Many shippers have fears using a freight broker to find transportation services. A lot of these fears are based on misinformation spread by shippers who didn’t use due diligence when choosing a broker. It’s likely that a lot of these shippers committed the cardinal sin and chose a broker based purely on price. Choosing any product based on its lower price is risky, quality is always the first thing to suffer. There are a few major factors that are more important than price when choosing a broker.
Picking a broker with high-quality customer service is a must in this industry. Problems arise when shipping freight, it happens all the time. When solving these issues, your logistics needs to deal with a customer service department that can actually resolve problems. Outsourcing customer service duties is a common way a provider can cut their prices. When you deal with outsourced customer service agents you often get people who lack the knowledge and training required to solve any significant issue.
When you choose a broker you’re creating a business relationship that can last for years. All business relationships should be built on trust and transparency. A trustworthy broker should have a history that proves their trustworthiness and is able to immediately provide proof of licensing and high-quality insurance. A lot of the cheap providers will cut corners by having out of date licensing or have poor insurance coverage. If they aren’t covered in the event of a disaster and you lose cargo: You could be stuck in years fighting them in court for reimbursement. Choosing based on trust can prevent a lot of logistics nightmares and save you money in the long term.
Trust is also important when dealing with your customer because your reputation is on the line when picking a freight broker. Competition is high and rising in the freight industry. Customers lack patience when it’s so easy to replace their shipper with a competitor. When you choose the cheap option you risk seeing the irreparable damage done to your reputation. You can also see business relationships that took years to build suddenly end.
The quickest way to an unhappy customer in this industry is often having long transit times. Reducing transit times can be achieved by having access to a wide selection of transportation services with a diverse array of methods of transport. The low rate broker is going to have trouble providing this because this is yet another area where they are going to reduce quality to reduce costs.
Justin Bright – CEO Brighter Logistics