Last quarter’s freight market trends are... confusing.

The Q3 Freight Market witnessed a combination of favorable and unfavorable trends, which even puzzled the industry analysts. 

However, one thing is clear. The oversupplied market continues, and we still feel its consequences. So, let's take a closer look.

Consumer Confidence and Economic Resilience Juxtaposition  

Consumers drive the economy, so their confidence and spending patterns are indicators for the freight market.

Consumer confidence declined for the past two months. Expectations for the next six months dropped below the recession threshold of 80, signaling less confidence about future business conditions, job availability, and incomes. 

Consumers are generally concerned with rising prices, but for groceries and gasoline in particular. Price changes impacting consumers include: 

• Food at 4.3% YoY increase
• Energy at 3.6% YoY decrease
• Gasoline prices were the largest contributor to inflation 
• Shelter also contributed to the increase, which rose for the 40th consecutive month 

Yet, despite these concerns, the broader economy remains surprisingly resilient. The American consumer is keeping the overall U.S. economy afloat for the time being with substantial spending on services such as concerts (i.e., the Eras Tour), travel, leisure, and various services. 

Brokerages and fleets may consider expanding their business to include service-based industries, considering spending is still strong in this area.

Loose Capacity Remains Despite Stronger Demand

The good news: August demand was relatively strong compared to the previous seven months. Progress is progress. 

The jump in demand from July to August is relatively standard historically, thanks to the drop in productivity post-Fourth of July. Hot dogs > loads. 

Long haul demand drove most of the increase, suggesting shippers replenished inventories downstream. Inventory bloat that plagued the industry earlier this year is dwindling.

The bad news: August demand was still lower than August 2022. And the increase was not significant enough to tighten capacity in the market and positively impact rates. 

The Rise in Diesel Prices: A Closer Look

The DOE/EIA reported that diesel prices, although down $0.243 from a year ago, have been upward since July.

This trend has implications for carrier operations, particularly those in the spot market, without protection against these price hikes. Higher fuel costs inevitably squeeze carrier margins, potentially influencing freight rates and carriers' decisions about which loads to accept.

Deciphering Ocean Volumes and the State of Imports

A key barometer for the freight sector is U.S. import demand. Ocean booking volumes are down over 35% since its peak on August 1st, indicating a significant slowdown in U.S. import demand.

While this shows a decrease in demand, ocean carriers are countering by using rejections to increase their utilization rates. This strategy may affect international freight rates and availability in the coming months.

Anticipating Q4: Key Trends and Their Implications for the Freight Market

Q3 presented a blend of challenges and opportunities for the freight sector. Consumer confidence saw a dip, yet the broader economy showcased surprising resilience.

August saw an uptick in demand, though not enough to tighten the saturated market. And the outlook for demand looks bleak, with the market leading indicator, ocean booking volumes, declining 35%. 

The upcoming Q4 faces headwinds. Persistent inflation, massive debt, minimal savings rates, and student loans could keep us anchored at the bottom of the market going into 2024. 

It's crucial to remember that the freight market is inherently cyclical. We've weathered market lows before. Now is the time to deepen carrier relationships, address operational gaps, and ramp up prospecting efforts. Brokerages that strategize and endure the upcoming quarter will come out stronger in 2024 and beyond.

Leaders constantly balance two goals: building strong client relationships and keeping their business stable.

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This balance gets tested when customers like Fortune 100 companies ask for longer payment terms.

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The Fed's rate hikes this year have constricted financial liquidity for businesses. Many shippers rely on bank loans, so when the Fed rates increase, they grapple with higher bills, straining their budgets.

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To handle these money pressures, shippers are thinking differently. Some propose longer payment terms, from the usual 30-day cycle to 60 or even 90 days. This shift can help their bottom line, making their financial reports look better or allowing them to make better offers to their clients.

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For brokers, it's about tactful negotiation. They aim to keep clients happy and close. But they also need to watch their company's financial well-being. Striking the right balance is an essential skill.

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Key Takeaways:

• The Fed's rate hikes have tightened finances, prompting shippers to extend payment terms, impacting broker’s cash flow.
• Brokers can negotiate using various tactics like early payment incentives, structured plans, and more. 
• Maintaining a balance between client demands and business sustainability is crucial. While adapting to client requests is essential, ensuring the company's growth and financial health sometimes requires making tough decisions.

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Why Shippers Extend Payment Terms

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Extending payment to suppliers is a popular practice for companies to improve their working capital performance. When payment terms are 90 to 120-days, shippers are able to hold on to their cash longer and use as needed. 

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When you receive the dreaded email with the subject line "payment terms," your first instinct will be frustration. Take a deep breath and focus on understanding the payment situation. 

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Reasons for changing payment terms can vary from temporary cash flow hiccups to a permanent policy. First, jump on the phone and ask specific questions to understand the situation.  

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A few reasons why your clients may be asking for longer payment terms: 

• The cost of operating has increased as a result of the Fed hikes. 
• Clients might face cash flow challenges, making it tough to pay immediately.
• They could be grappling with unexpected expenses.
• Some may need more buffer time due to internal processes.
• The new accounts payable procedure dictates a new payment terms requirement.

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Why Negotiating Supplier Payment Terms Matters

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Extending payment terms helps your customer but has tangible repercussions for your business. 

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Waiting longer for payment significantly disrupts cash flow and strains business operations.

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Additionally, longer payment terms can lead to increased administrative costs as the burden of tracking and managing delayed payments rises.

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One of the more critical impacts of late payment or longer terms is the Days Sales Outstanding (DSO). This key metric indicates the average number of days it takes for a company to collect payment after a sale. Extended payment terms will increase DSO.  

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For freight brokers, a high DSO has specific ramifications:

• Reduced Liquidity: A high DSO means payments are coming in slower, which can hamper the broker's ability to pay carriers on time or invest in business growth.
• Increased Reliance on Credit: Brokers might need to rely more on credit facilities to maintain operations, which can escalate borrowing costs.
• Operational Disruptions: Delayed payments can disrupt operations, potentially affecting service delivery and the ability to take on new clients.

By understanding the impacts of longer payment terms on your business, you are better equipped to find a solution with your customer. 

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4 Payment Terms Negotiation Tactics

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Finding a mutually beneficial solution is vital to keeping the customer while protecting your business and financial goals. 

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The goal is to go into the conversation with 1-2 solutions, including your best-case scenario and a backup idea. 

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A few solutions to propose include: 

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1. Offer incentives for early payment

Encourage timely payments by making them appealing. According to a survey, 42% of leaders state that capturing early payment discounts is a priority. Offering discounts or priority services to clients who clear their bills promptly can be a significant motivator in today's economy.

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2. Setting Up a Payment Plan

For clients daunted by immediate total payments, consider introducing structured payment plans. This solution breaks down the owed amount into more manageable installments.

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3. Charge a fee for longer payment terms 

An extended payment term impacts your DSO. If clients lean towards longer terms for various reasons, consider adjusting rates or charging a fee. Increasing your profit helps mitigate a longer DSO's financial ramifications and risks.

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4. Negotiate for more business

An effective counter to prolonged payment durations can be negotiating for additional business. This strategy can yield a balanced outcome, be it a larger shipment volume or extended contract terms.

Coming prepared to the meeting with a couple of solutions will make for a more productive discussion and show initiative. Remember to propose ideas that benefit both parties to find mutual ground. 

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Negotiating Payment Terms Successfully

Initiating the Conversation

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Ideally, negotiations should be conducted in-person or at the very least, over the phone. Opening a dialogue about payment terms can be intricate, and you don’t want anything to be misread over email. 

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When starting this conversation, the emphasis should be on finding a middle-ground solution, keeping an even keel, and reinforcing the value of the ongoing partnership.

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To ensure the conversation is both productive and harmonious, consider the following email template:

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Email Template:

Subject: Payment Terms Discussion

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Hi [Client's Name],

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I hope this email finds you well. [Personalize the email and express your gratitude for their business]

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I'm reaching out to discuss the payments terms in your contract [personalize to reflect who is suggesting the change and acknowledge the reasoning]. As you know, we work hard to retain the best carrier relationships to move your loads reliably and on-time. Part of that is paying drivers quickly, so they can cover fuel and upkeep. 

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Knowing this, we would like to propose a couple of mutually beneficial solutions to the current [or proposed] payment terms. 

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Are you available to discuss this week? 

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Warm Regards,

[Your Name]

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By laying the groundwork for a positive and collaborative conversation, freight brokers can effectively manage and strengthen their business relationships during payment term negotiations.

