This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The most promising technology for the logistics industry is the development of third-party, multi-participant, mobile-centric platforms that provide digital freight matching and real-time visibility for brokers and shippers, connecting them with the most fragmented resource in trucking — small carriers and independent owner-operators. These carriers move some 80 percent of truckload freight.
Brokers support the majority of shippers who don’t have the critical mass — or market expertise — to manage their freight directly. The broker’s value comes from aggregating small carrier capacity and deploying it in solutions that achieve the best cost/service combination for customers.
Third-party digital platforms address two challenges for brokers: First, reduce the cost of “covering a load” using tools such as Trucker Tools’ Book it Now, to automate finding, securing and booking an available truck — which eliminates the need for manual calls and lets the carrier do the work of booking the load. Second, once it’s booked, the same platform provides automated. ongoing visibility to that load in real time, with updated ETAs, so exceptions can be addressed promptly and the shipper can plan accurately. Automating the visibility piece relieves brokers from wasted time calling trucks to see where they are, and drivers constantly fielding annoying “check calls.”
With automated load-matching and visibility on one shared platform, both brokers and carriers gain critical efficiencies that can be passed on to shippers — and technology advantages equal to the big guys. Lastly, these mobile apps should be designed with the driver’s needs first, be multifunctional, be easy to use, and improve the driver’s experience.
The biggest challenge to implementation: indecision. Technology changes constantly. The longer you wait, the further behind you’ll be.
Brokers should act decisively, move quickly, deploy smartly, and drive the roadmap collaboratively with your technology partner. It’s not a “one and done” decision. It’s the beginning of an ongoing journey of constant improvement and reinvention that will determine no less than the future success of your business as a broker.