When transporters realized that they are wasting $26 bn every year on idle trucks, they were awakened by the need of freight broker software and its importance for business. The resources wasted on the idle trucks can be utilized in a far better way by proper utilization of the transportation resource. Freight broker software is aimed at solving this problem. Freight broker software is essentially a load and carrier matching software which helps in faster shipping of freight and lower idle time for the carriers. Both the outcomes are super beneficial for the transporters who are looking to gain maximum ROI from their fleet. Â Â
In 2017, freight broker software demand will be on the rise due to few key changes in the industry over the past few years. Till now, the freight broker industry has been particularly fragmented with no major player dominating the field. But over the past few years, Amazon and Uber are entering the industry. Since these are big companies equipped with sophisticated technology and advanced features, they are clearly putting the pressure on the small freight brokers with shrinking margins. Even though fragmented, brokers are quick to recognize the relevance of freight broker software in the current times and are gearing up to adapt themselves with one.
The major entities which are involved in transportation and logistics industry are still crippled due to lack of penetration of modern technology. The coordination between freighters and brokers is highly dependent on manual or human interaction which significantly delays the closer of the complete trip as well as payment for individual jobs by drivers, brokers and other parties involved. Surprisingly, 67% of the shippers are still not using any technology to ship the freight. Due to the delay in payments which runs for weeks, the carriers and drivers are often involved in â€śfactoringâ€ť on their pay by the brokers. This is a 3-5% clip on the same day pay. As much as it is against the interest of the drivers, it is equally hampering the supply chain efficiency for the transporters by increasing the overall cost of the shipping. Â67% of the shippers are still not using any technology to ship the freight. Click To Tweet
On the other hand, with the help of adequate digitization of freight brokering process, we can remove up to 90% of the time intensive processes. By adopting freight broker software for brokering tasks, the complete process expedites as well as become more transparent for the shippers as well as drivers. Contrary to the popular belief of loss of jobs, digitization of shipping industry with deeper penetration of freight broker software into the industry will bring a better wage system, efficiency and transparent work culture for the employees.
with the help of adequate digitization of freight brokering process, we can remove up to 90% of the time intensive processes. Click To Tweet
With 13,000 brokers in business freight brokering is highly fragmented. In fact, top 20 freight brokers account for around 4% of the total freight brokering business. This clearly states that there is a large portion of unorganized and small freight brokers which arenâ€™t scaling as rapidly as they should be, may be because of the small scale of operations. To scale up, platooning is coming up as a viable option where two or more trucks are platooned for the common part of their respective trips. It is becoming popular among the transporters too as it results in an average of 4% saving on fuel cost for them too. In the times where regulations on fuel emissions are becoming tougher and fuel prices are rising high, platooning is coming up as a much-needed rescue.Top 20 freight brokers account for around 4% of the total freight brokering business. Click To Tweet
Freight broker software, which is able to manage freight shipping with platooning are becoming crucial in optimizing the profit and reducing the shipping cost for all the entities involved. With the worsening driver shortage in the transportation industry, the need to find alternative solutions for shipping is aggravating. But the advancement and acceptance of autonomous shipping trucks around the globe can pose a viable solution to these challenges with platooning. Â Â Â ÂPlatooning is becoming popular among the transporters as it results in an average of 4% saving on fuel cost for them Click To Tweet
Freight broker software is not limited to the trucking carriers now. With the increasing diversity in the carriers, freight brokers are also becoming flexible with the type of carriers used for shipping. With only 5% of the trucking industry segment dedicated for LTL transportation, freight brokers are left with no choice other than expanding their operations to other modes of transportation aggressively. When there is no constraint of fixing a single mode of transportation, utilizing 2 or 3 modes has actually been able to significantly improve the shipping efficiency for freight brokers. The same is been observed by 3PLs and shippers too. Therefore freighters are now looking out for the freight broker software which can now fix the spot rates for not only trucking but also for multiple modes of transportation in a single trip at once. This has given the freight brokers the needed scope to ship faster and cheaper and still squeeze out enough profit margin for a sustainable business.
As it is predicted by the industry experts, biggest changes that will be observed by the freight broker software will be induced by the changing brokering practices. No doubt the changes are induced by the competitive environment created by the entry of the big players into the industry. It is equally important to note that the changes and acceptance that will be observed by freight broker software in 2017 are becoming reality due to an open outlook of the freight brokers. It is a necessity to bring in more innovative practices to fight the unstable fuel prices and resource crunch plaguing the freight transportation. By changing the way freight brokering software are designed and customizing them to work in accordance with the changing practices of the freight brokering is a decisive step in the same direction. Dreamorbit is enabling the freight brokers to come up with more advanced technology solutions by providing bespoke freight broker software to them around the globe. To know more about these freight broker software, you can get in touch with the Dreamorbit team and get more details in a free consultation.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. Â With theÂ support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.