In a world where return on investment is front of mind, shippers must be strategic about their resources. While cash flow is often considered the most important resource, a broader perspective understands time, efficiency, and reliability may be even more critical assets. That’s why value-added expenses that save time, promote efficiency, and provide peace of mind are worthwhile to pursue. For a shipper, this is where working with a trusted Freight Broker makes all the difference.
Cost Savings
Shippers are focused on the production and sales of their products. This is where a Freight Broker’s market expertise becomes an asset. Simply put, Freight Brokers reduce freight costs
Freight Brokers can leverage their extensive carrier network to secure the most cost-effective transportation options for shippers, significantly reducing overall freight expenses. They can find the best carrier for a load and are often able to reduce shipping costs by comparing prices. Utilizing a Broker’s carrier network results in cost efficiency for shippers.
Efficiency
In addition to cost savings, Freight Brokers enhance logistics efficiency. A Broker manages the entire logistics process from arranging the pickup, transit, and delivery of cargo by negotiating with carriers.
1. Streamline Logistics Processes
Freight Brokers and Freight Agents streamline logistics processes, including coordination and communication with various stakeholders. Freight Agents work under the Broker’s authority to find trucks to move freight, track the load and maintain communication with the shipper and driver. For a shipper, this saves an inordinate amount of time.
2. Provide Multiple Transportation Options
Freight Brokers have the ability to provide multiple transportation options. These diverse transportation modes include air, road, sea, and rail. The best method depends on what’s being shipped, where it’s coming from, and where it’s going.
3. Optimize Supply Chain Resilience
Freight Brokers are crucial in building a resilient supply chain. The most resilient and agile supply chains are designed to build processes that allow them to forecast, anticipate, and respond quickly to whatever risks or opportunities the future brings.
Reliability
Freight Brokers also add value by ensuring reliable and on-time delivery. This may be the greatest value a Broker adds because it takes the worry and hassle off the shipper and places it on the Broker.
1. Utilize a Vast Network of Vetted Carriers
By utilizing a vast network of vetted carriers and advanced logistics coordination, Freight Brokers ensure that shipments arrive on time and meet delivery commitments consistently. The Freight Broker takes the responsibility to qualify the truck (including verifying the driver’s history of accidents and safety records), pay the driver, and hold proper insurance requirements.
2. Handle Regulatory Compliance
Freight Brokers handle complex paperwork and compliance issues. While a shipper could take the time to research and understand the various regulations, it is likely not an advantageous use of their time. A Broker is an expert in the requirements and ensures they are in compliance.
3. Proactively Manage Logistics Challenges
Freight Brokers anticipate potential disruptions and employ proactive strategies to navigate logistical challenges, ensuring smooth and uninterrupted freight movement. Shippers often do not have the time to do this themselves.
4. Respond To Emergency and Unexpected Events
Freight Brokers, and the Agents working under their authority, manage unforeseen disruptions such as emergency freight assistance (read more about the difference between Brokers and Agents here). With advanced tracking technology and systems in place, unexpected events and emergencies can be handled in a timely manner. This expertise also takes the burden of worry off the shipper’s shoulders.
Final Thoughts
A Freight Broker adds value to shippers by reducing costs, enhancing logistics efficiency, ensuring reliable deliveries, and managing complex transportation needs with their expertise and vast carrier network. It is advantageous for a shipper to find a trusted Freight Broker who has the financial backing and expertise to ensure freight is delivered from point A to point B as efficiently and safely as possible. Shippers regain time, increase efficiency, and have peace of mind by partnering with a Freight Broker to manage their shipping needs.
If you are a shipper looking for a Freight Agent, read this next: 11 Questions Shippers Should Ask Before Choosing a Freight Agent