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Tips for Navigating the Conversation 

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Negotiating with clients can sometimes feel like a tricky dance, with both sides aiming for the best terms. But the secret to a successful negotiation is simpler than you think: approach it as a partnership.

Follow these tips for a productive negotiation. 

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1. Know Your Strengths

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Before diving into the negotiation, think about your competitive edge. 

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What makes your business a good partner? You may be an expert in a niche or local area. Maybe you’re working with specialized equipment and regulations. 

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Your strengths are negotiation tools. The clearer you are about why a vendor would want to keep you happy, the better you can discuss.

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2. Start Friendly

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Kick things off on a bright note. Inquire about their family. Maybe there is a local football game you can talk about. Setting a friendly tone from the get-go can make the whole conversation easier.

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3. Show gratitude

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Take a moment to let them know how important they are. 

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Mention something like, “Your business has helped my company grow.” It's always good to remind them that their business is valued.

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4. Be Clear and Honest

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When it’s time to talk about changing payment terms, be upfront. 

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Explain how an extended payment term will impact your business and carrier relationships. Dive deep into how your carrier relationships are built and retained by quick payments. 

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Share your reasons. Clear communication can lead to mutual understanding, making it easier to find the middle ground.

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5. Frame a Win-Win Offer:

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When you put forward your new payment proposal, ensure it's framed in a way that benefits both you and the vendor. 

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By highlighting the advantages for each party, you set the stage for a productive, mutually satisfying negotiation. Remember, the goal is to find terms that make both sides feel like they're gaining value.

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6. Stay Open

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Sometimes, the first offer doesn't stick, and that's okay. 

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If they're hesitant, be prepared with backup plans. Could you propose a trial period for the new terms?Or suggest staggered payments? Flexibility can make all the difference.

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8. End on a Good Note

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Wrap things up with optimism. A sentiment like, “We’re excited about our future together,” reinforces the idea of partnership and growth.

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Successful negotiations are all about collaboration and mutual respect. When both parties feel acknowledged and valued, finding common ground is easier.

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Freight Factoring as a Solution

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Unfortunately, freight and logistics companies don't have much bargaining power. Shippers can easily find another partner to meet their needs and for even cheaper. If a customer is unwilling to meet you halfway, you can seek cash flow support by factoring. 

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You don't necessarily have to wait out long payment terms. By utilizing freight factoring, you can receive an advance on the payment. In this arrangement, the factoring company provides the upfront payment, collecting the due amount directly from the client.

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Alliance Logistix faced this situation when a long-time client moved from 30-day to 90-day payment terms. Co-Founders, Alex and Natalie, chose to work with Denim to maintain their cash flow and retain their customer relationship. As a result of the added automation tools with the freight payment system, Alliance Logistix has increased their month over month volume by 35%. Win-win for everyone. 

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Navigating the Balance Between Client Relations and Business Sustainability

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In today's shifting financial landscape, balancing client demands with fiscal responsibility becomes paramount. The ripple effects of these changes challenge even major shippers to rethink traditional payment structures.

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Brokers face the dilemma of catering to client requests while safeguarding their operations from extended payment terms and its implications. The key? Embracing strategies like early payment incentives and structured plans. For those seeking an effective buffer against extended terms, factoring solutions emerge as a powerful tool.

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At the core, it's about fostering trust and mutual respect in client partnerships. With clear communication and strategic flexibility, brokers can navigate these challenges, ensuring both relationship integrity and business growth.

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Looking for a factoring solution? Schedule a demo with us today and explore how Denim can support your business needs.

Details matter.

However, many logistics companies admit to incorrect payment information. A report from ControlPay found that only 17% of shipping invoices are accurate.

You spend hours securing new lanes. You’re diligent with your communication and deliver impeccable customer service. You complete jobs with safe and punctual deliveries. Yet, the final step— accurate invoicing and payment—sometimes falls short.

Freight payment and invoicing are more than just paperwork. Many shippers engage freight brokerages and 3PLs to avoid managing carrier payments. This adds value for shippers by sparing them countless hours in manual auditing and could reduce their staffing needs.

A single invoicing error from a brokerage or 3PL can jeopardize financial standings and hard-earned trust. Thankfully, there's an antidote: freight audit software safeguards against such payment slip-ups.

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Key takeaways: 

1. Only 17% of shipping invoices are accurate. So there's a pressing need for meticulous document review in logistics.
2. Freight audits address financial discrepancies. This fortifies trust, enhances operational efficiency, and solidifies client relationships.
3. Automated audits with AI reduce costly overhead. Plus, they ensure accuracy.

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Common Mistakes in Freight Payment and Invoicing

Accurate freight invoicing and payments are essential. 

Often, blunders in these areas stem not from negligence but from oversights. Even the most meticulous professionals can overlook nuances.

Here are five common mistakes:

1. Inaccurate Billing Information:

Billing errors can occur due to incorrect input of important information. Incorrect information can include billing address, company name, or account number.

2. Overlooked or Duplicate Invoices:

Operational oversights, particularly during peak business periods, can lead to skipping invoices. Redundant software processes or data syncing issues might generate and dispatch duplicate invoices.

3. Missing Documentation:

Sometimes essential documents are missed or wrongly attached to a load. Such an oversight can lead to inconsistencies during invoicing and payment. 

4. Inconsistencies Between Documentation and Data Entry:

Manual data entry is prone to human error. Payment will likely be wrong when data entry across systems doesn't match documentation. 

Managing freight documentation and invoicing is vital to any logistics operation. While the mistakes highlighted are common, awareness of these pitfalls is the first step to ensuring accuracy.

Consequences of Freight Payments and Invoicing Mistakes

A minor invoicing error may seem insignificant at first glance. However, its ripple effect can profoundly impact a business's finances and reputation.

Imagine a scenario where an invoice gets mistakenly issued for $3,500 when the intended amount was $5,300. A number switch can lead to a $2,300 shortfall. Such a simple mistake can have sizable monetary repercussions, especially if unnoticed.

The complexity escalates when third parties, like factoring companies, come into play. Sending an incorrect invoice to a factor for approval could delay payment to carriers and disrupt your cash flow. Even a day's delay can severely strain your finances.

But the impact isn't just monetary. Payment discrepancies can also leave a permanent mark on your company's reputation. 

Requesting additional payment from a client due to an incorrect invoice amount is unprofessional. Such experiences can make shippers reconsider assigning you further loads. Their rationale? If back-office processes are sloppy, how efficiently can you manage increasing loads?

Remember, invoicing isn't just about numbers; it's also about building trust with your clients.

The Solution: Freight Audit 

Losing focus and missing important details is common when dealing with heavy workloads and multitasking for long periods. Rushing to close deals and collect payments can cause you to overlook critical elements.

Enter the Freight Audit. 

What is a Freight Audit? 

Freight auditing is a detailed review of freight bills, cargo logistics, and associated shipping data. The audit process promotes transparency and accuracy in shipping operations.

While a typical freight audit primarily focuses on financials, its scope is much broader:

• Freight Bill Analysis
• Delivery Accuracy
• Timeliness & Cargo Condition
• Unanticipated Charges
• Carrier Routes

Shippers frequently enlist third-party audit specialists or turn to the expertise of 3PLs and freight brokerages to manage freight audit and payments.

Freight brokers and 3PLs come equipped with specialized knowledge. This prepares them to spot and correct errors easily during the auditing process. With their guidance, they streamline freight operations and educate shippers on best practices and potential pitfalls.

Still, it's vital to note: even with all their experience, they can sometimes overlook a detail.

The Benefits of Freight Audits

Freight audits are crucial in ensuring accuracy and building trust in the logistics industry. Meticulously examining invoicing details safeguards businesses from potential financial discrepancies and reinforces their credibility with clients. 

Here's how audits benefit invoicing processes:

1. Invoice Matching: Freight audits ensure that each invoice aligns correctly with other important documents. This thorough check ensures no wrong billing and every charge is justified.
2. Spotting Mistakes Early: Audits can catch and fix errors before an invoice reaches the customer. By being proactive, companies maintain a strong, trustworthy reputation.
3. Earning Client Trust: Consistently accurate invoices show reliability. Clients trust companies that get it right, helping to strengthen and deepen business relationships.
4. Streamlining Work: Conducting regular freight audits helps businesses operate more smoothly. Everything gets organized and efficient, making it easier for teams to manage their tasks.

Freight audits are the backbone of a transparent and efficient logistics operation, reinforcing accuracy and trust. With such significance attached to these audits, the methods by which they are conducted equally matter.

Understanding the Freight Audit Process: Manual vs. Automated

Two main ways to complete freight audits are manually or by leveraging software-driven automation. 

