Digitizing Freight Forwarding Piece by Piece
The global freight forwarding market is highly fragmented and one that is fraught with many inefficiencies. As a result, the market has witnessed the rise of online freight marketplaces, numerous software solutions and a variety of startups. However, for many of these options, only selected pieces of the puzzle are addressed.
With a background in mechanical engineering as well as a founder of an already successful startup, Michael Wax, CCO of FreightHub, grabbed the challenge of redefining the freight forwarding market.
What made you interested in freight forwarding?
Michael: I was always interested in complex problems and challenging work environments – Freight Forwarding combined both of these. The rather outdated processes and the enormous potential for improving internal cost savings through digitization truly excited my engineering DNA.
What’s the attraction of working at a startup versus a large corporation?
Michael: The biggest upside is the enormous potential to get my own ideas going. Large corporations offer a perfect safety net paired with fair career opportunities and a paved way up the corporate ladder. However, more and more graduates are choosing the insecure option in order to follow their own ideas and dreams.
Why? In my opinion, there is one single period in life when you have no strings attached – no family, no kids, no need for a fixed income nor any means of security. Usually these are the days when corporations do not give you much responsibility and therefore limit your personal development. So these days in your life, marked with the highest flexibility, are most constrained in a corporate setting.
However, in a startup no one will stop your drive and creativity in creating new things. In a startup no day is like the other. The many challenges to be solved and the level of exposure you need to master is enormous. But it’s these challenges that will let you grow beyond your limits like no other job setting in the world.
What skills do you bring to the freight forwarding market and to FreightHub?
Michael: With a background in engineering and consulting I was trained to think in a very structured way. Furthermore, Konux (my first startup) taught me connecting startup DNA with incumbent companies! With FreightHub I combine exactly these skills – structured analytics of supply chain processes combined with the capability of connecting needs and abilities in the market.
What skills do you believe are necessary for people entering the forwarding/logistics market?
Michael: I think the question isn’t about the skills required but rather the mix of skills in a team. We believe strongly in bringing talent from the logistics industry together with digital entrepreneurs from Berlin’s ecosystem – only this perfect mélange of potential, skill and expertise can challenge a problem as big as digitizing the supply chain.
There is a talent shortage in logistics, how does FreightHub attract talent? For that matter, what should companies in general do to attract/encourage the right talent needed?
Michael: Germany is the cradle of logistics. The biggest logistics companies are based here. There are tons of talents eager to change something! FreightHub is looking for versatile logistics specialists that are looking for a workplace where they quickly grow and create a meaningful impact.
What is the outlook for the freight forwarding market?
Michael: Freight Forwarding will see a massive change in the next decade. Five years from now more than 50% of cargo will likely be booked and managed online. Many forwarding companies will bring their offerings online and serve customers through cloud-based platform solutions.
Where is FreightHub in 5 years, 10 years and beyond?
Michael: FreightHub will continuously work on process automation and workflow management together with our customers. We seek to become the freight forwarding company with the best service for our clients. Supply chain management tools will be the backbone of this movement and together with strong partnerships with incumbent players we’ll help to bring freight forwarding to the next level.
What is a successful freight forwarder?
Michael: The one who manages to satisfy his client efficiently and transparently.
A big thanks to Michael for his thoughts on the market and its outlook. In summary, change is underway and with the right mix of skills, the transformation of the freight forwarding market will create a more efficient one benefiting the shipper, carrier as well as the forwarder.
