Author: Zuum Transportation

Categories
Blog Broker News

How to spot double brokering (and how to address it)

Double-brokering refers to a risky practice in which the shipper hands off their load to a broker, understandably expecting it to be passed on to their carrier. However, instead the broker hands the shipment off to a secondary broker, usually without the consent of the original shipping party. This is considered highly unethical. Freight brokers sometimes engage in this because they find themselves in a complicated situation or have made a mistake somewhere. Double-brokering is also looked down upon due to the fraudulent activity that occurs in the logistics industry. In the last few years there has been a rise of the secondary broker disappearing and ultimately  stealing the carrier’s pay. This form of double-brokering is illegal and described in the eyes of the law as theft of services, potentially leading to serious fines and even prison sentencing. This is very  different  from  co-brokering, which is done legally, with consent, and with  open channels of communication between the involved parties. The two brokers who have partnered up will then split the profit afterwards.

It is important to know how to spot a broker you cannot trust! Does your rate seem too good to be true? Go down this list, and make sure it’s not!

Investigate them

Do a background check and make sure your broker is who they say they are. Check their credit score and their FMCSA registration. Look for the number on their file and ensure that your load really came from that broker and not someone posing as them. Call the broker directly to confirm details instead of ignoring your suspicions. Although Carrier44 is known best known for carrier safety ratings, they also have ratings for freight brokers as well. 

Develop a trustworthy network 

One way to avoid being scammed by dishonest brokers is to work with parties that you know and trust. Work on building a network with brokers that have been transparent in their dealings with you and keep you satisfied. By having these relationships with brokers you are familiar with, you can avoid having to rely on unfamiliar brokers that may not respect your trust. 

Review rate confirmation

After your load has been booked, carefully read over your rate confirmation. If the rate con requires you to check in as a different carrier than you actually are, chances are high that you are dealing with a double-brokered load. Keep an eye on the paperwork and make sure the bill of lading matches the rate confirmation at pick-up. 

There is also cause for suspicion when a load has an unusually high rate, especially if they also insist their POD be sent to a random email right after it has been delivered. While some brokers feel that they can get away with this practice, shifting laws in recent years have increased legal penalties to help protect the carrier companies that are negatively affected by this. Protect yourself as much as you can, and be mindful when choosing a new broker for your future shipments. 

Was this article useful to you? If you liked reading this, and want to read more like this, click here and visit Zuum!

Categories
Blog Shipper Help

How shippers can improve efficiency through actionable insights

Are you reading your data incorrectly?

According to a report by Forrester, studies “found that while 74% of firms say they want to be ‘data-driven,’ only 29% say they are good at connecting analytics to action […] We also found that leading firms were turning data into insight and action by building systems of insight ― the business discipline and technology to harness insights and consistently turn data into action.”

It is common for many business owners to make the mistake of using their collected data to support an idea that they already have. For example, “My savings should go up if I switch from carrier A to carrier B.” Using your data, you calculate the cost difference and break down all the areas you can save money with carrier B. You may be thinking to yourself, well, what’s the problem with that? 

The problem is that there are better ways to use all those management and analysis programs. Taking advantage of that technology can remove personal biases and be the difference in what makes or breaks your business. Here’s another example. Let’s say the summer season is here, and volume requirements are ramping up in logistics. Maybe your data tells you that loading times have been increasing by 10%. But you already knew that, so there is not much insight to be found in that piece of data. However, if you can read your data and see that a particular carrier company arrives late 35% of the time and is making you lose profit, you can think about how to approach that issue in your business model and act accordingly. 

The statistics provided by Keboola below make a strong case for businesses investing in big data:

  • Data-driven organizations are 23 times more likely to acquire customers.
  • Businesses that use big data increase their profit by 8 percent. 
  • 62% of retailers report that the use of information and analytics is creating a competitive advantage for their organization. 
  • One-third of industry professionals highlight that the right technologies for data collection and analysis are essential for a better understanding of customers.
  • Insight-driven businesses are growing at an average of 30% each year; by 2021, they are predicted to take $1.8 trillion annually from their less-informed industry competitors.

