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Access to working capital is not the only benefit of freight brokerage factoring. 71% of brokerages making $2 million or more in monthly revenue use invoice factoring, according to our recent report. Even enterprise brokerages, who likely don’t need working capital, choose to factor.

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Why? 

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Because factoring for freight brokerages provides protection against partnering with risky shippers and improves carrier reputation. 

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Protecting your brokerage relies heavily on operating with a solid reputation. It only takes one customer that can’t pay their invoices to dry up your network.

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The better your reputation, the better partnerships you'll obtain. The freight market is soft right now. You can't afford to work with the wrong shippers or lose trust with carriers.

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You need to grow a big network of qualified shippers and carriers so that you're ready for anything. Denim can

help you do that faster and more effectively. ‍

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Vet Your Shippers

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Unfortunately, freight brokerages are not immune to scams (like double brokering), fraud, and deception. You want to make sure you’ll receive payment before booking a load or contracting a new lane.

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When your network consists of shippers with bad credit, your entire business becomes vulnerable.  Payment recovery issues can hinder your growth and ultimately hurt your image. 

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It only takes one non-payment from a shipper to undo a strong carrier network. 

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While due diligence helps, it can only mitigate some risk for your freight brokerage. Factoring with Denim protects brokerages with unlimited shipper credit checks.

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Denim's Solution

• Denim offers free, unlimited shipper credit checks, so you can assess the risk. 
• You can rest easy knowing you’re protected with unlimited shipper credit checks on all your prospects.

“Denim’s underwriting helped SCALE Logistics take the risk out of her business by credit checking her customers. Shay Lynn Dixon said ‘it’s like having your own CFO.’”

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Lower Your Days to Pay

High diesel prices and inflation costs are straining carriers profits and business. 

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Carriers are going to prefer brokerages that pay the fastest, regardless of your shippers terms. No one likes chasing down receivables, and slow payments will inevitably cause your carriers to lose trust. The net-30 days of the standard of the past is obsolete in today’s digitized environment.

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Factoring for freight brokerages can lower their days to pay carriers without impacting cash flow. Carriers will learn that you’re an honest and reliable broker and be more willing to work with you. 

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Not only does lower days to pay strengthen carrier relationships, it improves your credit. Staying as up-to-date as possible makes life easier for you and your carrier network. The logistics industry is big, but your corner of it is likely small enough that everyone talks, so prioritize performance that boosts reputation over anything else.

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Denim's Solution

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Nobody should have to waste time getting paid for a job well done. That's why Denim helps you lower your days to pay to as little as 24 hours. 

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Denim offers all clients free QuickPay, which means carriers are funded within 24-48 hours. There's no cost to you for the use of Denim's QuickPay service. Brokerages can choose to offer this service for a fee to carriers or not. 

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“Since working with Denim, Direct Expedite has become known as ‘the guys who pay their carriers within 48 hours of delivery.” 

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Grow Your Qualified Carrier Network

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Shippers want to work with freight brokerages with a strong and reliable carrier network. So in order to obtain new business, you need to grow and maintain a qualified carrier network. 

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Growing a carrier network doesn’t happen overnight. But how do you do that optimally?

There are thousands of brokers that carriers can decide to work with, so it’s important to emphasize your value. 

• Humanize your brand by sending holiday gifts and checking in on carriers' wellbeing. 
• Specialize in a niche market for a unique connection with carriers. 
• Be transparent on payment status by offering a contractor dashboard.

 As a growing freight brokerage, getting carriers to work with you over the competition is a huge obstacle in building your business. But, by setting yourself apart, you can begin to build your carrier network and stand out.

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Denim's Solution

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We provide a two-pronged approach to growing your network of qualified carriers.

• Pay quickly: Pay out shippers in as little as 24 hours and eliminate time-wasting follow-up from carriers about payment.
• Build trust with carriers with Denim’s contractor dashboard: Carriers can upload sensitive data like bank information and addresses directly into their contractor dashboard. This ensures information is secure while establishing trust between carriers and brokerages.  

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5 Ways Denim Helps Immediately

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While factoring for freight brokerage is largely associated with maintaining working capital, there are other great benefits factoring with Denim has to offer. 

1. Pay your carriers faster, boosting satisfaction and trust.
2. Grow your network of carriers, so loads are delivered on time.
3. Vet your shippers through free, unlimited credit checks.
4. Prevent any loss in this soft market by reinforcing your network.
5. Protect what you've built, so you don't have to put out fires later.

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Put up a strong logistics defense with factoring from Denim.

The demand for freight brokerages has never been greater as shippers face increasing pressure to lower costs while offering faster delivery. 

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A recent report by Allied Market Research supports this claim, valuing the global freight brokerage market at $48.1 billion in 2021 and estimating revenues will reach $90.7 billion by 2031 at a compound annual growth rate of 6.3% from 2022 to 2031. The report attributes this significant growth to a variety of factors, including a rise in demand for cost-effective ways to ship goods faster and safer and an increased demand for tech-driven logistics services. However, rather than making the necessary investments themselves, shippers are looking for partners that can meet their needs.  

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Freight brokers today must invest in technology moving forward to remain competitive in a growing but tight market. Technology adoption and the data that comes with it has the opportunity to completely change the way freight brokers operate. As a result, more and more companies are implementing technology to transform their businesses. A Deloitte and MHI study of 1,000 manufacturing and supply-chain industry leaders found that in the next five years, 82% of supply-chain companies plan to adopt predictive and prescriptive analytics, while 22% are already using the technology. 

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It has become clear for many in the industry that the path to success means investment in better business management tools. But, regardless of what those tools look like, how brokers collect and use the data associated will be key to maintaining a competitive edge. However, with so much freight data coming in, it can be challenging to decipher what is of actual value. 

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In this article, we will explore why you should care about business analytics as a freight broker, what metrics you should consider, and how to use those data points to improve your business operations. 

Making your carriers feel valued is crucial to building trust, so it is always a good investment to show some gratitude. Leave your carriers with the motivation to hit the road at full speed with these gifts for truck drivers.

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The Importance of Valuing Your Carriers

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Here are just a few benefits of investing in carrier relationships and showing that you care:

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Build Trust

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People naturally trust those who show they care. This is why, in order to grow your network of reputable carriers, you need to show that you appreciate them and build that relationship of trust. The relationship between brokers and carriers goes both ways. 

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‍Limit Turnover

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To do your job well as a broker, you rely on having carriers you can trust to get the job done. Because of this, losing a carrier is never easy. By showing your carriers that you appreciate them, you can limit this turnover. SCALE Logistics, one of our clients, has never lost a carrier because they understand how important these relationships are!

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‍Boost Your Brand

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In a sea of freight brokerages, it’s more important than ever to have a competitive edge. One way to stay competitive is to treat the people you work with well. Shippers want to work with brokers with a good reputation and one way to maintain a good reputation is to have carriers that enjoy working with you.  

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Attracting and maintaining the best talent is a huge predictor of success. Business owners who see their drivers as simply a cost will pay the price in reduced performance and growth.

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Now that you know why appreciating your carriers matters, let’s look at some ways you can do that this holiday season.

