Brokers and Logistics Companies
Broker And Logistics Companies
Brokers and Logistics companies are one in the same. A “broker” is the older, perhaps a bit more negative word, to describe a business or individual that ‘brokers’ freight. They are the middleman between the customer and the truck that is hauling the load. The term “logistics” is a newer buzz word to describe a broker. Quite awhile ago brokers got a bad rap from a few bad apples in the industry. Some brokers would contract loads with customers and get paid only to hire a carrier and not pay them. Besides the fact that this is illegal and unethical, it was a bad business practice that tarnished the industry. So, logistics became the new buzz word with a new image.
Perhaps this is unique to our industry, but brokers are both our customers and our competition. We often, as in everyday, haul broker freight throughout the country on our trucks. Ideally, we want to work with shippers directly, but the reality is we need the freight brokers can provide to keep our trucks loaded. I like to think of brokers as a salesperson for our company. They have made the sales call to a customer and we provide the truck to satisfy the shipment. An example of a win/win at its best.
As a dispatcher in this industry you need to first become proficient at talking with brokers and finding the loads for our drivers. Brokers and dispatchers live fast paced lives. We live on the phone making deals. Whether we are on the phone with a customer coordinating a load or negotiating with a carrier to haul a shipment, it’s very phone intensive. If your not on a phone making a call then you’re either at lunch or just taking a break.
Brokers and Logistics companies are in the business to move freight and you have access to the trucks they want. This doesn’t always mean you can work a deal. It’s a negotiation and practice will help refine those skills. Sometimes you have to “sell” the load to a driver as much as you have to negotiate a rate with a broker. You want the best price possible, but most importantly you want to move the load. If a broker offers you a load for $2,200 and a driver wants the load for $2,500 it is up to you to make sure you can get both parties to agree. You have to sell it to both the driver and the broker and agree on a rate. As the dispatcher you’re not too concerned with either price, you just want the load to be hauled and for that you often have to negotiate. If the driver agrees with $2,200 then there is nothing further you need to do, than to move the load!
