One of the most important factors in today’s business that is essential to most companies is the supply chain management. The efficient supply chain process allows the companies to sustain in the changing market trends and achieve a competitive edge.
One part of the logistics that are equally important and needed by most client and customers is freight brokering where an individual or a company liaison between a shipper who wants to transport goods with a carrier who has authority and space to carry the shipment from origin to destination. The main purpose of the freight broker is to find respective asset carrier according to the needs and requirements of the shipper. The freight broker manages the safe and secure delivery of shipment and cargo from origin to destination. The freight broker is part of the third party logistics and does the necessary paperwork which includes invoicing the shipper and paying the carrier.
There are hundreds of shippers and carriers, and the freight broker can be an ideal person who can efficiently connect an individual or company wanting to ship their orders and match the shipper requirement with a reputable carrier. The freight broker adds value, helps to reduce both the lead time and overall cost, which is spent on delivering the order.
The importance of freight brokering is that it allows shippers who do not have any experience to find carriers who can haul their load. The two key things which are significant for efficient delivery are availability and reliability. The freight brokers are in constant contact with both the shippers and carriers and track the shipment until it is properly delivered. The brokering can be single mode or multimodal transportation, and the common services offered by freight brokers are road freight, air freight, and ocean freight. The services which the freight brokers specialize are FTL (Full Truck Load), LTL (Less than Truck Load), Equipment Hauling, Long Freight hauling, and Flatbed.
The freight brokers are experts when it comes to transporting goods and orders from one place to another. In an ever-changing and competitive, many startup companies and entrepreneurs rely on saving cost through an efficient and effective transportation service. The freight brokers use modern technology to proficiently communicate with stakeholders, connect shippers to carriers, negotiate the RFP (Request for Proposal), send invoices, and payment to carriers. The shipper will contact the freight broker by either calling or emailing. The information that is needed, whether it is global or local order includes basic contact information, the location where the order needs to be sent, and other packing or handling instructions.
The reasons why companies should use third party logistics are
- Have a necessary experience to provide information of the consignee if a person or company wants to deliver an order in a new location.
- Will share the details and constantly update the status of the order shipment.
- Will immediately resolve any issues that may occur, such as breakdowns, weather disruption, accidents, and schedule changes.