As the former head one of the largest departments at a top global NVOCC, I transformed it into one of the company's best-performing departments (not just highest-volume, but customer service metrics, audit metrics, and financial metrics). Here's how we did it, with concrete examples that other freight forwarders can learn from.
The power of proactive processes and a customer-centric approach
Our success hinged on implementing effective, proactive processes driven by real-time data from OpenTrack. Let me share some specific examples of how we leveraged the exception visualizations on the Ocean Dashboard and OpenTrack's Explore Reporting:
- 48-hour rule for pickup appointments: Every day, our dispatch team would review a list of shipments that was automatically prioritized using live Last Free Day data. Any shipment without an appointment within 48 hours of its Last Free Day was flagged for immediate action.
- This approach wasn't limited to our contracted dray moves; we applied it to all containers we handled. It significantly improved our standing with customers by providing them visibility into potential delays or demurrage exposure.
- In some instances, our ability to monitor at this granular level persuaded customers to use our drayage services. This not only generated additional revenue for us but also provided customers with a more comprehensive solution for their cargo.
- 72-hour customs hold management: Operations would scrutinize the auto-updated list of customs holds. For any hold on a shipment with an ETA within 72 hours, we'd proactively reach out to brokers to resolve issues.
- Similar to our drayage monitoring, we reached out for both internal and third-party clearances. Our customers greatly appreciated the visibility we provided into potential delays.
- Proactive financial management: Our freight cashier would pull everything with a line hold and ensure it got paid promptly, preventing delays.
- Addressing process gaps: The rolled cargo alert was a game-changer. I would have sold my soul for that feature 10 years ago. It dramatically reduced instances where we we were caught unaware, improving our credibility with clients.
These processes quickly demonstrated to customers that we were actively looking out for their interests. Customers soon recognized our consistent ability to stay ahead of potential issues, which significantly boosted their confidence in our services.
Ocean shipping isn't an exact science, and every company faces operational challenges. Our secret to success was identifying these challenges before our customers did. I found it incredibly embarrassing when a customer called about a problem I wasn't aware of. Thanks to OpenTrack, my department nearly eliminated such occurrences for me and my team.
Overcoming challenges and driving change
Implementing these changes wasn't easy. The account-based model often makes it difficult to establish consistent processes across accounts. We found success by adopting more of an assembly line approach: person A handles dispatch, person B manages customs holds, person C oversees payments, and so on.
We also had to overcome the "If it ain't broke, don't fix it" mindset. This required a paradigm shift pushed from the top. Fundamentally, you have to care that you're doing a good job. It's crucial to foster a culture where people take pride in their work.
Technology played a key role in our success. Tools like OpenTrack allowed us to work smarter, not harder.
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Realizing the benefits: From improved operations to market leadership
Our approach yielded significant benefits. Here are some of the main ones:
- Proactive communication: We could inform customers about rolled shipments before they found out elsewhere. This proactive approach helped us manage expectations and demonstrate our commitment to transparency.
- Significant efficiency gains: At the time, "Automation" was a buzzword in the industry. However, I quickly realized that true automation required reliable, consistent, and accurate data to work effectively. OpenTrack's data filled crucial gaps, enabling us to implement genuinely automated processes.
- Arrival Notice processing & document turn over: The accuracy of ETAs and firm codes provided by OpenTrack gave us the confidence to cut—and recut—arrival notices automatically when changes occurred, without involving operational personnel. This advancement enabled us to automate document turnover to outside brokers for approximately 80% of that business segment. To put it another way, the time savings was equivalent to two full-time employees.
- Streamlined drayage coordination: We quickly realized that if we could automate arrival notices and document turnover, we could also automate delivery orders to our truckers—so we implemented that as well. The dispatch coordinators transitioned from manually entering DOs to monitoring shipments where we handled the drayage. We could notify truckers about potential issues in advance or address potential service failures upstream, resolving availability issues, reducing demurrage and detention exposure, and improving overall efficiency.
- Invoicing: Access to OpenTrack's granular milestones allowed us to automate the invoicing process. Without the need to manually track down missing out-gates and empty returns, the program could accurately calculate time between milestones and populate assessorial fees such as chassis, yard storage, and detention.
- Reduced firefighting: By anticipating problems, we spent less time in crisis mode and more time on strategic improvements. Team members even had to work less overtime.
These improvements led to operational excellence and career growth for team members. Many of our staff were recognized as high performers and found success throughout the company and in the broader industry. We also saw a significant increase in employee satisfaction by eliminating redundant tasks and reducing reactive firefighting.
Most importantly, our proactive service became our competitive edge. We attracted high-value clients who appreciated our attention to detail and forward-thinking approach. Our reputation for being consistently ahead of the curve became a key differentiator.
The roadmap to freight forwarding excellence
Every operation is going to run differently. But leveraging technology is a game-changer for how your operation performs. You can't eliminate all problems, but you can be the best at managing them.