If you want to try employing actionable insights, approach your data set with no questions in mind. Read the data results objectively, and then try to draw conclusions about what you should do next. Of course, actionable insights won’t come to you each time you try this, and you should remember that you won’t necessarily have an immediate solution, or even find the insight useful to you. However, it sets you onto the right track to help shape the future of your business, with specific strategies geared toward generating the outcomes you want. Your process may lead you to adapt a new approach, rethink your current plan of action, or simply leave the information in the back of your mind.

One of the best ways for a company to begin adopting the actionable insight approach to their big data resources is to have the support of the  executive team. What the CEO prioritizes will trickle down to the company’s culture and become what the  employees prioritize. Employees follow the example given by their leadership, and a leadership team that invests in big data and emphasizes the advantage of following data-driven insights is imperative if you want your data to give you the edge and agility your business needs.

Harvard Business Review shared a 2019 study surveying top C-level executives, which found that “Companies report (77.1%) that business adoption of Big Data and AI initiatives remains a major challenge. Executives cite multiple factors (organizational alignment, agility, resistance), with 95.0% stemming from cultural challenges (people and process), and only 5.0% relating to technology.” According to this information, most of the difficulty in getting to the best of this technology is culture-driven, which loops back to the culture perpetuated by management. It might seem overwhelming, but don’t worry – there are many  technologies and solutions out there to help ease the learning process. (Harvard Business Review)

Putting together education initiatives for your employees, purchasing a management/analytics product, or hiring specialized employees for analytics are all ways to begin taking advantage of the valuable data sets right at your fingertips. Looking for more information on how to apply actionable insights? Keep reading our articles here at Zuum, and find an answer to your question. 

Source:

https://go.forrester.com/blogs/16-03-09-think_you_want_to_be_data_driven_insight_is_the_new_data/ 

https://www.keboola.com/blog/5-stats-that-show-how-data-driven-organizations-outperform-their-competition

https://www.tcs.com/content/dam/tcs-bts/pdf/insights/Big-Data-Executive-Survey-2019-Findings-Updated-010219-1.pdf

Categories
Blog Shipper Help

How to tell if you’re over spending on freight

A 2012 study conducted by Logica found that, “most US-based organizations overspent by an average of 13% on their annual shipping costs.” Their Director of Logistics and Supply Chain Services, Thomas Andersen, went on to say this: “What worries me more is that companies aren’t aware of the problem […] From my experience, more than 90% of shippers could make minor changes that would generate double-digit savings. If they began to analyze the details of their transportation costs, it could make a big difference in their overall shipping spend.”

Since the study was conducted in 2012, costs have only continued to increase. In 2017, the Wall Street Journal shared the findings of a logistics study from the Council of Supply Chain Management Professionals, which stated “that total spending on shipping costs rose to a record of $1.5 trillion in 2017, upping 6.2 percent from the year before.” They expected “rising interest rates, higher costs of fuel and impending tariffs [to add to] business expenses.”

Most recently, e-commerce has skyrocketed due to the emergence of COVID-19, which has forced  businesses to be more agile and begin implementing change much faster than they previously did before. In regards to the effect left by the pandemic, CNBC has published this recent report statement from Jefferies analyst Janine Stitcher: “The recent growth in shipping costs has been fueled by the surge in e-commerce penetration, which has created a significant supply/demand imbalance and left carriers capacity constrained.”

Clearly this is a widespread issue. Business owners may realize that they can save costs in certain areas, but may have trouble pinpointing exactly where they can increase their benefits. What can you do to lower your costs as a shipper during these times? Go down this list with us and find out. 