Manual Approach

Manual freight audits involve rigorous human intervention. This traditional method provides an in-depth, hands-on examination of freight documents and details. While it allows for thorough inspection, it is time-consuming, costly, and prone to human errors. 

As the complexity of freight documentation grows, the possibility of overlooking discrepancies in numerical data and cargo descriptions increases. Errors can occur when cross-referencing various documents, even with the utmost precision and meticulous attention.

Often, larger organizations might employ a team to undertake these audits. An internal audit team introduces a cross-checking system to reduce potential oversights.

AI-Powered Automated Approach

With technological advancements, the freight industry is seeing a significant shift in how audits are performed. Enter AI-based auditing, a method that revolutionizes accuracy and efficiency in this sector.

At the core of this approach is Optical Character Recognition (OCR). OCR technology works by scanning paper documents, like freight invoices, and turning the written or printed text into digital data that the system can read and process.

Once this data is digitized, the real power of AI comes into play. Instead of manually sifting through piles of invoices and cross-referencing various details, AI algorithms analyze this digital information. They are programmed to:

• Check for discrepancies in invoice amounts.
• Verify details against contracts or other relevant documents.
• Identify any errors, inconsistencies, or anomalies.

What sets AI apart from traditional methods is its learning capability. As the system processes more data, it learns and adapts. It picks up patterns, understands common issues, and sharpens its accuracy. This continuous learning means that the AI-based freight audit software becomes even more proficient at identifying potential errors or issues in the auditing process over time.

The benefits of AI-based freight audit software are evident. AI-based auditing can process vast amounts of data at incredible speeds and ensure a level of precision that's challenging to achieve with manual methods. By integrating AI and OCR into freight auditing, businesses stand to gain a more accurate, efficient, and streamlined verification process for their invoices.

Manual vs. Automated Audits

Manual audits, while thorough, are not only time-consuming but can also be riddled with human errors. In fact, the average cost to manually process a single invoice can be up to $15, adding up quickly over numerous transactions. In contrast, automated audits harnessing the power of AI provide rapid results with heightened accuracy, all while reducing overhead costs.

By embracing automated methods, freight brokerages conserve significant time and resources. This newfound efficiency empowers them to channel more energy into expansive strategies and innovations, setting the stage for a modernized approach to freight management.

Elevate Accuracy and Trust: The Power of Freight Auditing with Denim

Even the most attentive professionals can face challenges ensuring accurate invoicing and payments. As illustrated, minor oversights can escalate into significant financial and reputational challenges. Freight audit and payments are not just an operational necessity but an indispensable tool for maintaining trust, optimizing operations, and ensuring financial accuracy. But what if there was a streamlined way to simplify and bolster the auditing process? 

Denim Audit uses AI technology similar to ChatGPT to identify discrepancies and streamline your document management process. Documents like proof of delivery, carrier invoices, and rate confirmations are scanned automatically within seconds, providing matching results or flagging any inconsistencies with a job.

The result? Expedited payments and minimized discrepancies, ensuring your operations run smoothly and your reputation remains untarnished. By incorporating Denim Audit into your operations, you ensure your invoicing remains as flawless as your freight operations. Book a demo today to see Denim Audit in action. 

Cash flow is the headwind all logistics companies face at some point.

Imagine a situation: shippers are on net 30 to 60-day payment terms, yet carriers must pay their fuel bills immediately. This scenario frequently translates into a significant cash crunch for growing brokerages and fleets.

On top of a challenging financial model, the supply chain faces one of the worst down markets in history.

The tumbling freight spot market and low demand push more fleets out of the trucking industry. So much so, it's actually setting records. According to Q1 2023 federal data, 31,278 trucking companies ceased operations in the year's first four months.

And it's not just impacting fleet vehicle owners. Multi-million dollar freight brokerages are filing for bankruptcy or merging.

In a tumultuous market, improving cash flow is even more critical. Freight brokers and fleet owners who effectively manage cash flow can:

• Navigate the challenges of an economic downturn
• Maintain their ability to serve clients' freight volumes and pay carriers
• Offer competitive pricing and flexible payment terms
• Capitalize on strategic opportunities for business expansion

The secret to keeping a healthy cash flow? Avoid these 5 common mistakes.

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1. Overlooking Possible Client Payment Delays

Consumer spending habits are veering from goods to services. Your customers may experience financial difficulties due to decreased demand. This can result in delayed payments, which can have a significant impact on your business's cash flow.

To counter this, monitor your accounts receivable and freight payment processes closely and establish a robust credit control system. A freight payment system can automate collections and create receivables reports to l inform you of any delays or discrepancies.

Additionally, communicate with your clients and negotiate payment terms that work for both parties. Consider offering incentives for early freight payments to encourage promptness.

2. Neglecting to Control Expenses

It's crucial to keep a close eye on your expenses. Review your cost structure and identify areas where you can cut back without compromising your operations. Look at areas like non-essential travel or underutilized employee perks. Renegotiate contracts with vendors, and look for lower rates on factoring services or insurance.

Freight factoring fees are always open to negotiation based on days of sales outstanding and volumes. If your current factor is unwilling to re-evaluate your rate, it might be time to shop around. Switching your factoring company may seem difficult, but it can be done in under a week (Yeti Logistics switched factors in just 3 days).

While these steps are crucial for immediate expense control, considering a long-term view is equally important. Consider ways to avoid unnecessary costs in the future and maximize the value of your spending.

3. Inadequate Financial Planning

Failing to develop a comprehensive financial plan can affect your cash flow. When your business loses money, receives late payments, and incurs higher expenses, you need to develop a plan to fix it.

A comprehensive financial plan lays down a roadmap for cash flow and anticipates potential obstacles. By creating a strong cash flow forecast, you can consider typical recession effects like losing clients, smaller profits, and fraud. This forward-thinking strategy allows for identifying potential cash flow gaps and formulating strategies to bridge them.

A financial plan should include the following aspects:

• Revenue Forecast predicts how much money you will make in a certain time. It takes into account things like market trends, seasonal patterns, growth plans, changes in customer demand, and new laws.
• Expense Projection is a careful estimate of all your expenses. This includes fixed costs such as rent and salaries, as well as changing costs like fuel and vehicle maintenance. Additionally, it takes into account planned investments in technology or business growth.
• Cash Flow Analysis involves examining the inflow and outflow of your money. This includes considering potential delays in client payments and unexpected large expenses.
• Profit and Loss Projection shows how profitable your company is by subtracting costs from revenue, indicating potential growth.
• Contingency Planning involves creating a financial safety net for unexpected events. This can include keeping money aside, getting a credit line, or having plans to quickly cut costs if necessary.
• Capital Expenditure Plan: A strategic document that outlines any significant investments, such as new vehicles or warehouse facilities.
• Debt Repayment Plan: A clear strategy for servicing business loans or other debts is crucial for maintaining a healthy cash flow.
• Growth Strategy: Your financial plan should align with your growth goals. It's important to factor in the expenses and possible profits involved in expanding your services or entering new markets.
  

A financial plan's true strength is its ability to change and grow with market conditions, economic predictions, and internal adjustments. Regularly reviewing and updating your plan helps your logistics business stay financially stable, no matter the economic climate.

4. Over-Reliance on a Few Major Clients

Dependence on a select group of major clients can jeopardize your cash flow. In fluctuating consumer demand, the logistics sector often feels the ripple effects. When demand for goods slows, freight and logistics markets follow suit. This situation is where diversifying your client base becomes a strategic shield.

Diversification isn't about losing focus or expanding too broadly. It's about expanding your client base in a targeted manner. This strategy spreads risk, ensures a consistent revenue stream, and maintains your niche expertise.

Let's take a practical example. Suppose a logistics company primarily serves the automotive industry. A downturn in the automobile sector would directly impact the company's revenue.

To counter this risk, the company can venture into related sectors. Industries such as agricultural machinery or construction equipment need similar logistics services but operate under different market dynamics. This way, the company is less vulnerable to a single industry's performance.

Besides industry diversification, consider new geographies and adding new services. Explore other areas with potential demand growth if your operations are in one region.

Moreover, introducing new services can attract a broader range of clients. Services such as final delivery or temperature-controlled logistics can generate extra income, making your business more resistant to market changes.

Planning how to diversify your clients can make your business more stable in different market situations. This way, your company leverages its niche expertise while growing and protecting its revenue.

5. Lack of Technology Investment

Technology isn't an adversary to your cash flow in the logistics industry—it's an ally. Investing in technology is important for your company's efficiency and competitiveness, even if you are being careful with expenses.

Investing in technology isn't about acquiring the latest and most expensive gadgets. It's about strategically implementing cost-effective solutions that streamline operations and boost productivity.

