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Proven Ways to Grow your Freight Brokerage Business

freight
3pls, Archives, Global Logistics, Global Trade Daily

Proven Ways to Grow your Freight Brokerage Business

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A quick look at the current shipping industry will show you that there is no shortage of freight brokerage businesses. Numerous companies offer their services all around the world, with various degrees of quality and cost. So, among all that competition, is there a way for you to grow your freight brokerage business? The short answer is yes, there is. But, like with most things in freight shipping, it is not going to be easy.

Understanding the ongoing changes in the freight industry

Growing your freight brokerage business is a multilayer process that we will elaborate on in the following passage. But before we do, it is important to give you a perspective of what the current shipping industry is like. Even before COVID-19 hit, the shipping industry as a whole was experiencing some significant changes. So, while we will go over the most notable aspects, keep in mind that these are just some broad strokes. Technological advancements, both in logistics and in shipping capabilities, came as quite a surprise.

Developments in AI allow for a much greater sense of efficiency and safety, which is why future freight companies won’t be able to stay competitive without it. Eco-friendliness is also a significant concern as fossil fuels tend to be the least-favorite choice among the current companies. We are still far from relying solely on renewable energy sources, but energy development is going in an eco-friendly direction. The final point to keep in mind is that modern customers’ demands are higher than ever. Due to offers like overnight shipping, customers have grown to expect a high degree of service. So, if you are going to stay competitive, you need to ensure top efficiency.

Grow your freight brokerage business – step by step

Seeing how big the freight shipping industry is and how many emerging technologies there are, you shouldn’t try to tackle all of it. The safest way to grow your freight brokerage business is to outline a particular aspect of freight shipping and excel at it.

Step 1: Identify your target audience

Who your target audience depends on numerous factors. Your location, which services you have available, which industries are predominant in your area, etc. If you wish to grow your freight brokerage company, your primary job is to first outline your target audience. The clearer you can pinpoint to whom you can cater your freight brokerage service, the better. Seeing that finding new customers will likely be an ongoing task, we suggest that you outline the “Ideal customer”. That way, your employees can more easily identify potential customers.

Step 2: Outline their needs and requirements

The second step you need to take is to clearly outline the needs of your target audience. You will likely have an idea of what they need. But you won’t have the complete picture until you start doing research and asking questions. Most agents will be more than happy to outline their needs and whether the current provides are satisfactory. Some might even give you ideas on which services are most lacking and where you can easily get ahead of your competition.

Step 3: Improve your technology so that it can facilitate the needs of your customers

Once you understand the needs of your audience, you need to alter your company so that it can best fulfill them. By this, we mean implementing new technologies that allow for more efficiency. Apart from logistics technologies, you can look into CRM solutions and communication technologies to help your customers more expediently.

Step 4: Tackle marketing with due care

One of the common mistakes people make in the freight industry is not tackling marketing with enough vigor. Believing that having a simple website or running a social media profile is enough for a serious company is something you ought to avoid. To draw in and keep your audience, you need to run an active website. This not only means tackling your SEO and posting the necessary blogs. But also managing your social media and ensuring that you have the proper brand recognition. Good freight brokers know that projecting an idea of efficiency and stability is essential to drawing in new customers. And the only way to make that possible is to adapt your online presence to your needs and ensure that your marketing is on point.

Step 5: Set up performance metrics and keep track of your endeavors

Finally, to ensure that your effort produces results, you need to set up performance metrics. Besides measuring how many new customers you get each month, you also need to track how effective your marketing is. Even in B2B marketing, you need to invest substantial funds to develop an online presence. So, do yourself a favor and ensure that your investments are paying off. By setting up clear performance metrics, you can see how your business decisions impact your revenue and whether you need to make any alterations.

Final thoughts

The main point to keep in mind to grow your freight brokerage business is to stay within your niche. The better you can outline what your target audience needs, the easier it will be to make cost-effective business decisions. If you manage to become the top local freight brokerage business within an area, we are sure that you will have no problem spreading your business out to other areas. But, it is essential to develop a healthy base and a firm understanding of what your customers need. Modern industry requirements don’t allow you to spread yourself too thin. Doing so is not only ineffective but is likely to cause you substantial loss in revenue. And seeing how fierce the competition is, it has become more important than ever to excel within a relatively small niche.

