You can find a lot of Brokers out there claiming to be fantastic at processing claims. Claims are, after all, a nightmare and having a Broker that can put out those fires as quickly as possible is key. For sure. But you know what’s better than a fireman saving half your house? Not having a fire in the first place.
Don’t get me wrong, Claims will happen. You do this job long enough and you will have a claim put on one, or more, of your loads. It’s just the business. But it’s so much easier to prevent claims from happening instead of focusing on what to do when they do happen. It’s like when you’re trying to take care of an old car. Preemptive maintenance is easier and less expensive than getting a new transmission or engine block.
One of the biggest reasons it’s easier to prevent claims than process them is because it’s almost always apparent. Very rarely does a claim happen truly out of nowhere. Most claims happen because of a mistake, a fault.
Things like solid communication lines, well-planned strategies, and a history of good rapport all clean up the road so obstacles ahead can be seen and dodged. You can only get these things from a Broker that focuses on Preventing Claims. A Broker that has a fair and excellent history with Carriers is a great start. When a Broker knows their Carriers, and vice versa, you get a ton of possible problems solved before they can even start. When a Broker deals with unknown Carriers, the chance for claims always goes up.
And, the most important part of this for you, is that it’s cheaper to prevent claims than process them. When it takes just a little bit more to ensure your goods will get to their destination in good shape; you’re paid, your customers are happy, and you can have peace of mind.
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How Understanding the Market Makes Business Easier
The Freight Market is a living thing. It fluctuates and changes every day. It seems to breathe and move on its own. Some days it’s caring and loving; your goods are valuable and in demand. And other days it’s as if the market as forgotten all about you; sales are hard to make.
Now, this does not just affect you. It affects carriers as well. Imagine trying to explain to a Carrier why the exact same shipment they did last week is now cheaper for them. If you don’t handle it right, you can actually have many carriers saying ‘no’ and your goods don’t move.
A knowledgeable Freight Broker can help with this in a few ways. For one, they can seem to have an almost sixth sense about the market. They can let you know the ways the Free Trade winds are blowing. Set sail and make a profit. Or find a port and stay safe.
Also, a good Broker helps mediate this information to the Carriers. These Carriers know that when they are being paid more than normal for a load that it will, in time, be balanced out later on. They know this is business. They know this is how it goes. And they know, in the long run, they will be taken care of. A good Broker teaches them these things.
When a Broker doesn’t explain these things to a Carrier you’re likely to find yourself with very few people willing to take on your goods, maybe even when things are going well. A good Broker keeps the wheels moving, quite literally in some cases.
And finally, and perhaps the most important reason to get a Broker that understands the market, is that they can explain it to you. When you know exactly why your goods are going for this price or that, you can make better decisions that maximize profits and minimizes losses. You cannot get this option without a Knowledgeable Freight Broker.
What Scalability Means for You
You may not know it, but Scalability is a fundamentally important factor for your business. If you have not experienced it for yourself, let me tell you that there is nothing more frustrating than having products that are ready to go, but you just can’t find the trucks.
Many Freight Brokers will have a small collection of trusted trucks which might be all you need 90% of the time. But when you find yourself with a ton of produce to ship, you will find yourself waiting. Not only should this be your most profitable time, but now you are actually missing out on money because you are simply wasting the produce.
Some Freight Brokers will, at this point, reach out to trucks and carriers that they are not familiar with. This means your big load of produce is in a truck that is not 100% trusted.
On the other hand, some Brokers that can handle that load may not be interested in working with you unless you have this massive amounts of goods each and every week. They can handle you at your best, but they won’t help the rest of the time. These are usually the Brokers that will only work with very big companies.
But, there are a few Brokers out there that understand and respect the fluctuations of business. They are ready to work with you each week, no matter the load. And then, when business does pick up, they have a big list of trusted trucks that they can quickly reach. A Broker with this level of Scalability is one that has been in the game for many years; with a trusted and respected reputation. Once you find that Broker, hold on tight.
So, as you can see, Scalability is more than your Freight Broker having a lot of trucks. It’s having a lot of trusted trucks. And it’s having those trucks quickly. Your produce does not last long. Hours matter.
The Importance of Great Communication
A good Broker is someone that communicates. Not only do they communicate the good news, they must be willing to communicate the bad news. The bad news is simply part of business. And while it may seem easier to soften or temper bad news, a good broker knows that honesty delivered with speed is paramount.
When a broker has open channels of communications with everyone in the freight process; the drivers, the customers, the receivers, and so forth; business is performed better. Trucks ship faster. Orders are received quicker. Loads are dropped off and processed with minimal delay. Work is just done better.
Also, communication allows small problems to be prevented. When a broker has a history of open communication, people communicate back. Little possible problems are defused before they can even surface.
And, if a problem does come up, time becomes the most important factor. When you have open and honest communication, you’re able to start fixing that problem straight away. With everyone on the same page, even large problems can easily be addressed and fixed.
Another reason Communication is so important for a Broker is that they make their clients happy. Really happy. In this business, it is beyond refreshing to finally find someone that communicates honestly. This is the type of thing that will keep people coming back, for years and years.
Why Good Brokers Vet Drivers
Vetting Drivers is a salient part of Brokerage and Transportation. But the task is not easy. It takes time, research, and the ability to measure skills and experience. But a good Broker, one that is on your side, will always Vet Drivers.
Because of the difficulty in Vetting Drivers, and doing it effectively, many Brokers take short cuts during this step. What this means to you is that you just don’t know if the Drivers your Broker has hired can be trusted with your goods. You don’t know if they have a history of slow work, a history of theft, a history of accidents.
And the scary thing is that you might work with a broker for years, completely unaware that they have an army of untrustworthy drivers. The only way you figure it out is by losing out on a delivery.
But a good Broker knows that you must carefully vet drivers, no matter what. They’re looking for driving records, work history, insurances, and referrals for each and every driver. A good Broker knows exactly what to look for, what things are red flags and what things a driver must have. This only comes from experience and knowledge.
When a broker does their homework, two things happen. First, their list of carriers is chalked full of proven and trusted drivers. No matter how many trucks are needed, this broker will have a trusted driver just a phone call away.
And second, it’s very easy for this broker to say no to a driver that offers substandard quality, even once. They have many other options that have better results. There just isn’t a reason for the broker to keep a driver that is not 100% dependable.
A bad broker will not have such a list. They will have to rely on an untrusted driver whenever business picks up. This means you’ll have more of your products out on the roads with drivers that might not care, that might not have the right insurance, and might have a history of poor performance.
This is the core to a good Broker. They know that having a trusted set of drivers is the foundation that they can build off of, confidently. This not only makes the Broker a sought after asset, but they can bring that value to you. Using a good Broker that Vets Drivers is a perfect win-win situation.