Four Cornerstones of the Digital Freight Broker Tech Stack

Transforming into a digital freight brokerage can help address supply chain challenges & produce major benefits unseen with traditional brokerage strategies.

Digitization of the Freight Brokerage Industry

The freight brokerage landscape is changing. Supply chain disruptions and bottlenecks are prompting freight brokers and 3PLs to rethink the way that they operate, provide information to customers, and connect with carrier partners. Transforming into a digital freight brokerage produces major benefits unseen with traditional broker strategies. Here are 4 technologies that freight brokers and 3PLs can use to enable digitization and better compete.

What Are Traditional Freight Broker Challenges?

Freight brokers who aren’t using a digital platform must rely solely on the knowledge and experience of their employees. This creates multiple challenges when operating a traditional brokerage:

1. Brokers do not have the security, accessibility, nor power of ‘The Cloud.’ Managing a brokerage by paperwork, manually, or through a locally installed system means more physical tasks, less agility and versatility.
2. Without a digital platform, brokers do not have access to real-time tracking & updates which end up costing them more money and time.
3. Brokers have limited networks, relying primarily on their current carrier network. This restricts brokers’ ability to respond to tight lane capacity and the ever-changing availability of their primary carriers.
4. Brokers are not using high-value analytics and business intelligence. The rate at which a traditional freight brokerage can grow and view actionable insights is significantly hindered.

By switching to a digital freight platform, brokers experience a paradigm-shifting change in business operations and capabilities.

#1 Cloud-Based TMS

Free of any one location, cloud-based platforms like Descartes Aljex allow brokerages to securely access freight and transportation management data from anywhere with an established connection.

Order Capture & Management: More efficiently execute the order life cycle from any location

Automated Carrier Bid & Tender: Automatically identify and offer carriers loads faster than a hosted platform

Back Office & Document Management: Improved communication, centralized access, single source of data, enhanced security measures & loss prevention

Carrier Invoicing: Automated payment processes for less manual tasks and quicker carrier/order fulfillment

APIs, Plugins & Integrations: More connectivity and options for expanded capabilities from 3rd party platforms

What are the benefits of a cloud-based TMS?

The benefits of a cloud-based TMS, like Descartes Aljex, is in part due to the wide array of capabilities and connectivity that is not accessible in hosted TMS platforms:

• Quick Time-to-Value: Easy to implement with a quick time-to-value. Brokers that sign up for Descartes Aljex are up and running within a few days of order completion.
• Tighter Security: Improvements in security as part of utilizing a fully integrated cloud system. Improved encryption and better disaster recovery/loss prevention.
• Lower Costs & Improved Growth: Cloud-based systems operate your brokerage at higher efficiency, meaning increased ROI and lower costs.
• Accessibility: Brokers and their employees can access a cloud-based Descartes Aljex from any device and anywhere they have an established wireless connection.
• Superior Operational Control: Increased control and quicker, more informed decision-making, leading to fewer mistakes.

#2 Real-Time Transportation Visibility Platform

Knowing the status of shipments in real-time means everything for a brokerage. Transforming to a digital freight brokerage gives instant access to tracking capabilities. Freight visibility reduces time-consuming communication and helps forecast future needs to mitigate potential risks or disruptions.

• Fewer Penalties and Increased Savings: Predictive ETAs help identify at-risk shipments and work collaboratively with customers to reduce late deliveries.
• Increased Operational Efficiency: Streamline track-and-trace processes, simplify workflow, and increase communication speed across the carrier network.
• Improved Customer Service: Predictive ETAs and proactive alerts enable customers to make necessary adjustments to schedules in the event of delayed deliveries.
• Better Carrier Relationships: Geofencing alerts provide visibility into carrier departures and arrivals.

#3 Carrier Capacity Network

Digital freight brokers benefit from an intelligent carrier network that intelligently matches loads with ideal-fit carriers based on availability and equipment.

• Find New Carriers: Visualization portal shows users their open loads mapped against capacity in the network.
• Rapidly Book Loads: Automatically identifies and suggests carriers that match open loads at a much faster rate compared to manual booking.

#4 Business Intelligence Tools

Companies rely heavily on forecasting and benchmarking information revealed by analyzing data. Business intelligence tools help drive improvement and informed decision-making.

• Source transport data to any level of interest
• Visualizing data with engaging graphics
• Interact with dynamic applications, dashboards, and analytics

Drive Productivity and Save Time: Automating carrier visibility and utilizing a digital freight network helps automate time-consuming tasks.

Lower Rates: Automated sourcing of carriers based on performance and lowest rates ensures profitability.

Improved Experience: Access to a carrier network allows for quick time-dependent decisions improving flow and experiences.

Deepened Insights: Digital freight brokers can uncover hidden relationships with powerful analytics.

Changing the Playing Field: For small brokerages, joining a carrier capacity network allows for better access to resources and for larger brokers, it means increasing efficiency and uncovering opportunities to increase margins.