated with freight forwarding management software to build a comprehensive system that addresses the specific needs of any business.

Which Factors Should You Consider When Purchasing Freight Forwarding Software for Your Business?

Many factors need to be considered before choosing a freight forwarding solution. Check out the following factors to help you decide which freight forwarder is right for you and your business.

1. Streamlined freight management

   The freight forwarding management system should manage your transportation costs efficiently with comprehensive logistics software.

   In addition to providing you with insights that will help you deal with freight-related challenges seamlessly and successfully, it should help you save costs while maintaining your service quality and ensuring customer satisfaction at the same time.

2. Efficient delivery of goods

   Ideally, your online freight forwarding platform will allow you to plan well, eliminating the possibility of missing deadlines due to poor planning. Additionally, it should help assure package security and deliver goods to the right destination.

   The web-based freight forwarding software must facilitate a smooth flow of goods from your location to your customers' location without incurring additional expenses.

3. Seamless integration with existing systems

   You may already have some systems to handle various processes, so don't forget when considering the new best freight forwarding software.

   Your global freight management system must work in sync with your existing ones to ensure the smooth operation of your business operations. Otherwise, your logistics management system might end up hindering your operations rather than facilitating them.

   Try trial plans, opt for modular software, and choose only the functions you need for your business. This will make the decision more financially feasible if you choose a modular design.

4. Wide range of billing options

   Explore the billing options available on freight forwarding system software while selecting it. Make sure it allows you to charge weekly, monthly, or yearly.

   Besides, the system should be designed to capture and process data accurately to ensure that all information is accurate. A system that offers maximum flexibility on this front will be the best to consider.

5. Ability to share data with customers

   Creating a system that allows you to share specific dashboards with your customers can make for increased deal transparency and improve the customer experience.

   For instance, particular logistics management software lets you share real-time tracking of shipments dashboards with your customer for their specific order, which keeps your customer informed about the progress of their goods. As a result, both parties can see the exact location of their demands for the first time.

6. Processing invoices and monitoring costs

   A system that automates invoice reconciliation will save time and make auditing seamless since every invoice can be time-stamped and includes comments. Make sure your system has both cost and invoicing features.

   As a result of automating the invoice matching process, the system will alert your vendor directly if there are inconsistencies between the invoice and the original quote. Once your vendor has corrected the error, you can consider your invoice.

Top 5 Freight Forwarding Software: Comparison

Here is a list of the best web-based freight forwarding software that freight forwarders can consider investing in.

1. Logitude

Logitude is one of the best cloud-based freight forwarding software that offers specialized tools for managing the entire freight forwarding lifecycle. It can be used by all - air, sea, and land freight forwarders without any hassles. With its user-friendly interface and excellent features, businesses can simplify their freight forwarding processes and enhance operational efficiency.

Features

• Quoting and rate management
• Documentation management
• Carrier integration and shipment tracking
• Financial management 
• Reporting and analytics

Pros

• User-friendly interface that supports easy navigation
• Affordable pricing plans
• Ideal for small to mid-sized businesses
• Offers end-to-end freight forwarding functionalities
• Integration with major carriers

Cons

• May lack some advanced features required by larger or more complex operations
• Limited customization options compared to other providers

Pricing

• Logitude offers subscription-based pricing plans. You can request custom pricing in case of specific customizations.
• Economy: $39/user/month
• Business: $65/user/month
• First Class: $79/user/month

2. Magaya

Magaya is another best software for freight forwarders that offers a complete suite of tools to modernize and automate freight management. It offers end-to-end solutions for digitizing logistics operations for optimizing productivity, enhancing customer experience, and growing business revenue.

Features

• Rating and quoting solution
• Documentation management
• Compliance and regulations management
• CRM
• Warehouse management offering e-commerce capabilities
• Financial management 
• Intelligent reporting

Pros

• Offers a comprehensive suite of freight forwarding tools
• Provides additional functionalities for e-commerce businesses
• Robust reporting and analytics capabilities
• Integrates with various industry partners and platforms
• Customizable and scalable to accommodate different business sizes

Cons

• Occurrences of server outages and connection glitches 
• A steeper learning curve for users unfamiliar with the software

Pricing

• Magaya offers customized pricing as per customized business requirements. You can contact their sales team for a personalized quotation.

3. Cargowise

CargoWise offers intuitive freight forwarding software that is designed to automate and optimize forwarding operations. It provides a feature-rich and highly flexible system to execute complex logistics-related tasks with ease and deliver the best logistics forwarding experiences.

Features

• Quoting management
• Documentation management
• Customs and trade compliance
• Supply chain management and visibility
• Financial management 
• Advanced reporting and analytics

Pros

• Feature-rich platform covering end-to-end logistics operations
• Robust capabilities for large-scale operations and global trade
• Offers advanced functionalities for supply chain management
• Extensive integrations with industry partners and systems
• Provides comprehensive reporting and analytics tools
• Available in 30 languages

Cons

• High implementation and customization costs
• A complex system may require dedicated training and resources

Pricing

• Pricing information can be obtained by contacting their sales team.

