This Supply Chain 247 post is still relevant, as businesses cautiously ramp back into normal shipping demands there are a few more contemporary concerns to be aware of.
- Work from home culture is building momentum
This is proving to be a productive scenario for businesses, but, no business can operate efficiently with employee using their own unique (disparate) systems. FutureTrans is a cloud-based application, accessible anywhere, with assignable employee roles, on one comprehensive (TMS) system.
- Carrier partners/finding trucks
Carrier Partners and in demand and so are trucks. A TMS provides brokers and shippers the ability to see pricing from all their carriers on one screen.
- Salespeople (brokers) are unable to physically see clients in person
Lost synergies can be difficult to regain, a TMS will aid in communication, allow you to service clients (and ship) more quickly and give you more time for collaborating (on a zoom or call) with clients.
The 247 SupplyChain post below also points out that now more than ever brokers and shippers need the benefits of a Transportation Management System (TMS).
If you are still gathering quotes and chasing down your freight manually, give us a call. We will walk you through the advantages of managing all aspects of your freight with easy to use system.
Take advantage of our FREE 30-day trial today!
For Sales & Demo Inquires contact Patrick or Chris
Patrick J. Kistler – (630)354-0244, pkistler@futuretrans.com
Chris Joyaux – (630)354-0274, cjoyaux@futuretrans.com
READ MORE about how: Trucking is Changing at a Dizzying Pace and three additional challenges facing brokers.
Automated trucks are on the horizon, ELDs will soon be the law, and a wave of technology is disrupting transportation logistics in ways both positive and perplexing.
The role of the Broker/Third party logistics provider (3PL) in today’s transportation landscape is in flux. But 98% of 3PLs agree improved data-driven decision-making is essential to long-term success (Source: Supply Chain 24/7).
Here are three major challenges – and potential fixes – facing small freight Brokers today.
- The Pay Clock: Many small Brokers pay out Carriers long before being paid by Shippers for a completed delivery. This is a cash-flow killer, especially if Brokers are repeatedly raiding reserve funds to cover Carrier payments. It’s not unusual for Brokers to wait 4-6 weeks, or longer, before receiving payment from some Shippers.
FIX: Shortening the “payment clock” is an absolute must for small Brokers trying to grow their business. Requiring advance payment from a Shipper is one way to address this challenge, but that could lead to tension with your customer and disputes down the road. “Factoring” is another option. That’s when a third party advances money to a broker based upon the Broker’s invoice to the Shipper.
Of course, that third party takes a percentage cut off the top. The best way to shave days, and potentially weeks, off your payment time is by submitting Proof of Delivery in real-time. As soon as the receiver signs the POD, a digital version should be sent to all invested parties. The days of snail-mailing PODs are over.
- Redundant Overhead: Broker dispatch centers are often crowded with staff working phones, emails, and fax machines. Much of that time is spent handling quotes, confirming load acceptance, preparing and transmitting paperwork, and making regular “call checks” to Drivers to locate freight.
FIX: Maintaining this extra staff is a drag, both on finances and efficiency. New technology is designed to automate many of the tasks currently handled by in-house tracking and dispatch teams. Look for true “cradle to grave” solutions that can automate quotes, load acceptance, real-time tracking prior to pickup, and real-time milestone updates all the way through proof-of-delivery.
These were once “people tasks,” but no longer. Small brokers need to utilize technology to streamline staffing and focus on relationship-building.
- Building customer relationships on a large scale: Most small brokers will only bid on certain freight or lanes when they feel they have a competitive advantage regarding pricing and/or coverage. This is limiting behavior that could restrict the potential growth of a small Broker.
FIX: Large Brokers and 3PLs bid with full confidence, knowing they will always find a Carrier to take a shipment and still clear a profit.
Virtual Freight Management tools now give small and medium sized brokerages the ability to compete more equally with bigger logistics players. VFM gives Brokers the same technical/analytical tools being used by much larger companies to manage capacity, customer commitments, and processes.
See full story and follow SupplyChain 247 here.
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