Limiting risk within the supply chain and freight market volatility can be difficult. Carriers and shippers who do not obtain a broker's help may find it harder to navigate than those who have such a partnership. Whether a digital freight brokerage or another broker, these services offer support to even the most novice in the supply chain. Curbing the issues brought forth by freight market volatility begins with locating capacity, finding better rates, and improving throughput. In addition to these benefits, leveraging technology will provide faster responsiveness through all levels of the supply chain. These hedging strategies will keep costs lower while steering through a volatile market.
1. Increased Capacity by Networking With Carriers for Broader Access to Truckloads
Many experts in logistics will encounter risky markets while they are active in the supply chain. The key to successfully navigating the most difficult of markets is to find and increase capacity. Carriers litter the freight market, even if they do not work with larger carrier companies. A goldmine of carriers can be found locally. Freight market professionals must facilitate strategic carrier sourcing for broader access to truckload capacity. Networking with local carriers and using existing databases will present more opportunities for capacity.
2. Better Rates With Radical Transparency in All Activities
The COVID-19 pandemic reduced the economy to rubble until the middle of 2021. All of a sudden, an e-commerce boom of unprecedented proportions appeared. The supply chain continues to experience a constant peak. However, the market can still be volatile. Finding ways to combat the costs associated with freight market volatility remains a top priority. Freight brokers can look for reduced capacity loads like less than truckload (LTL) for shippers who cannot fill an entire truck. They may also be able to lock in rates for a period of time, mitigating the fluctuation within the market. Radical transparency provides insight for carriers, shippers, and brokers to monitor the market at all times and enables informed decisions among the supply chain industry.
3. Improved Throughput and Faster Responsiveness by Leveraging Technology
Other logistics solutions for combating freight market volatility are to leverage technology to improve response times and throughput. With technology and radical visibility, each piece of data becomes available to all levels of the supply chain and their platforms. Specifically, this is most valuable to throughput because more packages can go through the supply chain faster. Improving throughput increases productivity by creating faster deliveries and response times, which also enhances customer service experiences.
4. Clear, Concise and Real-Time Communications to Adjust to Market Dynamics
Additional tips for those coming up in the freight broker business include facilitating timely communication. According to SupplyChainBrain.com, as the pandemic comes to its end stages, the e-commerce peaks have yet to subside. Customers may choose to continue to shop online from their homes' comfort, which makes effective communication all the more essential. If the increase in demand fails to subside, clear and concise communication keeps customers happy, knowing that their packages are in the right hands while also keeping employees informed. Real-time information will also help expedite resolutions for issues that may arise during transport.
Hedge Freight Market Volatility by Choosing the Right Broker
Ultimately, the right choice of freight broker makes wading through freight market volatility easier. Utilizing the resources available keeps employees and customers in the loop. As well as keeping information flowing, the right freight broker service enhances these processes and keeps carriers and shippers happy. That way, shippers can focus on their customers, and carriers can focus on the shippers. Continue to save cash during times of volatility by contacting Wicker Park Logistics today.