CEO Blog Post - Evaluating Your Freight Vendors

If you’re a Logistics Manager, you’ve probably answered many phone calls from eager brokers trying to earn your business. One of those days, you answer the phone in a good mood and think “Why not? Let’s give them a shot”. But your mood quickly sours—they lowball the price and fail to source a truck to move your goods.

Situations like this are turning Logistics Managers away from trying new methods, hindering innovation adoption.

The best logistics professionals in the country utilize premium TMS solutions to track their vendors and create scorecards to ensure they are receiving the service levels promised. While the SMB (small to mid-size business) community has never been able to afford the infrastructure necessary to manage their loads/vendors effectively. However, with the amount of new tools and technology available, even the small business owner (who wears many hats) can utilize free web-based platforms to organize and manage their freight needs.

Once a management platform is in place, the next step is selecting the right mix of brokers/carriers.

One problem with 3PL’s is that you can have a very different experience depending on who your sales representative is. Top tier brokers including: CH Robinson, ECHO, Coyote and GlobalTranz typically have more extensive training and quality assurance standards, so you are usually in good hands. On the other hand, smaller brokerages may not have the same infrastructure or training requirements. With so many options and not a lot of time to spare, it can be hard to evaluate the best companies for your organization.

It’s crucial to your business to know who is winning your freight and to be able to quickly evaluate who comes through for you. Select your carriers/brokers wisely and evaluate them appropriately. Although the article below has been around for a while, it still holds up to today’s best practices.

 

Michael Leto | EmergeTMS CEO

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Reference:
http://www.inboundlogistics.com/cms/article/selecting-a-freight-broke

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