The trucking industry is vital to keeping the economy moving and businesses supplied with materials and products. However, most companies focusing on manufacturing or production simply do not have the expertise, carrier relationships, or bandwidth to efficiently handle all their freight logistics and transportation in-house. Shipping disruptions or delays from inadequate planning can be extremely costly. This is where transportation brokers provide value.
Transportation brokers fill this gap for shippers. As third-party specialists, they handle the complex world of logistics so companies can concentrate on what they do best. In this article, we’ll look into the top 6 benefits brokers offer over managing transportation in-house. The reasons highlight how outsourcing to established brokers ease common pain points felt by shippers of all sizes.
Finding Carrier/Trucks
This is one of the biggest challenges for shippers. Brokers have established networks of vetted carriers they work with regularly and can quickly match shippers with appropriate trucks for their loads. This saves shippers time instead of having to search and contract carriers directly.
Managing Operations
Transportation brokers handle the day-to-day management of loads for shippers. This includes tracking, communication with carriers, addressing issues during transit, auditing paperwork, etc. This allows shippers to focus on their core business instead of logistics operations.
Getting Competitive Rates
Brokers have insight into current market conditions and leverage their carrier relationships to negotiate competitive shipping rates on behalf of shippers. Especially for small to mid-sized shippers, brokers can often secure better rates than going directly to the spot market.
Providing Flexibility
Shipper supply and demand fluctuate. Brokers can provide flexibility by scaling capacity to meet variable shipping volumes so shippers don’t have to worry about contracting directly with carriers for peaks and valleys.
Adding Logistics Expertise
Many shippers don’t have in-house transportation expertise. Transportation brokers specialize in logistics and bring proven processes, technology tools, and innovative solutions. This can optimize shippers’ networks.
Managing Insurance/Liability
Brokers can arrange cargo insurance and help limit shipper liability through contracted terms with carriers. This ensures shippers have protection against loss/damage.
Conclusion
It’s clear why so many shippers partner with specialized transportation brokerages. They simply serve as an extension of your team and work tirelessly to address common freight pains with expertise and an established carrier network. This allows your staff to stay focused on the critical activities that drive revenue and growth.