There’s no denying that it’s been a tumultuous year (or a couple of years) for freight brokers. Between rising gas prices, driver shortages, and increased (then waning) demand, it’s not an easy industry to succeed in!
With that in mind, we set out to conduct a report about freight brokers, for freight brokers. We worked with a leading research agency to survey nearly 200 brokers to see how they feel about their business, the overall freight broker landscape, and what they are expecting in 2023. The insights we found are invaluable to freight brokers today.
The Goal of the Freight Broker Pulse Report
We have long known that it’s important for freight brokers to save time on back-office operations and to digitize their practices, but we wanted to conduct some research to prove this point. We also wanted to provide some concrete learnings to help freight brokers grow their businesses. As a partner for our customers, we pride ourselves on helping our broker clients succeed. This report gives us actionable insights into how we can do this.
Key Findings for Freight Brokers
According to the report, freight brokers spend too much time on broker operations, including invoicing, collections, and payments.
- Over half of respondents (52%) report that their organization spends 25% or more of their time working on broker operations, which totals 480 hours a year based on the average 40-hour work week.
- Considering this significant time investment, 78% agree that their business would be more successful if they spent less time on broker operations.
The report also highlights the need for digitalization in the freight industry.
- Nearly 60% of those surveyed still pay carriers and shippers with paper checks
- Over two-thirds (68%) of brokers say eliminating paper checks would improve their business operations.
What These Findings Mean
These findings highlight that it’s no longer viable for successful freight brokers to rely on antiquated payment processes. This is because freight brokers are a key component of the supply chain and if their systems are bogged down, that slows down the movement of goods for their customers and carrier partners.
“Time is everything in logistics,” said Bharath Krishnamoorthy, CEO and co-founder of Denim. “Shippers need goods delivered on time, and carriers need to be paid on time. Because they act as connectors in the supply chain, freight brokers must have a streamlined payment process to avoid errors and delays. Denim’s report showcases the need to invest in smarter tools to optimize back office operations and drive revenue.”
We partnered with Ascend2 to produce this high-quality, original research study. Ascend2 benchmarks the performance of business strategies and the tactics and technology that drives them. With a custom online questionnaire, the Freight Broker Pulse Report survey was fielded during the month of August 2022. The report collected responses from 168 employees of freight brokerages located in the United States that have brokered at least one load in the previous 30 days at the time of the survey.
Download the full report using the form below to learn more about these key findings and how they can help you grow your freight brokerage in today’s competitive landscape.