Don’t Let Inefficiency Eat Your Bottom Line: 8 Areas to Improve Your Freight Brokerage
Searching for load coverage is the third area of improvement freight brokers should analyze to optimize their workflow. How your team handles this important task can lead to inefficiencies in daily performance and create pain points for your customers and carrier partners. In addition, breakdowns in this area often trigger inefficiencies in others, further reducing your margin. To read more about the Areas of Improvement and how you can evaluate and refine each of them, download our eBook, Don’t Let Inefficiency Eat Your Bottom Line: 8 Areas to Improve Your Freight Brokerage.
Most of the areas of improvement present a significant opportunity for your team to strengthen your carrier network. Strengthening these relationships isn’t just a task but a strategic imperative that can significantly impact your operations and revenue. Your role in fostering carrier relationships is crucial, because it directly contributes to the success and growth of your company.
Advantages of a Strong Carrier Network
A robust carrier network is the backbone of your company. It allows you to efficiently secure the best rates for your clients, ensure timely deliveries, and maximize customer satisfaction. Building and maintaining long-term carrier relationships expands your available capacity and enhances your flexibility, allowing quick adjustments to evolving market conditions and customer needs. Additionally, a diverse and well-established carrier network fosters healthy competition, driving down costs and improving service quality. Read more about nurturing your carrier network on our latest blog, A Strong Carrier Network is a Catalyst For Growth.
Carrier Compliance
A large part of a strong carrier network is rooted in the continued tracking of carrier compliance. Compliance refers to the adherence to legal and regulatory requirements in the freight industry. It ensures that carriers are operating safely, ethically, and within the law, safeguarding both your business and your client’s interests from fraudulent acts like double brokering or unsafe acts that cause freight damage. It also provides the highest-quality customer service and fosters trust and reliability in business relationships.
Compliance enhances your operational efficiency and reduces administrative bottlenecks. Working with compliant carriers means fewer damage reports, billing discrepancies, payment delays, and smoother invoicing transactions. With fewer issues to worry about, your team can focus on core business activities and optimize your bottom line. This reassurance about the benefits of carrier compliance should instill a sense of confidence and security in your operations.
Carrier Onboarding
Carrier compliance starts with comprehensive carrier onboarding. This is the process of introducing new carriers to your company and ensuring that they understand and can meet your requirements and expectations. It’s essential to review your onboarding packet and process periodically. Track how much time onboarding takes from beginning to end. Your goal is to ensure the optimal balance between onboarding accuracy and speed.
Ensure that all carriers understand the regulations they must follow and your team’s process for tracking carrier compliance. Evaluate how your team records compliance data and whether it’s available to everyone.
Carrier KPIs
These KPIs send a clear message to your carriers and your team that excellence is expected for every load. By consistently tracking and adhering to these KPIs, you can ensure a high standard of service and foster long-term, reliable partnerships with your carriers.
Non-compliant Carriers
Review any incidents of contracting with a carrier out of compliance or if your team has ever been accidentally caught in a double brokering situation. Brainstorm ideas on what your team can do differently to catch these compliance details before they become problems. Sustained carrier compliance is essential for maintaining your freight operations’ integrity and upholding your reputation. It also saves you time and money by fixing the inherent problems that arise when working with them.
The Competitive Edge of Strong Carrier Relationships
A solid and compliant carrier network boosts your team’s productivity and enhances customer experience. It’s worth the time and effort to find and fill gaps in services or compliance so that finding load coverage is competitive and seamless.
