Monday, September 26, 2011

Are brokers really necessary?

Many companies rely on brokers to run their freight decisions. But are they really necessary? If your software provides you more control than a broker, is there potential savings? What is the difference between using a software program and using a broker?

A broker works on the premise that they have a larger footprint with the to get better discounting and therefore provide these discount increases onto their clients. But the reality is are they truly transferring these savings forward. They negotiate on their behalf not the client and most clients after signing up, receive no further discounting.

Some brokers use the average older rate bases, but the problem with this is two fold, one being economies of a scale, in which if new hubs are built rates in that geographic area plummet, but the older base rates do not provide this. The second area is whether or not the discounts truly save you money and will the discount every increase.

In addition, brokers are required to "audit" yout freight bills, but does the auditing not require re-auditing by your firm. If you are not auditing your own freight bills, you are potentially leaving money on the table. But in addition you are doing the auditing all the same. So why pay for it twice.

N2TMS is not a broker, we are software program which allows you the control and run your tariffs using your established carriers and we save you money. You control the tariffs and always receive the lowest price with metrics to ensure the process is truly saving you money. You control the increases in discounting based on your volume, usually getting better discount rate than brokers provide. The program handles discounting, FAKs, accessorials, fuel discounts, and regional and national carriers.

If you posting your pricing for an annual period, N2TMS provides a quick clean method of getting you pricing. Getting the better system saves your company money and in today's economy all companies should be saving money.

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