Automate Manual Processes

Are you still using spreadsheets? Do you still do your paperwork by hand? If the answer to those questions is yes, one of the first ways you can begin saving money is by automating these manual processes. Switching to a document management system will cut down on labor costs and shrink your margins of error, as well as save you from hours of writing, filing, and organizing. Find a good management system to help you with your record and bill keeping, and reap the profits of more time and higher accuracy. 

Use a Third-Party Logistics Company

The world of supply chain and logistics is fast moving and competitive. When you have a hundred other things to think about, it would be prudent to consider the services of a third party logistics company. They have years of experience in streamlining the processes giving you trouble, and they also have access to technology that can truly optimize your freight experience. What would be most helpful is a logistics product or service where they can help you analyze and combat your pain points. This can range from alerting you of upcoming market trends to which lanes are the cheapest and most consistent. 

Minimize Shipping & Packaging Costs

Spend some time looking at your minimal expenses. Can you switch from a heavy packaging option to something light and inexpensive, like bubble mailers or envelopes? If not, start buying your shipping supplies in bulk and save on packaging expenses. Buy a scale and pallet if you don’t own one already, and make sure to weigh your shipments before they leave the warehouse so you can avoid reweigh and reclassification costs.

The actual cost to wrap and ship your packages have a plethora of tiny costs associated with it, which are based on parameters such as packaging type, shipment weight, tariffs, etc. These costs are relatively tiny, but tiny costs add up, and that is extra money that could be spent elsewhere in your business. You should also consider reusing and recycling where you can, which is cost-friendly and sustainable. 

Reduce Returns

Another way to reduce your costs as a shipper is to start identifying when your product is not returning profit. Whenever your product is damaged in transit, or is returned by the customer for related reasons, the costs of having shipped the product still chips away at your profits. You can reduce your returns by investing in tracking tools for your shipments. Both you and the customer can have access to a real-time, reliable stream of information about the status of the shipment. Having visibility and being able to see each step of the delivery process will provide a definitive improvement in satisfaction levels. 

Optimize Your Transportation Selection

With a reactive market and shifting prices, it is in your best interest to periodically assess your transportation costs. If the conditions are right, renegotiate prices for transportation mode or routes so that you are not being overcharged. This is even something you can do in advance. Make sure to distinguish between your transport costs and landed costs in order to give you the best overview of your actual transport spending. Avoid lock-in by checking if other reliable carriers that fit your needs have lower costs, and switch over. 

Thanks for visiting ZUUM! We love making useful content for the supply chain industry. Check out our other tools and articles if you found this helpful.

Sources:

https://www.businesswire.com/news/home/20120501005093/en/New-Study-Companies-Overspent-on-Shipping-an-Average-of-13-in-2011

https://www.wsj.com/articles/companies-are-spending-more-on-shipping-and-thats-not-changing-soon-1529413500

https://www.cnbc.com/2021/02/18/online-shipping-costs-expected-to-increase-further-into-the-pandemic.html

https://www.mixmove.io/blog/5-signs-that-you-are-spending-too-much-on-delivery-costs

https://www.simplfulfillment.com/blog/youre-probably-overspending-on-shipping-lets-change-that

Categories
Blog Broker Help

How to start your own freight brokerage

The transportation and logistics industry is a continuous provider of jobs, and represents a market with space for many different types of careers. If you are considering becoming a freight broker and want to know more about the benefits of this position, read more here. If you have already decided and are ready to start your own freight brokerage, read on! 

1. Learn

Knowing your industry before entering will make your debut as a freight broker and business owner much smoother. This step is not necessary to proceed to the next, but we encourage you to familiarize yourself as much as you can in order to position your brokerage for success. Prior experience working in the transportation  or supply chain sector will prove to be beneficial to you; if you have none, consider working briefly as an entry-level broker to learn standard practices. There are also online training courses for freight brokers that can be completed in  just a few weeks of time. 

