Freight brokers serve as the conduit between shippers and carriers, and the latest way they do this is by using digital freight matching tools. This allows brokers to connect the two parties with their appropriate match. Brokers further bring companies together through mutual needs and conduct business between contractors to effectively source more freight capacity and avoid losses. Many phone calls and emails between shippers, brokers and carriers were required to ask about capacity availability and executing shipments in the past. However, new tools can eliminate unnecessary back and forth while providing regular updates for brokers and shippers. This is all due to automated digital freight matching capabilities that save clicks and resources. But there are other reasons why many brokers and shippers are utilizing digital tools to conduct business. Let’s take a closer look at these benefits, and why brokers are turning to new tools to streamline back-office workflows.
1. Freight Volume Continues to Grow
Supply and demand are constantly fluctuating. And even with a transportation management system (TMS), tracking becomes difficult. But switching to a digital platform-specific to brokering makes it easier for brokers to track market trends in real-time. In turn, they can provide the best solutions for their clients. Digital freight matching tools use various measurements like haul volume and inbound/outbound load volumes to check the daily trends in each market. Now, brokers can understand the appropriate rates for their shipper customer’s shipments and use the digital freight matching tool to source meaningful capacity for their clients to find a carrier that meets delivery requirements at the desired rate that fits the transportation budget.
2. Delays in Booking Amount to Massive Swings in Profitability per Shipment
Booking loads the traditional way gets confusing because brokers get caught up with everyday tasks when dealing with many clients. They get swamped by emails and phone calls asking about the coverage status of a shipment, especially if brokers still rely on outdated technologies or limited load boards to source capacity and book the shipments with carriers. This leads to delays and drastic changes in profitability per shipment for the broker, as it adds costs, i.e. time, reducing overall margin. Luckily, digital freight matching allows for more bookings in a shorter time, which will lead to more profits for both carrier and broker.
3. Digital Processes Save Time and Money for Your Team
Digital freight matching is like aiding the supply chain industry by bringing in best-in-class user experience platforms as Expedia did for the airline booking process. With the push of a button on a mobile app, carriers are connected to the right shippers and brokers and vice versa. Much like when travelers turn to Expedia, shippers and brokers can see all available carriers that have the capacity and meet time and service level requirements. This way, companies don’t need to stress themselves with hours of research. According to Truckstop.com, “In today’s world of the same day, next day, and two-day delivery, the need for a quick, efficient way to connect carriers with shippers and brokers is becoming more urgent. Every player in the transportation industry is currently staking a claim on what it is, what it means to them, and how they stand out from the competition.” Digital tools let carriers and brokers conduct business seamlessly with benefits including quick-pay options, auto-matching for brokers, and integration with the TMS.
4. These Tools Complement Your Existing Workflows and Relationships
Digital freight matching tools and digital freight marketplaces can be integrated with existing systems in your tech stack via mobile applications providing smoother functionality. They eliminate manual processes like faxing and emails by giving digital messages and invoices to clients. Post and pay options are now replaced with a quick pay option through the mobile app. Digital tools will also match the carrier with the best load capacity as per requirements. With speed and efficiency, going digital will lead to higher profits for everyone involved.
5. Digital Freight Matching is More Effective and Casts a Wider Net for Available but Meaningful Capacity
Many manual processes show a narrow display of what’s available in the market. But digital freight matching widens that net and presents a more variable showcase of what the freight market has to offer. Digital tools match carriers and brokers based on requirements and exhibit the most viable options that will lead to both parties’ highest profitability.
Kickstart Your Own Digital Freight Matching Strategy with a Digital Freight Brokerage Partner
Going digital has become a necessity in this world. However, many companies don’t know where to start. And that’s where software and an experienced digital freight tool resource provide comes into play. For instance, newtrul offers these digital freight matching tools that help companies get work done efficiently and maintain business relationships with ease and without advanced coding knowledge or requiring additional resources from your team. Request a newtrul demo to get started.