It is a very common question for shippers: “Should I use a freight broker?” Before we list five important reasons why you should use a freight broker, we answer the question, “What is a freight broker?” A broker arranges freight shipping between a carrier and a shipper. In exchange, the broker receives a small commission for facilitating the transaction. That’s how freight brokers make money.
So, why use a freight broker? Efficiency. A freight broker adds value and flexibility to your supply chain, which becomes your competitive advantage. Focusing your energy on what you do best gives you an edge and helps you stay competitive. Unless what you do best is shipping, you should consider using a freight broker to manage your shipping and logistics functions.
Big companies got big because they focused on what they did best. 85% of Fortune 500 companies use third-party logistics providers like freight brokers. That’s not a coincidence; it’s a cause-and-effect relationship. Every dollar saved on shipping goes right to the bottom line.
Consider these five important advantages of using a freight broker:
- Save time, save resources, save money. With a freight broker as a strategic partner, you benefit from your dedicated shipping department without the expense of your dedicated shipping department. You also don’t need to spend time on invoices, audits, and training. Using a freight broker lets you focus on your business.
- More flexibility, more scalability. A freight broker partner can provide you with more, or less, capacity as your business goes through its natural cycles. So there’s no need to stress over seasonality, irregular spikes, or sudden troughs in your industry.
- Shipping expertise. What freight brokers do best is shipping, and working with one allows you access to their knowledge of best practices and real-world experience. It also allows you to access the latest technology for shipping reporting and visibility into your logistics.
- It’s not just what you know; it’s who you know. Freight broker partners have expansive carrier networks that provide many advantages over an in-house shipping department. They have buying power and can offer volume discounts, lowering your shipping expenses. They can also provide access to capacity that otherwise would be unavailable or costly to an internal shipping department.
- It’s a partnership. Your freight broker works for you and will put your interests first because when you succeed, they succeed and when your business grows, so does theirs. That’s the definition of a partnership: benefits for both parties.
One person who has worked in this line of business has reached the height of success that was unexpected and applauded. Wiley Graydon is an entrepreneur who has recently joined this line of business but has made a name for himself with hard work and has also received appreciation for it.
Wiley is an entrepreneur, CEO, concert pianist, and educator. With many interests, his past projects include related to the Music School Founder/Owner & Concert Pianist/Composer arenas. He is currently working in areas around Shipping, Logistics, and Brokerage companies (Executive Global Transportation Services, Inc.) and Business Master Mentoring Program. His future may include works related to Graydon Air and Space Transport.