Adelante SCM and Magaya release report on the 2025 state of digitization in freight forwarding

Magaya Corporation, the leading freight management platform for logistics service providers (LSPs), today released a report detailing the state of digitization in freight forwarding and the divide that presently exists between shipper expectations and forwarder capabilities.

In November 2024, independent research firm Adelante SCM and Magaya surveyed executives in the logistics services industry, as well as supply chain and logistics executives from manufacturing, retail, and distribution companies. The research found a substantial gap between what the shippers expect in terms of technological capabilities and what their logistics service providers currently offer.

“Shippers are clear in their expectations: they want visibility, ease of use, and fast response times from their LSPs. Those that fail to meet the technology expectations of their customers are highly likely to lose business moving forward, while the ones that meet or exceed customer expectations will grow and gain market share,” said Adrian Gonzalez, Adelante SCM CEO. “As one respondent shared, ‘we have some logistics partners who have best-in-class technology, while others lag behind with limited visibility and delays in messaging. We're actively working to rid ourselves of the latter.’”

Key findings of the report include:

• 90% of shippers said that technological capabilities are extremely or very important when evaluating and selecting 3PLs/freight forwarders.

• Real-time shipment tracking, integration capabilities, and automated documentation and compliance were the top three most requested technological capabilities shippers want from their LSPs.

• Only 23% of the freight forwarders surveyed have digitized more than 75% of their overall business processes/transactions. Less than 40% are using a freight forwarding management system.

• Improving productivity/efficiency is the main driver for digitization among freight forwarder respondents, followed by improving customer experience and lowering costs.

“This report highlights a critical gap between shipper expectations for digitization and what many forwarders currently deliver, which presents an incredible opportunity for forwarders to differentiate themselves, “ said Gary Nemmers, Magaya CEO. “By leveraging innovative solutions like the ones Magaya offers, forwarders of any size can not only close the gap, but exceed expectations with better visibility, ease of use, and faster service. There's plenty of room to compete for those willing to embrace smarter technology strategies.”