Reasons For Choosing A Freight Broker
Why Choose a Freight Broker
The role of the freight broker is to act as a conduit between the shipper and the carrier. They provide transportation management solutions, sourcing competitive carrier rates and reliable delivery service utilizing their industry relationships and supply chain management expertise. The broker oversees transportation logistics based on customer needs and requirements such as cross-border shipments and appointment-based deliveries, while optimizing routes and tracking all delivery schedules on the shipper’s behalf.
As e-commerce continues to expand and freight transportation becomes increasingly sought-after, so does the need for freight brokerage. Limited resources for internal shipping and the increasing complexities of transportation management means more companies are looking to outsource these services in order to concentrate on their core competencies and business goals. In 2016, global technology research analyst and advisory company, Technavio, found that approximately 40% of shippers outsourced freight brokerage services.
For those who are considering the use of a freight broker for your transportation management needs, here are some areas of broker expertise:
Leveraging Buying Power
While large powerhouse retailers transport a continual, high volume of product, they are in the advantageous position of securing lower freight rates with carriers. Most small to mid-sized businesses don’t have that type of buying power, which is when a freight broker can be utilized. A broker leverages their existing relationships with carriers to secure a more competitive rate and they can arrange co-loads with other shipments to provide cost savings. Clients can take advantage of their freight brokers relationships with customs brokers as well.
Cost Savings Audit
A freight broker can provide a detailed analysis of your current transportation program. Taking stock of carrier performance, rates and scheduled routes can help identify freight savings and areas to improve efficiency. They can assess cargo packaging and loading operations, and transportation modes to minimize spending and optimize shipping processes.
Cloud-Based Services and Communication
A freight broker takes on the key role of tracking and monitoring deliveries. The evolution of driver phone apps allows the broker to locate a specific driver and shipment on route at any given time and send out regular updates to the shipper. Brokers, such as Freight Fox, are also taking advantage of technology to more accurately profile the 220,000+ active carriers in North America, including the state/province, number of trucks, safety ratings, insurance and rates. This valuable data helps the broker better serve their clients. Most importantly, a freight broker communicates with their customer and carrier to ensure everyone is on the same page and expectations are met. Managing the shipping process from beginning to successful delivery is their expertise.