For most brokers, when a shipper tenders them an order, the broker’s commitment to cover rests in their ability to post the shipment to a load board (either internal or external) and book the first carrier that calls in. They could do the same load 10 times and book 10 different carriers at 10 different rates. Not only that, multiple brokers posting the same lane increases the cost of hire for that lane.
This brokerage process is obviously doomed to fail because it lacks what is needed most in freight transportation today – it lacks relationships. Therefore, most shippers today are looking for more asset relationships and fewer brokers. It’s because most brokers all operate the same way:
For CarrierDrive, when a shipper tenders us an order, our commitment is the carrier asset we have assigned to the business. There is no posting, no waiting for a carrier to call, and the rate is already set. We only need to dispatch and track through to delivery.
We don’t resell your loads, instead we bring asset relationships. True additional capacity, carriers not currently involved in your business.
We know the just having the ability to match a truck to a load does not produce the best overall results. One of the reasons for this is that high value carriers typically don’t play the matching game. They are not on the load boards looking for last-minute loads. Instead they are engaged in, and open for, relationship-based opportunities. Ironically, it seems shippers and carriers are looking for the same thing but often can’t connect. That’s why we’ve developed a proprietary selection criterion that creates a 3-party relationship that lasts. Within this process CarrierDrive provides complete transparency and collaboration. We call our program CarrierReach.
Shippers can and do work directly with carriers but are they utilizing the right resources and time to actively manage decisions on all the available options? Carriers that work directly with shippers invest in fixed lanes and don’t necessarily have the resources to adjust to change when needed, forcing them out of their comfort zone. Technology can help but its linear. The right 3pl will provide the experience, grit and creativity needed to support the best outcomes for all 3 parties.
At CarrierDrive we preselect carriers based on individual client specific needs. We do this prior to going live. This means we know which carriers will be doing the loads and what volume each carrier will handle. Other brokers and 3pls typically get business first then select carriers based on spot availability to cover the loads, which often leads to a different carrier picking up every time. We use the same carriers in a repeatable process that helps close the gap in supply and demand.
We start with a discovery conversation about the customer’s business and look for strategic opportunities to work together. We don’t just match your current situation with what we have, but instead, we work to uncover your desired situation and match that with a customized solution.
Lack of consistency, poor communication and unbalanced efficiency gains have all lead to shippers and carriers seeking better transportation relationships. Unfortunately, many feel that means removing the intermediary is the only solution. But for the same reasons the 3pl role has been so valuable in transportation (see question 1 in FAQs) removing the 3pl entirely only leads to other forms of inconsistency and inefficiencies. We believe the solution is in connecting with a 3pl that values relationships, that values communication and transparency, a 3pl that puts service above all other metrics. This is CarrierDrive.
We understand our role as a 3pl is to ensure beneficial results for all 3 parties, our customers, our carriers and our company. Working with a 3pl that maintains that mindset means better transportation relationships and better sustained results.
CCR is the ratio of carriers used each month relative to the total number of carriers in a 3pl or asset-light provider’s network. It is important because a low ratio means inconsistent carrier booking and transactional outcomes. Low ratios are typical of providers good at building a network but bad at maintaining relationships. Whereas a high ratio means more repeat carrier books, more consistent outcomes and better overall relationships. Ask your provider what their CCR is and if they don’t track it, ask why not. Consistency leads to the best efficiencies.
We’re not redefining it. We’re asking our customers and carriers to decide what the definition is. The contemporary definition of asset-light was created by one group of providers with assets who want to broker loads. We believe asset-light can have any number of definitions depending what the shipper and provider see as being mutually beneficial.