2. Register Your Business 

Now that you’re ready to start connecting shippers and carriers, you can choose a name for your company and how your company will operate. What sort of legal structure best protects your interests and supports your business? You can speak with an attorney or other legal/financial advisor for the answer that best fits you, but it is usually recommended to register as an LLC, which reduces personal liability risk, or an Inc. (corporation). This can be done at a business license department;you will need your Tax Identification Number from the IRS. Pick a name that is appropriate and memorable, and make sure it is not already in use by checking uspto.gov.  

3. Apply For Operating Authority

Contact the FMCSA (Federal Motor Carrier Safety Administration) and fill out an OP-1 application. This application process costs $300 and usually takes roughly a month to complete. By filling the application out online, you can immediately receive your grant letter and MC number. The MC number, or motor carrier number, serves as your interstate authority and an identifier. This does not mean you can start operating. Once your application has been approved and you receive your USDOT number, you can begin operations. 

4. Find Your Process Agent

As a freight broker, you are required to have a process agent in each state you operate. The process agent represents your company in legal proceedings brought against you. There are several options here. You  can be the process agent of your own state,have  employees act as process agents, or use services available. However, your process agent is required  to have a physical location (not accepting P.O. boxes). Otherwise, you can find a list of process agents on the FMCSA website here.

5. Apply For Your Surety Bond

Your freight broker bond is a mandatory $75,000 that works similarly to a security deposit for your clients. In the event that you do not live up to your contracts, the bond ensures that you have some funding to cover the losses for your clients. The BMC-84 form has to be renewed annually, and the bond can be covered through an insurance company, although rates and pricing vary. 

6. Getting Insurance

Companies want to make sure they are dealing with someone responsible and reputable. They want to make sure their investments are safe. One way to do that is by purchasing Continent Cargo and General Liability Insurance. Most clients will refuse to work with a freight brokerage that cannot protect their property or themselves. Quotes can vary, but having these two things are essential to starting your own freight brokerage.

7. Check Your State 

You’re almost set up! Make sure to look up your state’s requirements regarding operating a business. Are you following all regulations? Is there more paperwork to apply for? What records do you need to have? Check to see if there is anything extra your state requires, and make sure you meet it. Then, happy brokering! You are all set to operate as a 3PL and your business is welcome in the logistics industry.

Categories
Blog Shipper Help

Tools and technologies to protect shippers against disruption

Disruption in the supply chain and logistics is not a new phenomena. Disruption can come from any source, and can happen on a global or local scale. Those who have been in the industry for some time may have seen a variety of events that cause disruption. In the past, these may have included natural disasters, such as hurricanes or fires. Price fluctuations in the market, issues with product, and overall transportation failures and delays typically contribute as major sources of disruption. Recently however, due to the pandemic, we have seen the biggest disruption in the supply chain industry to date, and it has greatly highlighted the industry’s need to build resilience and flexibility.

Disruptions often result in supply shortages, demand instability, and inventory difficulties. Your customers are likely just as frustrated as you, but they understand that some things are simply out of our control. Be transparent and communicative with them about what is going on with delays, and facilitate regular interaction with others who can provide information about your shipment. In addition, do what you can to help your workforce overcome the disruptions. Strong business leaders make themselves flexible and innovative in the face of difficulties. Support new ways of working and adjust your strategies as necessary. 

According to Accenture, “94% of Fortune 1000 companies are seeing supply chain disruptions from COVID-19 [and] 75% of companies have had negative or strongly negative impacts on their businesses.” To minimize your losses and continue operating efficiently, supply chain leaders have a few options at their disposal. If you want some tools and strategies to help you react to and protect your business from disruption, this article is the one for you.  

1. Plan Ahead

Because of the unpredictable nature of disruptions, the best defense comes in the form of preventative measures. Once an actual disruption affects your business, you likely won’t have too much time to organize your response, and external market factors from the disruption may limit your resources. Update your risk management strategies as needed and create an emergency plan for the future. Consider setting aside an emergency budget, and be aware of potential risks or threats. You can get a better idea of what to plan for by using predictive analytics technology. 

