We live in exciting times — as drivers of and witnesses to remarkable technological advancements that are changing the way 3PLs do business.
“Technology is revolutionizing logistics at an unprecedented pace,” supply chain professional Bhavya Vashisht wrote in a blog on truckandtradetrends.com. “Over the past decade, we’ve witnessed an explosion in freight tech innovations, from automated load-matching platforms to real-time tracking and digital contracting.”
The Rise of Technology in 3PL Operations
In the third-party logistics industry’s dinosaur days of the 1990s, freight brokers, shippers, and carriers primarily communicated via landline. Mover-and-shaker brokers might carry a pager to respond to after-hours emergencies — if they could find a pay phone at the local watering hole.
Business was documented almost entirely on paper — load confirmations, proof of delivery, carrier contracts, you name it. (Remember, even faxes were printed out on paper.)
Fast-forward to today, when very little business is conducted on paper. (Even newspaper publishers realize this is true.) While the movement of freight is absolutely essential to humankind, the way logistics operations are executed have had to evolve.
“Freight will always need to move. But the way it moves and who facilitates it is rapidly changing,” Vashisht said.
“Brokers who cling to outdated models will struggle. But those who embrace technology and redefine their roles will find new opportunities,” he continued. “The industry is shifting toward efficiency, automation, and transparency, and the ones who adapt now will be the ones still standing in 2045.”
While we don’t know definitively what the 3PL industry will look like in 2045 (that’s about a century away in tech years), we do know that 20th century practices — and even 2000 and 2010 practices — don’t cut it anymore. Frankly, freight brokerages must adapt or go the way of the dinosaurs.
Humans Still Integral to 3PL Operations
Despite advances in automation, artificial intelligence, and intuitive software, freight brokerage is still very much a relationship business.
“While traditional freight brokerage models will decline, brokers who adapt to technology and provide specialized value may still thrive,” Truck & Trade Trends’ Vashisht said.
He said human freight brokers can remain essential by:
- Leveraging AI, automation, and analytics to provide their customers with valuable strategic insights.
- Offering high-touch brokerage expertise for such types of freight as hazmat and oversized.
- Maintaining customer relationships to build trust and scale the business.
Freight Brokers and Software Work Together with Drumkit
Founder and CEO Dhruv Gupta stressed in a post on LinkedIn that Drumkit’s AI-powered software is not designed to replace human freight brokers.
“If you run a freight brokerage and think AI will replace your team, you’re asking the wrong question,” Gupta wrote. “The question isn’t, ‘Will AI take my job?’ It’s, ‘What will my best reps be able to do once AI handles the grunt work?’ Because AI still can’t handle nuance. It doesn’t build trust. It doesn’t see the subtle cues in a customer’s tone. And it sure as hell doesn’t pull a load out of the fire at 5:59 p.m. on a Friday.
“The smartest brokerages we’ve seen aren’t removing humans. They’re giving them more leverage. Less tab-hopping. Fewer portals. Fewer just circling back emails. More time selling. More time solving. More time building relationships that actually grow the business,” he continued.
“That’s the real opportunity with AI. Not automation for the sake of it, but automation that makes your people 10x better.”
Danielle Spinelli, aka The Fraud Girl, responded to the post with just one of the benefits of implementing Drumkit’s freight broker software.
“Drumkit actually reduces the headaches and keeps your team focused on what they need instead of filtering through emails,” Spinelli wrote.
Spinelli nailed it. Drumkit’s freight broker software sits in 3PLs’ email systems and handles routine, time-consuming tasks that can be automated and leaves the business that needs a human touch to the humans.
Drumkit will continue to drive the advancement of freight broker software — and continue to take humans along for the ride. Book an introductory call today.