IT Optimization & Leadership Skills Drive Sales in Freight Forwarding Industry

Gene Gander, Vice President of Sales forfunctions to an appropriate software provider to
CargoWise® edi, a leading provider of integratedremove the risk from IT-related projects and obtain
international supply chain logistics managementthe necessary logistics solutions that drive the
systems, says that while today’s globalbusiness. This is typically more inexpensive and
business environment is replete with dynamiceffective than incurring the continual cost and
execution technologies and IT initiatives, not allongoing in-house complexity of trying to revise an
shippers and freight forwarders are realizing theoutdated legacy system.”
benefits that optimize sales and operational visibilityDue to the dynamic nature of today’s global
across extended supply chains.technology, training for IT system users is also of
“With so many complex choices available,paramount importance. A company may find that the
it’s not unusual for company management tofixed costs of building and maintaining a vibrant IT
be confused by the choices and uncertainty of thesystem in-house and providing training to
IT solutions that best fit their unique supply chaincross-departmental users is far more costly than
requirements,” says Gander. “Often this includesoutsourcing it to an expert software provider that
just making the decision whether to build an IToffers dedicated training programs and flexibility in
platform in-house or outsource the functions to anresponding to market dynamics rather than waiting
expert software solution provider. Making theseyears for a new and more expensive system to be
decisions requires proficient leadership skills with thedeveloped internally. Outsourcing the execution
capacity to identify, implement, communicate andsoftware technology can often greatly expedite the
manage the objectives necessary to optimize thesupply chain process and produce better results for
comprehensive IT operating platform that is put intocustomers. That is a management decision, the
place within an organization.”metrics of which that should be monitored carefully
Gander says that without a strong commitment andfor success.
ongoing follow-up from executive leadership,“Unfortunately,” summarizes Gander, “many
managing supply chain operations with robustin positions of company leadership don’t fully
technologies can be a difficult, costly, and oftenunderstand the metrics of IT administration in a
frustrating undertaking. “If a company’sdynamic global economy and vastly underestimate
corporate culture does not support the commitmentthe cost and commitment required for providing
and budget necessary to provide optimal supply chainvibrant IT execution solutions. Whether upgrading
solutions for its customers, the successfulin-house IT functions or outsourcing them, strong
management of IT operations as they relate to salescompany leadership should analyze the true total cost
and operations can be mired in cross-departmentalof ownership of a cross-departmental IT operation.
inefficiencies and confusion. Successful IT operationsMany companies enter into the development of IT
are driven by dynamic company leadership thatsystems thinking they can do so inexpensively and
understands the significant function that optimizingenhance them later. Not so. Whatever a freight
supply chain management and visibility plays inforwarders’ IT-related start-up costs are,
creating long-term sales and ROI.”they will increase dramatically from the initial
CargoWise edi says a company’s culturalinvestment as the system is enhanced with newer
alignment and cross-departmental communicationstechnologies. The real business focus for most freight
capabilities, especially as they relate to today’sforwarders is on the core competency of logistics;
software technologies, play a significant role inand all too often they produce ineffective internal
minimizing the degree of IT risk it absorbs, as well asoperating platforms and architecture with insufficient
the impact on its expenditures and the overallclient integration between software systems,
maximization of the business process. Key to theresulting in a loss of focus, and possibly customers.
companywide administration of the successful total“Ultimately, the success of any supply chain
supply chain management process is commitment,process relates back to customer satisfaction and a
communication and departmental integration from thestrong commitment to providing it consistently.
top down at any freight forwarding operation.Companies should determine how much capital
“Executive management can best ensure a— both human and financial — they can
successful IT-driven sales and management operationafford to expend to maximize the company’s
by thoroughly examining the status of its existing ITresults and then implement a software enterprise
capabilities,” says Gander. “If a company doessystem that provides critical management visibility of
not have in-house state-of-the-art IT capabilities andthe entire freight forwarding process. Company
optimal cross-departmental/office communications onleadership should realize that this strategic
a global basis, it probably does not have thedecision-making procedure deserves the kind of
wherewithal to provide the proper operating platformcorporate commitment and dedication necessary to
to meet customers’ supply chain requirements.optimize both customer demand and company ROI.
In this case, the company should outsource its IT