Why Hiring a Semi-Broker Is Perfect for Logistics Managers

How often do you think about your freight partnerships? Depending on your role, the number and availability of trucks and capacity can make or break your work week. Moreover, strategic partnerships are crucial to tapping an underutilized part of the market–small fleets and owner-operators, as well as leveraging LTL opportunities. Working with a semi-trucking broker can help you find new, established, localized companies to source better rates, service, and transportation quality in almost any market. Why? The answer is that there’s power in numbers and volume when someone is trying to broker freight.  

As reported by Transport Topics, “ nearly 90% of all U.S. carriers have five trucks or fewer, and 66% of them are owner-operators with a single truck. Shippers work with select carriers for only about 20% of their lanes.

They need about 80% of their lanes covered by brokers, because not all freight is created equal. In all those lanes where freight is less dense, less frequent, and less predictable, few of the big carriers position trucks there. So, shippers need to tap into the 90% of carriers who have five trucks or less.”

Still, working with a third party to broker freight across carriers can feel overwhelming and uncertain. Yet, the right broker for freight in your company can help you overcome many of the barriers to profitability and open new revenue streams. Brokers will work to understand your needs and help you make all freight successful freight. This blog will explore the challenges of managed transportation, why hiring a semi-trucking broker helps, and a few tips for maximizing your 3PL partner relationships (read savings) when working with freight brokers.

Challenges of Managing Transportation

Logistics managers may need help finding and handling additional resources for transportation. Unique shipment variances, such as sending dangerous goods, political differences, and changing regulations, can all add to the complexity. Trying to find carriers is draining, and it’s much more than simply checking a carrier’s federal motor carrier safety administration profile. Even if a logistics manager understands these needs, there may also be other issues at play, including:

• Carrier reliability and requirements to accept a tender
• Balancing available funds for shipping, including your lines of credit
• Assessing the operating authority of new carriers and their equipment availability
• Tracking delivery ETA and notifying all downstream parties of status
• Managing the paperwork associated with each load

How a Semi-Trucking Broker Benefits Logistics Managers

A trucking broker serves as a middleman between carriers and shippers and is well-versed in understanding and overcoming the hurdles of managing transportation. Brokers exist in every industry, and some freight brokers may specialize in certain types of transportation, such as the traditional semi-broker for heavy haul or dry van moves versus finding carriers with sprinter van drivers. The real opportunity for improvement comes from the vast buying power and network of the freight broker, whether you need a dry van or refrigerated services. 

How to Maximize Throughput With a Semi-Trucking Broker

Any strategy for working with a semi-trucking broker must begin at the basics, knowing who you’re working with and how they add value. Additionally, there has been a massive increase in freight brokerages in recent years, especially as the pandemic pushed rates to historic highs. Fortunately, logistics managers can maximize throughput by following these steps:

• Choose a reputable semi-trucking broker.
• Leverage broker resources and technology to simplify quoting and booking.
• Pay invoices on time.
• Digitize your paper trail while leveraging a broker’s freight technology.
• Improve and manage your appointment schedule.
• Provide all shipment tender data.
• Notify carriers as soon as changes occur.
• Raise any concerns immediately.
• Trust your broker and process agents.
• Use KPIs to track broker performance.

Improve Logistics Efficiency With GEODIS Capacity Solutions

There is no magic wand to magically increase capacity and get the best rates for your shipping needs. However, working with a CDL broker for freight is the next best thing. Your broker partnerships put freight-focused businesses in your corner. The right broker will become an extension of your team, a trusted ally, and a partner to help your brand grow. GEODIS Capacity Solutions is that partner. Connect with a GEODIS expert to learn more about prioritizing your work with trucking needs today.