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1. Consider Your Carrier’s Route

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While you might not be able to control how many hours your carriers spend on the route, you can consider offering backhauls to get them home during the holiday season. Ask your carriers where “home” is for them and work your routes around their preferences when possible. 

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Brokers who go this extra mile typically make deep connections with carriers and those connections can help you grow your freight brokerage.

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2. Send a Personalized Thank You Note

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When you write a thank you note by hand, it's a meaningful gesture that carriers will notice. Taking the time to acknowledge their hard work with a personal touch—like mentioning how they expertly navigated a last-minute route change or worked tirelessly through the night—shows that you see and appreciate their specific efforts.

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Adding your own signature, or that of another high-level executive, adds an extra layer of personal recognition. Making this kind of appreciation a regular practice can greatly enhance your relationship with your carriers, fostering a sense of loyalty and mutual respect.

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3. Incentivize Feedback

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As a freight broker, you are always trying to get better and improve your brokerage. One way to do this is to incentivize feedback from your carriers.  

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Quarterly surveys are an excellent place to start. You can ask your carriers for anonymous feedback on what it’s like to work with you and if there is any room for improvement. 

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An easy jumping-off point is the three questions below, which almost any concern will fall into:

• What are we doing well?
• What can we improve?
• What else is on your mind?

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4. Public Recognition 

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Publicly recognizing your carriers' exceptional work through company newsletters, social media, and industry publications showcases their dedication and amplifies their success across the logistics community. 

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A social media shout-out or a feature article can highlight their achievements, such as perfect delivery records or creative problem-solving, spotlighting the individuals who keep your freight moving. 

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This form of appreciation fosters a sense of pride. It encourages a culture of excellence that benefits everyone involved—carriers feel valued, and your company demonstrates its commitment to partnership and quality service.

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5. Offer Wellness Days

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We all need to prioritize our mental and physical health and your carriers are no different. In fact, after long days of hauling, carriers need to focus even more on their wellness. 

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Offering your carriers things like massages, specialty fitness classes, or other wellness gifts is a great way to show that you prioritize their well-being.

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6. Trucker Gifts and Gift Cards

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Showing appreciation to your carriers with thoughtful gifts or gift cards can make a real difference. Practical items like quality travel mugs or seat cushions can make their long journeys more comfortable, while gift cards from truck stops allow them the flexibility to refuel their trucks and themselves on the go. 

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Choosing gift cards from their favorite restaurants or retailers adds a personal touch that recognizes their hard work throughout the year, letting them know they're a valued part of your business as the festive period gives way to a new year of continued partnership.

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7. Investment in Carrier Development 

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Investing in your carriers’ skills is another way to show you value them. Training on new regulations, safety, or technology helps them do their job better, improving your business. It’s a win-win: carriers get to upskill, and you get a network of top-notch professionals who are up-to-date with the industry standards.

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8. Appreciation Events 

You could host a driver appreciation dinner or luncheon if you work with local drivers. These events are a chance to relax and celebrate the hard work that carriers do. 

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You can make these gatherings extra special by giving out awards for exceptional service. It’s a way to show carriers that you see and value their hard work and dedication beyond just the day-to-day business. 

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9. Celebrate Milestones (Big & Small)

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Celebrating milestones is a great way to show appreciation throughout the year, not just during the holidays. You’ll likely start by celebrating major milestones, but you can also celebrate smaller milestones, too! 

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Celebrating these milestones will keep your carriers engaged with your freight brokerage and continue to value your broker-carrier relationship. 

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10. Have a Winter Gear Giveaway

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Truckers deal with winter challenges more than most, so why not give them high-quality, well-insulated hats, jackets, and other winter gear? Most carriers would appreciate name-brand (non-branded) gear like Patagonia or The North Face. They’ll have your brokerage in mind every time they put on their new jacket or gloves!

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11. Network Introductions

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Lastly, networking opportunities are key for carriers to grow and connect with others in the industry. As a broker, you can help by setting up events where carriers can meet potential clients like shippers and warehouse managers. 

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This isn’t just about finding new business; it’s also about sharing knowledge and strengthening the supply chain. By helping carriers network, you’re showing you care about their growth, not just the business they bring you.

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Make Your Carriers Feel Special

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These tokens of gratitude are a few ways to make your carriers feel special this holiday season. A freight broker is only as strong as the relationships they have with their carriers, so make sure your carriers feel appreciated. With an extensive network of carriers, you’ll be able to attract top-tier clients and begin to broker their loads. 

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Sending holiday gifts isn’t the only way to make your carriers feel confident working with your brokerage. In addition to the above suggestions, ensure that you are paying your carriers on time and communicating with them frequently. Contact us today to learn more about how Denim can help you nurture your carrier relationships. 

Not all factoring solutions are created equal. 

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Freight factoring is an excellent solution if you're looking to leverage your business's working capital to attract more clients and build strong relationships with carriers.

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But which type of factoring is best for you?

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There are two common types of freight factoring:

1. Recourse
2. Non-Recourse

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The primary difference between the two options is who bears the responsibility in instances of non-payment. However, this distinction introduces nuances that can significantly affect your business.

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It’s worth understanding both types. Not bearing responsibility doesn’t necessarily mean you’re getting the best contract term. In fact, it could be costing you.

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Recourse Factoring for Freight Brokers

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Recourse factoring means you assume liability for invoices that are not paid. In exchange, the fees for these services are lower, and your customers are more likely to be approved for a credit line.

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The Benefits of Full Recourse Factoring for Brokers

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Wondering if recourse factoring is right for your freight brokerage or trucking business? Here are some of the main benefits:

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Lower Fees

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One of the main benefits of full recourse factoring for freight brokers is that you can usually get a lower factoring fee because the factoring company is taking on less risk themselves. 

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Recourse factoring fees range from 1% to 5% depending on your volume, business credit, and various additional factors. 

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Flexible Time to Pay

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Even though most recourse factoring companies will charge-back an invoice within 90 days if they can’t get payment from the customer, there is always room for flexibility. 

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For example, in the recent down market many shippers have been extending their payment terms to 90 to 120 days. Instead of instantly denying you the customer, recourse factoring companies will examine their credit and find a way to work with you.

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In addition to this flexibility, recourse factoring companies are also diligent in figuring out the reason for a non-payment before it becomes an issue. 

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More often than not, the reasons are related to paperwork (a page of the BOL is missing, the AP contact quit and we need to get an updated phone number, etc.). These issues are generally resolved well before approaching the recourse timeframe of non-payment.

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Work with More Clients

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Running a brokerage has inherent risks. At the top of the list is taking on new clients, especially those just starting out or with low credit scores. There is a chance of non-payment and there’s also a chance to grow your businesses together and take on more and more loads. 

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With recourse factoring, you have the choice to take on these risks. Recourse factoring companies will do a deep dive on customer’s credit and notify you of any potential glaring red flags and provide a fair credit limit. 

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Because recourse factoring companies are not liable for non-payment, you are going to find it easier to factor customers that may have some risk. Your customer pool is much bigger. And you get to reap the full reward.

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Quick Processing

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Other lenders may ask for stipulations or wait periods that make getting paid more trouble than it's worth. Recourse factoring companies are typically able to review applications in 2-4 business days, so you can turn your invoices into cash in under a week.

