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How Digital Freight Marketplaces Help Shippers and Brokers Find Meaningful Capacity

Freight brokers and transportation managers have a lot to deal with in the best of times. When significant disruptions to the supply chain and shipping channels occur, it can remain challenging to keep up. Utilizing tools like digital freight marketplaces and systems that aggregate capacity, such as freight aggregation platforms, are critical to weathering disruptions to the freight network. In this article, learn how digital freight marketplaces and tools allow shippers and brokers to find the meaningful capacity to add to their network.  

Why Failure to Leverage a DFM Leaves Money on the Table

While the freight and shipping industry has been around for many years, change is constant. Changes in customer needs and demands will continually occur. Concurrently, technology transforms processes and the available tools for freight market participants to remain effective. Additionally, freight technology has seen a sharp rise in use as evidenced by the sharp rise in the freight technology ecosystem over the last half-decade. As competition invests in these new technologies to gain market share, implementing a full digital setup becomes paramount. The digital technology allows freight brokers to optimize operations and margins and for shippers to manage transportation efficiently and profitability. In short, without turning to tools like a digital freight marketplace to procure capacity at the desired cost, it will impact brokers’ margins and hurt the profitability of shippers. 

If the shipper nor broker can find the available capacity, losses occur. Money is lost when deliveries miss deadlines. Additional losses occur if customers remain dissatisfied. Digital freight marketplaces combine modern tools and platforms with a personalized experience to help shippers and brokers better connect with meaningful capacity through private, transparent, portals. Making the most of digital freight markets tools helps ensure brand dominance, secure capacity, and avoid delays. 

Digital Freight Marketplaces Add Value Through Extensive Benefits

Digital freight marketplaces have the following benefits for brokers and shippers:

  • Eliminating the “post and pray” approach that shippers and brokers use when tapping load boards or other resources. No manual posting, no calls, no emails.
  • Filling all available dock appointments to streamline shipping.
  • Removing the need to spend hours on the phone trying to find or book a truck or communicate with a client. Free-up your load planning team’s time by allowing an advanced digital freight marketplace tool to book loads for them.
  • Automates locating the best trucking partner, rate, and service level to speed shipping.
  • Less wasted time spent on mundane tasks, such as sending, receiving, and filing paperwork in the path to finding available capacity.
  • Reduce time with more automations within and integration of the digital freight marketplace platform into your TMS, so you don’t need to log into extra platforms.
  • Decrease freight spend by increasing business with assets who charge less.
  • Increase quality by prioritizing trusted partners.

Many other great benefits are also realized with a robust digital freight marketplace partnership. Every supply chain, team member, freight manager, and network can enjoy unique and personalized benefits too.

Tips for Increasing Capacity While Leveraging Digital Freight Matching

Capacity management and utilization will remain crucial in digital freight marketplace operations. Freight manager’s ability to locate and secure capacity and complete orders impact the national and global markets. According to Supply Chain 24/7, “Many people don’t realize it, but the majority of U.S. trucking companies are not large organizations. About 97% of carriers in the U.S. operate 20 or fewer trucks (while 90% of those operate with six or fewer trucks). The national economy depends on trucks to deliver nearly 70% of all freight transported in the U.S. annually… accounting for $671 billion worth of manufactured and retail goods transported in the country by truck alone.” Why is that important though?

Consider this. If the majority of fleets and available capacity reside in small companies, then brokers and shippers overlook most carriers when trying to find meaningful capacity. As such, the ability to leverage a new tool to connect with more carriers will go a long way in lowering barriers to efficiency, sourcing additional capacity, and streamlining throughput. With the help of advances in automation and technology, the digital freight marketplace keeps up with the ever-changing demands of shippers and brokers. To make the most of digital marketplaces, shippers and brokers should embrace practical tips, such as:

  • Ensure smart use of existing EDI and API tools and platforms to reduce the physical work of sourcing capacity. 
  • Renewed focuses on quick and easy communications in the network chain to share load details with available carriers instantly.
  • Embrace automation to make sharing and application of data quick, easy, and seamless.
  • Utilization of data analytics, automated tendering, and self-auditing systems to ensure carriers live up to their obligations.
  • Provide training and education on the digital freight marketplace setup to staff. 

Put the Power of a Digital Freight Marketplace to Work to Thrive Through Disruption

There remains a great deal to keep in mind when it comes to harnessing the power of digital freight marketplaces for brokers and shippers. Rather than leaving money on the table and hoping you will find meaningful capacity, you can guarantee it with the right marketplace tools at your disposal. Embracing new technology and automation is essential to surviving 2021 and beyond. And having the right partner can make the technology easier to adopt and apply, allowing brokers and shippers to focus more on extending their networks, providing the best service possible, and getting back to what really matters in their respective enterprises. Request a Newtrul demo today to get started.