With over three decades of experience leading high-growth companies in the freight and logistics industry, JJ Singh has a wealth of expertise from his time at prominent logistics firms like CH Robinson, Flying J, and Exxon Mobil.
Throughout his career, JJ has developed a deep understanding of the challenges that persist in the supply chain. His passion for solving complex problems through cutting-edge technology led him to launch EKA TMS.
EKA was established in 2017 to address the urgent problems of digitization and fragmentation in the freight and logistics industry. Over 3.5 million transportation and warehouse businesses are affected by these challenges, resulting in a fragile supply chain. With more than 50% of carriers, brokers, and shippers still using spreadsheets and duplicate entries, EKA aims to transform the industry through streamlined processes and reduced inefficiencies.
EKA's solutions are designed to help small and medium-sized broker, carrier, and shipper businesses operate efficiently from quote-to-cash. Their affordable, best-in-class digital tools enable higher performance, meeting the demands of tomorrow's supply chain.
EKA offers four cloud-based SaaS platforms for its customers:
Additionally, EKA provides cargo insurance solutions in partnership with Redkik and Lockton Company.
Selecting a Transportation Management System (TMS) is a critical decision for logistics companies. EKA's TMS is an intuitive, affordable solution that offers a high degree of automation (90%), enhancing productivity for brokers, dispatchers, and accounting staff.
The solutions offered by EKA are designed to help businesses expand by accommodating annual revenues between $1 million and $75 million for carriers and brokers. Its efficiency enables a broker to manage up to 13 loads per workday and a 40-truck fleet to double its size without significantly increasing operations personnel.
Furthermore, the system facilitates seamless collaboration with trading partners and third-party service providers, streamlining communication and reducing delays. Renowned for its "best-in-class" customer service, EKA's TMS is an excellent choice for logistics companies seeking a solution to support growth and long-term success.
JJ Singh explains that EKA chose Denim as a partner due to its remarkable entrepreneurial spirit and rapid growth. Denim consistently delivers best-in-class accounts receivable factoring and carrier payment solutions, ensuring a strong financial foundation for their mutual clients. Furthermore, Denim's commitment to customer-centric service aligns perfectly with EKA's values and vision, making them an ideal partner for a long-lasting and fruitful collaboration.
The real-time API-driven integration between Denim and EKA has brought numerous benefits to both companies and their customers. By syncing jobs between the two platforms, the integration eliminates manual data entry and ensures accuracy in freight payment processing. This innovative approach has resonated with some of Denim's largest clients, who are empowered to efficiently manage their payments through the EKA-Denim integration. With hundreds of jobs moving seamlessly between the two systems daily, efficiency has skyrocketed, and clients are reaping the rewards.
We asked JJ for his advice on today’s freight market and below is his advice:
Are you an EKA client looking to up-level your payment infrastructure? Or perhaps you're a Denim customer in search of an integrated TMS solution that aligns with your business goals? Either way, the EKA-Denim integration offers a comprehensive, innovative solution that can transform your operations and set you on the path to success.
Get in touch with us today to learn more about how the EKA-Denim integration can benefit your brokerage and help you stay ahead of the competition.
Selecting a factoring service is a daunting, but necessary task for freight brokers who need financing options.
Not all factoring companies are created equal. Brokers need to know the right questions to ask when evaluating freight factoring services. And they need to understand the implications to ensure a beneficial partnership.
Factors such as contract terms, fees, funding options, credit checks, and customer service are necessary to dig into before committing to a service.Understanding these questions can help freight brokers make informed decisions and avoid any unpleasant surprises or hidden costs down the road. It also helps ensure a healthy, long-term relationship with the factoring company.
As we navigate through 2024, the freight brokering industry faces unprecedented challenges and opportunities. The rapidly evolving market conditions and the increasing importance of financial stability make it essential for freight brokers to scrutinize their financial partners more closely than ever.
The recent bankruptcy liquidation of a Texas-based factoring company, reported by FreightWaves, serves as a potent reminder of the risks involved and the critical need for due diligence.
This incident highlights not just the immediate impact on affected clients but also casts a long shadow over the perceptions of solvency within the factoring industry. In a year that promises growth amidst volatility, understanding the financial health of your factoring partners is paramount to ensuring operational continuity and seizing emerging opportunities.
The landscape of 2024 demands a proactive approach to evaluating the solvency of factoring companies. Here are vital questions that freight brokers should consider:
Understanding the sources of a company's capital can shed light on its stability and reliability. A strong foundation of equity and secure debt indicates a resilient capital structure capable of supporting your needs.
The monthly volume of factored invoices reflects the company's market presence and trustworthiness. A substantial and consistent volume suggests a healthy client base and operational robustness.
