Page 34 - Inbound Logistics | April 2017 | Digital Issue

INFOCUS GLOBAL
THE WORLD AT A GLANCE

Can Forwarders Survive an App Attack?

With rumors that Uber and Amazon He outlines three
may be about to launch their own reasons why:
global freight brokerage businesses, 1. Resilience. “I
traditional forwarders and brokers have been working
are understandably nervous. But the in the industry for
British International Freight Association more than 40 years
(BIFA) reacts to current speculation by and have watched
underlining “the vastly challenging and the naysayers and
circuitous landscape” that forwarders doom mongers in
and brokers operate in daily. the media, and the
Uber has already soft-launched Uber wider industry, pre-
Freight, notes the trade association dict the demise of
for UK freight forwarders. And, the forwarders and bro-
company has ambitions to cut out kers, only for them to have been proven ‘architects of the supply chain’ and for
freight intermediaries by introducing wrong,” he says. “In fact, the opposite good reason, too,” he explains. “They
load-matching apps that would provide is true. We have more forwarders now understand the intricacies of the
real-time pricing, according to Business than ever before.” mosaic-like supply chain frameworks
Insider UK. Smaller start-ups such as 2. Complexity. “Freight industry sup- that exist. And, most importantly, they
Cargomatic, Convoy, and CargoX share ply chains are highly complex and have acquired knowledge, experience,
the same idea. multi-layered,” Keen notes. “I find it and agility over the decades that the
Amazon recently unveiled plans hard to believe that there is an algo- tech startups will find almost impossi-
to build a worldwide services hub in rithm that can successfully absorb, ble to match.
the U.S. Midwest, and has acquired understand, and counter all the chal- “How will they cope, for instance,
thousands of its own trucks, which lenges that forwarders face every day. when a truck carrying expensive and
may hint at its plan to take on brokers How, for example, does an app react time-sensitive cargo breaks down?” he
and forwarders. to freak weather and negotiate cus- adds. “Who will arrange for a replace-
But traditional forwarders and toms issues?” ment truck? And who will guarantee the
brokers have nothing to fear, notes 3. Trust and confidence. “Freight load? Many of these questions cannot
BIFA Director General Robert Keen. forwarders are often described as the be suitably solved by an app alone.”

Where Global Logistics Brands Stand

UPS remains the world’s most The consultancy uses brand strength “United Problem Solvers” strategy
valuable logistics brand at US$22 billion, to determine what proportion of a busi- intended to position UPS as not only a
while TNT Express’s brand value ness’s revenue the brand contributes, delivery service, but also a go-to service
dropped 42 percent, making it the then projects that into perpetuity to to help companies achieve business goals
fastest-falling brand in 2017. That’s determine the brand’s value. or overcome hurdles.
according to valuation and strategy Not only is UPS the most valuable Though still in second place, FedEx’s
consultancy Brand Finance, which logistics brand, it is also the most brand value grew by 31 percent. The
values the brands of thousands of the powerful. The company recently company increased its spending to
world’s biggest companies. invested in 14 Boeing 747s, in addition to US$5.1 billion for the year starting June
The company first evaluates brands to smaller aircraft, as it joins Amazon in the 1, 2016 to update its aircraft fleet and to
determine their power/strength (based race toward drone deliveries. UPS rolled facilitate e-commerce growth.
on factors such as marketing investment, out its “What’s Your Story?” campaign FedEx also recently handed its UEFA
familiarity, loyalty, staff satisfaction, and in March 2016 to further develop Europa League sponsorship assets to
corporate reputation) and assigns a cor- its relationship with small business the UEFA Foundation and the Street
responding letter grade up to AAA+. customers. This forms part of its broader League children’s charity to give more

32 Inbound Logistics April 2017