One such indispensable tool is a Transportation Management System (TMS). A TMS can enhance your logistics company's efficiency.

It enables route optimization, lowering fuel costs and reducing delivery times. It improves inventory management, minimizing warehousing costs. Moreover, it enhances visibility throughout the supply chain, allowing for better decision-making and improved customer service.

In essence, strategic technology investments are integral to optimizing operations, improving service delivery, and enhancing cash flow management.

Remember, This is Cyclical

There have been 12 freight recessions since 1972, and the savviest brokerages have become stronger each time.

Maintaining a healthy cash flow during a recession is critical for the survival and growth of your freight brokerage business. Avoid these 5 cash flow mistakes to navigate the economic downturn and position your business for success when the market improves.

Remain vigilant, adapt to the changing landscape, and leverage available resources to ensure your company's financial health and stability.

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Only one thing is always true for your freight brokerage. 

Positive customer experiences drive success. 

The present market is encountering more significant difficulties than ever due to excess supply compared to limited demand. Recent market conditions caused Surge, a $150 million freight brokerage, to declare bankruptcy.

In this volatile environment, ensuring goods move from point A to point B is insufficient.

To stand out in this sea of providers, you must consistently offer a service that exceeds expectations and fosters deep, enduring relationships. 

Customer experience is not just a perk of the service - it's the crux around which all operations revolve. It has transformed from a nice-to-have to a fundamental, non-negotiable business requirement.

Key Takeaways: 

• Customer Experience is Key: Success for freight brokers hinges on providing a consistently positive and personalized customer experience.
• A poor customer service encounter can lead to a loss of business, highlighting the importance of consistency in delivering excellent customer experiences.
• SmartBrokers are using the POWER Strategy - emphasizing proactivity, communication, world-class service, technology use, and responsiveness. 

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Navigating High Stakes: The Impact of Customer Expectations

The bar for customer expectations is set high in the current market landscape. 

A revealing Salesforce study suggests, "74% of B2B buyers are likely to switch brands after a single poor customer service encounter."

It is crucial to prioritize providing not only a satisfactory customer experience but rather the best possible experience that is consistently delivered.

But what does a poor customer experience look like in the freight and logistics industry? It can manifest in several ways:

• Lack of Communication: Lack of regular status updates or transparent communication about changes can lead to feelings of distrust and dissatisfaction. 
• Delayed Responses: Not responding on the same day or within 24 hours makes customers feel ignored. 
• Unresolved Issues: Failing to address and resolve customer issues promptly and satisfactorily can leave customers feeling frustrated and neglected.
• Inaccurate Billing: Inconsistencies or inaccuracies in billing can erode customer trust and damage your reputation.
• Unfriendly Interactions: Lack of empathy or courtesy during interactions can negatively impact a customer's overall experience.

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It is essential to be aware of these potential pitfalls. SMARTBrokers can learn from these errors and make changes to provide customers with a personalized, attentive, and consistently positive experience. This proactive approach satisfies customers and promotes loyalty, resulting in repeat business and setting you apart in the competitive logistics industry.

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SMARTBrokers Competitive Advantage: Transforming Transactions into Relationships

The freight brokerage landscape is diverse, with behemoths managing vast logistics networks and commanding extensive resources. However, the scale of these companies sometimes leads them to overlook the importance of personalized services and customer experience. SMARTBrokers fills this gap.

Large freight brokerages and 3PLs can make customers feel like another number in their extensive database. Their focus on scale can lead to a lack of personal touch and attention to specific client needs, including simple gestures like remembering special occasions.

SMARTBrokers take advantage of this gap in the market by offering more personalized and attentive service. By making each customer feel like they are the most important, you can turn every transaction into a relationship built on trust. This can lead to repeat business and referrals, helping your business grow.

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Ensuring Stellar Customer Experience with the POWER Strategy

To consistently meet and exceed customer satisfaction, consider embracing the POWER strategy:

P - Proactive Problem Solving

Anticipate potential challenges and address them before they escalate, saving customers unnecessary costs, time, and stress.

O - Over Communication

Regular updates on processes, fees, timelines, and shipment statuses can foster a trusting relationship.

W - White Glove Service

Exceed standard expectations by tailoring services to each customer's needs and providing swift responses and detailed attention.

E - Embrace Technology

Utilize technology like freight payment systems, TMS, and track and trace tools to remove non-value add tasks. In doing so, you'll streamline processes and have more time to dedicate to customer experience. 

R - Responsiveness

Quick and readily available responses to customer inquiries can create a positive impression and earn customer loyalty.

The POWER strategy can set you apart as a freight broker. Yes, it demands time and resources. However, the potential rewards are well worth it. You'll see gains in customer loyalty and repeat business. Plus, positive word-of-mouth can boost your reputation. So, in today's competitive market, excellent customer service isn't just a bonus—it's an essential element for success.

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Outpacing the Competition: The Critical Role of Customer Experience

Providing an excellent customer experience is no longer optional but crucial for survival and success. A superior customer experience can give a lasting competitive advantage.

By adhering to the POWER strategy – Proactive problem-solving, Over-communication, world-class service, Embracing technology, and Responsiveness – you cultivate an environment conducive to customer loyalty and repeat business.

However, this is not a one-off process but a commitment to continual enhancement. Customer expectations are not static. They evolve with each technological advancement and shift in market dynamics. Staying attuned to these changes is essential. Use the POWER strategy as a guide and tailor it to your unique business model and customers' needs.

The time and resources invested in enhancing customer experience might seem significant. Still, the returns, in terms of increased customer loyalty, repeat business, and a lasting reputation for excellent service, are invaluable.

Remember, your customers hold the key to your success. Prioritize their experience, exceed their expectations, and success will naturally follow.

Marketing your freight brokerage isn’t just about calling strangers and hoping they say yes.

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Freight brokerages miss out on new customers when they don't market their services. Your ideal clients can’t do business with you if they don’t know you exist. 

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You need to do something beyond cold-calling people. 

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Shippers get spammed with cold calls and emails every day, so you must do something different to stand out in the crowd. This is especially true in a down economy. 

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Some dislike the idea of freight broker marketing. They mistakenly think it’s simply “posting on social media” or buying a billboard and are convinced it won’t work for them. They prefer calls because it feels more personable. The problem with this logic is that it dehumanizes the best aspects of marketing. After all, people are loyal to people. Marketing your team and offerings could win you more referral business from someone simply hearing of you and referring a friend.

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In this guide, we’ll stay away from cliche marketing suggestions. We aren’t going to tell you to post on Instagram - much less TikTok. Instead, we’re covering 8 Ways to Market Your Freight Brokerage (with real examples) that help you stand out from the crowd without wasting your time.

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Key Takeaways: 

• LinkedIn is a powerful platform for research, networking, relationship-building, and personal brand development.
• Utilize Facebook Groups and events to network, engage in non-sales conversations, and establish a referral network.
• Prioritize establishing a brand  presence and revenue before investing in Google or Facebook ads, as they require time, expertise, and software for effective ROI tracking.

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1. Search for companies nearby on Google Maps & Google Earth.

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In the early days of the internet (and before), the Yellow Pages were the go-to resource for identifying companies within industries and by region. Nowadays, most brokers use Google Maps & Google Earth to scout for shipper leads for freight brokers. 

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“Look for big shipping buildings with lots of bay doors for trucks. This means lots of shipments coming in and out,” says Brandon Caldwell, former freight broker of 10 years and current Enterprise Account Executive at Denim.

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Let’s say you’re searching for prospects in Charleson, SC. You might search for something like “shipping companies in Charleston, SC.” This shows a list of companies - some relevant - some not. In this example, we came across, “Carver Maritime.” A quick look around on street view shows plenty of places for freight to be moved. Looking at the image we’ve shared, you’ll see cranes in the parking lot and a gate that allows trucks to enter. 

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While we ask you not to spam Carver Maritime, you can absolutely use this strategy for logistics cold calls and promote your freight services.

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2. Try LinkedIn Prospecting (what Yellow Pages should have become)

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Former freight brokers on our team speak highly about the power of LinkedIn for prospecting. It’s the best site for connecting with potential clients across most industries. Beyond that, it’s a great place to build relationships and a personal brand.

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There are 5 things we recommend for success on LinkedIn:

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Using LinkedIn as a research tool. 

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For example, you can use Sales Navigator to identify shipping managers and leverage their profiles to find commonalities to build relationships. (ie: We both graduated from University of Texas - hook’em horns!).

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Follow a freight broker script that isn’t too sales-focused. 

