Companies that produce products are always going to need to have their products moved from one place to another. This has been the case ever since the semi truck has been invented. The freight brokerage market continues to grow due to products always needing to be moved and the advancements in technology.
What happens when a freight brokerage gets too large?
It is not necessarily bad when brokerages get big, but there can be problems that arise due to the size of the company. When they get big, there is a higher chance that the processes they use to book, track, and close the accounts get to be complicated. There are processes that are used where each stage of the shipment is passed along to another group of people. This works well when a company has a solid internal communication network. If problems arise, everybody can communicate and get it sorted out. If there is a poor internal communication network, not everybody know what is happening with each load and problems can become even bigger problems.
Larger freight brokerages also lose some of the personal touch they have when they get big. Instead of one or two people communicating with the carriers and their drivers, this can turn into a different person communicating with them every time. As I said before, if there is not a good internal communication network set in place, this can cause problems if a person tracking the load does not know what is going on.
System outages also occasionally occur. It is harder for a large company to be able to function if they do not have their tracking and booking programs working. With a smaller firm, it is easier to be able to keep track of who needs help than a large company.
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