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The Downside to Full Recourse Factoring for Brokers

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The main challenge with full recourse factoring is the broker's responsibility for customer non-payment, especially in the event of bankruptcy. With the current market dynamics, where numerous trucking companies face financial hardships, the risk of delinquent payments looms larger than ever.

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However, this risk isn't insurmountable. Brokers have access to a variety of strategies—many of which are cost-free—to safeguard their operations and financial health:

• Foster Strong Customer Relationships: Regular interactions with your shippers can provide insights into their business health and preempt potential payment issues.
• Monitor Payment Patterns: A history of late payments can be a red flag, indicating deeper financial troubles.
• Keep an Eye on Credit Scores: A declining credit rating is often a precursor to financial instability.
• And more… Read our article for detailed warning signs of bankruptcy.

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By maintaining close relationships with your clients and vigilantly monitoring their financial health, you effectively reduce the risks associated with non-payment that full recourse factoring presents.

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Non-Recourse Factoring for Freight Brokers

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Non-recourse factoring means the factoring company takes responsibility for non-payment in cases of customer bankruptcy.

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The Benefit of Non-Recourse Factoring for Brokers

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In a market where we saw 8,000 brokerage and 88,000 carrier bankruptcies filed in the last year, finding ways to reduce risk is a serious benefit. Non-recourse factoring removes or lessens the risk of non-payment due to customer bankruptcy. 

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Even with the best non recourse factoring companies usually have a loophole in the agreement that states that the only time you will not be charged back on a load is if the customer files for bankruptcy or goes out of business within the 90-day collection period. 

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The Downsides of Non-Recourse Factoring for Freight Brokers

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Non-recourse factoring might sound tempting because you have less liability as a freight broker, but there are some important considerations as you grow your brokerage and need more flexibility.

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Limited Customer Base

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Because a non-recourse factoring company will be taking on more risk, non-recourse factors screen the broker’s customers very thoroughly and will factor loads only from customers who have impeccable credit. 

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As growing brokerages are not likely to work exclusively with blue-chip customers, there is a good chance that the freight brokerage will have all or most of its customers denied by the non-recourse factoring company. 

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Not to mention, because a non-recourse factoring company is inheriting the risk, they are going to be invasive with your customer. They will want a long laundry list of financial data before being able to extend a credit line. This can be extremely disruptive to your relationships. 

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Higher Rates

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As you research factoring companies, you may find that non-recourse factoring companies often charge a higher rate because they are taking on more risk. 

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Typically non-recourse factoring rates start at 2% and can go as high as 6%. 

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In addition to that, generally only established brokerages will be approved for non-recourse factoring. 

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Not a Full Coverage Option

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Non-Recourse factoring can be very misleading. Many see non-recourse and think their brokerage is safe from ALL forms of non-payment. 

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However, many non-recourse factoring agreements typically only cover non-payment during instances of bankruptcy. 

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Some of the cases in which brokers are not protected by non-recourse factoring include:

• Disputed invoices
• Contract breaches
• Invoice errors or discrepancies 
• Customer insolvency from external factors outside their control (ie: natural disasters)
• Cases of fraud or illegal activity (ie: double brokers) 

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What you Need to Know about Recourse vs Non-Recourse Factoring in 2024

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When deciding between recourse and non recourse freight factoring in 2024, freight brokers should consider the following: 

• Financial model and plans - Can your margins afford a higher factoring fee for a small safety net? 
• Client base - Are any of your clients giving signals of bankruptcy? If so, are there other ways to reduce the risk (ie: diversifying your portfolio, increasing rates, or insurance). 
• Terms and Conditions - Do you have the time and bandwidth to manage a factoring company with tight restrictions? 

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Ultimately, the choice between recourse and non-recourse factoring depends on each freight broker's specific needs, risk tolerance, and financial strategy. Engaging with a factoring company that offers transparent terms and aligns with your business values is crucial for a successful partnership in 2024.

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Your Freight Broker Factoring Solution

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Every freight broker is different and will require different needs with choosing a factoring solution. Freight factoring is a good option to maximize your working capital, manage your cash flow, and build strong relationships with shippers and carriers. 

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At Denim, we offer recourse factoring because it’s the best way to serve our clients, no matter the size of their brokerage. We also offer a number of tools to protect your brokerage, from unlimited customer credit checks to important business metrics like most and least profitable customers. 

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Want to learn more about factoring with Denim? Schedule a demo to experience the whole platform!

The gap between delivering freight and getting paid shouldn't be significant. Luckily, you can get paid instantly by using freight broker factoring.

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Keep your business running on the capital you've already created. Stop relying on buffers created from credit and loans. Focus on running your business and, ideally, growing it, instead of chasing down payments, leaving you light on resources when opportunities do arise.

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Freight broker factoring has been around for decades and has helped many freight brokerages grow instead of stagnating.

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What is Freight Broker Factoring?

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While 40 days is the standard amount of time to get paid in the freight industry, selling your invoices to a factoring company allows you to get paid immediately.

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Sure this is convenient, but what's the cost to your business? Most companies that specialize in factoring for freight brokers charge a flat rate per invoice factored, usually between 2-5%.

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How Factoring for Freight Brokers Works

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The terms of your factoring agreements depend on the outcome of your application, but here are the high-level steps:

1. A customer needs an item shipped between two locations.
2. A credit check is performed upon hiring to ensure their load qualifies for the requested services.
3. When the item is delivered, you invoice Denim.
4. Denim purchases your invoice and you and your carrier are paid within 24 hours.
5. Denim collects payment from the customer.

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Factoring vs Bank Loans

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When you get a bank loan, you might put up collateral in the form of AR or other business assets. This allows you to retain ownership of assets while simultaneously selling the invoices to a factoring company. Factored accounts are removed from receivables in exchange for the ability to bill the client directly. 

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The transaction simply replaces AR with cash in the bank, or off-balance sheet financing. One big benefit of using a factoring company as a freight broker is that you won't incur a monthly interest expense, unlike a bank loan. 

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Factoring allows you to reduce your total balance sheet debt while also lowering your debt-to-equity ratio.

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The Benefits of Factoring for Freight Brokers

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There are many benefits of factoring for freight brokers. Here are just a few:

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More Access to Working Capital

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Mega brokers don't suffer cash crunches, they simply keep moving, often steamrolling smaller brokers in the process. Carve out a chance to compete with these big brokers with factoring. What is the total cost of operational pauses? You can't take on new work, your current clients suffer, and in the long run, your reputation suffers. Not to mention you're not at your best as a company when you're constantly stressed over your AR.

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Stay Competitive

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To build a reputation and maintain it as a freight broker, you need to stay competitive. The more value and better experience you can provide, the more likely you'll be to get referrals. You will live or die by these in the freight industry.

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QuickPay‍

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With factoring for freight brokers, your carriers get paid quickly without being charged a fee. The easier you make life for your carriers, the more of them that will come back. Get up to 95% of your invoices paid out just a day after submitting them. 

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Increase Value

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Why should carriers work with your freight brokerage over the others? Starting out, you need to develop a unique value proposition, even if it's only offering a shred more than your competition. The truth is that the freight brokerage industry, and logistics in general, is extremely competitive. Everyone knows how to offer the fundamentals, including factoring. The question is—will you do so in a way that stands out?