Caps on purchase amounts can indicate the financial strength and flexibility of the factoring company. It's crucial to partner with a company that can accommodate your growth and factoring requirements without restrictive caps.
Concentration limits reveal the company's risk management approach. While lower limits suggest a cautious strategy, offering stability, higher limits may provide more flexibility but at a potentially greater risk.
Outside solvency questions, you will want to ask your factoring company about their platform, processes and contract to get a better understanding of the potential partnership. Here are a few questions.
Yes! Your Denim portal is available on any browser using your laptop, pc, or phone - 24/7, 365.
We are a recourse-based company, and will handle your collections for 120 days. If we fail to collect from your customer (shipper) you will get a chargeback on day 90. The biggest way we protect your company while also protecting ourselves is by offering unlimited free credit checks - which must run credit before we approve a new customer of yours on the platform. In the event a customer of yours is denied, we provide a full transparency report on why. You are still more than welcome to run the load at your own risk, we just won't finance it.
Our factoring rate depends on your volume and can range from 1-3%. To qualify for lower rates, your freight brokerage must meet certain thresholds in volume and or value of monthly factoring with Denim.
We offer QuickPay in 1-2 business days. If you upload an invoice on our dashboard by 12:00pm EST the payment is guaranteed the following business day.
.jpeg)
No, there is no minimum factoring fee per invoice. You can upload a $200 invoice, a $2,000 invoice, or a $20,000 invoice all through the same system.
Our standard agreement is one year.
Denim’s standard agreement begins with a 12-month term and renews annually. A 30-day notice is required to exit, and early termination incurs a fee of 10% of volume to cover administrative and UCC filing costs.
We do not charge any ACH deposit fees. This is a free service for Denim users.
Invoices submitted by 12:00pm EST are guaranteed a next business day payment. Denim’s Quick Pay is between 1-2 business days.
We offer direct integrations with AscendTMS, EZloader, Turvo, EKA, Zuum, Logistically, Port, Quote Factory, and TAI TMS.
If there is a particular TMS you love working with feel free to let us know and we’ll work with you to build the integration.
Yes, we offer unlimited free credit checks for your shippers. No fees ever. This is part of our robust customer validation support and services helping to protect our businesses from fraud.
No hidden fees and no additional charges for any of the features.
Denim’s broker-first design makes day-to-day operations more efficient. Reduce incoming calls by providing carrier transparency with automated payment notifications.
Our TMS and QuickBooks integrations reduce time spent on tedious back-office activities, freeing up staff to focus more on customer & carrier relationships.
Yes, every Denim customer is partnered with a dedicated account manager who will walk you through the dashboard, answer any questions, and even help you upload your first invoice to prevent any payment delays.
No. We are dedicated to providing customers with new and innovative technology that advances their business operations through automation and smart decision-making.
No.
No
These will both be included in a sample contract you will receive from an Account Executive during your registration process.
We will always make sure your carrier gets paid in full first. Denim cannot factor a job if the contracted carrier price exceeds the total load value, minus the fee based upon your factoring rate.
For example:
You are a Denim client with a factoring rate of 1.3% (you savvy negotiator you). You have a $10,000 load that needs to go from Dallas to Chattanooga. And you find a carrier that agrees to take the load for $9,500.
Denim will advance your carrier the full payment of $9,500 when you factor the load through our Freight Payment System. This leaves you with $500. At a 1.3% factoring rate, the cost to factor this load is $130. Remember - cost to factor the load is calculated based on the total load value.
After Denim receives the collections from your shipper, we take our fee of $130, and pass along the remaining $370 to you. This is your $370 profit, which is released on the subsequent Friday after the collection was made from the shipper.
.png)
Not all factoring solutions are created equal.
Freight factoring is an excellent solution if you're looking to leverage your business's working capital to attract more clients and build strong relationships with carriers.
But which type of factoring is best for you?
There are two common types of freight factoring:
The primary difference between the two options is who bears the responsibility in instances of non-payment. However, this distinction introduces nuances that can significantly affect your business.
It’s worth understanding both types. Not bearing responsibility doesn’t necessarily mean you’re getting the best contract term. In fact, it could be costing you.
Recourse factoring means you assume liability for invoices that are not paid. In exchange, the fees for these services are lower, and your customers are more likely to be approved for a credit line.
Wondering if recourse factoring is right for your freight brokerage or trucking business? Here are some of the main benefits:
One of the main benefits of full recourse factoring for freight brokers is that you can usually get a lower factoring fee because the factoring company is taking on less risk themselves.
Recourse factoring fees range from 1% to 5% depending on your volume, business credit, and various additional factors.
Even though most recourse factoring companies will charge-back an invoice within 90 days if they can’t get payment from the customer, there is always room for flexibility.