2. Diversify Your Supply Base

Furthermore, it is strongly encouraged to diversify your supply base and have supplier options in different areas in the event that your usual supplier is unable to provide due to the disruption. When searching out multiple supplier options, it is important to consider the consistency of quality, as well as the associated costs (e.g. fiscal). Additionally, it is recommended to plan ahead with backup suppliers – this is a less expensive option and can be achieved by entering into agreements with vetted suppliers that will come into effect in case a disruption or emergency does occur. 

3. Secure Inventory

The next thing to consider is building up inventory. A great tactic to help deal with uncertainty, begin increasing your inventory stock by buying ahead, whether the inventory are essential components or finished products. The amount of emergency inventory should be balanced with the costs of procuring and storing these items for a length of time. Whenever you tap into this extra inventory storage, create a plan to continue replenishing it so that you are not left in a vulnerable position if something else unexpected occurs. 

4. Manage Demand

This is another option to help you deal with disruption issues. Do what you can to best position your business with the resources you have. For example, a company that offers multiple products or services can temporarily “replace” the product experiencing disruption issues by offering a different product in its place. Companies can incentivize their customers during this time by introducing factors such as discounts. If that strategy is not applicable, another way to manage demand is by prioritizing your customers. Distribute your available inventory supply carefully and by identifying your most important customers. 

5. Improve Visibility

Improving visibility with a logistics control tower is one of the most helpful technologies available when dealing with disruption. Having access to end-to-end visibility for example will give you a higher degree of control over the logistics process. Using AI, data intelligence, and analysis can provide you with visibility even before a disruption impacts you. Identify trends and alerts with actionable insights generated by the technology. Other types of control towers, such as for inventory or supply assurance, are also useful tools against supply chain disruption.

We hope you enjoyed this article! Follow ZUUM’s blog and learn more about the industry every week.

Sources:

https://www.forbes.com/sites/pikeresearch/2019/08/07/advanced-technologies-are-disrupting-transport-and-logistics-business-models/?sh=7e2266463695

https://www.accenture.com/us-en/insights/consulting/coronavirus-supply-chain-disruption

https://www.pwc.com/us/en/library/covid-19/supply-chain.html

https://www.accenture.com/us-en/insights/consulting/coronavirus-supply-chain-disruption

https://www.joc.com/technology/visibility-tools-key-combating-supply-chain-disruption_20171124.html

https://www.ibm.com/topics/control-towers

Categories
Blog Supply Chain Expertise

Peak shipping periods in the logistics industry

Those who have experience in the transportation and logistics  industry know that while every year is different from the one before, one thing they can always count on throughout the year are the peak shipping seasons of freight. Supply and demand in the market certainly has an effect on rates, as does the region you are located in, but even so, there is still a level of predictability in the calendar that can be advantageous to you when sketching out your annual calendar. Let’s dive right in!

January – March: Quiet Season

It’s the beginning of the year, and the holidays are over. During this time, shipping volume is at its lowest point in the year and carriers are gradually getting back on the road, looking for work. Carriers are not too busy, and truckload rates are more favorable  to shippers due to the relaxed state of the market. As the winter weather thaws to spring, business ramps up again and a new season takes over. 

There is an exception for those with manufacturing partners , as Chinese New Year is also celebrated during this season. So U.S. companies that export/import products from China should plan for a holiday surge and delays in manufacturing. “This is easily the biggest holiday in the logistics calendar and prior to New Year, we see the number of containers raise 50% as people prepare their cargo.” (Twill) Definitely an event to pay attention to! Nearly as large an event, Carnival is celebrated in Brazil within a few weeks of Chinese New Year, so you should plan ahead to secure capacity and stock up on what you will need. 

