In an age of disruption, figuring out the best strategy for transportation procurement, whether full truckload freight or drayage, is complex at best. Today’s shippers have certainly endured their fair share of disruptions, including the pandemic, mother nature, semiconductor shortages, and many more. Disruptions are here to stay, and shippers still face the need for increasing their reach and maximizing throughput. Unfortunately, approaching transportation management from an in-house perspective limits the ability of shippers and gets away from shippers’ actual businesses.
Meanwhile, the trucking driver hiring crunch is also contributing to stress on available capacity. As further explained by Supply Chain Quarterly, “On the supply side, the market for professional drivers remains challenging, which is helping to keep a lid on supply, the company also said. Such conditions are expected to continue to support spot market rates in excess of contract rates and a strengthening contract renewal environment through the remainder of 2021.” It would seem that there is no end to disruption in sight, and shippers that do not enlist the services of a broker now will face the prospects of loss of control, customers, and soaring transportation spend. Here are the top three reasons a strategic truck broker helps shippers reach their goals and enable scalability without increasing labor costs to avoid those risks.
Convenience of Full Truckload Freight Execution
It is easy to assume that today’s customers are demanding and sensitive to supply disruption within the transportation industry. However, those assumptions change based on the eye of the beholder. In other words, shippers might assume customers are willing to wait for freight, but customers value convenience over all other factors. If convenience is defined by getting a product faster, shippers need to increase the speed of fulfillment and transportation. The same applies to shippers that are approaching transportation brokers for assistance. These shippers want the convenience of a turnkey solution to accessing full truckload freight. Of course, working with a broker opens the doors to all potential modes of transportation, contributing to an increased sense of convenience for the shipper.
Cost-Effectiveness Through Bigger Buying Power
Strength in negotiations is another reason why shippers are turning to freight brokerage services to leverage full truckload freight. Brokerages have access to more resources and can bring a more extensive bargaining power to the table with carriers. As a result, brokers are more likely to receive volume discounts and access additional capacity when the market is tight. These vital functions help make working with a brokerage more cost-effective than managing an in-house fleet. Furthermore, brokerages’ focus on making transportation management as efficient as possible. Sometimes, after port drayage is executed, another advantage of a freight broker, particularly with warehouse assets, is the ability to store goods to avoid any additional per diem fees, such as detention charges, while the brokerage secures the best truckload for your shipments. Thus, they are more likely to have the technologies and resources in place to ensure every load is tendered at an appropriate rate. Together, brokers help shippers attain their goals by keeping freight spend under control without undercutting the profitability of carriers.
Expertise and Consultancy Services
The success of today’s freight brokerages is not simply determined by the number of moves executed or the size of their networks. Instead, the success of a brokerage depends on what additional value they bring to the table for both carriers and shippers. Isolating this to the shipper perspective, brokerages serve a role as an expert and consultant. Performing advisory services allows brokerages to become an extension of the shipper’s team, recognizing which distribution centers may have access to capacity at a lower rate to ensure timely fulfillment. Freight Brokerages operating in this respect will also be willing to help identify the weaknesses within a shipper’s supply chain, and since the brokerage does better when its shippers do better, such as helping to avoid detention charges in shipping across all modes and locations, the relationship becomes self-propagating.
Take Advantage of the Right Strategic Brokerage Services in Full Truckload Freight and Any Other Moves Now
To all the potential modes that a shipper might need. The biggest are easy to identify, including full truckload, less-than-truckload, and parcel. However, the global supply chain is incredibly complex, including a mix of intermodal, multimodal, drayage services, courier services, warehousing, and much more. The modern brokerage understands that transportation has its limits, and the best brokers will provide a one-stop solution to any logistics need, including warehousing or any of the other modes and needs mentioned above. Meanwhile, such brokerages can help shippers attain their goals, lower total transportation spend and promote a sustainable source for increased shipper’s scalability and stability. Unlock these value-added services by connecting with Port City Logistics today.