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Less Paperwork

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Paper shuffling around getting invoices paid is not only a waste of time, but it can also be costly labor. Eliminate labor that you can give to an outside team and recoup much more than the factoring fee in many cases.

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Free Credit Checks For Shippers

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If you can find a factoring provider like Denim who does free deep dives into shippers, you’ll prevent a lot of unqualified customers from slowing you down.

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Enjoy Flexible Financing Options

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No two freight brokerages are the same and therefore, they have different financing and payment processes. Because of this, it’s important to have flexible financing options. At Denim, for example, you can choose which invoices you want to factor. In addition, we also have a feature coming soon where you can choose when you get paid to either save on factoring fees or get paid sooner if you need the capital. 

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Factoring for Freight Brokers vs Factoring for Carriers

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Denim specializes in freight broker factoring because most factoring companies focus on carriers. Why work with a factoring company that doesn't completely understand your unique needs as a freight broker?

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You don't just produce or ship; you connect the two parts of the supply chain. Without you, loads are delayed and customers are unsatisfied, leading to damaged reputations over time. We understand the value you provide, which is why we cater just to factoring for freight brokers. Our factoring solutions are made by brokers, for brokers.

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How to Choose a Freight Broker Factoring Company

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As a freight broker who wants to be paid quickly, who do you go with to provide your factoring? Here are some things to consider when choosing a factoring partner (spoiler alert: a lot more goes into this partnership than just trying to get the lowest rate):

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Referrals

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The logistics sector is a tight-knit community so if you’re not sure which factoring company to choose, you can consult others who have been in a similar position to see who they chose.

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Success Stories

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When choosing a factoring partner for your freight brokerage, it’s great to see success stories from similar brokers. We have many amazing success stories from freight brokers just like you. They share their stories and how factoring helped them grow their business.

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Reviews

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Like success stories and referrals, reviews are a great form of social proof as you research different factoring companies. We are proud of our 4.8 star average on TrustPilot. 

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Specialization

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As we mentioned, freight brokers have unique needs and should look for a factoring partner that understands their line of work. You will have different needs than carriers looking for factoring.

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Factoring Types

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Recourse and non-recourse factoring are the two most common types of factoring. Non-recourse factoring means the factoring company assumes most of the risk of non-payment by your customers. This can be misleading because non-recourse does not necessarily protect your company from all risk. There are usually strict stipulations associated with non-recourse factoring, and the situations in which you are not responsible for customer non-payment are extremely specific.

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Advance Rates

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When considering your factoring partner, you should decide how much of an advance you would like while you wait for your invoices to be paid in full. Denim offers 90% advances to our clients.

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Minimums

Some factoring companies for freight brokers will require monthly minimums, which can be hard to reach for smaller brokers. At Denim, we don’t require any factoring minimums and you can choose which invoices you want to factor.

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Fee Type

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Flat and variable fees are common. Variable rates fluctuate with your demand. For example, if you assign volume flex variable rates, you'll pay less the more you sell. Rates can also be tied to prime rates, meaning you'll pay more when your factoring company pays more.

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Your Freight Broker Factoring Solution

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At Denim, we are passionate about providing freight brokers with the most flexible, easy-to-use, and convenient factoring solutions. Not only do we offer competitive factoring solutions, but our dashboard is cutting-edge and includes business metrics that every freight broker should know about their brokerage. 

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Want to learn more about factoring with Denim? Sign up for an account today or schedule a demo to experience the whole platform!

Risk is an innate part of life and business. But you can mitigate some risks, avoid unfortunate outcomes, and build a successful freight brokerage. 

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When considering how to grow a freight brokerage, you should know that careful attention to risk management helps you adapt to changing economic times. You can plan for steady growth and build a brokerage that can thrive over the long term.

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Keeping a close eye on your financials is essential to mitigating risk when learning how to grow a freight brokerage. You can focus on accelerating your income, reducing costs, and choosing the right mix of industries and customers to serve. Advanced freight broker software can help you every step of the way by providing you with real-time insights into the current health of your business.

The US freight brokering industry is expanding at an impressive rate. In 2020, the market size was around $1.1 billion, but the market is on pace to reach $13.78 billion in 2028, an annual growth rate of 36.2%.

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Whether you're wondering how to become a freight broker or are an established veteran, you know this rapid growth means opportunity. But you need to prepare now to capitalize on it.

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One critical step is abandoning any cobbled-together technologies you use to run your operations. Specific freight broker technology designed with the needs of the industry in mind wasn't available for years, and many brokers still struggle with outdated solutions.

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The lack of industry-specific freight broker technology has been a barrier to efficiency, but that's not the only challenge. Instead of devoting time to building close bonds with carriers, brokers were all too often mired in paperwork. 

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Fortunately, you can now access digital freight broker technology, streamline your business, and focus on fostering trust-based relationships with your carriers.

The Benefits of Building Trust With Your Carriers

Building strong relationships with their shipping customers is important. But it's essential to extend that customer service mindset to your carriers as well. When you do, you can gain significant benefits for your brokerage, such as:

• Increased loyalty. When carriers feel heard and valued by a broker, they'll likely want to work with that broker as much as possible.
• Enhanced communication, visibility, and service. Honest, transparent communication is the cornerstone of good relationships and a necessity to get the job done. Strong bonds with your carriers can motivate them to go the extra mile for you, which means delivering more proactive service to your shippers.
• Stronger trust between you and your shippers. When you have carriers ready to work for you, you can deliver the service your shippers need when they need it. That means they'll look to you as a trusted freight broker and give you more loads—and that means more revenue.

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How to Build Trust with Carriers Through Freight Broker Technology

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The good news is that the technology you use to manage day-to-day activities can also help you forge strong ties with your carriers. By streamlining routine tasks and offering value-adds like factoring and prompt payments, you can rely on freight broker technology to keep you and your carriers connected.

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Transparent Communication

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To build trusting relationships with carriers, you must be honest about jobs, payments, and expectations. You won't win any points by conducting hard-ball negotiations and undercutting rates. Also, if you can't pay as much as other brokerages, it's best to be upfront about that. When you're open and honest, carriers who enjoy working with you will return time after time, even if you aren't always at the top of the pay scale.

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You should also try to get to know your carrier's preferences. Do they value certain routes or work schedules? Although you may not always be able to accommodate them, you'll earn appreciation by making a good-faith effort to meet their needs sometimes. Giving some consideration to your carriers can make them more willing to step up if you need help covering an extra load or an unplanned cancellation.

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More Payment Options

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As non-salaried workers, carriers depend on prompt payments to ensure a steady cash flow to keep their business running. No one likes chasing down receivables, and slow payments will inevitably cause your carriers to lose trust. Even the net-30 of the standard of the past is obsolete in today's digitized environment.

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With Denim Factoring and QuickPay, you can overcome this common challenge. You can use our freight broker technology to simplify the invoicing process for your carriers and get money into their hands faster. They spend less time handling billing and payments and more time transporting loads, meaning they can earn more. 

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A Higher Level of Service

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Smaller and mid-size freight brokerages have an advantage over larger competitors—a human touch. When carriers work with a larger firm, they often are one of many independent service providers. That can lead to a feeling of being treated like a number, not a person.

