Let's Talk Partnerships

Building and maintaining mutually beneficial relationships are two key components to any successful business. The most important thing we can do in the freight industry is to ensure we are creating valuable relationships with our business partners. We need to ensure we are working together to create mutually beneficial relationships across all facets of the freight industry. It is important to understand the needs of your shipper as well as any carriers you might employ to pull the load. Knowing your carriers will help identify the most complementary loads you can offer each carrier. Communication is your most powerful asset. The second most important is a journal with brief summaries about your communication.

1. Communication

I am a freight agent. I own and operate a satellite agency with a large transportation company. Since I don't drive a truck, I had to learn how to understand the common expenses and costs that come with owning trucks. I had to understand the impact of delays or issues that owner operators and carriers face on each and every load. The risk always there. So I read and I ask questions. I have worked with many owner operators and carriers. I try to determine how often we can work together and where they are or are not willing to go. Some are more open than others but I find those that can be open, will have an easier time down the road when it comes to establishing dedicated routes and secondary opportunities in the event changes are necessary. These are also the people I reach out to when I have or am considering new projects.

2. Carrier Network

Obviously you won't always have a truck every where. However it's important to have friends who do. This is why establishing a strong carrier network is so important. Non-asset based logistics companies and agencies understand the importance of this step. These have to be honest, reliable contacts. Building a reliable network is crucial to get a complete understanding of costs, what is necessary to ensure accurate rates. There's nothing worse than going back and asking your customer for more money because you got rate wrong, or worse, having to pay the difference. Your network is your resource. At times your network may even help you grow your business. They may have a contact where the volume may be too high for their business but they can benefit from the lane so they help get you in.

3. Capacity and New Market

As I briefly touched on before your network is your lifeline. But the feeling should be mutual. Carriers want to keep moving, preferably with little help of looking on a board. It's good to check the board to confirm what's going on in the market, test rates find new contacts. But relying solely on the board can also mean losing money and losing time sitting empty. Or using all of their capacity for a direct shipper so they're forced into long dead heads or cheap reloads just to get back to service their direct shipper, cutting into their bottom line. You can also be resource for them to provide additional capacity in the event they have a breakdown or situations that can result in a failed load. You can both help each other step out into new markets or lanes.

I look at everyone I work with as business partners, so I instantly have a vested interest in their success. It is important to understand that both the shipper and carrier are your business partner. It is useful to keep a brief summary of each carrier and shipper. Things like:

1. Lanes in which shippers are looking for capacity. Lanes carriers are looking to service. Lanes carriers are not interested.

2. Rates discussed both carriers and shippers have discussed. Notes about the rates. Feedback on rates.

3. Where you are in conversations with prospects. Take note of anything you need more details on, or the information required to move the conversation forward.

These are just a few useful things to keep track of you build your business. The more comfortable you get keeping the notes, the more you will understand what information is most useful for you to keep track of in order to grow your business. In the end the main goal is that you can have multiple conversations going simultaneously without needing to remember everything. It will create a seamless transitions from one phase to the next.