Thursday, June 14, 2012

Prevailing Notion - Broker's & 3PL's


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The business of shipping products to customers is ever-evolving into a world in which 3PL’s and Freight Brokers have access to more and more of the truckload market.  Large manufacturer’s want to focus more on their core business, than having entire shipping departments dedicated to rates and setting up carriers, dealing with scheduling appointments and so on. 

So, what does this mean to you?  A brave soul, the lone owner operator who sets out to seek his fortune with his own truck and trailer?  A small carrier with a dozen or so trucks, trying to build a dynasty or family fortune?

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A truckload carrier whose business is 30% to 40% Broker and 3PL freight and has planners/dispatchers who are not yet masters in the art of negotiation?  Do they hesitate to be aggressive negotiators? 

30% to 40% is a very large portion of your business and where a large portion of potential profit is hiding.  Yes, and it is an art, when done creatively, properly and successfully, negotiating can be one of the most beautiful and rewarding experiences one can have.

Think back to the days of your youth, negotiating with parents to stay up later, only to be told to go to bed.  Or did you return to the negotiating table with your parents armed with opposing arguments?  How about delicately trying to negotiate your first kiss with a blushing, young redhead and getting a hug or handshake?  Or did you steal a kiss and walk away, leaving her wanting more?

Like most of us, you probably have good and bad memories of negotiating.  The important thing to remember is that you walked away from each one with more knowledge, experience and skill every time.


The transportation business has changed over the last ten years.  What does it mean to you? 

No longer are Brokers and 3PL's just a backhaul provider, they are our best customers.  The carriers who treat them as such, win everytime...



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