One of the biggest hurdles faced by small-to-medium sized carriers in today’s freight market is the ever present issue of capacity-and-demand. Holding loyal customers intact and simultaneously developing additional profitable revenue streams with additional customers is key. In such a scenario, utilizing a freight broker agent program in-house is a perfect business strategy. Even better, in this era of technological development and innovation, setting up a freight broker agent business is much easier than ever before.
How to keep current customers loyal and grow your business with an in-house freight broker agent program
In an industry as busy as the freight transportation industry, unforeseen challenges and hiccups are part and parcel of the game. Therefore, ensuring fulfillment of your customer’s needs and retaining their loyalty is key to long-term success. All carriers, but particularly small carriers, frequently encounter problems with driver availability and truck capacity. Acting with freight broker authority, a carrier can utilize a trusted partner to resolve problems like this and ensure their customer’s needs are completed with care. It’s a win-win for everyone. Moreover, as a freight broker agent, you have a much greater chance of ensuring that your customer’s logistics needs are met. By covering more loads for your customer, you encourage your customer to call you for all their shipping needs and not your competitor.
Three ways an in-house freight brokerage can help small carriers, from the experts at Cargo Transit
Small carriers who decide to become a freight broker agent, also commonly referred to as a logistics broker or truck broker, can accomplish three major goals for their business.
- The first goal is the ability to continue focusing their attention on the needs of their current customers. Using the freight broker model, carriers are much more able to assist customers with all their logistics needs. For instance, a customer may have a requirement for shipping that the smaller carrier is not equipped to handle, such as a lane you are not permitted for, or a need for a certain type of equipment that you don’t have available. A freight broker agent has the authority to locate and contract to another carrier for service who can meet the needs of this customer. The small carrier, acting as a freight broker or logistics broker, is then able to develop partnerships with other carriers whom they trust. This relationship benefits everyone in the long run, with customers returning again and again because they are well looked after.
- Another area where the small carrier is able to utilize its brokerage authority is in more efficient utilization of equipment. When you have freight broker agent authority, you can plan your loads to best utilize the profitable use of your own equipment, and that of the brokered carrier. This, in turn, increases the chances that you will maximize backhauls and minimize deadheads. Too many deadhead miles can quickly penalize a small carrier, as you are paying for resources (a truck and driver) that are not being used efficiently. Acting as a truck broker logistics company, you can plan loads accordingly so they are more profitable for everyone in the long run.
- Transportation broker services are also useful to growing companies in that the freight agent is a source for greater profit. The small carrier is able to expand its customer base without risking a large capital investment. Instead, the growth-oriented carrier uses brokerage to seek new contracts that open up new lanes of potential profit.
How to get set up as a freight broker agent and get freight broker jobs
Contact Cargo Transit! We will work with you to provide you with everything you need to get your transportation broker company up and running, including:
- contingent cargo insurance
- working capital
- industry information
- software
- operating authority
- surety bond
- an established and proven carrier base
- a top-notch credit rating
In summary, by utilizing the freight broker agent program model, small carriers are able to leverage the resources of larger and well-established carriers to their benefit. The small carrier is able to substantially increase customer service and volume, but without a large capital investment. This means that the small carrier doesn't have to worry about not having the right equipment or enough equipment to fulfill the logistic needs of their customer. The small carrier profits because each customer is matched to their exact needs. It's a hard-to-beat scenario with two huge advantages: customer retention and business expansion.
