Most companies give very little attention to the freight partner until things start going wrong.
For example, an entire shipment could be delayed at the dock for two days. The carrier is no longer responding to your calls and emails. And the customer calls you demanding to know where the shipment is. And from there, these issues will rapidly escalate.
In reality, your freight partner moves much more than the delivery of goods. Your cash flow, customer satisfaction, warehouse activities, and even commitments made by your sales representatives are influenced by it.
Hence, picking the right freight partner is not about getting the best deal but rather about finding one who will make things easier for your business.
Such a freight forwarding company not only has trucks but also provides reliable logistics services, capacity support in the tough market environment, reasonable prices, and effective problem-solving.
In this blog post, you will discover some benefits that your business will get from having such a freight partner as well as several criteria for choosing one.
Factors that Make a Freight Company the Right One to Work With
All freight forwarding companies do not provide the same services. Some companies own their trucks; some work on carrier networks; while others will be able to manage your logistics process. The following provides a simple description:
- An asset-based carrier owns and operates its own fleet of trucks. Such companies tend to be more suitable for shippers having set routes of shipment.
- A freight broker provides matching services between shipments and reliable carriers. This is beneficial in case the volume of shipment changes and also if you need coverage of various regions.
- Third-party logistics (3PL) service includes provision of all logistics services, including transportation services.
The ideal choice depends on the way your business works. There is a huge difference between a firm that sends a few shipments each week and another one that sends its cargo through several states every single day.
Instead of concentrating on the type of carrier only, pay attention to the way they understand your business. A company that provides total transportation and logistics services will be asking you about the shipping schedule, customer demands, seasonality, and warehousing before providing you with the cost estimate.
When the very first discussion revolves around costs, then it is already a red flag.
Reduce Freight Costs Without Compromising on Quality
Every company wishes to cut down their freight costs. However, opting for the cheapest bid is not always the best move.
Cheap quotes may be coupled with costs such as delays, freight damages, missed deliveries, and inadequate communication.
Using a good freight service will ensure you cut down your total shipping costs.
This can be done through:
- Better pricing when it comes to frequent shipping routes
- Less additional fees as a result of efficient shipping planning
- Reduced damage claims because of using dependable carriers
- Reducing detention costs due to effective scheduling
- Optimal shipping methods based on your freight requirements
For instance, most companies tend to book truckload shipments regardless of the actual need for the larger capacity, even if it is more cost-efficient to use smaller ones.
An experienced logistics provider will give you recommendations on how to save on your costs. Their main goal is to optimize your transportation needs, not only to book the load.
All these little savings add up.
Capacity You Can Rely On When You Need It the Most
The freight industry is dynamic. There may be many carriers available at certain times, but at other times, the demand rises, causing capacity to decrease. This is when the right partner will really make the difference.
Professional freight brokers work with extensive networks of carriers that they can fall back on when one is not available.
- Their flexibility works best when there are:
- Holiday seasons
- Sudden rises in shipment volume
- Weather issues
- Challenges in the supply chain
- Cargo that needs special transport equipment like reefer trailers and flatbeds
Businesses that have developed a relationship with reputable logistics companies do not face capacity shortages very often.
Reduced Stress and Increased Shipment Visibility
Freight logistics is a time-consuming process. Your staff shouldn’t waste their time requesting status reports, sorting through emails, and apologizing to your customers for delays in shipping.
That's because an efficient logistics provider will take care of many of those tasks for you.
You will get:
- Real-time tracking of shipments
- One contact person only
- Neatly organized shipping documents
- Quick response to any delays
Moreover, most logistics providers provide services related to supply chain management, thus giving you access to meaningful reports and analytics.
You will know which lanes are the most expensive, who your reliable carriers are, and where you experience most delays.
A Logistics Partner that Can Scale With You
As your business expands, so does your logistics. A second warehouse, entering new markets, or dealing with bigger clients all require more logistics.
If the trucking firm can handle only a certain type of lane or shipping method, then at some point, you would outgrow them.
The ideal logistics partner scales up together with you by providing:
- Regional coverage in more areas
- Several transportation solutions
- Support for retailer requirements on logistics
- Adaptability for your changing shipping needs
No matter if you need extra truckload freight services, extended third-party logistics (3PL), or full transport logistics solutions, your logistics partner must have the capacity to accommodate your growing business without having to replace the vendor.
Good logistics solutions will also empower your sales force. They can commit to delivery schedules since they know the freight firm is capable of delivering.
FAQ's
How would I know whether I need a broker or 3PL?
If my top priority is to find a good fleet of carriers, then freight brokerage is sufficient.
However, when warehousing, inventory management, order fulfillment, or logistics solutions are needed as well, then third-party logistics services (3PL) may be the best option.
Are freight brokers more costly?
No, they don’t have to be.
Freight brokers manage to get low prices due to their wide networks of carriers and also assist in reducing administration expenses, late shipments, and freight claims, thus saving money.
What information should I ask for while looking for a freight partner?
You should always ask questions about:
- Carrier selection criteria
- Insurance coverage
- Delivery punctuality
- Communication in case of delay
- A dedicated person for your business
Because in the end, it’s not only the cost that matters.
How long would the transition period be for changing our freight carriers?
It usually takes between one and two weeks for most companies.
The new carrier company merely collects all your shipping data and then starts working.
Is it possible to move only a part of our shipments?
Sure. Most companies start off with a few shipments and then expand their business relationship.
Conclusion
A good freight forwarding company goes beyond moving freight from point A to point B.
They assist with controlling shipping costs, increasing customer satisfaction, minimizing operational problems, and fostering sustainable business growth.
Going for the wrong freight company might prove disastrous and cause various inconveniences.
If you find that the current way in which you ship goods is reactive rather than proactive, then it’s about time you looked elsewhere.
Value Loads specializes in freight brokerage services, truckload freight services, third-party logistics services (3PL), supply chain management services, as well as custom transportation and logistics solutions.
Contact Value Loads today.