For example, in the recent down market many shippers have been extending their payment terms to 90 to 120 days. Instead of instantly denying you the customer, recourse factoring companies will examine their credit and find a way to work with you.
In addition to this flexibility, recourse factoring companies are also diligent in figuring out the reason for a non-payment before it becomes an issue.
More often than not, the reasons are related to paperwork (a page of the BOL is missing, the AP contact quit and we need to get an updated phone number, etc.). These issues are generally resolved well before approaching the recourse timeframe of non-payment.
Running a brokerage has inherent risks. At the top of the list is taking on new clients, especially those just starting out or with low credit scores. There is a chance of non-payment and there’s also a chance to grow your businesses together and take on more and more loads.
With recourse factoring, you have the choice to take on these risks. Recourse factoring companies will do a deep dive on customer’s credit and notify you of any potential glaring red flags and provide a fair credit limit.
Because recourse factoring companies are not liable for non-payment, you are going to find it easier to factor customers that may have some risk. Your customer pool is much bigger. And you get to reap the full reward.
Other lenders may ask for stipulations or wait periods that make getting paid more trouble than it's worth. Recourse factoring companies are typically able to review applications in 2-4 business days, so you can turn your invoices into cash in under a week.
.png)
The main challenge with full recourse factoring is the broker's responsibility for customer non-payment, especially in the event of bankruptcy. With the current market dynamics, where numerous trucking companies face financial hardships, the risk of delinquent payments looms larger than ever.
However, this risk isn't insurmountable. Brokers have access to a variety of strategies—many of which are cost-free—to safeguard their operations and financial health:
By maintaining close relationships with your clients and vigilantly monitoring their financial health, you effectively reduce the risks associated with non-payment that full recourse factoring presents.
Non-recourse factoring means the factoring company takes responsibility for non-payment in cases of customer bankruptcy.
In a market where we saw 8,000 brokerage and 88,000 carrier bankruptcies filed in the last year, finding ways to reduce risk is a serious benefit. Non-recourse factoring removes or lessens the risk of non-payment due to customer bankruptcy.
Even with the best non recourse factoring companies usually have a loophole in the agreement that states that the only time you will not be charged back on a load is if the customer files for bankruptcy or goes out of business within the 90-day collection period.
Non-recourse factoring might sound tempting because you have less liability as a freight broker, but there are some important considerations as you grow your brokerage and need more flexibility.
Because a non-recourse factoring company will be taking on more risk, non-recourse factors screen the broker’s customers very thoroughly and will factor loads only from customers who have impeccable credit.
As growing brokerages are not likely to work exclusively with blue-chip customers, there is a good chance that the freight brokerage will have all or most of its customers denied by the non-recourse factoring company.
Not to mention, because a non-recourse factoring company is inheriting the risk, they are going to be invasive with your customer. They will want a long laundry list of financial data before being able to extend a credit line. This can be extremely disruptive to your relationships.
As you research factoring companies, you may find that non-recourse factoring companies often charge a higher rate because they are taking on more risk.
Typically non-recourse factoring rates start at 2% and can go as high as 6%.
In addition to that, generally only established brokerages will be approved for non-recourse factoring.
Non-Recourse factoring can be very misleading. Many see non-recourse and think their brokerage is safe from ALL forms of non-payment.
However, many non-recourse factoring agreements typically only cover non-payment during instances of bankruptcy.
Some of the cases in which brokers are not protected by non-recourse factoring include:
When deciding between recourse and non recourse freight factoring in 2024, freight brokers should consider the following:
Ultimately, the choice between recourse and non-recourse factoring depends on each freight broker's specific needs, risk tolerance, and financial strategy. Engaging with a factoring company that offers transparent terms and aligns with your business values is crucial for a successful partnership in 2024.
Every freight broker is different and will require different needs with choosing a factoring solution. Freight factoring is a good option to maximize your working capital, manage your cash flow, and build strong relationships with shippers and carriers.
At Denim, we offer recourse factoring because it’s the best way to serve our clients, no matter the size of their brokerage. We also offer a number of tools to protect your brokerage, from unlimited customer credit checks to important business metrics like most and least profitable customers.
Want to learn more about factoring with Denim? Schedule a demo to experience the whole platform!
.png)
The freight market remains in flux as we enter the second quarter of the year. While some indicators show positive growth, others reveal a decline, leading to mixed signals about the industry's outlook.
.jpeg)
Despite rate hikes by the Fed, inflation continues to be a headwind faced by the freight industry. Inflation pressures remain high with consumer price indices revealing a 6.0% YoY increase. It is felt the most in food prices, which increased by 9.5% YoY.
