The importance of freight brokering and the value it brings in transporting goods

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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.

The factors that can help freight brokerage business to be successful

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Business is based on the not only transaction of money but also an interchange of goods and services. There are many startup companies and even established companies that require transaction of goods. Freight brokerage can be the ideal solution for companies and even independent businessmen to deliver their goods from one place to another.

A freight broker is kind of an intermediary or connecting bridge that helps a shipper (can be a person or company) who wants to send an order to a carrier who has the resources and availability of space to carry the load. The freight brokers use their knowledge and modern technology to help both the shipper and carrier. The freight brokers assist the shippers in finding a reliable and safe carrier who can deliver the shipment on time, and they also help the carriers to fill their trucks. The players of freight transportation include

  • Freight broker: The intermediary who connects the shipper with the carrier.
  • Shipper: A business company or entrepreneur who wants to move goods
  • Carrier: A company that has vehicles such as trucks, containers, and reefers to transport the goods from origin to destination.

The shipper will contact the freight broker and provide the details of the order and from where it will be picked and transported to the destination. The freight broker will look for the immediate carrier available which can fulfill the load and delivery specifications of the shipper. The freight broker will enter the relevant details such as the location of origin and destination, pick-up and delivery times into the freight management system. The freight broker is constantly in touch with all the stakeholders and provides the update to both the shipper and carrier. The shipper is told about the status of the shipment, and the carrier is told if there are any changes to be made in delivering the order.

The times are changing, and so are the business methods; the freight brokers also need to keep up with the pace and alter their business practices to achieve success better. The factors that freight brokers need to consider are

  • Have a tactical approach to accomplish the goals which include reading the shifting market conditions, listing the needs and demands of the shippers and carriers, and complete the documentation. Always try to redefine the plans to suit the purpose
  • Try to be passionate and self-motivated which will help to efficiently use the resources and deliver the best service to the clients and customers
  • Always understand that customer is the king and holds the key for your success. A customer, once satisfied, will always use your service and also recommend to his work colleagues and friends. Ensure that the delivery is fast, safe for the shippers and the payment is given on time to the carriers.
  • Be proactive and always be ready for alternate solutions. Freight brokerage is not easy, and there are always delays and other problems that require quick decision making.
  • Form a healthy and mutual working relationship with both the shippers and carriers. The nurturing of a relationship will always help to get establish and sustain in the market.