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Also, more digital freight brokerage firms are popping up. While they offer efficiency, they can't provide that all-important personal connection. Traditional firms that have top-quality freight broker technology can deliver the same speed while building personal relationships with carriers. 

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You can give your freight brokerage a competitive advantage. A service mindset and freight broker technology that makes the administrative side of the business easy for your carriers can help you stand out.

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Powerful Data at Your Fingertips

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Freight brokering is an innately complex business. You need to juggle multiple shipper accounts and stay on top of their payment patterns. At the same time, you need to engage with various carriers and ensure you are utilizing and paying them effectively. 

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With state-of-the-art freight broker technology, you can keep a close watch on all the critical metrics that drive your business. Denim's Business Performance Dashboard gives you at-a-glance insight into key data, including jobs over time and average days sales outstanding (DSO), along with fastest paying, slowest paying, and most profitable customers. You can always be in the know about the health of the business and make targeted adjustments to optimize your broker operations. 

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Having this information readily available saves hours of time that you would normally devote to administrative work. You can redirect those energies to building better carrier relationships.

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Improved Carrier Experiences

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We all prefer to work with people who respect us and treat us well. For carriers, brokers who keep the lines of communication open and show appreciation will win trust and loyalty. It's also imperative to be transparent about payments so that carriers can know exactly when they'll receive funds for their work.

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Denim freight broker technology makes it easy to achieve those goals. Our freight factoring pays you out for loads promptly and allows you to offer factoring to carriers at whatever rate you prefer. With QuickPay, you can deliver payments within 24 to 48 hours for each factored invoice. Carriers will learn that you're an honest and reliable broker and be more willing to work with you.  

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Trust-Based Carrier Relationships Are Critical for Success

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As you're learning how to be a successful freight broker, you'll set profitability and customer acquisition goals. You should also make fostering close ties with carriers a key business objective. 

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When carriers recognize you as a transparent broker who always pays on time, they'll be happy to work with you. That gives you more stability and predictability since you'll know you have carriers you can rely on to transport loads. You'll develop a reputation as a reliable broker to your shippers, opening the door to more business.

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Without question, embracing technology as a freight broker is critical for success. Today, freight brokers can access intuitive solutions that make the administrative side of the business easier.

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Features like robust data dashboards, automated invoicing, and quick payments mean less busy work and more opportunities to connect to carriers. With more than 90,000 freight brokerages in the US, this attention to relationship-building can make you stand out from the crowd and position your brokerage for long-term growth.

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Contact us to learn more about how Denim can help set your freight brokerage apart and attract top shippers and carriers through technology.

Since the start of the pandemic, the market turmoil impacting the logistics industry, including freight brokers, has made one thing abundantly clear: it’s always prudent to buttress your business against present and future disruptions in your revenue streams.

This means looking beyond working with just a few big customers, no matter how well your current relationships may be, continuously expanding your market reach, and exploring new ways to generate income.

The Importance of Diversifying Your Freight Customers

Sometimes it only takes one unforeseen hiccup to turn your best customer into a former one. Plus, getting underbid and losing a lucrative business opportunity to a competitor is very common. These instances, along with many more, could cripple your operation if you don’t have a robust customer base.

That’s why now is the time to diversify.

With a strategic plan, you can ensure your brokerage weathers any turbulence and comes out stronger and ready to scale in both good times and bad.

How to Diversify Your Customers as a Freight Brokerage

To help you get started, here are six effective strategies you can use to gain a wider audience and reduce business risk.

1. Zero In on an Industry You are Passionate About

Be it pharmaceuticals, construction, or FMCG, most brokers have an industry that they know inside out. What better way to expand your business than by leveraging this specialized knowledge to grow your freight brokerage? 

Call up your industry contacts, get referrals from them, or start an email campaign targeting your favorite niche. Your expertise, experience, and enthusiasm will make a difference, elevate your pitch, and set yourself above your competition.

Guard yourself against future challenges by building a diverse client portfolio around your strongest sector.

2. Expand Your Service Offerings

Many freight brokers often fail to recognize just how much headroom there is to be gained by simply broadening the list of services they provide. 

How about adding additional lanes by building a larger carrier base, and then targeting shippers running freight in those lanes? For example, grab a piece of the multi-billion dollar seasonal shipping market by opening up an intra-Midwest corridor to move agricultural products and equipment.

Another quick way to increase the value of your services is by offering free and convenient online payment options such as ACH QuickPay, which makes your carriers happy with quicker payments while freeing up your backend accounting operations so you can dedicate more resources to customer acquisition and service expansion.

3. Network, Network, Network

It’s vital to ramp up your networking efforts when the times are tough. From making calls, sending emails, attending conferences, hosting local events, and promoting on social networks such as LinkedIn and Facebook, make it a priority to reach out to new prospects regularly and keep building your contact list.

To start, set specific weekly or monthly goals for the number of new contacts you get in touch with, and steadily follow up on those leads. Remember, a healthy sales pipeline starts with a consistent process of identifying and connecting with potential customers in order to support your business development.

4. Highlight Your Advantages

In an ultra-competitive market, every advantage counts in your favor, no matter how small. Keep highlighting your strengths to set yourself apart and enlarge your client base.

When thinking about how to start a freight brokerage business and grow it successfully, make sure you meet & exceed customer expectations by adopting the latest digital tools to improve transparency and deliver a flawless customer experience. 

Luckily, financial partners like Denim allow you to do just that with an array of cutting-edge features such as a business performance dashboard, a fast payment system, and full visibility with advanced reporting. Plus, we also help you pay your carriers faster and boost operational efficiency with ACH QuickPay sent daily, 90%+ advances, real-time TMS integrations, interest-free factoring, collections services, and many more.

Check out our plans for freight brokers and stand out from the crowd with the most advanced, all-in-one platform in the industry.

5. Strengthen Your Business Relationships

The foundation of any freight broker’s business is based on relationships with their carriers and shippers.

Therefore, it’s vital to maintain the highest level of service for your customers - by learning their particular business processes and tailoring your solutions to meet their needs.

Often, this entails making things easier for your carriers. As mentioned earlier, everyone loves to get paid as quickly as possible without delay. Therefore, offering quick, guaranteed payments online via ACH QuickPay is a big plus in any carrier’s book and goes a long way to securing an ever-growing partnership.

Another excellent way to build stronger ties is ensuring seamless integration with your customer’s preferred TMS platform, such as Ascend or EZ Loader, to enable fast load booking, digital documentation, etc.

You can gain even more trust by improving your credit rating on Ansonia, which opens up the door to doing business with a more diverse list of carriers and shippers. 

6. Have a Contingency Plan

The pandemic has taught all of us that anything can and will happen, especially in the often turbulent shipping industry. And it’s up to each freight broker to assess their risks and prepare a contingency plan to ensure their business will continue to function in such emergencies. 

The good news is that it’s not as complicated as you might think.

Start by identifying your key risk scenarios (ie. inclement weather, technical glitches, loss of a big client, etc) and then outline the specific steps you will take to address each one.

Next, determine anything you can do in advance to get prepared (i.e. having a backup internet connection in case the primary one goes down).