Overall, retail sales in the United States fell by 0.4% in February without adjusting for inflation. Furniture stores and food/drinking services sales were hit the hardest, with a 2.5% and 2.2% decrease respectively.
The decrease in sales of discretionary or bigger ticket purchases directly impacted freight movement, as consumers spent less overall. However, there was a slight increase in demand for the reefer sector, which includes food and health-related items. Freight brokers and logistics professionals may consider bidding on more reefer loads going into April.
The Conference Board Consumer Confidence Index increased slightly in March to 104.2, up from 103.4 in February. However, the overall score remains lower than in 2022. A low score indicates consumers are more hesitant to buy goods, resulting in less freight movement. Freight brokers and logistics professionals should monitor consumer confidence trends to anticipate future demand better.
According to recent industry reports, the freight market showed minimal growth in February going into March.
In February, truckload demand increased by 2.5%, the smallest tender volume increase in five years, and remained steady through March. The National Truckload Index (NTI) also fell by 5%, with a 3.8% decrease when excluding fuel costs, reflecting softened demand.
The softened demand can also be seen in rejection rates, which fell by 25 basis points in February, hovering just below 3.5% Carriers handled 25% more volume in late 2021 than they currently are.
One potential reason for the slower growth is the large carrier capacity available under contract, which is reducing shippers reliance on the spot market. As more shippers secure capacity under contract, there is less demand for spot rates, possibly driving the rates down.
The analysts have been anticipating a return to seasonality in 2023, and the market is finally starting to show signs of a soft return. Tender volumes were 2.7% higher in the first two weeks of March, signaling a slight seasonal rebound.
The oversupply of carriers persists leading to a continued fall in spot and contract rates. As a result, carriers may work harder to secure business and maintain profitability, and brokers may have to adjust their pricing strategies to remain competitive.
As the produce and summer shopping seasons approach, volume should increase. Freight brokers can prepare for this soft return by building and maintaining relationships with their carrier networks. Brokers that offer fair rates to keep their carrier network on the road will reap the benefits when the market changes.
The freight market is slowly recovering but is not out of the woods yet.
With inflation pressures and hesitant consumers, it's essential for brokers to stay competitive and maintain their relationships to continue to weather the freight recession.
SmartBrokers are using this time to take a proactive approach that involves leveraging technology to streamline operations, achieving operational excellence to reduce costs, developing strong relationships with carriers and shippers, and having a growth mindset to identify opportunities for expansion. By embracing these strategies, smart brokers can position themselves for long-term success and thrive in difficult market conditions.
.jpeg)
A freight broker’s brand is only as strong as its carriers. So, your brokerage can potentially hold some legal liability when a carrier runs behind schedule, damages freight, or gets involved in an accident. Even if it doesn’t, however, your brand may suffer damage in the eyes of shippers. You can’t control a carrier’s actions, but you can control which carriers you choose as partners. Proactively vetting carriers before working with them will drive more revenue, mitigate risk to your brokerage, and protect your brand.
When evaluating carriers, every freight brokerage should weigh the following key performance indicators (KPIs):
Every carrier needs operating authority from the Federal Motor Carrier Safety Administration (FMCSA) to haul freight. It sounds straightforward, but carriers need different types of authority depending on the cargo they carry and the jurisdictions in which they operate. Therefore, ensure a carrier has the appropriate authority before assigning it a load. You can typically find that information by searching the FMCSA’s Licensing and Insurance system.
A carrier’s financial health holds nearly as much importance as the financial health of your brokerage. For example, a trucker with cash flow problems could shut down unexpectedly, leaving you in the lurch with no way to get your shippers’ freight delivered. That’s the worst-case scenario, but a carrier’s financial issues may also cause them to cut corners in ways that lead to late deliveries, unsafe operations, and a host of other bad business practices that can ruin your reputation with shippers. Carrier credit checks are a good start, but as a best practice, consider leveraging a carrier monitoring service like SaferWatch® to catch potential red flags with carriers. You can also use sites like Carrier411 to monitor your carriers.
A carrier’s safety record can interfere with efficient delivery — or, worse, lead to injury or even death. Such incidents reflect poorly on your brokerage. Additionally, negligent hiring of unsafe carriers may result in legal liability. Check carrier incident histories in the FMCSA’s Safety and Fitness Electronic Records (SAFER) system and pull their insurance certificates. Your carriers need the right insurance for the moving loads, or you could be on the hook.
