There is a disruption happening to the freight industry.
New Web developments and trends have introduced the concept of the freight marketplace. It's an opportunity to escape restrictions and negatives of working with distribution companies.
The freight marketplace places the power into the hands of professionals by matching them to freight carriers.
It works by allowing shippers to post listings for their freight and giving carriers and brokers the ability to make offers. Thus, eliminating the middle man leading to greater profits and less downtime.
That's only the beginning.
Interested in how this new marketplace removes inefficiencies? Need reasons why you should partake? Read on to find out.
The Freight Marketplace: Making Valuable Connections
The freight marketplace is growing in popularity due to the widespread use of modern technology. It allows one to create connections which present a greater amount of options with pricing and available services.
The platforms are easy-to-use much like other online booking sites.
Shippers enjoy a wider access to providers and vice versa.
The benefits are especially true for small businesses. This alone should provide an ample understanding of the benefits a freight marketplace offers. Yet, buckle up because there's more you'll absolutely love to hear.
Four Good Reasons to Join a Freight Marketplace
Familiarity and marketplace navigation will provide a strong baseline of the benefits. Open one of the many marketplaces along side the following to pair up benefits to its features.
1. Real-time travel data
Mobile access links carriers and shippers with the ability to use satellite tracking to monitor and report shipments. This inclusion of real-time travel data reduces extra costs through accountability.
The data provides shippers an opportunity to request audits such as errors in invoicing or overpaying for services. In turn, it gives truckers transparency with their services. Transparency helps to develop strong, lasting relationships.
Real-time travel data also provides companies enhanced information to make improvements. Improvements to their fleet would include anything from fuel efficiency to administrative pains.
Email alerts are the primary channel for real-time updates for both parties. It aids with bidding and ensuring shipments are on time.
2. Freight management
Freight management is a process of improving inventory management and tracking shipment statuses. The optimization of this business element helps to reduce the already high costs of logistics.
Because businesses and shippers are able to quickly match logistics needs to carriers and brokers, they:
- Keep inventory levels low
- Require less handling
- Reduces damage to products
- Increase satisfaction with all parties
- Improve delivery time
The benefits go two ways.
A business that gains these benefits pass them on to truckers. Efficiency is increased meaning more available jobs with fewer disruptions.
The freight marketplace factors into the management with its ability to unload to a thirsty marketplace and get things done.
3. Less paperwork & bargaining
The benefits enjoyed by shippers provide similar gains for those in logistics. It's clear with paperwork and communication issues that are often present within the industry.
The marketplace uses specialized tools to increase efficiency. The result of which is leading to less back-and-forth with carriers. It virtually eliminates having to get in touch with the parties with bids and confirmation.
As a trucker, you gain direct access to the shipper.
These platforms granting direct access helps build rapport and trust.
The marketplace has built-in tech to solve all logistics needs. One of its main features being a centralized location for shipping & tracking. It allows truckers to make bids from within the system instead of needing to constantly provide updates.
Through this trust and rapport, the trucker can deliver a better service. The truckers worry less about the paperwork and overhead so they may focus on their transit.
Lastly, competition is good.
Spending in U.S. logistics reached $1.48 trillion in 2015. Though, most of this was handled by major logistics companies. The tough competition has all but cut out the smaller competitors.
It's changing, though.
The direct access allows smaller organizations or individuals to cater their services. It gives them the ability to present a better value proposition so they may compete with larger companies.
This healthy competition changes the industry.
It raises expectations of the services. It also creates a new baseline with the demands and needs of the shippers.
Competition will continue to drive the market. Already it has shown significant leaps forward with the recent entry into the industry from giants like Uber and Amazon.
In all, it will change the workflow of the trucking industry to provide better services and rates. Something everyone to be happy about.
What the Future Holds
The digital marketplace for freight is at a cross road.
Funding is readily available versus a few years ago. We're reaching a real moment of disruption. One that will challenge decades of an established industry.
These tools have increased the availability of professionals. Giving the opportunity to all those that have the appropriate license. Yet, the capacity of goods remains the same and only time will tell how much of an impact it will make.
It comes down to time.
There are challenges ahead that are not exclusive to availability. Will this shift will reveal the much needed, trusted relationships so many brokerages seek? We will see as the adoption grows.
Removing the Dead Weight
A freight marketplace has several benefits as outlined in this post. The biggest of which is removing the dead weight of the middleman. Carriers and brokers gain direct access to shippers resulting in higher profits and less downtime.
These marketplaces improve satisfaction across the board. No longer will truckers get stuck waiting 30, 60, or even 90 days for payment. Nor will they eat the costs of deadheading since plenty of options become available.
Integration of ComFrieght is a breeze. Our platform is helping to shape the freight marketplace. We're delighted to offer carriers and brokers an efficient and easy way to post listings and confirm payments.
What are you waiting for? Check the online marketplace today!