We talk a lot about how Parade capacity management can help brokers improve and elevate their carrier relationships, but what’s so important about those carrier relationships? In this article, we'll explore why carrier relationships matter and what constitutes a good carrier relationship.
Here are some of the indicators of a good carrier relationship:
We’ve spoken to Parade customers who, before Parade, thought that they had great carrier relationships that couldn’t get any better. Once their teams embraced Parade, those customers realized that their carrier relationships still had room to grow, resulting in improved carrier reuse, improved margins, increased revenues, and overall business growth. Their carriers had an untapped capacity that they could use, or maybe they found a new level of trust, loyalty, or personal connection with their carriers.
We’ve established that great carrier relationships are a Good Thing for brokers, but how exactly do brokers benefit from great carrier relationships? These are some of the top benefits of good carrier relationships.
When a broker gives carriers fair rates and they use the carrier often, that broker may be able to tap into more of that carrier’s available capacity, carrier reuse comes with its own set of benefits. The carrier already knows they like to work with the broker, so they’re likely to want to take even more of their loads. Relationship carriers may be able to get loads covered and on their way faster, as well.
When brokers go back to the same carrier time and time again, they may be able to gain access to better rates either through formal contracts or simply through the power of relationships. They’re able to tap into the power of scale: when you account for a significant portion of a carrier’s business regularly, they can likely offer you better-than-normal rates since they know their equipment will be booked.
When brokers and carriers work together often, both parties have more room for negotiation. When you’ve got a great relationship with a carrier, they know that you’re doing your best by them and vice versa, so if you say you’ve got to have a certain rate (within reason) on a load, a preferred carrier may be more likely to oblige. Of course, that goes both ways. When the carrier needs to get a certain rate on a load, a broker that they have a great relationship will do their best to accommodate.
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Carriers who are already familiar with your shippers and how you do business are more likely to be able to offer better service. The carrier you’ve built a relationship with knows that that shipper closes for pickups at 5 pm, and they know that they need a specific tarp set up for a certain shipper’s flatbed loads. The experience leaves less room for error, resulting in more on-time shipments, happy shippers, and therefore happy brokers and carriers.
When carrier sales reps get to work with carriers they know and like more regularly, it can make for an all-around better work experience. Great carrier relationships aren’t just great for the bottom line; they’re great for the people pounding keys and picking up phones to get the job done. Personal connections that form as a result of carrier reuse and solid relationships can help make the workday a little more pleasant.
Want to learn more about the potential impacts Parade could have on your carrier relationships? Reach out to our team to get a demo.