While thorough carrier vetting protects your broker brand, it slows you down. Performing extensive due diligence may extend the carrier onboarding process, and you need to onboard carriers fast enough to meet shippers’ demands. Fortunately, you can get the information you need without grinding the vetting process to a halt by leveraging technology. A new generation of back-office tools for freight brokers automates much of the manual work. The Denim platform offers valuable integrations that facilitate comprehensive carrier vetting. For example, Denim integrates with the EZ Loader transportation management system, which features a digital carrier database and the SaferWatch® carrier monitoring system. This integration allows you to digitally onboard your carrier partners and remains vigilant about their authority statuses and safety ratings. With the right technology suite, brokers can easily pull safety records, insurance certificates, and other carrier data in real-time — and with improved accuracy over manual processes. Establishing and automating a thorough carrier vetting process makes good business sense. You’ll mitigate risk, work with more carriers that deliver profitable partnerships, and keep your broker brand spotless. If you’re interested in learning more about how Denim can help grow your credit and help build your business, we’d love to talk.
The pandemic upended global supply chains, and carriers were forced to reduce capacity to survive. The economic recovery is now underway — but so is peak season. While shippers are eager to move massive amounts of inventory, carriers have yet to shake the lingering effects of COVID-19-induced slowdowns and labor reductions. Shipping demand is skyrocketing right as carriers are becoming more selective about the loads they’ll move.
In the middle of this acute shipping crisis sit the brokers, who will lose out on revenue and miss new business opportunities if they can’t supply customers with trucking capacity.
A single freight broker can’t fix all the industry’s problems. You can, however, meet shippers’ needs by increasing efficiency and streamlining operations. It all starts with financial agility, the ability to ensure you always have the money required to deliver world-class service to shippers and carriers alike.
Trucking capacity shortages were an issue even before the pandemic, and COVID-19 worsened the situation by spurring layoffs and early retirements. Economists now predict the U.S. supply chain will be short 100,000 drivers by 2023. Competition for carriers is fierce, but you don’t have to tie up all your time and effort in the battle. Instead, you can get carriers to come to you.
Every freight broker knows the supply chain sector depends on relationships. Being a good customer gets you good service and repeat business. You can use this fact to your advantage.
Shippers have a lot of inventory to move, but many are still reeling from the pandemic. As a result, these shippers are falling behind on their payments. If your brokerage always pays carriers promptly, then carriers will be eager to choose your freight over everyone else’s. Leveraging a financial platform with carrier QuickPay options, like Denim, allows you to pay carriers in as little as 24 hours. You’ll earn a reputation for reliable, on-time payment — and become a broker of choice for carriers.
Of course, that’s easier said than done. When shippers pay late, freight brokers may suffer cash flow deficits. How do you pay carriers when shippers aren’t paying you? You could spend your own cash reserves as you wait for invoices to be fulfilled, but that can leave your brokerage financially insecure and unable to accept new business even as the market expands.
This is where financial agility comes in. Some financial platforms and partners offer selective factoring, a service that allows you to turn unpaid invoices of your choosing into overnight payments. With factoring, you always have money to pay carriers regardless of your outstanding receivables. Shippers may have to delay their payments, but that won’t affect your ability to meet existing customer demand, solicit new business and become the broker that carriers prioritize above the rest.
Disruptions to your cash flow don’t just jeopardize your relationships with carriers — they can also harm employee recruitment and retention when you need labor power the most. Peak season is an all-hands-on-deck moment, but when suppliers pay late, you might struggle to make payroll. That can lead to layoffs and turnover when you should be ramping up activity.
To make matters worse, a late paycheck or round of staff reductions can leave a lasting mark on your brand in the talent market. Even in good times, you may find it harder to attract new hires.
The good news is that labor issues are not expensive things to fix. The same kind of relationship dynamics that apply to carriers apply to workers. When you pay your staff members competitively and on time, they’ll be more satisfied and engaged at work. When they’re more satisfied and engaged, they’re more productive and less likely to make mistakes. Essentially, your workers will become more efficient, more effective and better able to meet peak season customer demand even when capacity is tight.
Ultimately, when you leverage financial tools such as factoring to gain consistent cash flow, you don’t just secure more carriers — you also get more out of your own staff members.
Keeping employees retained and maximally productive is only one part of the equation when it comes to meeting customer demand during peak season. You also need to ensure every team member focuses on mission-critical tasks such as new business development, optimally managing day-to-day logistics and building relationships with new and existing carriers. If your team members are bogged down with back-office administration, these crucial revenue-generating activities may fall by the wayside.
This year, you may find it even more difficult to handle all the high-value tasks. Labor shortages aren’t limited to trucking, and your team may have some gaps. Additionally, the financial straits of shippers might mean your team has to spend more time processing invoices and chasing down payments.
