8 Questions to Ask Freight Brokers Before Partnering with Them
Strong partnerships are essential to success in every industry. In freight transportation, trusting your partners is a vital part of making complex logistics solutions work. Below are eight questions carriers or shippers should know the answers to when working with a 3PL partner.
Do they have broker authority?
This seems obvious but it’s always wise to cover the bases. Broker authority is a license granted by the Federal Motor Carrier Safety Administration (FMCSA). A freight broker arranges the transportation of freight between shippers and motor carriers.
Do they have a surety bond?
A surety bond is an agreement to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).
Why is this important?
Surety bonds are put into place to help establish credibility and prevent fraud or failure to pay carriers and shippers in a timely manner.
How do they select and source carriers?
Commonly, freight brokers will source their carriers through load boards. Some, however, have additional processes to ensure the reliability of all carriers. For example, Sparrow personally “vets” our carriers and speak to every driver before picking up one of our loads to make sure they have every permit and certification to do the job right. Carriers that partner with Sparrow Logistics are held to a high standard to haul for our clients. We strongly believe that having a relationship with dedicated carriers who are professional and committed to their trade allows our team to go the extra mile.
What steps do they take to ensure carrier compliance?
Carrier compliance means holding carriers to an industry standard that ensures they deliver freight on time, free of damage, and without physical or financial harm to others in the supply chain.
How is their customer retention?
In freight brokering, your customer stays with you because they’re confident that you know their needs, you’re reliable, and they’re comfortable working with you. Bottom line: deliver on your commitments, and then make sure they know you can do that for more of their shipments.
What metrics can they help deliver on?
Freight brokers help solve many efficiency issues. Consider which metrics are important or might need improvement. Ask how they can help you achieve your goals, creating a long-term symbiotic relationship for all involved.
Will they make an effort to learn your business?
No one likes to feel like they don’t matter. The simple answer is that you want to work with people who share your enthusiasm for what you do and can provide solutions that fit your specific needs.
What technology do they utilize?
Obviously, knowing the details of this question will land on preferences and needs, however, as things progress within the logistics industry, keeping up to date with technology will be vital.
If anything, make sure to ask about which TMS system they currently use and the benefits of it. A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing, and make sure the shipment is compliant, proper documentation is available. This kind of system is often part of a larger supply chain management (SCM) system. A TMS provides visibility into day-to-day transportation operations, trade compliance information, and documentation, and ensures the timely delivery of freight and goods.
What can Sparrow Logistics do for you?
Navigating the unpredictable supply chain is tough, and we’re here to lighten the burden of your loads.
Sparrow Logistics specializes in the following services:
Expedited delivery
Dry van and temperature controlled
Heavy haul transport
Power only
LTL or Partial Truck Load
Hazmat
Vehicle hauling
When you’re looking for a partner to ship your freight nationwide, look to Sparrow Logistics. With our team, you not only get exceptional 24/7 dedicated service, but you partner with experts in the transportation industry and connections nationwide. That means we can assist you in accomplishing your business goals while staying on budget and on time. If you are experiencing problems or searching for a partnership with a freight broker, start researching by reading Sparrows' top considerations when choosing the best freight broker here.
Want to learn more about what Sparrow Logistics can do to solve your supply chain issues and take your business to the next level?