The year 2020 has been perhaps the most disruptive and challenging in decades for the freight brokerage industry. The COVID-19 pandemic initially threw the market into disarray. Broker employees shifted to working from home. Shippers closed their doors. Loads disappeared, then came surging back. Truckers struggled, and reliable capacity became harder to find. Margins came under pressure.
At the same time, the industry found itself in the middle of a disruptive technology evolution unlike anything experienced in the past. Millions of dollars poured into venture-backed startups as well as existing transportation management system (TMS) providers. New digital freight platforms intent on disintermediating the traditional freight broker and connecting shippers directly with capacity proliferated. What were once clearly defined roles — and the required technologies to support those roles — became increasingly blurred.
Technology will only continue to accelerate, providing new opportunities for brokers to do more with less, deliver services faster and more efficiently, and build better relationships with those independent truckers and small fleets that provide 90 percent of truckload capacity.
The market is at an inflection point, and that presents a huge opportunity for brokers. Never has it been more important for today’s freight brokers to have a well-crafted, realistic technology strategy. Standing pat or slow-walking technology decisions is not an option, at least for those brokerages that want to survive and prosper.
Don’t get lapped by technology. Improving and upgrading technology is not a “one and done” proposition. It’s a core strategic imperative, the answer to reducing the costs of covering loads, improving margins, engaging employees, and maintaining a loyal and consistent base of carrier capacity. It’s also a journey where picking the right technology partner to join you is critical and, more than anything else, provides the reliable, effective, and enabling digital resources and expertise that will support your continuous journey to growth, profitability, and satisfied customers.