Data and Visibility in Freight Forwarding

Data integration means combining information from many different sources to create a unified overview. Data visibility refers to making that information accessible and understandable to the people who take decisions for the organization.

Once shippers have real-time access to data from multiple sources, they can streamline operations in many ways. For example, companies can improve shipment tracking, reducing delays and enhancing supply chain transparency. They can also make better decisions as they can now identify inefficiencies, optimize routes, and manage inventory more effectively. Another example is better and more accurate forecasting and the ability to proactively resolve issues – which in turn helps to reduce operational costs. In addition, data integration and visibility help strengthen customer relationships, ensure regulatory compliance, and support strategic planning to achieve swifter, more reliable, and cost-efficient shipping.

Achieving data integration and visibility requires investment in digital technology. But when companies invest in digitalization, they must also reimagine the ways they work with their new technology. If they don’t, they risk getting less than the intended return on investment (ROI)². When it’s done right, according to EY³, supply chain digitalization can achieve a 10-15% reduction in inventory carry costs, 5-10% reduction in manufacturing costs, and 6-10% reduction in warehouse and distribution center operating costs.

Data quality is one of the biggest challenges of data integration and visibility; it is essential to ensure the information you get from shipment tracking and various other systems is consistent, complete, and up to date. In addition, companies may discover that integrating multiple systems is complex and resource intensive, especially when there are legacy systems, different geographies, and numerous partners. Security is also a crucial concern if sensitive data is shared between systems and stakeholders. And the cost of implementation may be challenging, especially as advanced data tools often have high upfront costs.

Addressing another priority, data integration and visibility help companies meet environmental, social, and governance (ESG) targets, particularly understanding and reducing the greenhouse gases, expressed in carbon dioxide equivalents (CO2e), emitted to the atmosphere by freight transportation.

The international trade landscape is thriving – new global markets are emerging, and economies are expanding. But this comes at a high cost to our plant. Did you know that 15% of the world’s carbon emissions are produced by transport⁵ ? Clearly, it is crucial for shippers, their carriers, and their logistics service providers to move beyond shipment tracking and carbon calculation to decarbonize freight forwarding operations. 

For every shipper on a decarbonization journey, the first step is always to understand the current transportation carbon footprint. Emissions vary greatly with mode of transportation (air, ocean, road, rail, or barge), distance traveled, shipment weight, and composition of the fleet used to move the cargo.

Achieving comprehensive carbon accounting with several different data sources and attempting to align everything in a single spreadsheet is unrealistic. Instead, companies must use digital carbon accounting and tracking tools. Within DHL Global Forwarding, we offer these tools free of charge to customers who use the myDHLi digital platform. 

We offer a wide range of green logistics services and carbon transparency tools to provide insights into optimizing the carbon efficiency of your supply chain.

When you answer 10 quick online questions, our Logistics Decarbonization Assessment tool gives a sense of your progress toward air and ocean freight transportation decarbonization.

myDHLi offers a full suite of carbon reporting for customers of DHL Global Forwarding. Carbon emission data can be combined with a variety of other KPIs on shipment level in order to achieve full supply chain transparency for informed business decisions. In addition, myDHLi Analytics offers dynamic and adjustable graphs and visualizations of carbon emissions, helping identify hotspots and optimization levers.

Carbon Calculator is another example of an easy-to-use tool for customers. It lets you estimate emissions for a single shipment and allows you to simulate the potential impact of modal shifts, route changes, and more. You can compare different transportation scenarios through an overview page visualized on a world map, and you can uncover the potential for carbon reductions, for example by choosing carbon insetting.

At DHL, we continue to develop these carbon accounting and tracking tools. Soon our tools will support more extensive forward planning and data analytics – developments that will help you make well-informed decarbonization decisions.