It is important for a logistics company to setup with carriers that will result in a long-lasting relationship. A carrier, in the context of logistics, is a company that owns and operates the transportation equipment being used to move freight. For the purposes of this blog, we will be talking exclusively about trucking companies.
In a recent report by the American Trucking Association, it was found that there were 892,078 for-hire carriers with 97.4% operating with fewer than 20 trucks and 91.3% with fewer than 6. This means that there are a lot of opportunities out there for a logistics company to find a carrier that will result in a mutually beneficial partnership.
The Importance of a Strong Relationship Between a Carrier and Broker
So, why is the relationship between a carrier and a logistics company even needed? Well, for one, trust is needed on both sides in order for the shipping process to go smoothly. Additionally, the more trust the logistics company has in the carrier the more loads they can provide. As a result, both businesses will take on more work resulting in success.
Additionally, a strong relationship between a logistics company and a carrier means both sides are able to take on the occasional loss. Sometimes things don’t always go as planned. When that happens, it’s good to fall back onto one of your long-standing partners to assist you. Then, of course, it is helpful to do the same for them at another time.
How a Carrier Can Identify the Right Broker to Setup With
It can be difficult for a carrier to find the right broker to partner with and choosing the wrong one could result in your work being unpaid. Some important factors for a carrier to keep in mind while working with a logistics company is:
- Collaborates on fair rates
- It is important to work with a company that has a little bit of flexibility and can meet you halfway one some things. This is especially true when it comes to rates being offered and when there is trust built; there should be some give and take between the two companies.
- An Efficient load booking process
- Having to go through a complex process just to book a load takes up time and money, it is worth looking out for brokers that already have a process in place. This usually comes with experience on the broker end as they want to have an easy and streamlined booking process as well.
- Reliable Service Contacts
- It is crucial that the broker you partner with picks up the phone when you need something. As a logistics company, when you setup with carriers it is essential to provide ways to communicate.
- Makes Payments on Time
- It is hard to know this measure without shipping a load first, but the timeliness of payments can have a significant impact on the relationship between a carrier and a logistics company. As stated before, most carriers are small companies with less than 6 trucks. Therefore, it is essential that they receive their payments on time without having to make numerous calls.
A logistics company needs to setup with carriers that they trust, but carriers also need to trust the broker. These partnerships can result in growing businesses and new opportunities for both the carrier and the broker.