ATLANTA, GA, January 26, 2017 /24-7PressRelease/ -- No matter what the economy is doing at any given time, goods must be transported. Every day people and businesses buy, sell and consume products! Those products must be shipped; day after day freight brokers control the movement of freight! The Bottom Line, Everything you touch must Be Shipped......
Mr. Milton Collier - http://www.MiltonCollier.com the reality is that brokers' capabilities have surpassed the capabilities of many transportation and logistics professionals. In summary, brokers' growth can be attributed to four primary factors:
1. Brokers can buy better than some traffic managers
2. Brokers create value for carriers
3. Brokers will cross the "T's" and dot the "i's" more than some traffic managers
4. Brokers have legitimized their practices by becoming "logistics companies"
According to Mr. Milton Collier Freight Brokers can buy better than some traffic managers, Freight Brokers have at least one and sometimes two competitive transportation purchasing advantages.
First, buying large quantities of transportation enables them to work with the carriers who haul their freight at rates that are often lower than those individual shippers might attain. Payment terms, the cost of sales, and technology interfaces are more favorable for the transportation company in these circumstances when compared to those that might be reached when dealing directly with customers.
Second, the broker has the incentive to find the lowest rate, because the spread between the actual freight rate and the customer quote is what puts food on the table for the broker. If a broker is unable to find freight rates less than the quoted rate, they should absorb the cost and move product at a loss. In short, they have 'skin in the game'. Undoubtedly, traffic managers will work hard to negotiate the best rates, but it is unlikely they have a rate in place for every lane. Therefore, when a new lane arises, there is only so much time that a traffic manager can put into getting the best rate given competing priorities. Brokers fill that gap admirably.
Freight Brokers create value for carriers, historically, carriers resisted dealing with Freight Brokers. The common misconception was that with a good sales force, the trucks would never be empty and carriers would never have to relinquish margin to a third party. The reality is operating costs have reached unprecedented highs and the cost of deploying a nationwide sales force continues to rise. Freight Brokers reduce operating and SG&A costs to a point where nearly every carrier is now in the market. A small carrier can now log onto a website or provide their broker with their lane preferences and find freight moving without a sales force and with minimal empty miles.
At the end of the day according to Mr. Milton Collier - http://www.MiltonCollier.com, Freight Broker or logistics providers, if you prefer, are here to stay and will continue to become an integral part of the transportation landscape.
MiltonCollier.com - http://www.MiltonCollier.com is a Freight Broker Consulting and Training company. Our goal is to provide the right candidates with the proper training to become a successful Freight Broker and provide employers with access to a pool of qualified Freight Brokers.
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