A Guide to Master Freight Automation: Pros, Cons, & More

Freight automation is your key to streamlined operations, faster deliveries, and unbeatable customer satisfaction.  

From tracking shipments and route planning to billing, freight automation does all the heavy lifting so you can focus on scaling your business.

Curious about how freight automation can rev up your operations?

We’ll explore freight automation, including its pluses and minuses. We’ll also unpack the top five platforms and show you how to pick the best one for your business.

What Is Freight Automation?

Freight automation leverages advanced technology, like robotic systems, artificial intelligence (AI), and self-driving trucks, to move and manage goods. It makes freight management faster, safer, and more efficient.  

But is it worth the effort?

Yes! Freight automation helps improve your manual process flow, helping scale growth and reduce the risk of errors. Moreover, as shipments grow and customers expect more, you need freight automation technologies to be cost-effective and maintain your competitive edge.  

For instance, a freight forwarder can use AI-powered software to automate customs clearance. This reduces paperwork, eliminates human errors, and speeds up the entire process.   As a result, goods will pass through borders more quickly and efficiently, keeping deliveries on schedule and improving customer satisfaction.  

But this is just one example.

Let’s take a deep dive into other applications of freight automation.

What Are the Different Types of Freight Automation Processes?

From autonomous vehicles to automated warehouses and smart tracking systems, here are effective freight automation systems that transform the freight industry:

  • Automated Freight Management Systems: Automates key freight management tasks, such as order processing, route optimization, load balancing, and real-time tracking. They are easy to implement and massively help reduce human error and inefficient manual labor.
  • Enterprise Resource Management (ERM): Integrates and automates key logistics tasks like shipment tracking, billing, route optimization, and inventory management. It streamlines operations and enhances efficiency, enabling businesses to handle growing shipment volumes with ease and accuracy.
  • Transportation Management Systems (TMS): Automates tasks like choosing carriers, negotiating rates, planning loads, and tracking shipments. They can connect with other systems, like warehouse management systems, and provide useful data, such as inventory levels, for stock management. 
  • Warehouse Automation: Leverages automated conveyor systems, robotic pickers, and automated guided vehicles (AGVs) to efficiently move and store goods in warehouses. It enhances order accuracy, accelerates fulfillment, and lowers labor costs.
  • Freight Matching Platforms: Uses algorithms to match cargo needs with available carrier capacity and preferences quickly. They make it simple to find the right transportation for shipment.
  • Automated Inventory Management: Uses Radio Frequency Identification (RFID) technology to track tagged items to monitor stock levels in real-time. It prevents stockouts and reduces overstock.
  • Artificial Intelligence (AI) and Machine Learning: Optimizes route planning, fuel efficiency, and load management by analyzing large datasets. They also predict demand, detect potential disruptions, and automate decision-making to improve overall operational efficiency.
  • Internet of Things (IoT): IoT sensors placed on vehicles and cargo capture real-time data, including temperature, humidity, location, and the condition of goods. This data plays a key role in monitoring the quality of shipments and ensuring they meet regulatory standards.
  • Robotic Process Automation (RPA): Streamline operations by automating repetitive tasks like freight invoice processing, data entry, and other routine administrative functions.
  • Blockchain: Enables secure and transparent record-keeping. It’s ideal for verifying product authenticity and ensuring the accuracy of supply chain data.
  • Last-mile Delivery Automation: Uses drones, autonomous vehicles, and smart lockers to streamline the final step of delivering goods to customers. It saves delivery time and costs.
  • Predictive Analytics: Leverages historical data to anticipate demand, spot potential disruptions, and streamline supply chain processes. It allows companies to tackle challenges proactively and prevent issues before they arise.  

Next, let’s explore some of the best freight automation solutions available today.

5 Top Freight Automation Software for Logistics Companies

When choosing a freight automation software, it’s essential to find one that perfectly aligns with your business needs and offers the best freight automation features: 

With that in mind, let’s explore some of the leading freight automation platforms:

1. Shipthis 

Shipthis is a powerful AI-backed freight forwarding platform that offers powerful automation features to help you simplify and optimize all aspects of freight management.

Some of its key features include:

Pricing: Starts at $89 per user per month

2. Magaya

With a suite of powerful tools for shipment and inventory management, Magaya enables a logistics company to streamline its end-to-end logistics operations. 

Some key Magaya features are:

  • Increase vehicle capacity utilization and improve on-time delivery with AI-backed route optimization.
  • Ensure accurate customs classification and correct duties paid for smooth customs clearance.
  • Eliminate duplicate entries and manual data input by automating forms and routine tasks.
  • Streamline your rate management with a centralized platform to compare freight rates and manage margins.

Pricing: Available upon request

3. TransVirtual 

TransVirtual is a comprehensive logistics software that simplifies freight management for businesses of all sizes. It offers features like real-time tracking and route optimization, helping businesses improve efficiency.

Some of its top features are:

  • Use predictive analysis to optimize delivery routes for faster delivery times and reduced fuel consumption. 
  • Automate processes like dispatch documentation and shipment tracking.
  • Get accurate departure and arrival times for your shipments.
  • Assign pricing to multiple invoices based on predefined criteria. 

Pricing: Available upon request

4. GoFreight

GoFreight is a comprehensive logistics automation platform that offers instant quoting tools, advanced analytics, and multi-language support. 