April – July: Produce Season

As carriers and shippers get into their groove, work flow steadily increases, and soon availability starts to tighten again. The produce season is here and with the increase in demand for transportation, truckers have the ability to be more selective with which jobs they take on, driving up freight rates. After the last couple months of slow work, carriers are incentivized to make up for the lack of volume and finding a truck becomes difficult for shippers again. Domestic shippers will have their hands full around this time of year, identifying  freight  brokers to help alleviate their capacity struggles. 

August – October: Peak Season

With the sun at its highest, and the market in full swing, the summer heat ushers in an increased number of orders, shipping volume, and rates. Although the bustle of produce season has come to an end, the advent of summer marks a rocket increase in retail sales as consumers begin shopping for their upcoming holidays and back-to-school necessities. Businesses are readying themselves for the winter shopping craze, and this peak demand drops carrier availability. There are many shipments that need transportation, but not enough available carriers! Expect rates to go up during this time. 

November – December: Holiday Season

In November, there is still time for shippers and carriers to finish their last-minute loads, wanting to make as much profit as they can before the year ends and the industry slows down again. By the time Thanksgiving and Black Friday roll around, the majority of the shipping rush loses its momentum, and those working in supply chain management are happily looking forward to their vacation days. Freight volume drops, not accounting for the holiday explosions surrounding Christmas and the New Year. But then the year truly begins to wane, and we find ourselves ready for another cycle. Just like that, we slip once more into the Quiet Season. 

Was this article helpful to you? Do you have specific content you’d like to see? Contact us at ZUUM and let us know today!

Categories
Blog Logistics News

What is Operation Safe Driver Week 2021?

The Commercial Vehicle Safety Alliance’s (CVSA) Operation Safe Driver Week takes place from July 11-17, 2021. This year the theme will focus on speeding. CVSA’s initiative aims to educate driver’s about ways to share the roads safely and reduce risky and unsafe driver behaviors.  The program’s one-week enforcement and education campaign will have law enforcement personnel on the lookout for commercial vehicle drivers and passenger vehicle drivers engaging in risky driving behaviors in or around a commercial motor vehicle.

The program chose speeding as this year’s theme because despite the drop in roadway travel last year due to the pandemic, traffic fatalities increased nationwide.  “Data shows that traffic stops and interactions with law enforcement help reduce problematic driving behaviors,” said Commercial Vehicle Safety Alliance (CVSA) President Sgt. John Samis with the Delaware State Police. “By making contact with drivers during Operation Safe Driver Week, law enforcement personnel aim to make our roadways safer by targeting high-risk driving behaviors.”

Impact on Drivers

The program focuses specifically on drivers because their actions – whether it’s something they did or didn’t do, like speeding or not paying attention to the road – are responsible for most crashes.  Research shows that interactions with law enforcement do impact drivers’ behaviors.  This initiative aims to improve the behavior of all drivers operating in an unsafe manner in  and around commercial motor vehicles through educational and traffic enforcement strategies

Tips for Drivers and Carriers

It’s important to practice and encourage a culture of safety all year round, but here are some helpful tips for Operation Safe Driver Week:

  • Make sure you are alert and well-rested when driving
  • Always wear your seatbelt
  • Follow the common Traffic Laws
  • Obey signs, signals, and other traffic control devices.
  • Do not engage in dangerous driving behaviors like aggressive or reckless driving, distracted driving, following too closely, improper lane changes, use common sense, etc.
  • Most importantly, do not speed

Tips for Shippers and Brokers

Operation Safe Driver Week can limit capacity and cause transit delays. Here are some things shippers and brokers should keep in mind and what they can do to mitigate possible issues during this week:

  • It may take longer to source trucks during this time, so factor in longer lead times.
  • Build flexibility into your delivery dates
  • When possible, adjust your shipment pickup to take place either before or after this week.
  • Evaluate your orders and determine if you can hold the non-critical shipment orders until after the safety initiative ends, and expedited options with time-definite services for if the load is critical.
  • See how ZUUM’s Logistics Super Platform can help you.

