Before we list the five important reasons why you should use a freight broker, let’s define what they do. A freight broker arranges freight shipping between a carrier and a shipper. In exchange, the broker receives a small commission for facilitating the transaction. Freight brokers add value and flexibility to your supply chain and become your competitive advantage. Focusing all of your energy on what you do best gives you an edge and helps you stay competitive. Unless what you do best is shipping, you may want to consider using them to manage your shipping and logistics functions.
Big companies got big because they focused on what they did best. In fact, 85% of Fortune 500 companies use third-party logistics providers, much like PartnerShip. That’s not a coincidence; it’s a cause-and-effect relationship. Every dollar saved on shipping goes right to the bottom line.
Consider these five important advantages of using a freight broker:
- Save time, save resources, save money. With a freight broker as a strategic partner, you have the benefit of your own dedicated shipping department without the expense of your own dedicated shipping department. You also don’t need to spend time on invoices, audits, and training, Using a freight broker lets you focus on your business.
- More flexibility, more scalability. A freight broker partner is able to provide you more, or less, capacity as your business goes through its natural cycles. So there’s no need to stress over seasonality, irregular spikes, or sudden troughs in your business.
- Shipping expertise. What freight brokers do best is shipping, and working with one allows you access to their knowledge of best practices and real-world experience. It also allows you to access the latest technology for shipping reporting and visibility into your logistics.
- It’s not just what you know, it’s who you know. Freight broker partners have expansive carrier networks that provide many advantages over an in-house shipping department. They have buying power and can provide volume discounts, lowering your shipping expenses. They also can provide access to capacity that otherwise would be unavailable, or very costly, to an internal shipping department.
- It’s a partnership. Your freight broker works for you and will put your interests first, because when you succeed, they succeed and when your business grows, so does theirs. That’s the definition of a partnership: benefits for both parties.