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Ryan Smith has worked as a shipping manager and a logistics consultant for over 20 years. He now focuses on writing helpful articles for tbmoving.com and other relocation and shipping companies, as well as providing consultation for large-scale logistics planning.

sales
Archives, Global Trade Daily, Special Reports

Adapting Your Sales in a Six Feet Apart World

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We talk about it all the time – “when things go back to normal.” But will they? Will sales ever be the same?

2020 forever changed us. Sales processes were turned upside down. In-person meetings – probably not happening for quite some time. Remote presentations – now the norm. Sales engagement software – a must. These changes are not temporary. If you aren’t yet, how do you adapt to the next normal?

Digital first

The pandemic accelerated the rate of change and digital transformation much faster than any of us anticipated. Now, B2B buyers and sellers doing business digitally is the norm. According to Mckinsey, more than three-quarters of buyers and sellers say they now prefer digital self-service and remote human engagement over face-to-face interactions. The path forward is clear: Digital is here to stay.

We might physically have to remain six feet apart, but digitally nothing is slowing down. In a digital selling environment, the speed of sale is increasing in importance. Gone are the days of sending a PDF attached to an email or getting on a plane and waiting days for the next step in the sales process. In our time of immediate gratification, inefficient, time-consuming sales processes will no longer be acceptable.

Digital first also transforms the traditional sales hire. Tech-savviness is now part of the job description. A high-level of familiarity with popular CRMs, sales enablement solutions, and contract automation are now a must-have. As we continue digitally, the technical requirements for sales hires will increase.

Humanize the digital experience 

Today, buyers have more access to information and knowledge than ever before. They’ve read online reviews, seeked advice from peers, and compared features of multiple products before they even speak to you. If you want to remain competitive, you have to go beyond the basics. You must provide value that a buyer can only receive from an expert. By putting your prospect-first, you will stand out from the crowd.

In addition to putting your prospect-first, it’s important to keep the personal touch throughout the digital sales process. Without personal touches, trust issues can arise, and closing the deal becomes harder. You need digital tools to create engagement and human touch with prospects. Adding a personal video when presenting proposals and sending out agreements is an emerging way to humanize the digital experience. Live chat has also emerged as a top channel to create engagement and trust with prospects.

Empathy is key to the digital experience. The need for empathy for your prospects and yourself continues in the next normal. We wake up ready to slay each day, but inevitably something will humanize the day. You want to answer your prospect’s questions and provide a solution that will help them thrive, yet it won’t dominate every conversation. Connect human to human when dogs bark at the mailman or children need help with a virtual school. We’re all in the next normal together.

Technology is a co-worker

Digital first not only transforms the traditional sales hire, it transforms co-workers. With reliance on digital selling, so does the need for sales software solutions that helps sales reps humanize the digital experience and close more deals. It starts with a team of technology co-workers automating the sales process from proposal to eSignature. Combine that with the tools to connect with prospects through video, live-chat and real-time data tracking, your sales team will stand out from the crowd. Now, more than ever, it’s important to have a solid team of technology co-workers.

When it comes down to it, sales will never be the same. Legacy processes can’t keep pace with today’s buyers. Being digital first, humanizing the digital experience and building a team of technology co-workers will have you on your way to succeeding in the next normal.

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Tara Pawlak is the Head of Marketing for Get Accept, the all-in-one sales platform where you design, send, track and market your proposal to get more deals digitally signed. 

TQL
Archives, Global Trade Daily, News

TQL TO CREATE NEARLY 600 NEW JOBS, MAKE $20 MILLION INVESTMENT IN OHIO

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Total Quality Logistics (TQL) is constructing a second building at its headquarters to accommodate its continued growth in the third-party logistics industry, according to the Cincinnati, Ohio-based 3PL. 

The second-largest freight brokerage company in North America, TQL offers full truckload, less-than-truckload and intermodal logistics services. The goal of the expansion is to accommodate nearly 600 new employees that the company anticipates hiring, primarily in sales and information technology roles, over the next five years.

“We continue to grow our market share with new and existing customers, and that’s a direct testament to our incredible team members who are focused on providing premium service to our customers and carriers day in and day out,” says TQL President Kerry Byrne.

