27 Feb The Advantages of Working with a Freight Broker
February 28, 2023
As a third-party logistics (3PL) provider, Mactrans Logistics understands the challenges that come with managing the transportation of goods. For shippers who move freight across North America the importance of working with a freight broker cannot be overstated.
Here are just a few advantages of working with a freight broker for North American freight:
- Access to a vast network of carriers
One of the biggest advantages of working with a freight broker is gaining access to a large network of carriers. Freight brokers have established relationships with carriers and can leverage these connections to find the best carrier for each shipment. This can result in better rates, faster transit times and more flexibility. Working with a freight broker such as Mactrans with offices throughout Canada gives shippers access to smaller regional carriers located in every part of the country.
- Reduced administrative burden
Shippers who work with a freight broker save time and reduce the administrative burden of processing invoices from various sources. Freight brokers audit invoices internally, consolidate the billing from multiple carriers and customize the invoices for shippers. This can be a significant relief for shippers who are managing multiple shipments and don’t have the time or resources to manage all the administrative tasks themselves.
According to a survey conducted by Capgemini, 94% of businesses that use a 3PL reported improvements in their supply chain management, and 88% reported increased efficiency. Additionally, a study by Inbound Logistics found that businesses who use a 3PL for transportation management experience a 10-30% improvement in order cycle times.
- Improved visibility and tracking
Freight brokers use advanced technology to track shipments in real-time. This allows shippers to have better visibility into the movement of their freight and make more informed decisions. Freight brokers can also provide regular updates and alerts to ensure that shippers are always up to date on the status of their shipments.
According to a survey conducted by Inbound Logistics, 97% of businesses that use a 3PL reported improvements in customer service. This is because a 3PL can help businesses reduce transit times, improve order accuracy, and provide real-time visibility of the status of shipments.
- Risk management
Freight brokers can help shippers manage risk by providing additional insurance and managing the claims process. This can give shippers peace of mind knowing that their goods are protected in the event of loss or damage.
According to a survey conducted by Accenture, 86% of businesses who use a 3PL reported that they can respond more quickly to changes in customer demand. Additionally, a study by Armstrong & Associates found that businesses who use a 3PL for transportation management experience a 22% improvement in supply chain flexibility.
- Cost savings
Perhaps the most significant advantage of working with a freight broker is overall cost savings. Studies have shown costs savings 5% to 25% are present by partnering with a 3PL. This is due to the broker’s ability to leverage their network of carriers to find the best rates and transit times for each shipment. Shippers can save overall on additional employee resources for vetting carriers, rates negotiations and tracking orders.
In conclusion, working with a freight broker for North American freight can provide significant benefits for shippers. From access to a vast network of carriers to cost savings and risk management, freight brokers can help shippers streamline their transportation operations and achieve better outcomes.