Managing your freight business has never been easier than with digital freight matching. Using advanced algorithms and machine learning, these platforms connect shippers and brokers with carriers to transport their loads. But how is this technology different from load matching? Learn more about digital freight matching and how it differs from load matching in this helpful guide.
And when you’re finished reading, check out the other articles in our ‘Digital freight matching’ article series:
- What is digital freight matching and how does it help my business?
- Digital freight matching vs load matching
- Why digital freight matching provides higher quality load listings
What is digital freight matching?
Digital freight matching (DFM) is a technology-driven approach to connecting shippers and carriers with available capacity to move freight. Through online platforms and mobile applications, DFM matches shippers with carriers capable of carrying their specific cargo.
These digital matching platforms allow shippers to post the loads they need transported and carriers to post their capacity. Then, the DFM algorithms match them based on location, availability, equipment type and other relevant parameters.
Through digital load matching, shippers can find suitable carriers quickly and efficiently. Meanwhile, carriers find profitable loads to transport, increasing their efficiency and reducing empty miles.
Digital freight matching is an increasingly popular technology in the transportation industry. It offers a streamlined and cost-effective way for shippers and carriers to conduct business. DFM also helps improve transparency and reduces manual processes, so companies can save time and boost efficiency.
What is load matching?
Load matching connects shippers with available carriers or trucks to transport their goods. It involves matching the shipment’s characteristics, such as size, weight and destination, to carriers with the appropriate equipment and capacity to transport the load.
Connecting shippers with available carriers quickly and efficiently is essential in the freight industry. Carriers need to transport profitable loads, and shippers need reliable carriers to deliver their products.
Traditionally, load matching could only be done manually. Shippers would contact carriers or brokers directly to find trucks they had available to transport their loads. This method is inefficient as it requires the most time and resources and is becoming less common in the industry.
Another type of load matching uses online trucking marketplaces called load boards. These digital platforms allow shippers and brokers to post their available loads so carriers can find and book them. Trucking companies and owner-operators then use search filters to identify the best options based on their specific requirements. Traditional load boards have drawbacks as anyone can post loads, or even duplicate them, which can result in stale data.
The most advanced type of load matching is digital freight matching. In digital load matching, the goal is the same, to connect shippers with carriers to transport their goods. The difference with DFM is that algorithms match loads and trucks rather than requiring time-consuming manual searches.
Digital freight matching vs. load matching
Despite having a similar name, digital freight matching is more than just load matching using a load board. Learn more about the differences between the two by comparing these factors.
Tailored recommendations
Digital freight matching can provide more tailored results than load matching because it uses advanced algorithms to match shippers and carriers based on precise criteria such as equipment type, location, availability, pricing and carrier performance.
These platforms use real-time data and analytics to match loads automatically, accounting for filters and preferences set by both parties. Additionally, DFM technology can learn from user preferences and behavior to produce more customized recommendations to completely optimize the process.
Building relationships
Digital freight matching platforms can help shippers and brokers build better relationships with carriers. They offer a more efficient and transparent platform for communication and collaboration.
Along with automated freight matching, these platforms provide enhanced communication tools. They include, for instance, messaging and tracking capabilities that enable shippers and carriers to stay connected throughout the shipping process. This improved communication helps build the trust and transparency necessary to build long-term industry relationships.
Automation
Relying on advanced algorithms and artificial intelligence (AI), digital freight matching platforms are able to match shippers and carriers automatically. These entirely digital platforms use real-time data and analytics to match loads based on specific criteria the carrier or shipper sets without requiring additional human intervention.
In contrast, shippers, brokers and carriers can achieve load matching through various methods, including phone calls, text messages and email. For example, load boards may require users to manually search for and identify available loads or trucks, communicate directly, and negotiate their rates and terms.
Rather than the time-consuming process of load matching, streamlined digital freight matching platforms offer an automated, real-time approach to matching loads that requires minimal manual effort. Users can take advantage of instant ‘book-it-now’ capabilities to secure loads with a simple button click any time of day, enabling them to sidestep potentially time-consuming manual booking activities.
Time savings
Digital freight matching can save shippers, carriers and brokers significant time compared to other load-matching methods that involve manual searches and communication.
With digital freight matching, carriers can view, bid on, negotiate and book suitable available loads quickly and easily. Automation allows them to find profitable jobs to maximize revenue without wasting time on loads that are no longer available or unsuitable for their equipment.
Shippers and brokers also save time with digital load matching. For example, DFM platforms streamline communications, ensuring all parties stay connected throughout the shipping process and reducing the need for time-consuming driver check calls.
Saving time in the load-matching process allows transportation companies to focus on other critical aspects of their operations while optimizing their transportation process.
Tapping into owner-operators and small- to mid-sized carriers
Digital freight-matching platforms create a virtual online marketplace where owner-operators and small to mid-sized carriers can find and book loads for free. They also serve as a location for freight brokers and third-party logistics providers (3PLs) to look for and secure capacity.
These platforms act as intermediaries between shippers and carriers, providing an optimized and centralized location where they can connect. As a result, carriers gain access to a larger pool of potential loads and shippers, real-time visibility into available loads and an automated bidding process that saves time and effort.
For freight brokers and third-party logistics (3PL) providers, digital freight matching platforms provide access to a network of carriers and loads, allowing them to secure capacity quickly and efficiently. These platforms also offer enhanced communication and collaboration tools, enabling brokers and 3PLs to manage multiple loads and carriers simultaneously.
Optimize your business with a digital freight-matching platform
Load matching is essential to transportation and logistics but doesn’t need to consume your time and resources. With a digital freight matching platform, shippers and brokers can find the best carriers to transport loads, and carriers can find high-value jobs. And it’s all done automatically, thanks to advanced matching algorithms and machine learning.
FAQ
A digital freight marketplace is a network technology that uses algorithms to automatically match shippers and brokers with carriers to transport available loads.
A freight forwarder is a company that arranges transportation logistics for another firm’s cargo. Digital freight forwarders achieve this through a platform that manages the process without involving a third party.
A digital load board is an online trucking marketplace where shippers and brokers can post loads they need to transport, and carriers can find available loads.
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