Embracing Our Fears: The Way Forward for the Freight Industry

Explore automation’s impact on jobs in the freight industry and how a balanced approach in transition can lead to sustainable growth.

Will software take our jobs? Will robots replace workers? Will automation disrupt hard-earned gains from years of manual processes? These legitimate concerns arise continuously amid the ongoing conversation around digital transition. Often, these worries proliferate due to gaps in understanding, which breeds uncertainty and causes hesitation, ultimately undermining innovation. 

When combustion engines disrupted horse-drawn carriages, email replaced posted letters, and mobile banking surpassed physical branches, aggressive resistance met market innovation at every turn. 

There’s no hiding from the fact that in the near-term, some job displacement will occur as manual work declines in the global economy. But in the long run, job sustainability and growth are possible by integrating automation and empowered workers. With compassion and foresight guiding implementation, intelligent systems can strengthen human potential while propelling the freight industry to unprecedented efficiency. 

Let’s take a closer look.

The full picture of automation's impact and potential in freight is steadily emerging

I wasn’t surprised that the supply chain was the second slowest sector to adopt Gen AI, according to this 2023 McKinsey report. As a Chief Digital Officer, I often hear outdated cries: “We have always done things this way!” or “We already have too much automation!"

This distrust and anxiety is understandable on its face when industries get upended. And yet, across warehouses, ports and yards, the freight industry is reimagining workflow - not just seeking incremental efficiency gains but activating exponential growth.

A pivot is underway

1. In the old paradigm, technology is a cost-cutter; today it’s a growth enabler

The gains from intelligent automation go beyond cost savings. Consider the transformational impact of structured data and automation on key workflows. Productivity supercharges by over 27% as manual processes get replaced by intelligent systems.

 By exponentially amplifying output over simply cutting costs, automation enables sustainable scaling. Forwarders gain flexibility to expand offerings, enter high-growth markets, and tailor bespoke delivery solutions.

1. Fear and distrust linger, yet data reveals a far more encouraging picture

Most freight forwarders operate with poor data quality, averaging 40-60% accuracy across critical information like pricing, routing details and shipment specifications. Unreliable data hampers operational efficiency, frustrates customers, and causes inefficiencies across critical workflows. 

Stargo uses machine learning to cleanse and structure data, ensuring 100% accuracy. As firms scale up to meet the demand enabled by efficiency gains (up to 20% increase in revenue), they need to hire more people across planning, sales, HR, and Ops - not just in IT roles – creating job opportunities for those willing to adapt.

As freight processes like data entry, proposal generation and shipment booking become increasingly automated, humans take a step back from repetitive manual work. With support structures, they can level up and apply institutional know-how to high-impact responsibilities like relationship-building, planning, and overseeing complex client accounts. 

1. Freight automation AI platforms drive sustainable growth

StarDox is an AI-powered control tower that keeps supply chain data 100% accurate. After just 12 weeks, freight Brokers see improvements, including:

• 5% increase in customer retention 
• 2-3 days DSO
• 10%-20% reduction in carrier and supply chain vendor costs
• 2% increase in response time (remember, that’s within just 12 weeks)

In addition, forwarders who used to spend 3 hours on manual rate analysis and proposals now complete the same task in 60 seconds. Stardox also accelerates bid responses by 50%, and it can improve deal conversion rates by 7%, resulting in higher shipment volumes. While reducing proposal generation costs from $70 to only $3.60 for competitive pricing. 

Forwarders that reinvest automation savings into new services and partnerships drive hiring across the supply chain, sales, account management, and customer service roles. Counter to prevailing fears, automation has the potential to enable sustainable growth and employment.

1. There’s actually a lot that AI and automation aren’t great at 

A typical job role demands far more than just repetitive tasks - that’s because only 45% of standard functions can actually be automated. (So much for the myth of automation wholesale replacing human roles.) 

Only people are great at critical skills like extensive decision-making, creative problem-solving, cross-domain insights, and strategic communication. Skills that keep companies agile, innovative, and ahead of the curve as markets evolve.  

These skills drive a company's agility, innovation, and ability to stay ahead in evolving markets.

By investing in upskilling and reskilling their people, companies can harness the full potential of automation while retaining the institutional knowledge that sets them apart. This approach ensures a smoother transition, a more engaged workforce, and the long-term benefits that automation promises to bring to both individuals and organizations alike.

Overcoming automation anxiety

As a Chief Digital Officer leading digital transformation, I encounter the root cause of freight’s immobility firsthand. Fear of disruption. Fear we will lose control. Fear that machines will replace us. 

I agree that the idea is scary, especially when AI and Machine Learning are involved. But the cost of that lack of action means falling behind competitors who will harness AI and their data to drive revenue first.  

The key is augmenting, not minimizing, human potential in freight. With training initiatives and transitional support structures, we can empower workers to develop the talents they’re most passionate about rather than compete with machines. As repetitive tasks get automated, we free gifted individuals to drive progress through creativity, emotional intelligence, analytical rigor, and inspiring leadership.

As we guide our companies through the unchartered waters of 2024, courage and compassion …. into automation’s potential while supporting those navigating transitions within our companies with the training and support to develop the things they’re great at. The future of AI is unwritten. It's up to all of us to augment (not minimize) human potential in freight.