As in any other aspect of life, in the trucking industry communication is key to successful business.
Both parties, both brokers and transporters, must be informed of current situations, such as changes to previously agreed schedules, delays and cargo problems.
From past experience, we can say that there are several ways for successful communication.
Many transport companies today use transport management software (Transportation Management Software) which, in addition to other benefits, enables easy tracking of cargo (more precisely, tracking of the vehicle in which the cargo is located) and quick transfer of information. This helps a lot to avoid possible misunderstandings and delays.
This work can be made easier in many ways by making frequent regular announcements to brokers and truckers to keep them abreast of the current situation. We have already written in earlier texts that it is not easy to be on the road, nor is it easy to leave a load of a few tens and sometimes hundreds of thousands of dollars in the “hands” of a complete stranger. So regular announcements to the broker of where the truck is and how it is progressing en route to unloading help to reduce unnecessary concerns and requests for additional information.
Be responsible and communicate in a timely manner with brokers and truckers.
If there is a problem, do not delay it, but react immediately and offer a solution.
Postponing a problem in this industry only makes it bigger, and more often than not, it turns a small lump into an avalanche. Be responsible and don’t let this happen.
Stick to the agreement and respect the deadlines you have agreed with the brokers and truckers.
If there are problems in transit that cause delays, please inform the broker in time as this can only help you to solve the potential problem that may arise at the unloading point due to your delay. Also, if the driver asks you to be home on a certain date, make sure you respect it.
Truck drivers in the USA are usually on the road for several weeks or even months and always announce in advance the date when they want to be home. Work it into your itinerary for them so the company isn’t at a financial loss when you send the driver on a well-deserved vacation.
If several members of your team are familiar with the current operational tasks, there is a high chance that there will be no problem due to improper flow of information between your transport company and the broker on the other side. Also, enable open communication between the broker and your team so that the other party gains confidence in the work process. This will help to avoid misunderstandings and to react quickly to situations.
Overall, the key to successfully communicating with brokers and truckers is to be available, responsive and meet deadlines. Increase regular announcements and enable open communication to avoid problems and improve business.
Modern negotiation techniques in US trucking are increasingly important, especially given the current economic situation and the announced global recession. As a dispatcher or broker in this industry, it is essential to know how to face challenges and use negotiation techniques to ensure the best possible outcome for your company.
Before starting any negotiation, it is important to know what you want, how much you can give and what you can get in return. In a standard business environment, it is important to research the company or person you are negotiating with and understand their motivations. Fortunately, in this industry it is very simple and crystal clear. The broker has clients who need transportation, and the dispatcher has trucks he wants to hire. This certainly does not mean that you should jump at the first call from a broker you have not worked with before who offers a well-paid load. If something sounds too good to be true, there is always a chance that there is a “catch”.
For example, the broker wanted to cheaply cover the load until the moment of loading, so now the question is whether your truck, if you send it on that load, will even be able to arrive at the place of loading before the end of their working hours. Also, loads that must be loaded on that day, because the capacity of the shipper’s warehouse is full and must be emptied, and which can only be unloaded seven or more days from the date of loading, because again the capacity of the warehouse at the place of unloading is full before that date and simply, the recipient has nowhere to put the goods, they are almost impossible for brokers to “sell” to carriers.
do your homeworkIn this case, brokers resort to the not-so-honorable moment of providing inaccurate information for the unloading date of those loads which are later justified by subsequent changes by the client which were sent only when your truck was in transit to the unloading place. Which is realistically, rarely true. So, when you hit on a load with a broker that seems too good to be true, immediately check the information on it and personally call the loading and unloading locations to make sure your truck will be loaded and unloaded as agreed.
Before you start negotiating, you must have a clear strategy and plan for each situation. It is also important to know what you want to achieve and what your limits are. If you know what you want and what your limits are, it will be easier to face challenges and protect your interest.
Of course, the interests must be adjusted to the current capabilities of the driver, who should make possible what you have agreed with the broker through the invested work. On the other hand, if your interests and strategy do not match the current state of the market at that moment, you have to adjust them or change your strategy.
Sometimes the strategy will be to maximize the earnings on the tour for that day because you are in a specific location and because at that moment the scale of capacity supply and demand has prevailed in your favor. Other moments can be completely opposite, where the scale will prevail on the other side and simply the supply of capacity will be far greater than the demand for the same. In that case, it’s not that you can’t maximize your earnings, but there will be a situation where you’ll be looking at how to minimize your loss on that load.
When negotiating, it is important to communicate clearly and constructively. You must be ready to listen to other people’s point of view and arguments, but also to express yourself when necessary. Through our course, you can learn how to turn almost any situation to your advantage.
Be sure to take a look because through quality communication with the exact steps presented in the course, you can find a common language with the other party and significantly increase the turnover of the company you work for. In this way, you not only become a leader and an irreplaceable member of your team, but also someone who takes your team to a higher level, which of course is accompanied by appropriate financial compensation.
