Owing a freight brokerage business can be very rewarding and profitable. But as a freight broker, you know that your business is very cash intensive. Your drivers depend on you to be paid on time. However, clients can take up to 60 days to pay for their loads.
So you end up caught in the middle. Caught between drivers that need cash now and clients that want to pay slowly. The math does not work. And unless you have a nice cash cushion in the bank, something has to give.
Trying to get a business loan won’t help. Banks only give business loans to companies that have a great history and solid track record. But what if your track record isn’t great or if you are a startup? What if you have no history but have a great future potential? If that is your situation, your financing will need to come from another source- a factoring company.
Factoring companies are experts at financing businesses with little past history but great future prospects. Basically, the factor eliminates the 30 to 60 days it takes to get your freight bills paid. With factoring, you get your freight bills paid in about 2 days. That gives you the cash you need to pay drivers and meet other business expenses.
Factoring is flexible and grows with your company. As opposed to having arbitrary limits like business loans or lines of credit, factoring limits are driven by your sales. The more you sell, the more financing you qualify for.
Here is how factoring works:
1. You submit a copy of your freight bills to the factoring company
2. The factor advances you between 90% to 98% of your freight bills (sometimes they hold a small reserve)
3. Your get immediate use of the funds. The factor waits to get paid.
4. If the factor held a reserve, the reserve is rebated as soon as your customer pays the freight bill
Factoring costs are driven by three variables: a) monthly financed volume, b) your customer credit worthiness and, c) how long the freight bill goes unpaid. As a rule of thumb, rates go between 1.6% to 3% per month, depending on these variables.
Factoring freight brokers is a specialty type of factoring and not all factoring companies offer it. However, those that do will help you succeed beyond your expectations.
Saturday, May 3, 2008
Freight Logistics
Logistics is defined as possessing the right amount of substance at the correct time and for the appropriate price. It is a discipline, which deals with the procedure of any organization and has operational and financial impact. It fits in with all types of industry segments, and administers the completion of project life cycles, supply chains, and ensuing efficiencies. Freight logistics involves working with experts who merge expertise in freight transport with focused knowledge of certain industrial sectors.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
Friday, March 28, 2008
The brokers - Freight
Freight brokers are described quite simply as people who bridge the gap between a shipper (those that will need to transport goods) and a licensed and reliable logistics provider, in this case, truckers.
Categorically, freight brokers are called transportation intermediaries. In other words, they are the middle men who ensure a shipper gets reliable movers to do the job and help the carriers to get in touch with customers and earn money.
These brokers do not necessarily own the carriers that they supply to their shipper clients. They also source them out to logistics companies. However, some carriers are encroaching on the freight brokerage business to maximize opportunities. Still, most companies prefer to employ the services of freight brokers who have a vast network of carriers and can provide them at the best price.
The freight brokerage industry began in the early 1970s, when as businesses expanded worldwide, logistics became a vital part of that growth. Strict guidelines and requirements imposed by the government at the beginning discouraged many from becoming brokers. Today, control has loosened a bit, and the business is thriving.
Freight brokers often play an important role in one of the shipper’s important aspect of the business: the timely and uninterrupted delivery of goods. Some companies ask their brokers to schedule the shipments for them since they are at the best vantage point to set all the requirements.
The success of a freight-brokerage business largely depends on the depth of shippers’ and carriers’ networks it has. Most brokers started working as carriers or shippers. There, they learned the ropes of shipping goods and established strong contacts. The freight brokers rely on their ability to ensure the delivery of products in their perfect condition at the time specified by the clients. To become a preferred broker, they have to gain the confidence of their clients.
Categorically, freight brokers are called transportation intermediaries. In other words, they are the middle men who ensure a shipper gets reliable movers to do the job and help the carriers to get in touch with customers and earn money.
These brokers do not necessarily own the carriers that they supply to their shipper clients. They also source them out to logistics companies. However, some carriers are encroaching on the freight brokerage business to maximize opportunities. Still, most companies prefer to employ the services of freight brokers who have a vast network of carriers and can provide them at the best price.