You can reorient your workers toward those mission-critical tasks by automating much of your back-office operation. A solution like Denim Payments can, for example, automate invoicing, taking this critical but menial task off your employees’ plates. Some financial platforms also offer managed collections, which means employees can spend less time hunting down receivables and more time securing capacity and delivering stellar service to shippers. Plus, automated invoicing and managed collections offer the added benefit of making sure your company gets paid. Combined with tools like factoring, these services give your freight brokerage financial security when it’s needed most.
Operational agility is more than just a buzzword. Even under the best economic circumstances, the most agile freight brokers see the most success during peak season. That’s because they can get creative and ensure optimized efficiency for shippers, carriers and employees alike.Achieving that kind of operational agility depends on achieving financial agility first. You can’t deliver streamlined service without the assets to support that service. Don’t let cash flow disruptions keep you from meeting peak season demand this year. Find a financial partner who can help ensure you always have the people, relationships and resources you need to thrive, regardless of what happens.
If you’re interested in learning more about how Denim can help grow your credit and help build your business, we’d love to talk.
Freight brokerages were quick to adopt technology during record-setting COVID-19 demand.
But, the economy is in a very different place as we look towards 2023. Freight brokerages are facing plummeting spot rates, high inflation, and low consumer demand for goods.
Investing in freight broker technology, while previously an optional “nice-to-have”, is now paramount for success in 2023. Savvy freight brokerages are prioritizing technology to survive and even thrive in a soft market.
FreighTech is playing a crucial role in maximizing efficiency, enhancing customer service, and bolstering competitiveness for savvy brokers already like Direct Expedite and Scale logistics, and will continue to for years to come.
Anyone working in the logistics industry knows time is money.
Many brokerages were positioning their strategy for growth in 2023, but are now facing a reduction in personnel budget. In the absence of new employees brokers can rely on technology to boost productivity and efficiency within a team.
In fact, more than half (52%) of respondents in Denim’s Freight Brokerage Pulse Report indicated they are prioritizing increasing overall efficiency in 2023.
Automation and efficiency go hand-in-hand. Mundane tasks like creating and submitting invoices are ripe for automation. Freight brokerages are prioritizing automation technology to free up employee’s time for revenue-generating tasks while also boosting morale. Who really wants to be a data-entry machine?
Solutions like Denim streamline freight brokerages back-office operations through automation. With a single click from a broker’s TMS, Denim will invoice, collect, and pay contractors. Ultimately, the automation benefits shippers with consistent and timely billing, carriers with fast payments, and your staff with reduced data entry.
Lower consumer demand equals less freight. Winning freight will require more prospecting hours, a winning sales strategy, and a large focus on building lasting relationships. By automating mundane tasks, brokerages can shift their focus to provide the best customer service while freeing up staff for more business-critical needs.
Customer service is what differentiates traditional freight brokerages from their digital counterparts. This is even more important in a shippers market. Customer service for brokerages means transparent communication with both shippers and contractors.
Knowing the status of shipments in real-time means everything for a brokerage. Freight visibility keeps customers informed while reducing time-consuming communications like check calls.
MacroPoint and Project44 are excellent examples of visibility platforms. Both platforms equip freight brokers with real-time updates on shipments and route information.
Brokers not only need to provide excellent customer service for their shippers, but also their preferred carriers. Shippers work with brokers with the largest and most reliable network of carriers.
Carriers are facing high diesel prices and maintenance inflation costs. Cash flow is tight right now. Freight brokers can keep carriers loyal and happy through transparent and fast payments.
Financial enablement platforms like Denim offer QuickPay at no cost for the brokerage. Freight brokers can choose to pay next-day at no cost or charge a quickpay fee to their contractors.
Additionally, Denim provides contractor onboarding and dashboard. Denim's onboarding collects payment and billing information from carriers in 3 simple steps. This eliminates the need for freight brokerages to manage or store sensitive information. After set-up, carriers can track payments and find proof of ACH on their own dashboard.
By providing these services, freight brokers can build trust, reduce carrier payment check calls, and provide a professional service to their carriers.
In 2022, the industry shifted from the carrier to a shipper market. Lower demand and a surplus of carriers means shippers have the opportunity to be more selective with their business. Providing a superior customer experience helps freight brokerages stand apart from the competition.
There’s no doubt 2023 will be a competitive year for freight brokers. Many expect the spot market will bottom out in the first or even in the second quarter, but only time can tell.
Instead of a crystal ball, freight brokerages rely on data to identify the most lucrative shipping mode, loads, and rates. Real-time data arms freight brokerages with the information needed to better respond to market fluctuations.
Through transportation management software freight brokerages can manage their operations more efficiently. The platform manages a brokerage's shipment tracking, route planning, and payments when integrated with a factor. Ascend, TAI, and EZ Loader are few examples of integrated TMS.
