Capacity management often focuses on building carrier relationships. How can it help brokerages facilitate better relationships with their shippers?
Because the nuts and bolts of capacity management fall within the broker to carrier part of the freight lifecycle, we don’t stop to think about how capacity management can affect shippers very often. It’s true that the way brokerages do business with their shippers doesn’t change much when a brokerage adds capacity management, but that doesn’t mean there’s nothing in it for them.
Here are three of the ways that shippers can benefit when their freight brokerage is using a capacity management solution like Parade.
When Brokerages Use Parade, Their Shippers Can Benefit Too
1. Their Loads Can Get Covered Faster
For shippers working with some of the top retailers in the country, late loads can cost big bucks. Of course, things can happen out on the road, but sometimes loads are late simply because their broker is struggling to find the capacity to get it covered.
Parade offers freight brokerages access to a broader capacity network and allows them to reach out to carriers that are likely matches in seconds. It offers more options for every load and better options for each load, helping brokerages get loads covered quicker.
Another way Parade helps brokers get loads booked is by speeding up the process. Digitization and automation of processes mean a lot less back and forth is required to get a load assigned and on its way.
The moral of the story here is that, regardless of how Parade is helping a broker cover a load faster in a particular instance, it does get loads covered faster, leading to more bookings for Parade customers. This may allow brokers to get ahead of the next-day or same-day freight that’s so common in the industry, helping them get their shippers’ loads booked earlier.
2. When Their Brokerage Uses Parade to Negotiate Lower Costs, Shippers May Pay Less
Parade is all about streamlining processes so that brokers can get more done in a day, even if they stick with the staff they already have. They’re able to book more loads, negotiate better rates with their carriers, improve their margins, and earn more money. Plus, digital bookings typically cost brokerages significantly less to get covered.
Of course, freight brokerages are businesses and there isn’t a single for-profit business out there whose goals don’t revolve around making money. However, when brokerages save money getting loads booked and earn more by booking more, they may be able to pass some of those savings along to their customers.
With freight rates sky high, you can bet that any little bit of savings a broker can offer a shipper is likely more than welcome.
3. Carrier Reuse Benefits All Parties, Including Shippers
It’s great for brokerages when they can reuse a carrier. They spend less time onboarding. Carriers that have the chance to gain experience with origins and destinations can provide better service. The carriers appreciate getting to know their broker reps and what they can expect, as well.
One of the main reasons that carrier reuse is great for brokers is that it can improve the level of service. When they hire experienced carriers, they’re able to do a better job for their shippers and those positive interactions can help cement their business relationship. What we might fail to say outright sometimes while we’re discussing capacity management is that the end customer in a freight transaction is actually the shipper’s customer.
When brokerages improve their level of service to their shippers, it goes right along with it that shippers are improving their level of service, as well.
Want to learn more about how Parade can help you provide your shippers with even better service? Reach out to our team to set up a free demo.