The freight brokerage industry began in the early 1970s, when as businesses expanded worldwide, logistics became a vital part of that growth. Strict guidelines and requirements imposed by the government at the beginning discouraged many from becoming brokers. Today, control has loosened a bit, and the business is thriving.
Freight brokers often play an important role in one of the shipper’s important aspect of the business: the timely and uninterrupted delivery of goods. Some companies ask their brokers to schedule the shipments for them since they are at the best vantage point to set all the requirements.
The success of a freight-brokerage business largely depends on the depth of shippers’ and carriers’ networks it has. Most brokers started working as carriers or shippers. There, they learned the ropes of shipping goods and established strong contacts. The freight brokers rely on their ability to ensure the delivery of products in their perfect condition at the time specified by the clients. To become a preferred broker, they have to gain the confidence of their clients.
Information on Freight Logistics
Logistics is defined as possessing the right amount of substance at the correct time and for the appropriate price. It is a discipline, which deals with the procedure of any organization and has operational and financial impact. It fits in with all types of industry segments, and administers the completion of project life cycles, supply chains, and ensuing efficiencies. Freight logistics involves working with experts who merge expertise in freight transport with focused knowledge of certain industrial sectors.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
Thursday, March 13, 2008
Customer Services And Freight Logistics Solutions
Logistics is defined as possessing the right amount of substance at the correct time and for the appropriate price. It is a discipline, which deals with the procedure of any organization and has operational and financial impact. It fits in with all types of industry segments, and administers the completion of project life cycles, supply chains, and ensuing efficiencies. Freight logistics involves working with experts who merge expertise in freight transport with focused knowledge of certain industrial sectors.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
Strategy Designing And Networking In Logistics Services
Logistics services for planning and implementing various programs according to the requirements of companies are widely accepted in this complex commercial world. These services help to gain exceptional working performance and client satisfaction. Logistics services also reduce cost in planning and coordinate various activities of the companies. Established methodologies, implementation of new technologies, and use logistics softwares make logistics services more efficient and reliable.
Logistics services are available in strategy designing, networking, analysing, and execution. The art of logistics plays a vital role in linking many industries with others for attaining precise business targets. Budget of the company, transportation of goods, and distribution are considered for network designing. This helps to determine the number of locations and outlets to meet customer requirements. Logistics services are utilized to check the flow of materials according to the requirements and analyse assets for achieving predetermined cost targets. Outsourcing, financial and tax planning, and calculation about incentives and deployment are integrated to analyse assets.
Logistics services are provided to establish ideal routes, modes, and carriers for transportation at a low cost. It also offers an insight to develop actions for improving company operations. Facility lay out and material requirements and flow to gain a good distribution management are possible with logistics services. The quality of performance will also improve between and within companies or organisations when logistics services are integrated with the business process management. Modern technology and systems are utilized to provide present information about supply and requirements at different locations.
Plans and designs are executed to gain cost effective operational processes. Logistics services are available in manufacturing, order processing, accounting, incentives management, and freight forwarding and billing. Calculation of demand and requirements along with the distribution of materials at the right time give total control of materials management. Warehousing, marketing, labelling, packing, and quality assurance are also included in the logistics services for a planned distribution process. Logistics services help companies or organisations to compete globally by utilizing systematized patterns and management criteria.
Logistics services are available in strategy designing, networking, analysing, and execution. The art of logistics plays a vital role in linking many industries with others for attaining precise business targets. Budget of the company, transportation of goods, and distribution are considered for network designing. This helps to determine the number of locations and outlets to meet customer requirements. Logistics services are utilized to check the flow of materials according to the requirements and analyse assets for achieving predetermined cost targets. Outsourcing, financial and tax planning, and calculation about incentives and deployment are integrated to analyse assets.
Logistics services are provided to establish ideal routes, modes, and carriers for transportation at a low cost. It also offers an insight to develop actions for improving company operations. Facility lay out and material requirements and flow to gain a good distribution management are possible with logistics services. The quality of performance will also improve between and within companies or organisations when logistics services are integrated with the business process management. Modern technology and systems are utilized to provide present information about supply and requirements at different locations.
