When building a freight strategy, put information technology first
It has long been said that the information about a shipment is just as important as the shipment itself. Technology plays a central role in everything. From planning the load, to booking the driver and truck, to monitoring the shipment’s status all the way to the end customer, to spotting and correcting unexpected problems (known in the trade as exceptions), and to tracing the source of persistent service issues, it is impossible to succeed in the 21st century freight business without robust information technology tools.
Much of the truckload business, and an increasingly large part of the less-than-truckload sector, is handled by freight brokers, third parties that match shipper loads with available capacity, set the prevailing rates, and keep tabs on the goods from end to end. Connecting multiple parties working in the vast and complex U..S. freight network with the right information at the right time demands the very best in technological capabilities. There may be places for your business to cut corners, but technology is not one of them.
The good news is that the freight industry, which was never a first-mover in technology adoption, is playing a serious game of catch-up. The industry is being flooded with new and innovative systems that promise user-friendly, hyper-functional hardware and software. For example, companies using our systems know that we seamlessly connect shippers, brokers, drivers, trucks and end users with real-time information that can be tracked in mapping format from any device. It is remarkable that we take for granted that a shipper in Phoenix can view, up to the minute, the status of freight picked up in Shreveport, La. for a move to Des Moines.
Just as important, we keep everyone in the loop. As consumers, we all know how frustrating it is not to have real-time visibility of an order, and not be aware that a problem has occurred that might delay the delivery or require a contingency move. Whether we ship and haul freight for a living, or are a consumer of delivered goods, we know that mistakes happen. What we want is to be notified of the problem and the work-around. It may sound counter-intuitive, but one of the best ways to drive repeat business is for a customer to have transparency about a problem and any changes in delivery schedules. What they don’t want is to be blind-sided.
The days are long gone of shippers, brokers and consignees waiting for their freight without any visibility into its status. Amazon.com has conditioned everyone in its world not to accept the old way of delivery. That mindset is extending into the freight industry.
Beyond Financing: How Freight Factors Retain Customers with a Free TMS
Sharks are circling a trucking industry oversaturated with capacity. At the end of September, FMCSA records show 92,000 (36%) more authorized trucking firms than in February 2020.
The Tech Shield: How to Protect Factoring from Modern Freight Fraud
Factoring companies don’t own trucks or dispatch drivers. Yet, they are essential to freight
movement. Without factoring, most small fleets would not survive without immediate
access to cash for fuel, payroll, and maintenance expenses.
Fueling Success: How the Load Connex API Turbocharges Your Factoring Platform
In the transportation industry, factoring companies fuel profitable growth by increasing customer retention. Taking on new customers to replace those who leave is expensive and risky, especially with fraud skyrocketing in the current freight recession.
Mastering Freight Visibility: A Broker's Guide to Meet Customer Demands
When was the last time a customer called, texted, or emailed you for a shipment location or ETA? Hopefully, “check calls” from customers are a distant memory. If not, it’s easy to make them disappear for good.
Freight Factoring: Pump Up Cash Flow for Customers with Fuel Rebates
The adage, “time is money,” is more valid today in the freight industry than ever. To survive, motor carriers and freight brokers must reduce days sales outstanding (DSO) to accelerate cash flow and outlast this prolonged freight recession with runaway inflation.
When moving your freight, just keep it simple
For shippers, navigating today’s trucking market has never been more challenging. Demand for goods is soaring. Truck capacity is ultra-tight and will continue that way due to an acute shortage of commercial truck drivers. Spot-market rates have spiked, and are now being followed by double-digit increases in contract rates. In addition, properly vetting the available carriers--a process known as on-boarding--can be complex and time-consuming.
When building a freight strategy, put information technology first
It has long been said that the information about a shipment is just as important as the shipment itself. Technology plays a central role in everything. From planning the load, to booking the driver and truck, to monitoring the shipment’s status all the way to the end customer, to spotting and correcting unexpected problems (known in the trade as exceptions), and to tracing the source of persistent service issues, it is impossible to succeed in the 21st century freight business without robust information technology tools.
Boom or bust: why dynamic RFPs are better for shippers and carriers
As the last year has shown, the time gap between cycles of boom and bust in the freight market has narrowed. This reality has led shippers to find new strategies to stay current with market conditions to more effectively buy transportation services at the best possible rates. During 2020 and 2021, shippers had to pivot from traditional request for proposal (RFP) processes. Many have found success with a dynamic RFP that enables them to work more closely with a limited number of preferred carriers to obtain lower rates on a consistent basis.