Leveraging Freight Brokerage to Solve Supply Chain Disruption
As shippers deal with capacity issues, rate volatility, and service disruptions, a freight broker can help mitigate challenges so shippers can focus on their core strengths. Aligning your organization with a reputable freight broker with robust solutions and real-time visibility can solve many transportation disruptions.
There are many types of brokers in the market—the key factor is working with a broker that will not make excuses and provide top-level concierge service to help shippers find efficient solutions.
Q: Why should your organization align with a freight broker?
A: Freight brokers are problem-solvers for potential issues in your supply chain. A broker can help manage seasonality, service disruptions, project cargo, and other out-of-the-ordinary circumstances. A freight broker is an extension of your supply chain. Brokers will provide you with competitive rates and expertise when it comes to anything related to transportation and logistics. A broker’s job is to ensure a shipper’s loads are routed and delivered on time.
Q: What are the criteria for choosing a freight broker?
A: Organizations must understand their transportation strategy and carrier relationships to build the appropriate broker mix. There are different types of brokers, such as asset-based and non-asset, sole brokers, niche categories, and others. Depending on the needs of your supply chain strategy, you may need a broker that serves as a strategic extension of your supply chain instead of a transactional focus.
As far as criteria, look at the complexities of your supply chain and the issues you need a broker to solve. Understand your need for communication and visibility. A key component of this is a broker that offers a single point of contact to manage the complete lifecycle of each shipment.
Find a broker that won’t return loads after they’re committed and cause more risk to your operation. Ultimately, your freight broker needs to be a strategic partner that is able to provide strong carrier relationships, the right level of service, communication, and visibility, as well as brings industry expertise and business intelligence to the table.
Q: What is the balance of technology and talent in a freight brokerage operation?
A: Technology can enable many things, streamline processes, and add transparency. However, technology is only a tool to help a corporation reach its goals; it is not the total solution. A blend of technology and talent enables the broker to streamline processes and allow for more strategic planning and execution to serve shippers better.
While digital freight matching services have improved, some situations can’t be solved with technology alone. Rely on a broker that offers around-the-clock customer service with live representatives for fast problem resolution.
Your goal should be to leverage a freight broker you can trust and build a proactive relationship with that will engage in a transparent dialogue about your transportation network.
About Ryder System:
Ryder System, Inc. (NYSE: R) is a leading transportation and logistics company. It provides supply chain, dedicated transportation, and commercial fleet management solutions, including transportation logistics, warehousing and distribution, e-commerce fulfillment, and last-mile delivery services. For more information, visit ryder.com.