CVSA’s Operation Safe Driver Program was created to help reduce the number of crashes involving  commercial motor vehicles and passenger vehicles due to unsafe driving behaviors. The initiative aims to combat the number of deaths and injuries from crashes. Identified unsafe drivers will be pulled over and issued a citation or warning.

To learn more about how ZUUM Transportation can help you navigate Operation Safe Driver Week, contact one of our specialists.

Categories
Blog Events

How Small Logistics Companies Can Leverage Tech to Compete

As the supply chain industry undergoes a digital transformation, how are the small to midsize organizations adapting to the latest trends in technology and tackling the biggest challenges?  The North American Logistics Tech Summit brought some of the top experts in the industry, thought leaders in the space along with some of the true innovators in the game to discuss these challenges. ZUUM CEO, Mustafa Azizi sat down with CarrierDirect’s Ryan Schreiber for a fireside chat during the virtual summit. The pair go in-depth on the topic as they discuss how these emerging technologies and services are improving speed, efficiency, safety and communication in the supply chain industry and shaping the freight and logistics markets.

Categories
Blog Broker Help

Freight Brokers: Should you specialize?

If you are a freight broker looking to increase your profits, perhaps you have considered specializing but are unsure where to begin. If so, you have come to the right place! Freight brokers and 3PLs have much to gain by considering an area to specialize in. Becoming a specialized freight broker can bring you increased profits and help your business gain a reputation for itself. There are several avenues of specialization, usually by fulfilling a niche or unusual transportation requirement. Let’s go through some of them below: 

Freight Type

One way to differentiate yourself from other brokers is to have access to a specific type of freight that is not typically used. Whether you are an asset-based brokerage or not, being able to call on certain freight vehicles is a competitive edge over other brokerages who may have more difficulty finding specific trucks for their load. Some examples of different freight trucks to specialize in are refrigerated, oversize, flatbed, and lowboy trucks. By focusing primarily on one or two types of trucks, the time spent finding shippers can be minimized. 

Region Targeting 

Research your immediate area, and see if there are any manufacturing centers that can connect you with prospective clients. There may be shipments located nearby that you have not yet taken advantage of. As a freight broker, you can also find your specialization by identifying regions that are underserved or underrepresented. This can be a domestic or international specialization.

A broker or brokerage company can focus on dedicated lanes of finding carriers on the spot market. Shippers who recognize freight brokers that service dedicated lanes with long standing customers have a deep understanding of  market freight rates and may be more inclined to do business with them. Additionally, since freight rates tend to fluctuate during peak season, shippers may look to experienced freight brokers to book their shipments on the spot market quickly and at a fair price.

Commodity Expertise 

You can also specialize your brokerage by becoming an expert in a commodity. For example, these can be in the form of raw materials. Nevertheless, you can become an expert in any commodity you think will be profitable. Additional commodities you can specialize in can be from produce and oil, to metals or anything else that can be valued as a commodity. There is a lot of flexibility here. If there is a commodity that you especially have an interest in, it will be useful to work with shippers who handle that commodity. 

Specialized Service and Delivery

Two examples of these services are white glove and inside delivery. White glove delivery refers to a service that processes cargo that needs to be handled with care and delicacy, usually shipments that are either very heavy or very fragile. This shipping system can include inspection checks, special packaging, even post-shipment assembly and more. Inside delivery is not as luxurious, but will deliver your freight directly to your residential or company address. These options are very useful in helping companies retain customer satisfaction and in handling packages that require more effort. 

Finding your “hole in the market” is the key to successful specialization. Have you noticed an uptick in demand for a certain truck, but limited carrier availability? Do you see an opportunity for taking? This sort of niche marketing will eventually lead to you becoming well-acquainted with your chosen market, and since the pool is typically so small, your growth there will be noticeable. Be wary of over-specializing – maintain a couple options for yourself in preparation for a rainy day. 