Finally, always aim to run your brokerage operation as efficiently as possible for more flexibility in times of need. A great way to do this is by utilizing a financial platform to cut accounting and back office costs, which affords you the leeway to invest in what actually grows the bottom line - the expansion and diversification of your customers.

All Freight Brokerage Businesses Must Work on Diversifying Their Customer Base

The old adage of not putting all your eggs in one basket has once again proven to be sage advice in these trying times. Whether you are just starting a freight brokerage, or are a seasoned firm looking to scale, it pays to take concrete steps right now to diversify and mitigate your risk by applying some ‌tips outlined above.

To learn more about how to set up your brokerage to succeed in any market condition, contactthe experts at Denim to help you run a more efficient operation, attract top carriers and shippers, and bulletproof your business.

A freight brokerage rises and falls on its relationships, with sensitive data flowing between shippers, brokers, and carriers. It is the job of a freight brokerage to tactfully manage and protect this data coming in from both sides. But, as the transportation and logistics industry increasingly depends on technology to manage their businesses, this has become harder to do. 

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Cyberattacks across trucking, logistics, freight factoring, and freight forwarding are now happening more frequently and with added complexity. Not only are these attacks costly, but they can compromise the trust of your customers. According to data from IBM, the transportation sector was the seventh most-attacked industry in 2021, accounting for 4% of all cyberattacks within the top ten industries. When combined with the fact that 60 percent of small- to mid-sized companies will close after a cyberattack, it’s essential that small- and mid-sized freight brokers give special attention to cybersecurity practices. 

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There is good news, though. With the right systems, employee training, and technology partners in place, freight brokers can prevent cyberattacks, grow their business, and become trusted partners that focus on data security for their customers.

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What is a Cyberattack? 

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A cyberattack is any attempt by a foreign party to damage or destroy a computer network or system. There are a variety of ways cybercriminals or hackers can launch an attack, but ransomware ranks as the No. 1 cyber threat to freight brokers because of the level of access hackers can gain. During a ransomware attack, hackers encrypt sensitive data and demand payment to free it. Brokers are usually held hostage by hackers that hope the company will get desperate enough to pay the ransom to regain control of their data. 

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Because successful ransomware attacks can disrupt a company’s entire IT network and cause costly downtime, many brokerages find it cheaper to pay the hackers. This has further reinforced the idea that they are an easy target.  

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Other common cyberattacks include: 

• Phishing. Phishing is one of the more common methods hackers use to gain access to company data. This often comes in the form of an email to unsuspecting employees. The emails almost always look legitimate and can fool even the most careful employee. 
• Password attacks. These attacks refer to a hacker trying to steal a user’s password. They were one of the most common causes of data breaches in 2020, with companies reporting that 81% of data breaches were caused by compromised credentials.
• Man-in-the-middle. In this method of cyberattack, hackers insert themselves into a two-party transaction. From there they can filter and steal data.
• Distributed Denial of Service (DDoS).  In this cyberattack, attackers flood a server with internet traffic to prevent legitimate users from accessing connecting services or websites.

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All cyberattacks will look different, but understanding some of the most common ones can help you prepare and minimize the damage. Suspicious network activity such as abnormal access patterns, database activities, file changes, or unexpected network activity are red flags freight brokers should be looking for to identify and suppress a cybersecurity threat.   

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Is Your Freight Brokerage at Risk of a Cyberattack?

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Freight brokers are responsible for their customers’ most sensitive information, often including pricing and payment information. This puts even small to mid-sized companies at risk of a cyberattack and the financial losses that accompany them. 

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Unfortunately, the freight payment process between freight brokers and trucking companies has increasingly become a common target for hackers who assume these companies lack the sophistication and resources to protect themselves from cyber threats—and that assumption is not always wrong. 

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As digitization for freight brokers has revolutionized the industry over the last decade, many brokerages and carriers have not always kept up with the best practices in their payment solutions and other technologies to improve online safety. The sector’s prominent role in the consumer economy also adds to its vulnerability. Because it is so interconnected, one company’s cyberattack has the potential to bring the movement of freight to a complete stop. This has direct consequences for the entire supply chain down to the consumer level. 

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How to Protect Your Freight Brokerage from a Cyberattack

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Protecting your brokerage from a cyberattack doesn’t have to be hard or complicated. Here are several freight brokerage best practices to help you prepare for the cybersecurity threats that may lie ahead:

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Create a Strong Password

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Cybercriminals often try to access user accounts by using combinations of names, milestone dates (anniversaries, birthdays), and dictionary words. Brokers’ software systems should not only require user passwords but complex passwords. The Denim Payments platform, for example, requires all customers to have strong passwords that are complex for humans or computers to guess. These simple safeguards significantly reduce the effectiveness of password-related attacks.

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Denim also utilizes mandatory password lockouts. We have implemented a mechanism that locks user accounts after 10 invalid password attempts. This measure helps protect customers from "brute force" attacks.

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Train Your Employees

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Employee education is arguably the most important step in improving cybersecurity. Training should be conducted during the onboarding process for all new employees and revisited regularly throughout the year for current employees. Annual training sessions keep employees updated on best practices and ensure they know how to spot cybersecurity red flags, such as suspicious phishing emails.  

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We regularly conduct cybersecurity training here at Denim. We provide employees with the knowledge required to identify and appropriately respond to cybersecurity threats. In addition, we regularly work with independent security teams to conduct penetration testing exercises that involve simulated cyberattacks designed to identify any potential vulnerabilities in our applications that cybercriminals may exploit.

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Choose the Right Freight Factoring Company

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Protecting proprietary, personal, and customer data is essential to the success of your brokerage. Choosing the wrong technology partners has the potential to open your business up to cybersecurity risks. This is especially true when selecting a freight factoring company. While freight factoring is an efficient way for brokers to avoid lengthy delays in payment on invoices, brokers must ensure their freight factoring company is making all efforts to secure their sensitive data. 

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For our cloud-based freight factoring company, cybersecurity analytics are always top of mind at Denim Payments, starting with limiting the amount of Personally Identifiable Information (PII) we collect for our customers. Any customer data stored via disk is securely encrypted to ensure protection in the event of a data breach, lost or stolen devices, or data leakage.

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At Denim, we also offer our partners cybersecurity assurance through a variety of built-in features, such as secure data transmission and DDoS threat mitigation. 

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Protect Your Data to Grow Your Freight Brokerage

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Protecting your brokerage's cybersecurity just makes good business sense. Freight brokers can set themselves apart and grow their brokerage by ensuring all personal and customer data is protected. And while choosing the right freight factoring company is a great place to start, it is also the responsibility of each broker to ensure they have the right measures and training in place. 

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Ready to learn more? See how Denim's payment automation software can help protect your brokerage from falling victim to a cyberattack. Please reach out to us with any questions or concerns.   

If you’re just starting your freight brokerage, building momentum will take a lot of effort. Untested freight brokers don’t have the reputation yet to attract top shippers or carriers, no matter how much the two want to find each other so that a partnership can happen. You’ll need to go the extra mile when learning how to grow your freight brokerage.

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Here are a few tips on how to convince top carriers to work with you as you build your carrier network.

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Offer QuickPay

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No carrier wants to be chasing down their receivables, so make sure your carriers are paid on time with QuickPay options. Word will spread that you can be trusted to make fast payments and reduce your carrier's busy work. This also keeps pipelines flowing because you don’t stall, argue, or otherwise mistreat your carrier partners when it comes time to actually pay for services rendered.  