And finally, don’t forget the humorous note!
In difficult situations, a humorous note can ease the tension and allow you to negotiate more easily.
With these modern negotiation techniques, dispatchers and brokers in the US trucking industry are in a position to face challenges and ensure the best outcome for their company, even in the current recession.
So, be prepared and grab your chance for success!
In the trucking industry in the United States, negotiations are key to successful business and increasing revenue. To identify a negotiation opportunity and take advantage of it, you can follow some of these steps.
Fluctuations and seasonality are commonplace in this industry. Monitor the market regularly and identify potential clients or partners for cooperation. Before you are ready to send your trucks to certain locations, first check the market conditions in those locations in terms of supply and demand for transportation. In this way, analyze the needs of specific locations in the market in order to get the best overall picture of the market and manage your fleet as well as possible.
The transport needs you discuss with a broker can often be different and you need to understand them as well as possible so that you can offer a more favorable deal. Do everything in your power to respond to their needs and wants.
Whenever you are in a position to arrange a load with a broker that meets all your parameters, be sure to ask the broker if that load is only available now, or if it is something that is repeated on a daily, weekly or monthly basis. That way, you can keep an accurate record of the “quality” jobs you’ve done, as well as the ones you’d like to repeat. This seems like a very strenuous and long hike at first, but in the long run it helps make future work easier.
Prepare in advance for negotiations. Create a strategy and determine your goals, financial minimums and feasible performance maxima. Do everything in your power to prepare all the information you will need for the negotiation.
Talk to potential clients and partners in an open manner. Talk less, listen more and be ready to compromise. Try to reach a mutual agreement that will be beneficial for both parties.
Build long-lasting relationships with your customers and partners. Increase trust and build loyalty by providing excellent service, regularly informing them about the status of the current jobs you are working together as well as new offers.
Overall, the key to successful negotiations in the US trucking industry is to be prepared, talk openly with clients and partners, and build long-lasting relationships. Analyze the market and understand the needs of each client in order to identify the opportunity for negotiation and use it in the best way.
Managing risk in negotiations with carriers is critical to success in the trucking industry. Follow these tips to help manage your risk.
Before negotiating, identify potential risks related to transportation and communication. Analyze them and prepare risk management plans.
Prepare for worst-case scenarios and have alternatives at hand, such as other brokers or carriers or new logistics solutions as possible solution options.
Talk to the other party about the potential risks and how you will solve them together. This communication can build trust and encourage collaborative problem solving.
Use the contract as a risk management tool. The contract should precisely define the responsibilities of each party in the event of a problem.
Monitor the situation during negotiations as well as the work of the other party.
If any problems arise, quickly point them out, react and solve them.
Overall, risk management in negotiations requires identification of potential risks, planning of alternatives, regular and proper communication, use of contracts and monitoring.
If risk management is properly approached, you will be able to avoid problems and achieve successful negotiations.
Reducing transportation costs and increasing the profitability of dispatchers and brokers in the United States of America are key fundamntals for successful business.
Follow these tips to reduce costs and increase profitability.
Using technology, such as dispatch software, can help reduce costs, reduce errors, and increase efficiency.
Improve your logistics strategy to reduce unnecessary costs and increase efficiency. By having a strategy in place, you won’t be putting your drivers and fleet trucks in unenviable situations that will cost you money to get out of.
Collaborate with brokers and develop long-term relationships with them.
This can help you ensure regular capacity utilization and maximize profitability.
Consider reducing transportation costs, for example, by using more efficient vehicles, better route planning, as well as precise planning of fuel procurement at better prices.
This also applies to the workforce, which does not have to be physically present to perform its work. Outsourcing certain jobs is a big deal today. So big that there are many platforms on the Internet whose founders make millions today.
Let’s say, broker, dispatcher, “track and trace”, safety manager, accountant, driver recruiter, are all office jobs that are performed via computer and internet and each of them can be done from anywhere on the planet. Among other things, that is where the great interest in workers from our area within this industry arose. For the same quality of work, and often better, for the financial cost of one local employee in the USA, sometimes ten or more “outsourced” workers are paid.
This is not limited to small carriers or to the various diaspora communities in the USA. For some big brokerage names that are literally worth billions of dollars have call-service centers located in India, in order to reduce costs. Everyone is looking at how to reduce input costs and how to maximize the prices of their products or services.
Business is all about profit and that’s nothing strange.
Overall, reducing transportation costs and increasing the profitability of dispatchers and brokers in the United States can be achieved by using technology, improving logistics strategy, collaborating with customers, thinking about reducing transportation costs, outsourcing, and developing a risk management strategy.
If the correct approach is taken to reduce costs and increase profitability, it is possible to ensure long-term business and the satisfaction of all involved.
If you found this text interesting and want to learn more about the industry itself and the jobs that are available within it, we invite you to register on our site and view free lessons from the courses on our platform.