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HubSpot, a top provider of business & sales software, provides eleven great sales script examples here to get you. We suggest leading with the “I feel your pain” summary. 

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Here's the template:

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[One- to two-sentence description of common prospect problem.]

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But what if [key result of using your product]? In the past X years, I’ve helped Y [vertical/sector] businesses [accomplish X results] by [short description of product features]. [One- to two-sentence description of results.]

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[Call to action.]

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Here’s an example:

Delivering freight to customers on time is more difficult than ever. It can be hard to know what carriers to call, much less how to know if you’re getting a good deal.

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But what if it were possible to confidently deliver freight on time without finding the drivers yourself? In the past ten years, I’ve helped 100s of shippers deliver their unique products without the stress of finding a carrier network. This has resulted in 15,632 loads delivered on time without fail. Needless to say, all of my customers are very satisfied.

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Wondering what this could look like for your business? Give us a call at 555-555-5555 and ask for a free quote today. 

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Comment and reshare prospects content. 

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Get top of mind by engaging with prospects' posts via comments and resharing any interesting content they produce. Have non-sales-related conversations. You can do this with posts in your feed, in relevant groups, or by following relevant hashtags and responding to trending posts. The key is to keep your responses authentic and not make them salesy. 

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Comment on influencer posts.

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Identify influencers in the space and comment to get exposure for your personal brand. This is a lot easier than just posting yourself because these people already have an audience of prospects who are relevant to you. Being where their attention already means getting exposure simply by participating in the conversation.

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Commit to consistent posting.

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We view posting on LInkedIn 2-3x a week as a long-term brand-building play. Don’t go crazy, and try posting to every platform daily. But posting regularly on LinkedIn will expand your reach and build an audience. Becoming a thought-leader helps to build trust with your audience. This leads to a situation where you’ll have more prospects seeking you out vs you having to call after then. This is the ideal situation because it reduces the burden of outbound calling on your team.

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3. Join Facebook Groups

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For the past few years, Facebook’s parent company, Meta, has placed a large emphasis on engaging with people through Facebook Groups. A quick search of groups on Facebook shows several large and potentially interesting groups with a high volume of activity.

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Most groups do not allow self-promotion. Instead, you'll need to spend some time providing actual value to the group. Ask questions, be friendly, answer questions helpfully, and share valuable insights. You can also share articles and discuss industry news. Sure, it might feel like a long way off from reaching a sale, but offering value creates a stronger foundation for building your brand and trust with the community members. Your potential customers will remember you and like you more if you can offer them something that benefits them instead of jumping straight into dealmaking.

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Some groups do offer one day per week where you can self-promote. Also, you’re usually allowed to respond to someone if they ask for the type of service you provide. Strike when the iron is hot and use those opportunities to move the conversation forward to a call or direct message. The key here is not to be spammy.

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Pro tip: Don’t copy/paste the same message into multiple different groups. Most social media platforms will flag this and prevent you from posting or shadowban you.

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4. Referrals / Networking / Word of Mouth

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Networking for referrals is one of the most effective ways to promote your business. This is not a new concept. However, we wanted to talk about how to do it successfully. 

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Networking is largely done at  live events to promote your business without feeling sals-y. It makes a big difference and you can feel the energy in person. We all hate when someone talks ‘at’ us. Most people zone out. But if someone tries to get to know what we do, we’re much more likely to reciprocate. 

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If you attend events, try getting to know what services others are offering and offer to refer to them if you know anyone. Usually, people will reciprocate this offer. Since referrals close at a significantly higher rate than cold calls. Thus, referrals will be a lucrative income stream and is where many brokers just starting out get their early business. Referral expert and  Denim’s Head of Partnerships, Jamie Neely, also had this to say:

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1. Do your research on which events align with your target audience. Will your potential customers be exhibiting, or will they be attendees?
2. Invest in a booth setup that draws in potential customers by offering them a sneak peek into your business, but that also pulls them in with activities they might be interested in.
3. Attend as many planned after-hour events that other sponsors might be putting on if you can’t afford to host one yourself, or ask around and see if you can co-host.
4. Investigate the different speaking opportunities that a conference might be hosting, and join a panel to offer your insights.

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We spoke to Briana Lupinaccio, VP of Revenue at Roadly Logistics, to get her advice on networking at industry events. “Trade shows are an opportunity for our team to meet with shippers face-to-face and explain what we can do for them. Connections we make at trade shows are high converters and lead to long relationships.” 

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Some events freight brokers should consider attending are:

1. AirCargo Conference
2. Manifest
3. Promat
4. Freightwaves Future of Supply Chain
5. ParcelForum

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While this list isn’t comprehensive, it’s a great place to begin implementing the advice above so you can start to meet with potential clients. What are your favorite industry events to attend?

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5. ImportYeti (free international shipping insights)

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For those looking for an automated way to prospect for companies that handle international shipments, try a service like ImportYeti. It’s free and shows how many shipping containers each company brings into the US monthly. Let’s say you're curious about the companies Target works with in the United States. Simply sign up for a free account and search for Target. Then, you can reach out to suppliers and offer your services. 

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6. Data Axle (or anywhere you can buy a  list of your target audience)

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Formerly Sales Genie, Data Axle allows you to buy a list of prospects for cold outreach. Building a list of prospects is super important. Especially if you’ve reached the point where you can hire some people to make cold calls for your brokerage. “We used this at Worldwide Express,” said Lexi Farris, a former freight broker on our team who used this at the large 3PL she worked for previously. 

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This isn’t the only company that provides this service. There are a lot of places that are willing to sell you a prospect list. The hardest thing to know in advance is the quality of the prospects. They might have great quality info for one industry but very little on another.

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7. Google Ads (more commonly used by larger brokers and 3PLs)

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We’ve seen more people talking about Google ads lately. They’re asking questions like, “‘Are Google ads worth the spend?’ and ‘Should I be using Google ads?’” You usually see these questions pop up every few months on r/freightbrokers. 

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Most businesses don’t leverage Google ads until they reach a monthly six-figure revenue level. It can take time to make a profit from paid ads. 

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According to performance marketing expert  Travis Vaught, Demand Generation Manager at Denim, “Most businesses won’t see ROI for at least six months when starting paid ads. You need to be in a place where you can comfortably spend money on advertising without an immediate return on investment.” 

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When you start using Google ads, you’ll want to target three things with your Search Campaigns:

1. Branded search terms (like the name of your business). This helps you show up when people Google your business name.
2. Competitor search terms (imagine if someone heard of you when searching for your biggest rival). You benefit from being in consideration when someone searches for a competitor.
3. Long-tail keywords (these typically have a clear intent to them). Imagine if you could get in front of someone searching for the exact service you provide in the exact location you provide it. 

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If you’re just starting out, it can be hard to tell if someone called your business from ads vs just a regular organic search. This is important to know because this makes your ROI from marketing difficult to measure. You’ll need software to help with this, which is why we recommend waiting if you haven’t made your first six figures yet.  If you’re just starting out, don't run Google ads yet. 

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But if you are ready, some of the benefits are:

• Demand Capture. If someone is actively searching for something like “Freight Broker Near Me,” this is an opportunity to close a prospect who is ready for your services.
• Brand Awareness. Google Ads, especially Google Display & YouTube ads, are a great way to get the word out about your services on sites and videos your prospects frequent.

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8. Facebook Ads (more commonly used by larger brokers and 3PLs)

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Similarly to Google ads, you don’t really need to try your hand at Facebook ads until you have an established business and confidently understand your target market. Any type of paid advertising can get expensive quickly, and it can take a long time before a business gets good at it. 

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Now, when Facebook ads work, they work super well. Travis Vaught says, “Facebook Ads are great for building awareness and freight broker lead generation to call and email. You’ll need people to create the content you’re promoting, though, so many businesses who are new to ads will start with an ad agency since they can provide the graphic design and copywriting services you might not have in-house.”

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Similarly to Google Ads, You’ll need software to help with this, which is why we recommend waiting if you haven’t made your first six figures.  If you’re just starting out, don't run Facebook ads. But if you are ready, some of the benefits are:

• Demand Generation. Facebook & Instagram help you to get content in front of prospects cheaply. This is important because most of your future customers don’t need your services today, but will in the future. Thus, if you add value to their lives now (in the form of useful blog and video content), they’ll remember you when they’re ready for your service.
• Lead Capture. Facebook & Instagram are great places to get people’s contact information and grow your email list. Growing your email list of prospects gives you another point of contact with a prospect that isn’t dependent on your advertising budget.