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Net-30 is an antiquated payment standard. Carriers need money now, and they work hard to complete jobs, so there’s no reason why they should be waiting on payments. By offering free and convenient QuickPay options for your carriers, you can pay your carriers faster, which is a huge benefit to them. Paying your carriers as quickly as possible will help you maintain these important relationships and grow your freight brokerage.

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Collect Referrals

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If you deliver value at every opportunity, you’re bound to get referrals. This is a slow, organic process, but you’d be surprised how many freight brokers don’t consistently pursue referrals. The freight industry is a tight knit industry and a lot of professionals work closely together. One satisfied carrier or shipper can connect you to another who needs to transport a load. Always put in consistent effort to cultivate a good reputation within your referral network.

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Emphasize The Value of Your Freight Brokerage

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There are thousands of brokers carriers can decide to work with, so it’s important to emphasize your value, especially as you are just starting your freight brokerage. By humanizing yourself, specializing in a niche market, and focusing on transparent communication, you can begin to convince carriers to work with you.

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Humanize Your Brand

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People like working with brands that they can relate to, so make sure to tone down the business talk and inject some personality into your brand, marketing materials, and website. An easy way to do this is to talk about your team. If you’re a small operation, highlight and emphasize the personal and efficient service that your carriers will receive over a large firm that moves slowly.

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Also, don’t be afraid to cross the line between personal and professional relationships. Successful brokers go the extra mile and build relationships with their carriers by doing small but meaningful things, like sending holiday gifts, taking their carriers out to a nice dinner, or checking in on them and their family. We work with brokers who even send their drivers a DoorDash gift card if they are stuck in line at the shipper for hours!

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Carriers want to work with nice brokers who care about them and their business.

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Specialize in a Niche

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As you’re starting your freight brokerage or growing your business, one key tip is to specialize in a niche because as they say, “a jack of all trades is a master of none.” This is especially important for brokers trying to convince carriers to work with them. 

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There is no “best” freight niche for brokers, but there are some ways you can determine what to specialize in. Here are some ways you can define your niche:

• By equipment: you could specialize in flat bed, van, or heavy haul loads
• By industry: you could specialize in a specific industry, such as building supplies, food, retail, steel, etc.
• By regional needs: if your area has a need for a specific type of load, that can help determine your niche

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For example, Dennis Brown, CEO of Freight Broker Boot Camp, started his business by specializing in van freight that originated in the northeast because he was based in Buffalo, NY. This specific niche helped him grow his freight broker business. You can’t (and shouldn’t be) everything to everybody as a new or mid-sized broker.

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Be Transparent

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Because there’s so much competition in the freight broker industry, transparent communication will pay off and help you grow your carrier network. 

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For example, be transparent on your rates and don’t low ball carriers in the negotiation process. You might not have the highest paying loads because there is always going to be a competitor that has their own relationships and can offer to pay more for the same exact lane. The key is to offer the best experience, treat your carriers with respect, and offer fair rates. If you do this, carriers will choose to work with you over and over again. 

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Another way you can improve the transparency between you and your carriers is to provide them with access to their Payee Dashboard, where carriers can view their historical and upcoming payments, respond to questions or requests, and make sure they are in-sync with you as their broker. This is just one example of the importance of digitalization in the freight broker industry.

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Lastly, another way to improve transparency is to be available in directories or reports so carriers know your brokerage is legitimate.  

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All Denim clients are on our verified brokers page, so if a carrier needs to validate a broker's financial backing, they are able to check on their own. If a broker is verified by Denim that means they are backed financially and can guarantee payments to their carriers in as little as 24 hours.

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Pass the link along to a carrier in the beginning of the relationship so they know how to find you.

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Improve Your Freight Broker Risk Score

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If you don’t have a reputable risk score for your freight brokerage, shippers and carriers will pass on your brokerage for a larger, more established one. They’ll be afraid to lose a load to a broker that’s too new to the logistics industry.  

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Use your risk score to your advantage and convince carriers to work with you by:

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Paying Your Bills on Time

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Whether you’re looking to get your first risk score, or simply raise your score, do what you should do with all credit rating agencies and pay all of your bills on time.

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Offering ACH & eCheck

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Delays in mail payment lead to a lower credit score and a higher average days to pay. Combat this by offering ACH and eChecks to pay your carriers faster and more consistently. At Denim, we offer free ACH transfers and same-day processing. No ACH fees means more money in your pocket and a better payment process for your business. 

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Conclusion: Grow Your Freight Brokerage by Attracting Top Carriers

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As a growing freight broker, getting carriers to work with you over the competition is a huge obstacle in building your business. But, by setting yourself apart with 24-hour payments, specialized services and a human touch, you can begin to build your carrier network and stand out. 

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At Denim, we know how difficult it can be to find the time to find and nurture shipper and carrier relationships, while also handling all of your business operations. We help our brokers free up more of their time to grow their business by streamlining their broker operations and offering important services such as factoring, QuickPay, and time-saving integrations. Want to learn more about how we can help you streamline your operations while also paying your shippers and carriers faster and more efficiently? Contact us today!

In May 2022, Denim was lucky enough to attend The Future of Supply Chain, a premiere event hosted by FreightWaves, a leader in supply chain intelligence. The Future of Supply Chain celebrates how companies are digitally transforming the management of their supply chains and gives attendees the chance to “explore the latest technology, newest applications, trends in education and continuing evolution of the overall supply chain.”

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Denim demonstrated our payment automation software at the event. In case you missed it, here’s a recap of our demo and how it went. 

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Live Demo Summary: Denim's Payment Automation Software for Freight Brokers

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The major attractions of FreightWaves’ The Future of Supply Chain live event are the 7-minute live demos. Here’s a recap of what we covered in ours:

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We set the stage by explaining that 3PLs, freight brokers and shippers are looking for ways to streamline workflows and increase efficiencies. Because of that, they need the right tools to help. They want to spend more time growing their business and moving freight, not chasing down an ACH payment or a lost check sent to a carrier. 

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With that in mind, our Chief Technology Officer Shawn Vo and Head of Product Sean Smith (and an imaginary Sean Connery) hit the stage to show off how our product works.

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Connect Your Network

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First, they showed the audience how to connect your network. In the presentation, they showed how to add customers (shippers) to the platform. We saw that when you add a shipper, you can pull in information like invoices, collections history, and credit scores. You can also add information for contractors (carriers), such as payment information, prior transactions, factoring relationships, addresses, and more. 

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Our team showed how Denim is helping connect data across brokers’ businesses, empowering them to be more efficient and make smarter, data-driven decisions.

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Add Your Jobs

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After we added customers and contractors, we then added new jobs and showed off the fact that you can add a new job in under 30 seconds. You can also add it via a bulk import or with our API integration from our TMS partners. 

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Once you add a job, Denim goes to work for you. We:

• Perform document auditing to ensure payments are correct
• Invoice on our client’s behalf
• Send out carrier payments with remittances on their scheduled dates
• Perform collections when invoices come due

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Throughout the lifecycle of a job, clients are also able to access financial reporting and have a fully-reconciled accounting system via our QuickBooks integration. With all of this assistance, clients report saving about 30 minutes per job versus doing the whole thing manually. 

