Do not complicate your life. Get the service from the transportation company without the involvement of freight brokers!
If you were a ship captain, would you willingly sail towards the Bermuda Triangle, risking the loss of sailors, transported goods and your ship? So why, you landlubber, are you allowing the loss of money, nerves and control over your own product by using the services of a freight broker? Your command over the goods ends right with placing your order when you get the quotation, without even knowing the profit margin imposed by the middleman and the actual cost of transportation. Later on, you are faced with the difficulties in obtaining the information about the stage of the journey your goods are at. Finally, the information about the delay does not come from the broker – you are being informed by the customer when they issue a formal complaint. What do you gain when skipping the middleman, i.e. the freight broker?
1. You will save money for your company
Do you know that the markup imposed by the middleman is oftentimes as high as a hundred percent of the shipping price? This means that within the given price you could have two consignments delivered, not one! A transportation company does not charge extra fees for arranging, which in the long haul will positively affect your company’s finances. Even if the broker takes just €50 per transport for themselves, in the case of 10 orders per month, the forwarder will cost you €500!
2. Stable prices for transportation
Are the transportation prices during holiday seasons give you a headache? Below you will find a recipe for stabilising the price level throughout the year.
A broker, serving as an intermediate person in the logistics chain between the shipper and the executor, will always be dependent on the companies with their own fleet. The intermediaries are using freight exchange platforms – the conditions agreed upon by both parties change extremely quickly and are dependent on the season, pick-up and delivery day or current geopolitical situation. The multitude of carriers available on those platforms is a direct cause of the price instability. That may – in turn – result in an unpleasant suprise – at the end of the week you will pay €200 more than at the beginning.
The provision of services by one or two transportation companies will allow you for building long-lasting partnerships, shielding you from unexpected twists and turns of the market. Doubling the price in December? Lack of trucks on the market? These are the concerns faced by your competitors!
3. You will become a concious buyer
Do you know what your money goes towards while booking a service? A transportation company will walk you through the cost calculation. A reliable subcontractor is able to precisely estimate the amount for the tolls, fuel, driver’s work.
Freight forwarding world looks pretty differently; the brokers often work from rented office and do not face the costs of fleet maintenance and parking lots. The profit margin, on the other hand, is dependent on… the broker’s current mood.
Be aware what you are paing for and regain control over the money flow in your company! Do you want to know whether your subcontractor makes an offer on the basis of real enterprise cost? Do not hesitate to ask them for the details of the quotation!
4. You will act faster against the occuring problems and delays
No one working in transportation may be able to predic incidents, such as accidents, traffic congestion or unexpected weather changes, but we are able to prevent their consequences by reducing the number of intermediaries.
Although it may seem absurd, imagine that one broker may sell the order to the next one, who outsources it to the next one… In that way, another 4-5 intermediaries are involved in the game of Chinese Whispers.
Assuming that each person takes 20 minutes to react, with four middlemen, you will receive the information about the delay or theft only after… 80 minutes. Let’s imagine an alternative scenario: only you and your chosen transportation company. All pieces of information are presented to you on a silver platter, avoiding the risk of extra costs for your customer as a result of delays.
5. You will guarantee higher level of security
Who is the final executor while entrusting the shipment into the hands of the broker? What did they load before? How will they secure the goods on the trailer? Are they exprerienced in dealing with the intricacies of similar consignments? When your precious cargo is being handed to the broker, you might end up with more questions than answers. Get rid of doubts right now, choose your transportation company, trace its business profile and secure your shipment from being stolen, damaged, or delayed!
6. Greater flexibility
Forming a strong partnership with the transportation company will acquaint you with the previously unfamiliar world of logistics. The goods need to go to Hamburg instead of Cologne? We will redirect the driver immidiately. Your shipment will not be produced until 1 p.m.? No worries, we will come at 3 p.m. Need a self-storage trailer at your site for a month? We will gladly arrange it for you!
7. The quality of the service will be a constant
Brokers take the services from multiple carriers. Each one of the is operating in their own way. It can cause chaos during the process of order fulfillment due to multiple IT systems, internal rules within the company, different preparation of each driver. The provision of services by one or two tranportation companies allows you to be aware what to expect. For example, regardless of the quantity and value of the cargo, after the loading process is finished, photographs of the documents and loaded goods are being taken and sent to the customer; we also provide constant updates about the progression of the route and share the link to monitor driver’s journey in real time.
Having the fleet at one’s own disposal opens the doors for the transportation companies the brokers can only dream about. Bridge the gap between us, let yourself to be taken care of and provide your customer with a higher service quality!
Author:
Weronika Cieślak