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Conclusion

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What we’ve listed above are merely oversimplified marketing tactics. They’re great to know, but a lot goes into doing any of them well. You’ll likely hear of things like sales scripts, marketing funnels, etc. All of these are useful strategic things to know, but show yourself some grace if you are just starting to market your business. You’ll learn them with time. 

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In a general sense, we recommend your revenue determine what marketing strategies you should take

Revenue Per Year and Relevant Strategies

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$0 - $100k / year: You need to clearly define what you’re offering and know how to communicate it so well that a 4th grader can understand. Next, you want to set up some basics like a website, a LinkedIn profile & page, and a Facebook profile and page. They are necessary so people can tell you’re a real business. Also, we recommend you niche down as early as possible. Don’t fall into the trap of pretending to help everyone. That means you won’t be top of mind for anyone. But if you specialize in Reefer shipments, when someone needs that, they’ll come to you.

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$100k - $1 million / year: By this point, it’s time to make your first few hires (be they freelancers, accounting help, etc). You’re learning to do business differently, and this applies to your marketing as well. Ideally, you can hire someone to help make sales calls (or multiple someones). If possible, it could be worth your time to hire a freelancer to create content for your website and social media profiles so people know you exist. Many early-stage brokers neglect the power of marketing on social media which will set you apart. Plus, updating your website regularly will help you appear on search engines.

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$1 million - $10 million+  / year: This is where things get tricky, and there stops being a one-size-fits-all marketing strategy. By now, hopefully, you’re learning how to hire and fire correctly while avoiding micromanagement. You should absolutely be building an email list of inbound leads to alleviate some of the pressure on your sales team. In the earlier stages of this range, you could consider hiring a marketing agency to help with Google & Facebook ads (though be very intentional about how much you’re willing to spend here). A good agency will get to know your business and can show you realistic ROI for your investment. Once you get beyond the $10 million mark, trust the talent you’ve brought in to steer you in the right direction.

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The Number #1 Challenge You’ll Face (and How Denim can help). 

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The biggest problem you’re going to face is cash flow. Most of your clients won’t pay right away, but usually, carriers expect to be paid quickly (especially the good ones). That’s why you’ll need a Freight Payment System that allows you to pay shippers however you want while also giving you access to factoring and line of credit services. That’s where we come in. If you’re interested in how Denim can help you grow your business quickly and safely, schedule a demo now.

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The flatness of the last quarter might seem uneventful, but it's actually good news. Hitting a period of stability in a market fraught with volatility suggests that we might be at the lowest point in the market's recent downturn. And as the old saying goes, once you're at the bottom, there's only one direction left: up.

Key Takeaways: 

• The recent stagnation in the freight market is a positive sign of recovery after a turbulent year.
• Contract rates have slightly decreased, narrowing the gap between spot and contract rates, but still need to go down by 12%-15% before leveling off.
• Inflation has decreased, and consumer confidence is up, but the cost of living remains high, with food and energy prices significantly higher than last year.

Flat Freight Market is a Good Sign 

The freight market's recent stagnation may not immediately strike as positive, but it marks the first sign of recovery we've seen in a year. Although challenges persist, navigating a stable market is easier than a turbulent one.

Looking at outbound tender volumes, which refer to the number of freight loads available, there was a minor uptick in May. Despite holding steady throughout the quarter, these volumes were still somewhat higher than in 2019. While 2019 might not be an ideal reference point for normal because it was over four years ago, it can be considered a low-end expectation point. 

Over the last month, the Outbound Tender Reject Index experienced minimal movement, hovering around 3%. These rejection rates, albeit low, are insufficient to drive sustainable growth in spot rates. Flatbed trailers offer the greatest potential, reporting the highest rejection rates among all trailer types.

Last quarter also saw a slight decrease (2.4%) in contract rates, reducing the gap between spot and contract rates. Compared to the rate difference in 2019, contract rates still need to go down by 12%-15% before leveling off.

Diesel Fuel Prices are Going Down 

Truck drivers and fleets have been hit hard by the difficult conditions in the freight market. Many are losing money because of high operating costs and lower rates. But there's a glimmer of hope—diesel prices are decreasing, down nearly $2 from a year ago! Lower fuel costs are providing some much-needed relief.

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Correction in Inventory Surplus as Consumer Spending Recedes

Suppliers have mostly tackled last year's inventory surplus and no longer carry the burden of extensive, unsold stock. While this may initially paint a favorable picture for the freight market, consumer caution in spending on goods directly influences this scenario.

In a surprising change, inflation decreased from 6% to 4% between February and May. At the same time, consumer confidence is now higher than it has been since January 2022. Yet, despite these optimistic signs, consumers continue to grapple with a high cost of living, evident in food prices up 6% and energy prices up 11% compared to last year.

For increased consumer goods spending - and, by extension, the freight industry - wage growth must outpace inflation. As consumers opt to spend more on services instead of goods over the summer, the freight demand could face a slowdown. 

The job market is causing concerns as unemployment rose to 3.7% in May, and jobless claims reached their highest level in almost two years. As we enter the third quarter of 2023, there is a growing gap between lost jobs and the ones available. This mismatch in the labor market may lead to a decrease in demand for freight and goods in the second half of the year.

The resumption of student loan payments after 39 months of deferral will come as a shock to most households. A sudden increase of hundreds of dollars per month will force consumers aged 18-44 years old to cut back on discretionary spending. Since portions of this demographic have a tendency to prioritize experiences over goods consumption, we can expect this will produce a small to moderate headwind heading into back to school and holiday spending.

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More of the Same in the Second Half of 2023

The second quarter of 2023 managed to maintain a steady pace, a silver lining in our current freight market landscape that continues to grapple with oversupply and underwhelming demand. 

Carriers are in a tight spot, with rates skirting below the breakeven point, making the spot market highly reactive to even slight disruptions in capacity. This situation challenges smaller carriers, who find covering costs a tough task. Lower diesel prices provide some relief, but it may not be enough to prevent smaller carriers from exiting the market.

Historically, freight demand tends to cool down in July, but the market is straying from its usual course this year. Shippers have differing opinions regarding the outlook for the remainder of the year.

According to some experts in the industry, if there are no unexpected changes in demand, the market has already gone through the worst and is expected to recover in the second half of the year.

For now, however, it's reasonable to anticipate a continuation of the status quo, with supply outpacing demand, until our key indicators, such as the Outbound Tender Reject Index and the contract-spot rate spread, signal a significant shift in the market. Vigilance and adaptability remain our best allies in this dynamic environment.

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Cleveland, Ohio recently hosted the FreightWaves, Future of Supply Chain (FOSC) conference. This much-anticipated event brought together a cross-section of logistics professionals, all keen to explore the changing terrain of the freight industry. 

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Denim was one of 24 technology innovators attending FOSC giving demonstrations on their software and services. We had the privilege of interacting with freight and logistics leaders and influencers who provided incredible insights into their operations approach, challenges, and the overall supply chain landscape.

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In the current freight market, characterized by tight budgets and narrowing margins, the topic of investing in freight technology took center stage. The pivotal question on everyone's mind: is investing in freight technology a smart move right now? The answer, intriguingly, is a resounding "yes, but…". This nuanced response sparked extensive exploration into when and how freight technology plays a role in the industry this year.  

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Tech Talk: David Stone on the Role of Technology in Freight Brokerage

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The  FreightWaves, Future of Supply Chain opened with an enlightening Check Call interview with Mary O'Connell and David Stone from Ryder. David remarked that contrary to the common practice of cutting technology costs in a down market, investing in technology can be a game-changer. His golden rule for assessing technology stacks is simple - if technology can increase the efficiency of your staff, it justifies its price tag.

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David stressed the purpose of technology in freight brokering is to "remove non-value add tasks." For example, an agent manually entering data from your TMS to your factoring partner is not adding value to your customer. Technology can outsource these tasks to free up agents.

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A vital aspect David emphasized during the interview was the need to consult employees on which technologies are truly beneficial and which are no longer needed. He noted, "While every freight brokerage might have 14 - 20 technology licenses, they're not utilizing all of them." This observation suggests that leadership gains tremendously by connecting directly with ground-level agents, honing in on technologies that can eliminate tasks that don't bring additional value to their customers. 

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In closing, David's counsel for present-day freight brokers is critically evaluating potential technology partners. He urges them to come to product demos armed with specific issues and give consideration to partners who respond with authentic solutions rather than scripted answers. This approach underscores the importance of fostering a relationship based on transparency and true collaboration.

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Grading the Game Changers: A Fireside Chat on Digital Transformation

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The  FreightWaves, Future of Supply Chain saw an engaging discussion on the essential role of technology in freight operations between industry expert Craig Fuller and Peter Rentschler, CEO of technology consulting firm Metafora. In a unique approach, they graded each emerging technology sector on its implementation. Here's their verdict!