4. Shipthis

Shipthis is the next among freight logistics software that covers all aspects of freight forwarding operations, such as freight management, shipment tracking, warehousing, documentation, vendor CRM, financial accounting, and more. It offers a highly-configurable freight forwarding system solution to boost operational efficiency and streamline business operations.

Features

• Quoting and rate management
• Booking and documentation management
• Carrier integration and shipment tracking
• Trade compliance
• Banking integrations
• Workflow and productivity management

Pros

• User-friendly interface and intuitive navigation
• Offers core freight forwarding features with customization options
• Integrates with carriers and provides shipment tracking
• Provides documentation management and customer portal functionality
• Affordable pricing plans suitable for small to mid-sized businesses

Cons

• May lack some advanced features required by larger or more complex operations
• Limited scalability for rapid business growth

Pricing

• Shipthis pricing starts at around $49 per user per month.

5. GoFreight

GoFreight is the last one among the top freight forwarding software. It offers an all-in-one cargo tracking solution for managing end-to-end forwarding operations, documentation, financial accounting, and more. It simplifies the complexities of running a freight forwarding business with its intuitive web-based applications.

Features

• Quoting and rate management
• Booking and documentation management
• Carrier integration and shipment tracking
• Financial management and accounting
• Automated workflows for boosting operational efficiency
• Tracking portal for customers

Pros

• Cloud-based platform accessible from anywhere
• Offers end-to-end freight forwarding functionalities
• Integrates with carriers and provides shipment tracking
• Provides robust reporting and analytics capabilities
• Offers customizable workflows and templates

Cons

• Relatively new in the market compared to other providers
• Limited information available on pricing tiers and plans

Pricing

• Connect with the GoFreight team for specific pricing information.

Custom AI Solutions in Freight Forwarding Software

Owing to the advancements in artificial intelligence (AI) technology, businesses are leveraging custom AI solutions to enhance various aspects of freight forwarding processes. Let us see how AI is playing a pivotal role in the freight forwarding industry.

1. Intelligent Shipment Routing

   AI can analyze various shipment-related metrics, such as shipment information, transit times, delivery estimates, carrier performance, and shipping costs to determine the best shipment routes. Businesses can leverage AI to optimize their shipment deliveries by choosing those delivery routes that reduce transit times and decrease overall costs.

2. Automated Load-To-Carrier Matching

   AI can also simplify the load-matching processes by automatically identifying the loads and assigning them to the best-suited carriers. It can do so by determining the capacity of the carriers based on various criteria, such as carrier capacity, equipment type, shipment type, service requirements, and geographic coverage. This automated mapping of load to the carrier streamlines the carrier selection process and boosts process efficiency.

3. Natural Language Processing (NLP)

   AI-powered NLP tools are equipped to process human language in the form of text or voice while understanding the sentiment behind the same. This enables freight business owners to offer a seamless experience to customers and build strong relationships with them.

4. Risk Assessment and Compliance

   AI can proactively identify the potential risks in the freight forwarding processes and suggest measures to tackle them. For example, AI can analyze shipment history, documentation, and more to spot inaccuracies in complying with customs or trade regulations so that they can be rectified at the right time.

5. Shipments Consolidation

   AI can support businesses with capacity utilization by analyzing shipment details for consolidation. It identifies opportunities for consolidating multiple shipments by examining various data points like volume, timing, and final destination. By placing the relevant shipments into a single container, businesses can reduce costs and expedite deliveries.

6. Predictive Analytics for Shipping Times

   AI-powered tools can utilize machine learning to evaluate historical shipment information and real-time data to predict accurate shipping timelines. It takes into consideration external factors, such as weather conditions, traffic, port conditions, holidays, and more during these predictions. This helps businesses to schedule their deliveries more effectively while providing customers with accurate delivery estimates.

7. Demand Forecasting and Capacity Planning

   AI can also identify the latest market trends to accurately forecast the demand for freight forwarding services. This will help businesses to plan their capacity allocation efficiently and ensure proper resource allocation.

8. Data Analytics and Insights

   AI is known to process large volumes of data and present intelligent insights in just a few minutes. Businesses can leverage AI to evaluate complex freight-related data to extract valuable results to make data-driven decisions for optimizing internal processes and improving operational efficiency.

   By integrating AI-powered solutions with freight forwarder software, businesses can increase efficiency, make improved decisions faster, and optimize overall freight forwarding operations.

What Is the Cost of Freight Forwarding Software?

The cost of freight forwarding software varies based on several factors, including the software provider, the specific features and functionalities included, the size of the business, third-party integrations, and the level of customization required. Hence, it is advisable to reach out to the software providers directly and request a quote by sharing your requirements.

Businesses can sign up for free trials of the software or attend a demo session to learn about the suitability of the product for their business before reaching out for accurate pricing.

However, the pricing of basic freight forwarding software starts from as low as $35 per user per month and goes up to $200 per user per month.

Conclusion

Freight forwarders can now rely on the best freight forwarding management software to monitor and manage their entire business. This software offers specialized tools, such as CRM, transportation management systems, supply chain management software, warehouse management system, invoicing tools, document storage system, and more to centralize all freight management-related activities. It helps businesses improve operational efficiency, boost team performance, and enhance customer satisfaction.