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Pay and Get Paid

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Next, we showed the audience how to run payments on the Denim platform. Here are some highlights:

• Carriers will receive same-day ACH payments
• Shippers will soon be able to opt into extended terms for their flexibility
• We can surface chargebacks so they can get settled so brokers’ wins don’t turn into losses
• Clients can take advantage of working capital through invoice factoring
• Soon, they will also be able to use our line of credit product
• If they have all the capital they need, we can also manage their carrier payments with Denim Wallet, our new carrier payment solution
• Clients are able to increase their revenue per load by passing along or splitting Denim's fees with their carriers and shippers

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Integrate with Your Systems

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Creating a job in Denim is fast, but what’s even faster is not having to add one at all. 

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Our real-time API integrations will accept jobs directly from our partner TMS systems and process those jobs all the way through payment and collections. Clients really get hooked on the integration because integrating their TMS with Denim is a breeze. Our open API architecture allows us to be a hub that can integrate quickly to any TMS or accounting software, making Denim the only provider in the industry that serves as a one-stop, full-service platform.

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In addition to growing our client base, we are also always looking to build strategic partnerships with new integrations. If you have any ideas or partnerships you’d like us to consider, you can submit them on our site!

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Denim Wins Top Demo of the Day

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We are so proud to show off our product and the Future of Supply Chain attendees agreed. We were voted as one of the three top demos on day 1 out of more than 30 companies. We are passionate about the product we’re creating here at Denim and are so honored that attendees could feel that passion, as well. 

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See How it Works

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Our demo at Future of Supply Chain was amazing, but what’s even more amazing is seeing it for yourself. Ready to schedule your own demo? Contact our sales team directly or schedule a demo that fits your schedule.   

Their role in the supply chain makes freight brokers especially vulnerable to disruptions caused by the COVID-19 pandemic. However, these organizations are also uniquely positioned to shepherd the recovery of logistics and transportation. When freight brokers build more robust operations, the entire supply chain becomes stronger as well.

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As brokers look to ramp up operations, new technology capabilities provide a great place to start. In particular, modernizing financial systems offers brokers a potent way to streamline processes, strengthen partnerships with shippers and carriers, and stay solvent in the midst of a volatile economic recovery.

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How Technology and Automation Can Bolster Freight Brokerage Operations

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The pandemic shook up the supply chain in virtually every way imaginable, from parts shortages and production slowdowns to closed ports, delayed shipments and massive staff turnover. Transportation hiccups, price volatility, and cash flow interruptions have left shippers, brokers, and carriers equally frustrated, ultimately taking a toll on their relationships with each other. Getting those relationships back on track is part of a successful supply chain recovery — and upgrades in enterprise technology can help.

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The pandemic has created an opportunity for freight brokers to make a strategic effort to leverage technology that can optimize operations and restore or improve capabilities. For contemporary freight brokers, these technologies will ensure stability in years to come. The right enterprise technology will insulate a company from external and internal shocks, giving freight brokers the ability to operate near full capacity regardless of what happens and adapt to change as it occurs. When a business begins to automate manual processes, it gains benefits such as:

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Increased Visibility

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Company leaders collect more data about what’s happening in their organizations and the wider industry. In turn, this data enables them to make more informed decisions about logistics, finance, operations, and other critical business processes.

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Better Reaction Times

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In manual operations, problems can spiral out of control before company leadership even knows they exist. The increased visibility offered by technology makes it easier for companies to identify and address issues before they escalate into major crises.

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Streamlined Operations

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Upgrades in technology let business leaders automate tasks, empower employees to do more with less, and make operations more cost- and resource-effective. These capabilities can compensate for a lack of staff and interrupted cash flow — two major pain points for freight brokers, shippers, and carriers at this moment. It’s little wonder that so many supply chain leaders have come to recognize the vital importance of eliminating manual processes as a step in post-pandemic recovery. In this Global Procurement Officer Survey from Deloitte, “driving operational efficiencies” surpassed “cost savings” as the top priority of Chief Procurement Officers (CPOs) for the first time.

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Finance Provides a Key Opportunity for Brokers

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Freight brokers are the connectors of the supply chain — they link together shippers and suppliers, facilitating the efficient flow of goods from producers to end consumers. Because of this, the advantages of streamlining a brokerage extend far beyond its own four walls. It becomes easier for shippers and carriers to connect and makes the freight broker a valuable strategic partner to shippers and carriers struggling to get back on their feet.

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But, brokers need to take care when developing priorities for the adoption of new technologies. Nearly every aspect of a brokerage’s business can benefit from digital technology enhancements, but focusing on the most impactful areas first will grant fast and abundant benefits. Sales and operations planning (S&OP) offers a good starting point to target manual processes, as these processes can benefit heavily from richer data and clearer visibility. Time-saving integrations between broker, shipper, and carrier systems is another top candidate, as it helps smooth any wrinkles in the fundamental relationships that power the whole supply chain.

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Automating financial and back-office tasks will provide the most immediate impact for brokers struggling to remain financially viable. Automating essential but repetitive administrative duties frees employees up to focus on more complex tasks that require human attention.

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Freight Brokers Need Optimized Invoicing and Working Cash Flow

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Consider the amount of time spent handling invoicing and collecting payments. With a financial platform like Denim, brokers can automate invoicing, implement managed collections, and leverage freight-factoring capabilities as necessary. As a result, workers who typically handle these tasks can dedicate more time to strategic operations and revenue-generating activities.

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The streamlined payment process also helps maintain more consistent cash flow and ensures the organization has the resources to overcome challenges and disruptions. With financial stability, freight brokers can continue working with shippers and carriers despite disruptions in other parts of the supply chain. And by using tools like Denim's QuickPay feature, freight brokers also make sure their carrier partners enjoy some financial stability of their own.

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Additionally, an advanced financial platform gives freight brokers access to high volumes of valuable data. For example, understanding the financial stability of shippers and carriers will help a freight broker make more intelligent decisions about partnerships. Our dashboard shows freight brokers important data like this, including their fastest paying customers, their slowest paying customers, and their most profitable customers.

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Through integrations with transportation management systems and accounting software like QuickBooks, brokerages can turn their data into a real asset by sharing it between systems to further enhance visibility and facilitate informed decision-making processes. This combination of automation, financial stability, and accurate reporting allows freight brokers and their partners to ride out volatile shifts in the economic terrain. Moreover, it keeps the entire supply chain moving — when freight brokers are doing well, so are the shippers and carriers that depend on them.

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Turn Disruption Into Opportunity

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With a robust financial platform, freight brokers can leverage a tumultuous supply chain as an opportunity for growth. Freight brokers will strengthen their relationships with existing partners and attract the attention of new businesses, too. Only 10% of supply chain pros feel “extremely prepared” for disruption in the future, whereas 59% say their disconnected systems and processes are to blame for potential future disruptions, according to Quickbase’s Supply Chain Resilience Survey. This data suggests that freight brokers who choose to move away from manual processes now — especially in financial operations — will position themselves as supply chain recovery leaders. To see how Denim can help you grow your freight brokerage, please reach out to us today.