What Is a Digital Freight Brokerage & What New Tools Are They Using to Win?

Digital Freight Brokerage is the latest innovation in the supply chain industry. During the pandemic, many industries were thought to be at a standstill. However, digital platforms have virtually allowed several companies to continue functioning at the rate they evolved before. The supply chain industry, especially regarding freight brokering, carries the same value and possesses the same qualities. It is no different. It can be challenging to secure shipping capacity for any business. However, digital freight brokers,load boards, and companies associated with them make transport a lot more convenient for any player that uses transportation management systems (TMS ). But first, let’s take a moment to understand what a digital freight broker is and the tools they use to secure more meaningful capacity for their clients.

Common Issues in Traditional Brokerages

Early last year, the freight industry seemed to be at a precipice. However, since April 2020, the volume for freight has been moving turbulently. Rates began a gradual uptick following an explosion of demand for capacity as e-commerce boomed.  Part of the reason for that goes back to the archaic way traditional brokerages have been functioning, relying on outdated systems. This has harbored a handful of problems due to the lack of transparency, leading to ambiguity in traditional freight brokering. The quoting process via email takes way longer than it needs to. In a complex industry like the supply chain, things need to move swiftly while maintaining efficiency. In the digital age, if brokerages refuse to adapt or optimize their TMS software for today, they will fall behind in the dust and grow obsolete. 

A Digital Freight Brokerage Leverages Full Digital Transformation

As evidence suggests, the world is going digital. And every industry needs to adapt. Any use of TMS or WMS software needs to be optimized for the rapid advances in technology today. As reported by Supply Chain Dive, “Frost & Sullivan estimates the digital freight brokerage market will reach $54.2 billion by 2025.” And in fact, newtrul has partnered with MercuryGate among many other TMS providers to help companies switch over to the digital platform with ease! 

Top Features Leveraged in Digital Freight Brokerage Offices

Media outlets continue to discuss the value of a digital freight brokerage and why it’s more effective than traditional freight brokerage. And in turn, freight managers easily get lost in the hype. But what comprises some of the standout features of this new practice? And what makes this process tick? Some benefits of utilizing a digital freight brokerage include:

• Rating algorithms to accept loads quicker and more efficiently deal with exceptions with fewer resources than analog players.
• Automated carrier compliance integrated with shippers allows for more transparency between the two parties and smoother communication with the drivers.
• Freight analytics and data to measure performance in real-time to capture changes in load volumes & truck capacity to determine day-to-day pricing.
• Faster execution through integrated systems allowing quotes to come in faster and makes for a more streamlined booking process that ensures the best available options.
• App-based tracking allows for instant updates for each truck that has gone out, cutting out the need for constant back and forth on the phone for status updates on the freight delivery. 

Put the Power of a Digital Freight Brokerage to Work in Your Enterprise

A digital freight brokerage is the way of the future for any sort of supply chain management company. It eliminates the inconveniences faced with a traditional freight brokerage. It streamlines the experience to be a more effective way of making tracking easier, producing real-time data, and providing more transparency between all parties involved. Connect with newtrul to get started today.