Transportation brokerage or freight forwarding is a highly efficient logistics supplier of third parties that is commonly outsourced by businesses seeking a strategic partnership to achieve a competitive edge in shipping costs. A transportation broker must be able to provide services that generate value for both shippers and carriers to be competitive in the industry, and establish relationships with both for ongoing business. There are several elements to the value-adding services offered by these third-party logistics providers and they deserve special attention to understand the transportation brokerage market. I strongly suggest you to visit Transportation Broker to learn more about this.
You must have good salespeople with varied skills in order to be an efficient transportation broker. Such diverse abilities include exceptional communication and listening skills to find out what resources they can offer to help the shipper meet unmet needs. The salesperson must also have detailed professional knowledge of the special needs that each client may have when shipping an order. These special needs require the most optimal types of trucking facilities, i.e. do the shipments have to go on reefers, flatbeds, or phase decks? Do the shipments often require specialised equipment such as tarps, dunnage, stakes on pipes, coil racks, or just straps? To reach the shipping yards, would the driver need a TWIC passport, a hard hat, steel toed boots, or protective eyewear? At each pick up and drop off stage, how long can the driver expect to be detained? How is the product responsive to time? If all this data has been obtained, the salesperson must then be able to quote the shipper an informed rate based on these variables as well as external factors affecting pricing. This is where knowledge of supply and demand becomes critical for a consumer to obtain the right to transfer loads. Geography, for instance, plays a major part in deciding what a good rate would be. If many truckers use the same lanes for their core company, demand for shipments can be estimated to be high as the region has become saturated with trucking companies. This is particularly true in an economic downturn where, because of decreased demand, shippers carry less freight. A transport broker will therefore be able to quote a low rate that will satisfy the shipper and hopefully outperform other transport firms for this purpose.