Three Challenges to Overcome by Freight Brokers in 2017

Freight industry is one of the prolific yet untapped enterprises in the United States. That is why business owners and industry players alike consider the area as a greener pasture, because due to the inherently huge return of investment. Trucking business is not just a potential market but a sustainable venture. No wonder this commercial enterprise becomes characteristically neck-and-neck, dog-eat-dog competitive.

In 2017, freight brokers, carriers, and agents are faced with challenges that come with the increasingly free logistics market. Apart from the race towards technological innovation, freight business owners no find themselves working around ever-changing regulatory policies, competitive prices, quality of service, and operational efficiency.

You may be industry agents who just discovered the potential of freight business or ‘seasoned’ logistics professionals who watched it grow, there are always changes to look forward to and challenges to overcome. To name a few, freight brokers must be encountering by now wave of technology aiding transportation logistics today, increasing capabilities of brokers or third party logistics provider (3PLs), and optimization/automation of operations. In fact, a review conducted by Supply Chain Management shows that freight brokers initiatives are geared towards data-driven decision making in every part of supply chain. Despite new challenges brought by the dizzying technological advancement, there are also other issues that still persisted up to this day.

1. Inefficient Work System

The broker dispatch centers are probably one of the busiest workplace in the continent. Most of the time are spent by staff and agents working phones, fax, emails, and notice. It is a setting where days are allotted for quotations, load acceptance confirmation, preparation and transmittal of paperwork, and doing follow-ups or ‘call checks’ to carriers for freight location.

The advent of automation and digital applications can be utilized to maximize the time and resources for other business areas. Retention of core staff is the ongoing face of companies where maintenance is low and the savings is high. Often, finances and efficiency are of prime importance in businesses such as freight brokerage. That is why automation and digitization are a notch higher in keeping up the company’s innovation. For instance, in-house tracking and dispatch teams can now be programmed on a system to be manned by minimum necessary technicians. There is now a trend of automating business operations such as load acceptance, quoting rates, real-time tracking, milestone updates, and proof-of-delivery.

2. Race towards Client Loyalty

Clients are earned not just by quality of service but also by taking the risk to venture out of your comfort zone. Small startup brokerage firms can harvest and build customer base by actually meeting them in the field, attending conferences, and the use of good old’ marketing and advertising campaigns. As a budding startup, you should not limit your capacity to bid based on the competitiveness of your coverage or pricing. The only way the brokerage can grow and maintain loyal customers and clients is by offering them the functionalities your brokerage can do, regardless of price and coverage.

Using Virtual Freight Management Tools available for small and medium enterprises, they can now confidently compete with large firms and brokers. These tools provide the analytics and techniques to be at par with traditional companies, giving small enterprises boost in capacity management, customer commitments, and freight processes. This large base of loyal clients is what differentiates Asani Global, LLC from other logistics solution provider. Its leadership in innovation, competitive price, and quality of service define the culture.

3. The ‘Payclock’ Dilemma

‘Payclock’ is a term used to describe the length of time carriers need to wait before getting paid by shippers after a completed delivery. Most of the small brokers, because of the scale of their operations payout carriers long before shippers pay them. If brokers develop a habit of shelling out money from the company to pay the carriers, the cash flow will be disrupted making return of investments minimal.

Despite the small scale operation, Startup brokerages should push for advance payment from shipper to lessen decreasing the company’s reserve funds. However, this action might be construed as unprofessionalism so brokers must be wary of this means. Another option is or 3PLs to advance money to brokers with the basis of the latter’s invoice to the shipper. This may take a price from the payment, nevertheless addresses totally paying out of the company’s funds. Real time submission of Proof of Delivery is one of the best ways to address the Payclock issue. This is where digital communication can be utilized, informing intended parties of the delivery report as soon as the receiver signs the POD. This way, payment to the broker can be processed the soonest without having to pay for the expenses mean time.

Repurposed Content

Overcoming challenges to become strengths define the culture of innovation and excellence Asani Global, LLC is proud of.

Necessity is the mother of all inventions. For Asani Global, LLC, challenge is the mother of innovations.

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