Carrier Risk ManagementWith over 70% of the cargo in the US being delivered by trucks, brokers and carriers will be around a long time.  It is important for brokers to strengthen carrier relations and build a long lasting relationship with those they work with.  A balanced relationship between the two will bring about big changes in both businesses.  Of course it is important to get the best freight rates possible, but it’s also important to realize carriers must watch their finances as well. Without carriers, brokers would not be able to move their loads anywhere.

When you build a strong relationship with your carriers you can discuss long range shipping agreements that could very well save you a bundle on freight rates over the years.  However, this relationship needs to be beneficial to both parties, so don’t be afraid to give in a little when needed for the greater good. We all want to get our moneys worth, but we must be fair because this opens the doors for better relationships that will in turn save money over time.

One way to strengthen carrier relations is by knowing the carriers you work with well.  When you use a risk management solution you receive carrier status change notifications and be able to improve the carriers’ compliance.  Why?  Because such online applications will alert you that your carriers have a problem(s) even before they know it.  Be willing to work with them, by letting them know you are aware of the issues at hand.  If it’s something that can be easily fixed, they will thank you for bringing it to their attention.  On the other hand, if it’s a problem that could mean possibility liability to you, then break your ties with that carrier.  Keeping the risk out of your corner is important.

Another important feature is accessing Certificates of Insurance. Applications with such features can give you the pertinent insurance information instantly.  These applications will let you know if everyone’s insurance is kept up to date and can easily monitor every carrier or trucker you work with.  This information can be accessed 24 hours per day!

There are many advantages to building a good relationship with the carriers you do business with.  You build a trust with them as time goes on and you become familiar with their pricing structure.  Over time this could net some good savings for you.  It is nice to have carriers you know will give you good service and deliver the loads on time.  Customer service is paramount!

If you want to maximize your profits then you need to use the tools that are available for the task.  With the right risk management solution you can implement business functions that will make your operation a great success!  There are over 200 criteria you can set to select your carriers and control your risk. Altogether, a risk management solution is a must for your freight brokerage business.

 

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