Learn more about ways to diversify your brokerage and find success in the logistics industry by staying tuned in to ZUUM! 

Categories
Blog Shipper Help

Top Features to Look for in a Shipper TMS

For those in the logistics industry that are wanting to improve their business performance, a TMS (transportation management system) is essential to increasing your efficiency standards. Keep in mind that anyone working in supply chain management, from shippers to distributors, wholesalers, and more will find this sort of software is significantly useful in their dealings.

Making use of TMS technology may understandably seem daunting at first for those who have not yet begun digitization efforts, but the good news is that implementing a TMS into your current structure will prove to be beneficial in the long run. In the current market, the right TMS platform can assist you with streamlining decision-making and ultimately helping you make the most out of your hard work. Luckily, here at ZUUM, our experts can help you figure that out! Read on to find out what features we recommend looking for in a TMS that best addresses your management needs. 

If you want additional truckload capacity and don’t think a transportation management system is right for you, check out ZUUM’s Capacity Pro tool – get an instant freight quote with zero set up fees and receive access to ZUUM’s over 100,000 carefully vetted carriers. For shippers not in the market for a TMS, this product is all you need to increase your access to capacity.

Integrations

Firstly, it will likely be very important to you to choose a TMS that easily integrates with your current systems. You want to pick a software that can seamlessly meld with whichever internal or third-party systems that already exist within your management structure. This includes accounting and tracking software as well integrations with external load board subscriptions. By doing this,  your experience should be prompt, secure, and have an accessible user interface. 

Document Management & Billing

Secondly, you want to make sure any TMS you choose is able to handle your documentation and freight billing needs. Think about that pile of paperwork in the office, and imagine that it could all be smoothly uploaded, with software that helps you handle all the auditing and invoices you are typically processing. A good TMS will automate your back-office handlings and provide you with a majorly improved sense of organization by centralizing your document management for you and giving you notifications regarding the status of your shipment and contracts. Advanced TMS will automatically generate invoices during the trip of each shipment and updates as any unexpected costs appear.This function reduces paper waste, error probability, and unnecessary costs. 

Real-Time Visibility

Third, you should pick a TMS that offers real-time visibility features for your shipments. TMS technology has the capability of tracking your shipments down to the item level, with real-time updates and notification to alert you on item status, bid changes, and exceptions. Visibility in supply chain management is only growing more necessary with time, to both customers waiting to receive their shipments, and those in the logistics industry working to make it happen. Being able to track your shipments and receive updates from end-to-end results in higher levels of customer satisfaction, higher profits, and peace of mind towards your shipment’s expedition. 

Predictive Analytics

Fourth, you will find a lot of opportunity for utilization with a TMS that offers capable predictive analytics and business reports as a feature. you can benefit from speedy overviews of your typical freight costs and see where there is room for more profit. Data analysis can also be applied to view your load costs, truck types, and even your carbon footprint. When it comes to reducing shipment times, developing accurate KPIs, and allowing greater insight into your business, this facet of your TMS will be indispensable to you. With this technology at your disposal, you can optimize your supply chain management and create reports that reflect what your company finds of necessary interest. 

Additional Features

Lastly, while not an essential feature, customization is a key ability of a flexible TMS that can meet all of your needs. Of course, not every business requires a customized TMS platform in order to thrive with their new software. However, as your company continues to grow and your supply chain increases in complexity you may need more specific capabilities or you are interested in adding even more abilities to this multi-functional tool, this is another option to consider. 

Still not convinced that a TMS will do much for you and your business? ZUUM’s TMS products, ZUUM Enterprise and ZUUM Business report service levels consistently over 95%, with average time saving between 35-45%, and average cost savings of up to 15%. Upgrading your management system with our TMS will bring productivity gains up to 70%, and our forecast technology reaches up to 95% accuracy in its readings. Don’t believe us? Click here and find out more today.