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Transportation Management Systems (TMS) barely scraped through with a C-, mainly attributed to inadequate training and haphazard implementation procedures. Peter emphasized the common mistake decision-makers make in selecting a TMS that fulfills rudimentary needs but needs to consider the distinct freight movements of each brokerage or company. He regularly suggests that his clients conduct a process map exercise to understand their unique workflow. Subsequently, they can customize the platform to optimize workflow with the fewest clicks possible. Peter asserts that this often overlooked, essential step could significantly boost operational efficiency.

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In stark contrast, digital freight matching platforms emerged as the toppers, earning an A. Their ability to assemble scattered data, structure it, and present it in a manner that provides actionable insights won them the top spot.

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The category with the most volatility was payments, characterized by swift changes and intricate dynamics. The payments field is wide, ranging from entities primarily focused on factoring fees to those delivering top-tier operational products embedded within these fees. Peter suggests the latter approach can provide freight brokers with a substantial competitive advantage. The grades in this category varied widely, reflecting the diversity of experiences among Peter's clients; some occasionally felt constrained by their payments platform due to strict factoring terms. Nevertheless, Peter praised certain high-performing entities that earned A grades for their commitment to empowering brokers, exhibiting an entrepreneurial zeal that aims for broker success.

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Brokerage BFFs: Technology and Operations

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Zach Jecklin, the Chief Information Officer at Echo Global Logistics, and Jay Gustafson, the EVP of Brokerage Operations at Echo, openly discussed their strategic use of data to enhance customer service and fortify partnerships.

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Jay veered from industry norms in a sector typically resistant to embracing technology. He declared, "Technology and data have improved our staff's capabilities and accelerated their learning process." He highlighted a crucial turning point where, thanks to technology, his team shifted focus from routine tasks to building relationships.

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Zach and Jay delved into a critical debate in freight technology: the choice between building or buying. When contemplating purchasing, the Echo team places high importance on API access, which Zach credits for modernizing their technology stack. Echo also assesses whether the off-the-shelf technology resolves a specific problem. If it's a common industry challenge, they advise buying since there's likely a provider or several offering efficient solutions. However, the Echo team leans towards building their own solutions for unique internal or company-specific issues.

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FreightWaves Future of Supply Chain Summary

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FreightWaves Future of Supply Chain Conference emphasized how the right technology investments can distinguish between merely surviving and thriving in this market. While the industry has come a long way in embracing and leveraging technology, there is still an opportunity for further efficiencies and growth. 

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Through sessions and several discussions, it became clear that it's not enough just to have freight technology licenses anymore. Freight brokerages and logistics companies must develop detailed selection criteria and invest in implementation. Integrations and open APIs were the buzzwords of the conference. With the right partners, transparency, and a focus on implementation, the 'future of supply chain' has immense promise and potential.

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The FreightWaves Future of Supply Chain conference offered a glimpse into freight technology's current state and the industry's endless possibilities. We are truly thankful for the opportunity to connect with so many freight brokers and industry partners, each conversation a chance to delve deeper into the intricacies of the market. We are looking forward to the next big event - F3: The Future of Freight Fest in Chattanooga, until then.

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Our SmartPartner series highlights like-minded partners innovating for a more connected and transparent supply chain. This month we are thrilled to spotlight Turvo!

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To bring you an inside look into our partnership and the innovative solutions that Turvo offers, we connected with Jeff Graan, Vice President of Product Management and Innovation at Turvo. Jeff's extensive experience and successful track record in the logistics industry have been crucial in guiding Turvo's highly-regarded platform.

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Before joining Turvo, Graan held senior leadership positions at MercuryGate and BluJay Solutions. He also led supply chain activities for world-renowned Fortune 500 companies, including Whirlpool and General Motors, while serving in prominent roles at Schneider National and Penske Logistics. His vast industry knowledge and pioneering vision shape Turvo's journey to reinvent the supply chain industry. 

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Here's what he had to share about Turvo, the Denim integration, and his advice for freight brokers in today's market.

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Q: What does Turvo offer today? 

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A: Since 2014, Turvo has been pioneering and developing a collaborative approach for the supply chain network. We aim to disrupt the industry with intuitive technologies that enhance end-to-end logistics communication and build efficiencies for our customers in the supply chain, one of the world's most vast and critical industries.

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Turvo offers the leading modern TMS solution for the supply chain industry. Our TMS runs on our unique Collaboration Cloud, which leverages the latest SaaS cloud technology. This sets Turvo apart from other logistics software options in the market. Our platform unifies supply chains, enabling real-time interactions and problem-solving. With Turvo, users can identify and address issues as they happen, ensuring smooth operations.

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Our platform caters to the specific needs of brokers and 3PLs, empowering them to manage their entire freight business seamlessly, including:  

• Automate processes
• Set alerts
• Manage exceptions
• Interact directly with drivers, carriers, and customers 
• Provide 100% shared shipment visibility, giving customers real-time information and eliminating the need for constant check calls

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Turvo offers a comprehensive solution that optimizes supply chain management, enhances collaboration, and provides unparalleled visibility. With Turvo TMS and our Collaboration Cloud, we empower businesses to streamline operations, boost efficiency, and deliver superior customer service.

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Q: Why do freight professionals choose Turvo?

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A: Freight Professionals choose Turvo because we offer a modern TMS solution that addresses the evolving needs of the supply chain industry. Our comprehensive communication and analytics solution enables end-to-end management of freight processes.

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Here are the key reasons professionals gravitate toward our platform:

• Modern TMS solutions tailored to the evolving needs of the supply chain industry
• Comprehensive communication and analytics solution for end-to-end freight process management
• Enhanced collaboration and visibility capabilities that foster operational efficiency and productivity
• Ability to support business scalability
• Trustworthy platform known to streamline operations, improve efficiency, and stimulate growth

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But don't just take my word for it. Brittany Traylor, Founder and CEO of TraylorTranspo, shares her experience with Turvo:

"Our mission at TraylorTranspo is to build a fast-growth brokerage that benefits everyone in the supply chain. Whether it's a carrier's market or a shipper's market, our goal is to provide a tech-enabled logistics solution that hedges risks for all parties involved and grants all of our employees and customers higher service levels and better business opportunities. Turvo was the right TMS partner to help us achieve these goals and scale quickly without disrupting the business as we strive to reach the Fortune 500 list."

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Q: Why did you choose to partner with Denim? 

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A: Turvo has partnered with Denim to provide automated and simplified freight payments and financing for brokers.

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Scott Lang, Chairman and CEO of Turvo, mentioned: "The partnership brings a best-of-breed payment platform into our extensive partner and integration ecosystem and gives our broker customers another layer of automation and excellence in their back-office operations. The biggest gain for our customers is the experiences they can pass onto their customers and carrier networks."

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By integrating Denim's freight payment solutions into the Turvo platform, users can enjoy a seamless and streamlined experience. This collaboration enhances communication, simplifies payment processes, and improves overall efficiency within the supply chain industry. Ultimately, the Turvo-Denim partnership aims to deliver an enhanced and comprehensive solution that optimizes supply chain management and simplifies freight payment processes for customers.

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Q: What advice do you have for freight brokers? 

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A: Freight brokers looking to partner with technology providers need to align their choice with their future business objectives. More than just providing operational tools, the right technology partner can invigorate both internal and external teams, setting the stage for competitive advantage. While visibility remains key, real advancement comes from fostering a collaborative environment. Such strategic investments in forward-thinking technologies pave the way for sustainable success.

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Empower Your Freight Operations with Denim & Turvo

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Are you a Turvo client seeking to enhance your payment infrastructure? Or you're a Denim customer searching for a TMS solution that aligns with your business needs. Regardless, the Turvo-Denim integration provides an all-encompassing, innovative solution capable of transforming your operations and setting you on the path to success.

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Don't hesitate to contact us today to discover more about how the Turvo-Denim integration can elevate your brokerage and give you a competitive edge.

Cleveland is home to the Rock and Roll Hall of Fame and host of the upcoming FreightWaves Future of Supply Chain. The two-day event starts on June 21st with a packed agenda of engaging discussions, rapid-fire demos, and hands-on learning experiences. 

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To help you prepare your schedule, we have curated a list of five key sessions that are unmissable:

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1. How Tech and Operations Can Best Collaborate

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In this fireside chat, Zach Jecklin and Jay Gustafson of Echo Global Logistics demonstrate the potential of data science to transform operations, bolster customer service, and fortify partnerships. Echo's journey offers a roadmap for other companies looking to leverage technology in their digital transformation journey.