“Logistics is an increasingly tech-driven industry, and we continue to make substantial investments in our proprietary technology solutions, such as TQL TRAX, to improve transparency, communication, and drive greater efficiencies in transportation,” Byrne adds. “This headquarters expansion will cater to the needs of technology professionals so we can attract and retain the highest levels of technology talent.”

The expansion of TQL’s headquarters campus on Ivy Pointe Boulevard in Union Township includes the construction of a second building ranging in size from 120,000 to 130,000 square feet next door to the company’s existing 100,000 square foot building. The company anticipates construction costs of the new building at $20 million, plus an additional investment to renovate its current site.

The complex will hold more than 2,000 employees when construction is complete. 

Archives, Features, Global Trade Daily, News

How to Become a Freight Broker

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Do you have an interest in the transportation and logistics industry? Maybe you’ve always been drawn to trucking or shipping but don’t know how to put that passion to good use? Becoming a licensed freight broker may be a smart career move for you if these are questions you have pondered over time. A freight broker works as an intermediary between manufacturers and shippers, helping move products and goods from one location to the next. Freight brokers can make a steady living working for themselves or as part of a team, and they have an opportunity to do the work they love from home or an office setting.
However, there are certain steps one must take to become a licensed freight broker, including getting the right training, developing a business plan, meeting legal requirements, and obtaining a bond or trust fund. Here’s what you need to know if becoming a freight broker is in your future.

Get the Right Training

One of the first steps in becoming a licensed freight broker is obtaining the right training. Industry experience, in trucking, shipping, or logistics, goes a long way in laying the groundwork for a successful career as a freight broker. However, there are also classes and courses that can and should be pursued in order to get a full understanding of the business. These training opportunities are not legally required to become a freight broker, but they do offer information about trends in the industry, best practices, technology tools, and operating a business in the field.
Several freight broker training schools offer classes and coursework to those who want to work as a freight broker. Some schools offer in-person classes that provide a more personalized curriculum while others are self-study classes completed online. You can use this resource to uncover the top freight broker training schools as well as the classes you might want to complete in order to get your brokerage up and running successfully from the start.

Develop a Business Plan

In addition to industry experience and formal training in the freight broker field, you will also want to develop a business plan to set yourself up for success. Having a strong business plan allows you to evaluate what you need to establish your brokerage now as well as what is required for a solid, profitable future. A business plan includes detailed information about revenue sources, customer acquisition, strengths and weaknesses of the business, and projected financial information that acts as a budget. You can utilize business plan templates like those found on the Small Business Administration’s website to tackle this task.

Meet the Legal Requirements

After developing your business plan, your next step is understanding the meeting the legal requirements to become a licensed freight broker. You will need to register as a motor carrier and receive your motor carrier number through the Federal Motor Carrier Safety Administration, or FMCSA. You will also need to secure your motor carrier authority which is done through an application submitted online. This application requires you to pay a non-refundable $300 fee, so be prepared for this cost when applying. The process of obtaining these legal requirements and submitting the application can take several weeks. Be sure to review the information needed as part of the application process beforehand, and gather the right documentation before submitting your application.

Obtain Your Bond or Trust Fund

In addition to the application process mentioned above, new freight brokers must also satisfy the bond or trust fund requirement. The license to become a freight broker requires you to have a freight broker bond or to establish a trust fund in the amount of $75,000. The bond or trust fund protects shippers and carriers against bad business practices of the licensed broker.
The good news is that if you select the bond option, you do not have the pay the full bond amount of $75,000 up front. Instead, your surety agency charges you a percentage of the total bond amount, with the out of pocket cost ranging from $500 to $2,000. The price you pay is heavily dependent on your financial standing, including your personal credit score and history, so be sure you have your financial ducks in a row before applying.

Have a Marketing Strategy

After you have developed a sound business plan, met the legal licensing requirements, and obtained your freight broker bond, you’re ready to start working with customers. However, you will need a marketing strategy to help you get off on the right foot as a newly licensed freight broker. Many brokers use a combination of business relationships and freight load boards to create potential business, while others use social media, e-mail marketing, and an online presence to generate interest. Any combination of these marketing strategies can be beneficial. Just be sure to budget for the marketing methods you plan to use, and be flexible in your approach if one seems not to work as well as you intended.
The steps to become a licensed freight broker may seem daunting, but following this order makes it easier to get up and running in the industry quickly.

Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.