Building a Trusted Network

It’s not news that relationships and human connections are at the heart of successful freight logistics, but as technology continues to take center stage and facilitate every stage of the freight lifecycle, human to human interaction becomes even more crucial.

In addition, the prevalence of industry fraud further drives home the notion that brokers, shippers, and carriers should strive to make mutually beneficial partnerships, seek out partners they know and trust, and build networks they can count on through thick and thin. In an ever-competitive marketplace, those who successfully go the distance are those who’ve gone the extra mile to build, nurture, and maintain healthy professional relationships, characterized by transparency, mutual respect, and empathy.

“The relationships we build with carriers are priceless.”

Tyler Johnston, Director of Operations, Mercer Transportation

These connections are the backbone of successful freight operations, ensuring smoother negotiations and resilience during market shifts. To strengthen your partnerships, consider the following key practices that can make a lasting difference in your relationships.

Understand Each Other’s Roles: Why Empathy Matters in Freight

Empathy is vital in any successful relationship, including the freight industry, where brokers, carriers, and shippers depend on one another. While we all know the importance of treating others well, this becomes crucial when you’re dealing with challenging loads that you’re unable to move. By incorporating good practices to build strong relationships through compromise, you can rely on favors when needed. A solid partnership ensures mutual benefits, exemplifying the idea of “you scratch my back, and I’ll scratch yours.”

Since negotiating rates is at the core of every freight transaction, an attitude of give and take goes a long way toward a successful negotiation in which both the carrier and the broker get what they need. Even if one party has to take a slight rate hit from time to time, if the relationship is symbiotic, it will balance out over time. This leads to more efficient processes, allowing brokers to move more freight faster, carriers getting the loads they need at fair rates, and shippers trusting that their freight is consistently in good hands.

Strong relationships are also critical in freight because the market changes unpredictably and frequently. Carriers, brokers, and shippers must be able to endure supply chain fluctuations. When the market tips in brokers’ favor, they need to take care of their carriers, so carriers will do the same for brokers when the market shifts.

Why Communication is Key

As cliché as it sounds, communication is the foundation of every successful relationship. With negotiations being so elemental to freight transactions, communication takes on an even more central role. Successful negotiation cannot happen without thorough, effective communication.

On the surface, the onslaught of technology is shifting human interactions to be more transactional than relational in nature. But technology can also facilitate communication, making it more efficient. This efficiency is vital to brokers who are required to move more freight faster than ever to compete and to carriers who need to keep their trucks on the road in order to make money. When it comes to lengthy back-and-forth phone calls and emails in order to get a load covered and on the road, “Ain’t nobody got time for that.”

Technology for freight can improve communication in both quality and frequency. Solutions that include all the necessary load information up front can save brokers and carriers hours a day. Many solutions automate communication between brokers and carriers, so relationships can be nurtured and strengthened without adding overhead and resources.

“We’re trying to build bridges, not barriers.”

Tyler Johnston, Director of Operations, Mercer Transportation

Broker and Carrier Communication Checklist

Applying these simple steps will help you communicate clearly, set expectations, and build trust to work better and move freight more efficiently.

• Establish clear communication channels.
  Knowing how and when communication is expected goes a long way in eliminating confusion and misunderstandings.
• Respond promptly to messages and emails.
  Plans can change, and delays will happen. Being diligent with communication helps temper problems before they escalate.
• Be transparent about capabilities and limitations.
  Be forthcoming about any load challenges that might affect the haul. If, for some reason, you determine it’s not a good match, be upfront. Chances are that your willingness to disclose challenges will gain the respect of the other party and could lead to other loads.
• Proactively share info that could help avoid misunderstandings.
  Never make assumptions. If there are any gray areas, call them out, even if it seems like common sense.
• Define service expectations and requirements up front.
  Make your expectations clear and include priorities and must-haves in writing to avoid after-the-fact disputes.
• Agree on standard operating procedures for various scenarios.
  Different people have their own styles and ideas for handling situations that inevitably arise. Share your preferences on how to get things done but remain open and flexible to reasonable responses. If you insist something is done a certain way, put it in writing and make sure both parties are in alignment.
• Use technology to streamline communication.
  Automate communication when you can to save time. There’s no shortage of technology out there, but make sure it’s intuitive and easy to use. Look for tested solutions, along with ones that easily integrate into your current workflow or be open to innovative approaches that improve efficiency.

How to Leverage Technology to Build Relationships

As technology improves and innovations abound, freight professionals can use it to their advantage to efficiently make connections and deliver information in an industry pressured by consumer demand for speed and instant gratification.

Technology that integrates into a broker’s normal daily workflow puts must-have data and documentation into the right hands at the right time. Rates tools, capacity sourcing, carrier & broker profile details—all this and more can be made more accessible when and where it’s needed thanks to technological innovations and apps. The right technology makes for faster, more confident decision-making when it comes to choosing who to work with, what to price a load, and other critical decisions that must be made when moving freight.

Software that automates communication goes a long way toward building and maintaining relationships and is necessary to compete in today’s freight industry.

Why solid relationships lead to successful rate negotiations.

As much as some might dread the negotiation process, it can make the difference between just getting by and being profitable.

Simple math illustrates this best in this hypothetical situation:

Assuming carriers in the spot market average 100,000 miles a year, let’s look at a 1,400-mile haul. If you just negotiate 10 cents more a load, that’s about $140 more—or almost $10k in your pocket for the year. Do that every time, and you can significantly improve your bottom line. That’s when showing up to the negotiating table armed with relevant data pays off.

If you’ve built a relationship with the other party, the negotiations go more smoothly. You both understand the other is willing to be reasonable and flexible and that give-and-take goes both ways. Also, if you present solid rate data that supports your ask, the carrier or broker you’re dealing with is likely to respect your knowledge and respond accordingly. Honest, open, transparent communication—backed up with factual data—builds trust, makes for good relationships, and opens the door for future opportunities.

10 Tips for Building Stronger Relationships Between Brokers and Carriers

1. Show respect. Recognize each other’s expertise, communicate professionally, and understand the constraints and limitations of the other party.
2. Minimize detention times (brokers and shippers). Avoid working with those who don’t respect the carrier’s time. Detention time causes carriers to lose out on money, waste time, and miss opportunities.
3. Communicate. Open and thorough communication benefits all, enhances the relationship, and adds value to the experience.
4. Agree on fair and competitive rates. Come to the negotiation table with factual data, relevant to the load. Be flexible and reasonable.
5. Be consistent and reliable. Carriers, deliver on your promises and be dependable in all dealings; brokers, provide carriers with ongoing business that aligns with carrier’s expertise.
6. Pay promptly. Delayed payments degrade reputations and relationships.
7. Exchange feedback. Schedule periodic meetings to discuss performance, set expectations, and make improvements.
8. Address and resolve issues. Brokers should be aware of any possible disruptions and act promptly to solve them. Carriers should make sure their documentation is up to date and accessible and be willing to take steps to verify their identity as brokers work to mitigate fraud.
9. Be supportive. Share relevant information and recommend technology that improves the overall experience for both parties.
10. Advocate for the right technology. Stay current on industry trends and product innovations that improve processes. Keep an open mind and be open to change.