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2. VC Trends and the Supply Chain Tech of the Future

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Pat Martin from Venture 53 offers a fresh perspective on emerging trends in freight tech. His insights into the metrics investors value most and the state of the capital market environment are essential knowledge for seasoned industry professionals and those just embarking on their careers.

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3. Digital Transformation Trends in the Industry

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FreightWaves founder and CEO Craig Fuller and Peter Rentschler, CEO of Metafora, delve into the pivotal role of modern integrations and connectivity in our industry. Learn how the leaders in transportation are using technology to break down silos and foster stronger connections with customers and partners.

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4. Transforming Complexity

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Leveraging Data and AI for Optimal Global Supply Chains: Charles Odom of Halliburton guides us through global logistics, demonstrating how Halliburton is harnessing data analytics and AI to revolutionize its operations, enhance efficiency, and drive industry innovation.

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5. Navigating the Current Freight Market

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Join Bart de Muynck of Project44 and Craig Fuller from FreightWaves as they discuss the volatile nature of freight markets and the importance of real-time data. Learn how the industry's top organizations are becoming more responsive and resilient in the face of change.

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These sessions offer practical, actionable strategies to keep pace with the rapidly evolving landscape shaped by digital transformation. With a keen emphasis on data, technology, and the digital shift, we are confident that you will depart equipped with vital knowledge to propel your organization forward.

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However, this event extends beyond being a mere learning opportunity. It's an opportunity to network with industry experts, seek solutions to your pain points, and draw inspiration from shared success stories. 

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Join us at booth C314 where the Denim team is ready to discuss freight technology stacks, digital payments, flexible factoring to SmartBroker, and more.

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At our booth, you can expect:

• Demonstrations of our latest features, such as 1-click document collection and early invoicing. Experience our practical solutions firsthand.
• An opportunity to meet our long-time client, Shay Lynn-Dixon, from SCALE Logistics. Hear their successful journey directly from them.
• A friendly game of Putterball. Come and give it your best shot!

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We look forward to meeting you, and Go Browns!

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Game Changers in Freight Tech is a unique opportunity to see the latest advancements and technology transforming the freight and logistics industry. It's not just about hearing about these changes—it's about seeing them in action, understanding how they work, and envisioning how they could be helpful to your operations.

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Hosted by Chris Arredondo of Cargo Chief, this free virtual event spans two days and features insightful panels and demos. It's a chance to delve into cutting-edge technologies and creative solutions that streamline logistics processes, optimize operations, and enhance supply chain management.

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The event features keynote speakers Anne Reinke, President of TIA, and Charlie Saffro, CEO of CS Recruiting. Their insights and experiences promise to provide valuable perspectives on freight technology's current state and future direction. They'll share their knowledge, predictions, and advice for navigating this rapidly changing industry.

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The event's agenda features industry leaders, entrepreneurs, and experts driving change in the freight tech space. Panel discussions include:

• Fortifying Resilience: Preparing for Challenges with Technology as Your Ally
• The Partner Puzzle: How to Evaluate and Compare Tech Partners Effectively
• Breaking the Plateau: Maintaining Momentum for Continuous Growth
• Beyond Price: Unraveling the Value Differentiation of Tech Partners
• Overcoming User Hesitations: Removing Barriers to Influence Product Adoption

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We're particularly excited to announce that our very own Parker Caldwell and Ben Jones will be part of the event, showcasing the capabilities of Denim. On Thursday at 2:50 pm EST, they will give attendees a demonstration of the Denim dashboard. They'll show how its functionality can save your brokerage time and money through smart automation and flexible factoring. Plus, they'll give a first look at our newest feature: Document Collection.

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Additionally, Ben will participate in the panel discussion on 'Overcoming User Hesitations: Removing Barriers to Influence Product Adoption,' scheduled for Thursday at 3:05 pm EST.

The "Game Changers in Freight Tech" event is more than a conference. It's a chance to witness firsthand the impact of technology on the freight industry. It's an opportunity to learn from the best in the business and to gain insights that could shape the future of your operations.

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So, take advantage of this opportunity. Join us and the rest of the industry's game-changers as we explore the future of freight technology together. Whether you're an industry veteran or a scaling brokerage, this event promises to be insightful and full of ideas you can take back to your organization.

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Get your free ticket today to the Game Changers in Freight Tech Showcase.

By: Sean Smith, Head of Product at Denim

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I was honored to attend the renowned 51st Annual J.P. Morgan Global Technology, Media, and Communications Conference in Boston, Massachusetts. This landmark event saw an impressive lineup of established industry leaders and emerging high-growth companies discussing game-changing strategies, technologies, and trends in the digital payments landscape.

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I aimed to understand and learn new solutions and trends leveraged by key industry players and pinpoint opportunities that could enhance our freight payment platform for the freight industry.

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Here are some insights and key learnings taken from the conference.

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FIS: A Beacon of Positivity

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FIS, a leading global technology solutions provider for merchants, banks, and capital market firms, brought a refreshing perspective to the conference. 

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FIS CEO Stephanie Ferris directly challenged the often negative sentiment in the news. Contrary to the prevailing "gloom and doom" outlook, Ferris found the feeling among bankers to be exceptionally positive. "Last week was the FIS user conference, and I was concerned that everyone would be very negative. However, the sentiment among these bankers is extremely positive and not the gloom and doom you hear on Bloomberg daily," Ferris shared. 

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Her report of increased net deposits across the institutions FIS supports underscored this unexpected positivity, demonstrating the banking industry's resilience in the face of uncertainties and challenges.

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LendingTree: The Importance of Customer Engagement

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LendingTree's panel discussion emphasized the critical role of product and user experience in financial services. 

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The company, renowned for its online lending marketplace, pointed out the importance of offering customers more than just financial transactions. Through practices such as providing tips on the impact of balance payments on credit scores, LendingTree significantly improved customer engagement. 

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Furthermore, LendingTree's focus on enhancing customers' credit mix and stimulating their engagement highlights a proactive approach to improving customer satisfaction and trust. It emphasizes the value of innovative engagement strategies in developing loyal and satisfied customers in the financial services sector.

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Bill.com: Payments Simplified

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Another notable session was with Bill.com, a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses. The company sees itself as a pioneering player in the payment space in the same way ADP revolutionized the payroll industry. 

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Bill.com's strategy targets accountants and finance professionals, recognizing their influence within businesses. By focusing on high trust champions, Bill.com experienced its most successful quarter in new user acquisition, with most referrals coming from other trusted financial institutions.

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Looking ahead, Bill.com plans to offer a comprehensive payment solution that includes international and instant payment services. Their future growth strategy also aims to broaden accountants' services, transforming them into a "CFO in a Box." 

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Affirm: The Future of Consumer Finance

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Affirm, a platform that provides installment loans to consumers at the point of sale, highlighted its current focus on ensuring access to capital and maintaining strong credit standards. 

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As they prepare to launch their new card product, Affirm Debit, the company noted significant shifts in consumer spending habits since the end of April last year. In response to these changes, Affirm rolled out adaptive checkouts designed to manage risk better and provide more systematic and flexible lending options.

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On the macroeconomic front, Affirm identified a slowdown in discretionary spending attributed to inflation, except in the travel sector, which continues to see substantial spending. However, despite a less positive financial environment than the previous year, the company affirmed that it is well-funded and not capital constrained.

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AvidXchange: Innovation in Payments Automation

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The conference also introduced participants to AvidXchange, a payments automation company that targets the middle market (companies with annual revenues between $500k-$100m) and integrates with over 200 accounting/ERP systems. AvidXchange aims to shift around 50% of paper check transactions to digital payments, significantly reducing costs. 

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AvidXchange is particularly excited about the potential of AI in automating back-office functions. They are actively working to enhance their platform, develop customer-specific feature enhancements, and increase their system integrations. They are also set to launch a new product, the Invoicing Accelerator 2.0, which utilizes unique data models to improve invoicing for next-day payments, a process similar to factoring.

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J.P. Morgan Tech Conference Summary

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The 51st Annual J.P. Morgan Global Technology, Media, and Communications Conference offered valuable insights into the rapidly evolving digital payments industry. The learnings from the conference will help guide strategic decision-making and inform growth plans as we strive to maintain our position as a leader in freight payment technology. The key takeaway of the J.P. Morgan Tech Conference was reaffirming our commitment to continually evolve and adapt to provide robust, reliable, and innovative payment solutions that our partners and investors trust.

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As we move forward, we look forward to another year of navigating the complex digital payments landscape, staying ahead of emerging trends, and continuing to meet the unique needs of freight brokers and truckers in our ever-changing digital world.