January 15, 2024

Insights

Sticking with one trusted freight broker or carrier can offer familiarity and potentially build a strong relationship, but there are several advantages to diversifying your network by using multiple providers:

1. Increased Coverage and Flexibility:

  • Wider reach: Multiple brokers/carriers have broader networks and access to different routes and equipment, making it easier to find coverage for urgent shipments, specialized cargo, or specific geographic areas. This flexibility is crucial for adapting to fluctuations in demand or unexpected logistical challenges.
  • Reduced reliance: Relying solely on one provider creates a single point of failure. If that provider faces capacity issues, delays, or service disruptions, your shipments could be significantly impacted. Having alternatives mitigates this risk.

2. Competitive Rates and Negotiation Power:

  • Price comparisons: By soliciting quotes from several brokers/carriers, you can compare rates and negotiate for the most competitive prices, potentially saving on transportation costs.
  • Improved leverage: When dealing with multiple providers, you have more leverage when negotiating contracts and pricing, as you can walk away if the terms are not favorable.

3. Enhanced Service and Expertise:

  • Specialized knowledge: Different brokers/carriers may specialize in specific types of cargo, routes, or transportation modes. Using them for those specific needs can ensure your shipments are handled by experts who understand the unique requirements.
  • Innovation and best practices: Exposure to different companies can introduce you to new technologies, service offerings, and best practices that can improve your overall logistics efficiency.

Traditionally, the drawbacks to managing multiple providers include adding complexity to your supply chain, requiring more time and resources for communication, managing contracts, tracking shipments, and having the time to build strong, reliable relationships. However, Owlery’s platform seamlessly avoids these drawbacks, giving you all of the advantages of having multiple partners without the downside.

To see for yourself, request a demo or start using Owlery today!

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