By David Yoe, VP of Operations and Business Development ,TransCredit
As a freight broker, it is imperative to never settle into complacency with your existing shipper partnerships. The landscape of shipping partners is inherently volatile; shippers can unpredictably scale back operations, shift their service demands, or show inconsistency in their reliability. Simply put, shippers come and go. Therefore, it’s crucial for you to stay proactive and continuously scout for new potential shippers to ensure your business remains resilient and adaptive.
A robust business development strategy is essential in this dynamic environment. This strategy should include a regular review of your established shipping lanes, actively seeking out new opportunities within your network, and identifying regions where you have strong carrier relationships that can be leveraged. The foundation of building these fruitful relationships lies in asking the right questions to thoroughly vet potential shippers.
To aid you in establishing and nurturing profitable shipping partnerships, we have compiled a list of seven critical questions that you should consider asking prospective shippers:
1. What Products Does Your Company Manufacture?
Certain shippers may not produce ideal products for carriers in your network to haul. Before engaging with a potential shipper, it’s advantageous to conduct thorough research into their business operations. This preparation not only helps you understand their specific needs but also arms you with tailored conversation starters that can put the shipper at ease. Demonstrating a deep understanding of their challenges shows that you are not just a service provider, but a potential partner who is invested in their logistics success.
2. What Are Your Primary Concerns When Transporting Your Goods?
Different shippers have different priorities—some might focus on cost-efficiency, while others could prioritize speed or reliability due to the pressures of their particular industry. Engaging them in discussions about what they value most in their logistics operations will help you align your services to meet their specific needs both now and in the future.
3. When Was The Last Time You Engaged A New Logistics Provider, And What Prompted The Change?
This question can reveal how open the shipper is to making changes among their logistics partners and what factors influence their decisions to switch providers. Understanding their selection process and the reasons behind their decisions will give you valuable insights into how to position yourself as the preferable alternative to their current providers.
4. Have You Encountered Any Issues With Your Current Logistics Providers?
Issues with current or previous logistics providers can range from problems with driver professionalism to inefficiencies in loading and unloading processes. Identifying these pain points is crucial as it allows you to position your services as the solution to these specific problems, thus enhancing your value proposition.
5. Who Else Is Involved In Making Decisions About Logistics In Your Company?
Logistics decisions may not always be centralized. Knowing who else is involved in these decisions can help you understand the internal dynamics and prepare a more targeted approach. By obtaining the names, roles, and contact information of other key decision-makers, you can customize your pitch to address the specific concerns and priorities of each stakeholder.
6. What Other Locations Does Your Company Ship To Or From?
Gaining knowledge about all the shipping locations associated with the company can uncover additional opportunities for you to offer your services. Even if the current engagement does not lead to an immediate partnership, understanding their geographical footprint can help you plan more strategic proposals that might appeal to different parts of the organization.
7. What Are Typical Detention Times At Your Facilities, And How Are They Handled?
Detention times can significantly affect your operational costs and the satisfaction of your carrier partners. Knowing how a potential shipper handles detention times can help you assess the risk and cost implications of partnering with them. Some shippers may have policies that are more carrier-friendly than others, and choosing those who value efficient operations can enhance your reputation among your carriers.
By thoroughly vetting potential shippers with these strategic questions, you place yourself in a better position to build lasting, profitable partnerships. Successful freight brokers recognize that building strong relationships is about more than just securing immediate business; it’s about establishing trust and alignment that pave the way for long-term collaboration and success in the competitive world of freight brokering.
Conclusion
Once you have found an ideal shipper, TransCredit can provide your freight brokerage with the tools it needs to evaluate the creditworthiness of this potential customer! We provide detailed credit reports on shippers and offer alerts when if these company’s scores decline.
For more information, please reach out to us.