Why Digital Freight Marketplaces Matter Now More Than Ever
You have probably heard the words “Digital Freight Marketplace,” or DFM, used across our industry, but we’d like to offer a primer on what makes a DFM different than a Digital Freight Brokerage, or an online brokerage that connects freight shippers with carriers via apps and the internet – in most cases inefficiently.
DFMs are digital hubs where shippers and carriers can bypass traditional brokerages and interact directly, posting or picking loads that meet each other’s criteria. Brokers can create transactional and operational inefficiencies by remitting information between both parties in ways that benefit their own business first – this is evident in market fluctuations that occur in a cyclical manner. DFMs eliminate these inefficiencies in large part by offering a solution that exists in other industries today: a marketplace where buyers & sellers can interact directly.
Utilizing a DFM is a great way for shippers and carriers to quickly expand their operating networks. For example, shippers can grow their base of carriers by shopping loads out to DFM carriers in their market, while carriers can access a larger pool of available loads to move thus potentially reducing backhauls. It’s a win-win. With a DFM like Loadshop, shippers & carriers get direct market pricing and direct access to capacity.
A DFM can also take the burden of having to vet and onboard new partners for shippers and carriers. Imagine trying to grow your network, vetting new partners and building those new relationships while managing your existing network. It’s a lot to juggle. DFMs handle the vetting process, authorizing and approving only users that meet specific standards.
While it may seem convenient, turning freight over to a traditional or digital broker takes control away from shippers, who ultimately end up paying for this convenience. Forfeiting this choice can cause shippers to miss out on new relationship-building opportunities and direct feedback from carriers along with financial benefits.
Carriers face their own challenges when utilizing load boards. Many offer a “Craigslist” type of experience where negotiating rates and communicating back and forth all eat up idle time that would be better spent on the road, making a profit.
Loadshop is a platform built by shippers for shippers, with consideration for the wants and needs of carriers built right into the framework. It’s a space where shippers can post freight at transparent rates they set and work directly with carriers for seamless connectivity. And it gives shippers the control to choose from a trusted network of carriers looking to haul their freight.
For carriers, Loadshop creates efficiencies, eliminating the need to log into multiple portals to find their next job. There’s no haggling or back-and-forth – just a secure, direct link to multiple shippers located in one location & instant booking capabilities. It’s one-stop shopping with the confidence that carriers are getting the best price directly from the shipper.
That’s “Trucking with Transparency.” And that’s the Loadshop way.
Take our DFM for a test drive at Loadshop.com.
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