During times of uncertainty, freight brokerages need to keep an eye on important business metrics. Metrics like accounts payables, receivables, and profits can show the health of a business.
Freight brokers can integrate their accounting software with a payments platform to track financials. No calculator needed
Denim's Quickbook integration provides freight brokers with a Business Analytics Dashboard. The dashboard compiles data on jobs over time, average days sales outstanding (DSO), fastest-and-slowest-pay customers, most profitable customers, and most used contractors. These insights help freight brokerages optimize operations and make better business decisions.
Business intelligence tools help freight brokerage stay resilient in the face of uncertainty. Tracking trends and business health equip freight brokers with information to respond quicker to market changes and make data-driven decisions.
Many exciting developments have come out of the supply chain's digital adoption trend, but this is just the beginning. Experts anticipate further developments, such as blockchain-based shipment tracking. Leading freight brokers are already investing in tech strategies to stay ahead of the curve.
Not sure where to start with your technology shift? Begin by pinpointing key opportunities to scale, reduce costs or improve profitability for your brokerage. The chances are that an enterprise software suite exists to help you achieve your goals.
If you're interested in learning more about how Denim can streamline your operations, we’d love to talk. Schedule a demo today!
Making your carriers feel valued is crucial to building trust, so it is always a good investment to show some gratitude. Leave your carriers with the motivation to hit the road at full speed with these gifts for truck drivers.
Here are just a few benefits of investing in carrier relationships and showing that you care:
Build Trust
People naturally trust those who show they care. This is why, in order to grow your network of reputable carriers, you need to show that you appreciate them and build that relationship of trust. The relationship between brokers and carriers goes both ways.
Limit Turnover
To do your job well as a broker, you rely on having carriers you can trust to get the job done. Because of this, losing a carrier is never easy. By showing your carriers that you appreciate them, you can limit this turnover. SCALE Logistics, one of our clients, has never lost a carrier because they understand how important these relationships are!
Boost Your Brand
In a sea of freight brokerages, it’s more important than ever to have a competitive edge. One way to stay competitive is to treat the people you work with well. Shippers want to work with brokers with a good reputation and one way to maintain a good reputation is to have carriers that enjoy working with you.
Attracting and maintaining the best talent is a huge predictor of success. Business owners who see their drivers as simply a cost will pay the price in reduced performance and growth.
Now that you know why appreciating your carriers matters, let’s look at some ways you can do that this holiday season.
While you might not be able to control how many hours your carriers spend on the route, you can consider offering backhauls to get them home during the holiday season. Ask your carriers where “home” is for them and work your routes around their preferences when possible.
Brokers who go this extra mile typically make deep connections with carriers and those connections can help you grow your freight brokerage.
When you write a thank you note by hand, it's a meaningful gesture that carriers will notice. Taking the time to acknowledge their hard work with a personal touch—like mentioning how they expertly navigated a last-minute route change or worked tirelessly through the night—shows that you see and appreciate their specific efforts.
Adding your own signature, or that of another high-level executive, adds an extra layer of personal recognition. Making this kind of appreciation a regular practice can greatly enhance your relationship with your carriers, fostering a sense of loyalty and mutual respect.
As a freight broker, you are always trying to get better and improve your brokerage. One way to do this is to incentivize feedback from your carriers.
Quarterly surveys are an excellent place to start. You can ask your carriers for anonymous feedback on what it’s like to work with you and if there is any room for improvement.
An easy jumping-off point is the three questions below, which almost any concern will fall into:
Publicly recognizing your carriers' exceptional work through company newsletters, social media, and industry publications showcases their dedication and amplifies their success across the logistics community.
A social media shout-out or a feature article can highlight their achievements, such as perfect delivery records or creative problem-solving, spotlighting the individuals who keep your freight moving.
This form of appreciation fosters a sense of pride. It encourages a culture of excellence that benefits everyone involved—carriers feel valued, and your company demonstrates its commitment to partnership and quality service.
We all need to prioritize our mental and physical health and your carriers are no different. In fact, after long days of hauling, carriers need to focus even more on their wellness.
Offering your carriers things like massages, specialty fitness classes, or other wellness gifts is a great way to show that you prioritize their well-being.
Showing appreciation to your carriers with thoughtful gifts or gift cards can make a real difference. Practical items like quality travel mugs or seat cushions can make their long journeys more comfortable, while gift cards from truck stops allow them the flexibility to refuel their trucks and themselves on the go.
Choosing gift cards from their favorite restaurants or retailers adds a personal touch that recognizes their hard work throughout the year, letting them know they're a valued part of your business as the festive period gives way to a new year of continued partnership.
Investing in your carriers’ skills is another way to show you value them. Training on new regulations, safety, or technology helps them do their job better, improving your business. It’s a win-win: carriers get to upskill, and you get a network of top-notch professionals who are up-to-date with the industry standards.