Plans and designs are executed to gain cost effective operational processes. Logistics services are available in manufacturing, order processing, accounting, incentives management, and freight forwarding and billing. Calculation of demand and requirements along with the distribution of materials at the right time give total control of materials management. Warehousing, marketing, labelling, packing, and quality assurance are also included in the logistics services for a planned distribution process. Logistics services help companies or organisations to compete globally by utilizing systematized patterns and management criteria.
Saturday, February 23, 2008
Cost Reduction In Freight And Shipping Rates
Logistics cost form an important part of the overall cost structure in any organization. Focus needs to be on renegotiating freight and shipping rates, reduction in overall freight costs and streamlining operations.There are six best practices that can be followed by most businesses to reduce costs.
New carriers: Constant market rate check is a best practice. Usually, logistics managers get into a comfort zone with the existing carriers. This leads to cost creep. Market rate check will bring to light other more economical operations. New carriers may be more flexible in their quotes.
Freight costs: There are several options to optimize freight costs. Renegotiation of minimum billing to a minimum for a zone needs to be explored. Product delivery coordination is another useful tool to streamline freight costs. Today both the USPS and Canada Post offer viable options for small packages. Arrangements with a number of smaller local carriers sometime s provide the best rate/best service combination. Internet offers excellent tools for comparing and optimizing freight costs
Improve shipping and receiving: Streamlining shipping and receiving practices will offer substantial savings. This can happen through reduction of window time for receiving. Starting point should be mandating delivery appointments. A flow chart needs to be made of all the operations to determine wasteful processes and combining existing processes.
Technology: Internet tools enable substantial reduction in paperwork. Documents are scanned and emailed to customs, ports etc. In case of cross border trade, documents needs to reach at least twenty four hours in advance to avoid delays at the border. Technology also allows coordination of all shipments to optimize loading.
Managing returns: Reverse logistics is an important element of freight costs. Most companies offer a liberal returns policy. If the customer is not satisfied with the product, it can be returned in 30, 60, 90 days depending on the seller. At times, the seller also arranges to pick it up. To minimize costs associated with reverse logistics processes needs to be streamlined.
Audit of freight costs: Use specialized agencies that provide post payment audit of freight bills. These agencies are usually paid on a profit sharing basis. These audits also provide valuable insight into patterns and other cost reduction opportunities.
New carriers: Constant market rate check is a best practice. Usually, logistics managers get into a comfort zone with the existing carriers. This leads to cost creep. Market rate check will bring to light other more economical operations. New carriers may be more flexible in their quotes.
Freight costs: There are several options to optimize freight costs. Renegotiation of minimum billing to a minimum for a zone needs to be explored. Product delivery coordination is another useful tool to streamline freight costs. Today both the USPS and Canada Post offer viable options for small packages. Arrangements with a number of smaller local carriers sometime s provide the best rate/best service combination. Internet offers excellent tools for comparing and optimizing freight costs
Improve shipping and receiving: Streamlining shipping and receiving practices will offer substantial savings. This can happen through reduction of window time for receiving. Starting point should be mandating delivery appointments. A flow chart needs to be made of all the operations to determine wasteful processes and combining existing processes.
Technology: Internet tools enable substantial reduction in paperwork. Documents are scanned and emailed to customs, ports etc. In case of cross border trade, documents needs to reach at least twenty four hours in advance to avoid delays at the border. Technology also allows coordination of all shipments to optimize loading.
Managing returns: Reverse logistics is an important element of freight costs. Most companies offer a liberal returns policy. If the customer is not satisfied with the product, it can be returned in 30, 60, 90 days depending on the seller. At times, the seller also arranges to pick it up. To minimize costs associated with reverse logistics processes needs to be streamlined.
Audit of freight costs: Use specialized agencies that provide post payment audit of freight bills. These agencies are usually paid on a profit sharing basis. These audits also provide valuable insight into patterns and other cost reduction opportunities.
Supply Chain In Logistic Services
Logistics is defined as possessing the right amount of substance at the correct time and for the appropriate price. It is a discipline, which deals with the procedure of any organization and has operational and financial impact. It fits in with all types of industry segments, and administers the completion of project life cycles, supply chains, and ensuing efficiencies. Freight logistics involves working with experts who merge expertise in freight transport with focused knowledge of certain industrial sectors.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services.
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