Islamabad: The stakeholders involved must be identified initially to comprehend the dynamics of any marketplace. Shippers, transporters, brokers, and drivers can all be found in the logistics sector. Brokers serve as the ‘middle man,’ connecting shippers and transporters, and it is this link that we will focus on in this segment.

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Brokers in Pakistan usually take the form of ‘addas,’ which are focal areas where smaller transporters congregate. These are required because these carriers have no other means of connecting with customers outside referrals. These carriers will, understandably, only be able to connect with clients on a lesser scale; those who place smaller orders and are unlikely to be long-term or repeat customers. The other alternative is to partner with larger transporters, which operate as additional cars in their fleet. This means that they not only make less money but also have less control over the orders they can accept.

The return trip is just as crucial to these transporters as the order they take up in the first place. The possibility of picking up another item on the way back is critical, as the return trip is an expense in terms of fuel and time. However, under the adda system, those transporters are more likely to receive one-way orders and be compelled to return empty-handed.

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While the adda functions as a marketplace for transporters, it appears that transporters are obliged to participate in order to have any chance of receiving orders. However, given the state of technology today, such large gaps in communication should be considered intolerable. There are other ways in which technology may be used to fundamentally disrupt the industry, but we’ll focus on some of the more obvious ways in which small-to-medium-sized transporters might gain the necessary empowerment to compete.

Smaller transporters’ inability to connect, or allow themselves to be linked, to clients is one of the main reasons they have to rely on addas or allow themselves to be merged into the fleets of larger transporters. This is, however, the very first problem that a digital environment solves. Instant connectivity from anywhere at any time is the digital market’s strongest point, and logistics is no exception.

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Customers can place orders by simply logging into an app on their phone or through a web interface. These commands can be made apparent to other system participants, such as transporters. The transporters can submit bids on orders they choose from within the system. Customers can quickly and easily reach an agreement with any transporter who they believe submitted the highest bid, and the order can be regarded as approved and processed without additional delay.

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