You could host a driver appreciation dinner or luncheon if you work with local drivers. These events are a chance to relax and celebrate the hard work that carriers do.
You can make these gatherings extra special by giving out awards for exceptional service. It’s a way to show carriers that you see and value their hard work and dedication beyond just the day-to-day business.
Celebrating milestones is a great way to show appreciation throughout the year, not just during the holidays. You’ll likely start by celebrating major milestones, but you can also celebrate smaller milestones, too!
Celebrating these milestones will keep your carriers engaged with your freight brokerage and continue to value your broker-carrier relationship.
Truckers deal with winter challenges more than most, so why not give them high-quality, well-insulated hats, jackets, and other winter gear? Most carriers would appreciate name-brand (non-branded) gear like Patagonia or The North Face. They’ll have your brokerage in mind every time they put on their new jacket or gloves!
Lastly, networking opportunities are key for carriers to grow and connect with others in the industry. As a broker, you can help by setting up events where carriers can meet potential clients like shippers and warehouse managers.
This isn’t just about finding new business; it’s also about sharing knowledge and strengthening the supply chain. By helping carriers network, you’re showing you care about their growth, not just the business they bring you.
These tokens of gratitude are a few ways to make your carriers feel special this holiday season. A freight broker is only as strong as the relationships they have with their carriers, so make sure your carriers feel appreciated. With an extensive network of carriers, you’ll be able to attract top-tier clients and begin to broker their loads.
Sending holiday gifts isn’t the only way to make your carriers feel confident working with your brokerage. In addition to the above suggestions, ensure that you are paying your carriers on time and communicating with them frequently. Contact us today to learn more about how Denim can help you nurture your carrier relationships.
.png)
In May 2022, Denim was lucky enough to attend The Future of Supply Chain, a premiere event hosted by FreightWaves, a leader in supply chain intelligence. The Future of Supply Chain celebrates how companies are digitally transforming the management of their supply chains and gives attendees the chance to “explore the latest technology, newest applications, trends in education and continuing evolution of the overall supply chain.”
Denim demonstrated our payment automation software at the event. In case you missed it, here’s a recap of our demo and how it went.
The major attractions of FreightWaves’ The Future of Supply Chain live event are the 7-minute live demos. Here’s a recap of what we covered in ours:
We set the stage by explaining that 3PLs, freight brokers and shippers are looking for ways to streamline workflows and increase efficiencies. Because of that, they need the right tools to help. They want to spend more time growing their business and moving freight, not chasing down an ACH payment or a lost check sent to a carrier.
With that in mind, our Chief Technology Officer Shawn Vo and Head of Product Sean Smith (and an imaginary Sean Connery) hit the stage to show off how our product works.
First, they showed the audience how to connect your network. In the presentation, they showed how to add customers (shippers) to the platform. We saw that when you add a shipper, you can pull in information like invoices, collections history, and credit scores. You can also add information for contractors (carriers), such as payment information, prior transactions, factoring relationships, addresses, and more.
Our team showed how Denim is helping connect data across brokers’ businesses, empowering them to be more efficient and make smarter, data-driven decisions.
After we added customers and contractors, we then added new jobs and showed off the fact that you can add a new job in under 30 seconds. You can also add it via a bulk import or with our API integration from our TMS partners.
Once you add a job, Denim goes to work for you. We:
Throughout the lifecycle of a job, clients are also able to access financial reporting and have a fully-reconciled accounting system via our QuickBooks integration. With all of this assistance, clients report saving about 30 minutes per job versus doing the whole thing manually.
Next, we showed the audience how to run payments on the Denim platform. Here are some highlights:
Creating a job in Denim is fast, but what’s even faster is not having to add one at all.
Our real-time API integrations will accept jobs directly from our partner TMS systems and process those jobs all the way through payment and collections. Clients really get hooked on the integration because integrating their TMS with Denim is a breeze. Our open API architecture allows us to be a hub that can integrate quickly to any TMS or accounting software, making Denim the only provider in the industry that serves as a one-stop, full-service platform.
In addition to growing our client base, we are also always looking to build strategic partnerships with new integrations. If you have any ideas or partnerships you’d like us to consider, you can submit them on our site!
We are so proud to show off our product and the Future of Supply Chain attendees agreed. We were voted as one of the three top demos on day 1 out of more than 30 companies. We are passionate about the product we’re creating here at Denim and are so honored that attendees could feel that passion, as well.
Our demo at Future of Supply Chain was amazing, but what’s even more amazing is seeing it for yourself. Ready to schedule your own demo? Contact our sales team directly or schedule a demo that fits your schedule.
