The sluggish economy hasn’t spared the freight brokerage industry, according to a recent report by Forbes Magazine. Today, there are fewer third-party logistics providers for transportation companies than ever before, but the providers still in business are more influential and effective than their predecessors. New technology enables truck brokerage management systems to oversee end-to-end processes. From template-based order entries to advanced invoicing features, new technology is revolutionizing the industry in the midst of challenging economic times. Despite fewer brokers, the industry’s revenues continue to explode and set new records. Consolidation is a driving factor behind the shrinking numbers, as once-small companies adopt a more corporate environment. Private equity, venture-capital funds, and contracted carries are accelerating this trend towards fewer but larger-sized players. Coincidentally, as third-party logistics providers become larger in the United States, so does the likelihood of acquisition offers from foreign-based transportation multinationals. The growing industry in spite of fewer brokers is the result of the following:
- Digital technology. Logistic mobile apps and cloud technology have revolutionized the transportation industry. From GPS tracking to delivery logs, and confirmation apps to automated back ups, new technology boosts productivity while ensuring security. Customization results in site-specific solutions that make it easier for management to monitor end-to-end transactions and create the most efficient workflow process possible.
- Growing entrepreneurial spirit. According to business expert Martin Zwilling, entrepreneurs are increasingly defining the workforce. As the business industry suffers from recent economic woes, more professionals are considering the benefits of entrepreneurialism. This workforce trend is a major reason why many third-party logistics providers are maximizing their sway in the industry.
- Growing needs of shippers and motor carriers. Shipping demands continue to increase despite a stalled economy. Consumers shop online while businesses invest in new sites. As transportation needs increase, so does the need for logistics departments to manage end-to-end transactions. Since truckers have ongoing costs, shippers and motor carriers alike are looking for affordable solutions that only third-party logistics providers can offer.
Though fewer brokers leave shippers with fewer choices, they have more options for higher quality service. This results in quicker and more accurate transactions for the end-customer. Ironically, as the number of third-party logistics providers decreases, the competition increases, as each provider must ensure the highest possible services at affordable prices to compete with other providers. By streamlining workflow processes and investing in new technology, providers can improve their services and enhance efficiency without sacrificing quality. New technologies make it easier to route, track, and trace 24/7. This results in efficient management and communication. GTG Technology Groups’ Truck Brokerage Management System is designed with the latest industry trends in mind, ensuring that brokers are competitive in today’s marketplace. A template-based order entry allow customers to fill out paperless orders, manage records, and view full transactions history. This is available via phone, fax, EDI, and web, creating a convenient system for everyone. From order management to invoicing features and brokerage control to a customer interface website, GTG Technology Groups’ Truck Brokerage Management System simplifies complex workflow processes while ensuring the greatest customer experience possible. Are you getting the most out of your technology? Contact GTG Technology Group today to learn more.