Some of its top features are:

  • Access invoicing, billing, and payment tracking features to automate financial workflows and improve cash flow management.
  • Manage shipments across various transportation modes, such as sea, ground, and air freight transport, all within one platform.
  • Get a dedicated customer portal where clients can track their shipment status, manage inventory, and monitor cargo.
  • Track bulk container statuses automatically without the usual hassles of handling large quantities.

Pricing: Available upon request

5. Shipsy

Shipsy helps shippers and logistics companies cut down operational costs and track end-to-end operations.

Its main features for freight automation include:

  • Automate comparison and selection of the best logistics provider quotes.
  • Provide automatic updates and notifications on shipment status and delays.
  • Prevent shrinkage losses and track inventory using serial numbers with effective shelf-life management software.
  • Enable paperless operations with a mobile app while managing labor by assigning tasks and controlling access based on roles. 

Pricing: Available upon request

Curious about what you stand to gain from these platforms?

5 Compelling Advantages of Freight Automation

Here are a few reasons why you should consider freight automation software for your business:

1. Streamline Freight Management

Freight automation helps you automate repetitive tasks, improving operational efficiency and simplifying complex tasks across the supply chain. 

For instance, automating the creation and processing of shipping documents (like bills of lading, customs forms, and invoices) can speed up and ensure compliance with regulations.

This leads to faster processing times, fewer errors, and smoother overall operations across logistics.

2. Reduce Costly Errors

Automating tasks such as data entry, shipment tracking, and inventory management helps reduce costly mistakes, like incorrect deliveries, lost freight, or manual errors.

For instance, manual inventory tracking can lead to inaccurate inventory data, resulting in delays when you have stockouts. Similarly, excess inventory can also tie up capital. 

How does freight automation solve this issue?

Automation optimizes stock levels by providing accurate, up-to-date information, reducing the risk of shipment delays, and ensuring timely order fulfillment. 

3. Access Real-Time Analytics

Automated freight management systems, like Shipthis, integrate various processes, such as shipment tracking, inventory updates, and route optimization, into a unified platform. 

These systems capture real-time data, such as current shipment locations, delivery progress, and potential delays. This data is then automatically analyzed and displayed on dashboards, providing instant insights without the need for manual data collection. 

For instance, Shipthis’ Track and Trace feature tracks a shipment’s location when it leaves the warehouse, continuously updating ETAs according to current conditions. 

This information is instantly displayed on user-friendly dashboards, allowing businesses to oversee the shipping process at a glance.

If there’s a delay or issue, the platform sends notifications, allowing you to make quick decisions to reroute or adjust operations. This real-time access helps you stay proactive, avoid costly disruptions, and improve overall efficiency.

4. Increased Scalability and Speed

Automating freight management functions like route planning and load optimization means you can manage a higher volume of shipments without the need for additional staff.

It also reduces delays by rapidly processing data, adjusting routes based on factors like traffic or weather, and selecting the quickest transportation options. 

As a result, businesses can scale their operations smoothly while maintaining or even enhancing delivery speeds.

5. Better Customer Service 

Freight automation technology enables instant updates, allowing you to anticipate delays and send notifications to customers. It also optimizes delivery routes and speeds up processing, ensuring faster, more reliable shipments. 

This level of supply chain visibility enhances customer satisfaction by ensuring they are consistently informed about the status of their shipment.

However, freight automation solutions also come with a few drawbacks.

Read on to find out.

2 Disadvantages of Freight Automation

Here are two issues you should consider when investing in a freight management system:

  1. Technical challenges: Automated systems use advanced tech like AI, machine learning, and IoT. However, they still face glitches or technical issues and need regular updates. These issues can sometimes disrupt your freight operations.
  1. High initial costs: Setting up freight automation technologies can require a significant upfront investment in hardware, software, and infrastructure. This can be tough for smaller businesses with a limited budget.

Need some pointers?

We've got you covered! 

How to Successfully Automate Freight Management
  • Choose the right technology platform: Select a comprehensive freight management system with real-time tracking, automated documentation, and integrated communication features. Ensure the platform supports your specific needs, such as multi-modal transport and international shipping.
  • Integrate with carriers and partners: Ensure seamless integration between the freight companies, freight automation system, and your carriers, customs agents, and other logistics partners. This enables smooth data exchange, real-time updates, and efficient communication across the entire supply chain management.  
  • Automate documentation and compliance: Automate critical tasks like customs documentation, accounting, and regulatory compliance to avoid errors and reduce manual tasks. This speeds up the documentation processes and ensures accuracy in global shipments.
  • Incorporate feedback loops: Establish regular feedback loops with your team and customers to assess the automation’s effectiveness and make continuous improvements. This keeps the system agile and adaptable to changing needs. 
  • Implement real-time tracking: Use GPS and IoT-enabled tools to monitor shipments in real-time. For instance, Shipthis’ accounting software generates freight invoices and tracks expenses based on real-time shipment statuses, ensuring accurate financial reporting and faster cash flow management.
Automate Your Freight Management with Shipthis

Freight automation is changing the game in the freight industry by making logistics operations faster, smarter, and more efficient. Automating tasks like tracking, route planning, and inventory management saves time, reduces errors, and guarantees a better customer experience.

But to truly harness these benefits, you need the right platform.

Enter Shipthis, the perfect freight forwarding platform to automate boring freight processes like route planning, ETA estimation, billing, and more.

Don’t believe us?

Schedule a demo today and see how it takes your business to the next level with its powerful automation features.

More Questions?
or Let’s just connect!

Thank you! We will get back to you soon
Oops! Something went wrong while submitting the form.

Hear from
our Experts