In the highly competitive freight industry, finding ways to increase profit margins is a top priority for brokers. One strategic way to achieve this goal is through the use of load tracking software. This technology has become an essential tool that can significantly streamline operations and enhance efficiency.
With the help of these advanced systems, brokers can effectively manage loads, reducing expenses and contributing to their bottom line. This article addresses the role of software in shipment monitoring and logistics tracking, ultimately helping to achieve this crucial business objective.
What is load tracking software?
Load tracking software, sometimes known as shipment tracking software, is a solution that provides real-time shipment status and location visibility. This type of logistics tracking system leverages global positioning system (GPS) technology to monitor freight, typically via GPS trailer tracking.
The software can integrate with other tools, like transportation management systems (TMS) or package tracking software, for comprehensive logistics management. It may also come in the form of a shipment tracking app for mobile accessibility. This enables freight brokers to effectively manage broker truck loads and enhance their service to clients.
Load tracking for brokers enables more efficient operations, making it a crucial tool for any freight brokerage business.
5 ways shipment tracking software increases broker profits
Wondering how to increase profit margins for your business? Freight brokers can significantly increase their profits using load tracking software. Here are a few ways how:
- Improved efficiency: Load tracking software enables users to manage broker truck loads more effectively with real-time visibility. This can help to minimize delays, optimize routes, and maximize the use of transport resources, leading to cost savings.
- Enhanced customer service: Real-time shipment tracking software capabilities mean brokers can keep their clients informed of shipment statuses. This high service level, provided via a mobile logistics tracking app, for instance, can lead to increased customer satisfaction and retention. In the long run, this may attract more business and drive revenue.
- Data-driven decisions: The reporting and analytics capabilities of the software provide valuable insights into operations. These can be used to identify areas for improvement, streamline processes, and make more informed, strategic decisions. This, in turn, can boost the freight broker profit margin.
- Reduced errors: The automation features of load tracking software, such as automatic alerts and notifications, can help reduce errors that might occur in manual processes. This can prevent costly mistakes and inefficiencies, increasing overall profitability.
- Better security: Some load tracking software offers advanced security features. such as geofencing. By preventing theft or unauthorized use of vehicles, brokers can avoid potential losses, thereby preserving profits.
By harnessing the capabilities of cargo tracking software, freight brokers can enhance their operations in many ways. Advantages include increased efficiency, improved customer satisfaction, and ultimately, higher profits.
Typical load tracking software functionality
Load tracking software typically includes a range of functions to facilitate efficient logistics and freight management. Some of the key functions include:
- Real-time tracking: Using a trailer tracking GPS device, the software provides real-time updates on the location and status of loads.
- Shipment tracking: Load tracking tools typically feature robust shipment tracking software to monitor shipments at all stages, from pickup to delivery.
- Mobile access: A shipment tracking app function often provides mobile access, empowering users to monitor and manage shipments from anywhere, at any time.
- Load management: Broker truck loads can be effectively managed using freight tracker software, allowing for efficient load matching, scheduling, and allocation.
- Integrations: The software can integrate with technologies already in place, such as TMS or package tracking software, for comprehensive logistics management.
- Alerts and notifications: Automated alerts and notifications can be set up to inform users of important events such as arrival at checkpoints, delays, or issues with the shipment.
- Reporting and analytics: Load tracking software often includes powerful data analysis and reporting capabilities, providing insights that can help enhance operations and increase the freight broker profit margin.
- Security: Some systems may offer security features such as geofencing, which sends an alert if a trailer moves outside of a designated area.
By combining these functions, load tracking software becomes an indispensable tool for managing freight effectively. This enhances profitability in the freight brokerage business.
What to look for in load tracking software
Choosing the right load tracking software can be critical for brokers looking to enhance their operations and increase brokerage profits. Here are some factors they should consider to decide which software is best:
- Ease of use: The software should have an intuitive interface and be easy to use. This reduces the learning curve for staff and facilitating efficient operations.
- Customer service capabilities: Good support that’s available at convenient hours is crucial for resolving any issues that might arise. Find out when potential providers have agents available to field questions, and whether support is offered via phone, email or chat.
- Ratings and reviews: Look for reviews or references to gauge the satisfaction levels of existing customers. Check industry association websites for recommendations, if possible.
- Integrations: Make sure the software will work with any technologies already in place that you intend to keep, from trailer tracking devices through your This can help create a streamlined and efficient logistics operation.
- Features and functionality: Consider your specific business needs and ensure the software has the features and functionalities you require. This might include load tendering tools, enhanced visibility capabilities, alerts and notifications, reporting and analytics, security features, etc.
- Pricing: Consider your budget and compare the pricing of different software options. Remember to consider the return on investment, as higher-priced options might offer more features that can help increase profits in the long run.
- Scalability: The software should be able to grow with your business, handling increased load volumes and additional features as needed.
By considering these factors, brokers can evaluate and choose the freight tracking software that best fits their business needs and objectives.
Make more money with the right load tracking software
By considering the factors outlined above, you’ll be better positioned to find the load and package tracking software system that best suits your business needs. From there, you can begin reaping the benefits that lead to heightened profit margins.
Load brokers, also known as freight brokers, make money by acting as intermediaries between shippers who have goods to transport and carriers who can transport those goods. They earn income through commission or via a percentage of the total freight charges, essentially the difference between what they charge shippers and what they pay carriers.
The profit margin for freight brokers varies depending on various factors. These may include freight type, the broker’s efficiency, and market conditions. That said, the typical profit margin for freight brokers is around 10% to 20% per load.
Freight brokers can leverage strategies like networking within the industry, offering competitive pricing, providing excellent customer service, and marketing themselves online. They can also use load boards to find shippers and cold call potential clients to offer their services.
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