When it comes to business success, there are a lot of different points that you can hinge a strong model on. Naturally, if you’re making a lot of profit at the time, chances are that you’re doing something right. The same applies to factors like project efficiency and employee satisfaction. Part of success that doesn’t get covered nearly as often, though, is the idea of business elasticity.
In this context, elasticity is the ability for companies to adjust their procedures or plans based on outside forces like supply and demand. The major issue with the shipping industry at present is even though it has the demand for businesses of all kinds to succeed, elasticity is at a massive low. The current relationship between shipper, broker, and driver is a complex and inefficient one, that makes it difficult to adjust for spikes or drops in needs. This is part of the reason why so many shipping companies are struggling, even in a time where there is plenty of business and need available. Digital freight brokerage is a key way to help change this endemic issue.
What digital freight brokerage accomplishes is using algorithms to pair carriers and loads based on a variety of different factors, including:
- Load capacity
- Load type
This is so important not just because of the speed, but also the ability to quickly gather and record data for future use. How does all this play into elasticity? In the first case, being able to process or assign different tasks quickly is a key part in keeping your business elastic. In the past, communication difficulties between truckers and shippers made it difficult to make quick adjustments or take advantage of a trucker’s sudden availability.
In terms of data, we need to remember that all good decision making in business requires a strong source of data first. If you want to raise your prices in advance of a heavy shipping season, which we are going into with the holidays, how do you figure out the ideal amount? You would start by looking at past data to see what your clients may expect, then look at industry data to see what your competitors may be charging. Without digital freight brokerages, this is far more difficult to manage.
This also helps cut down on inefficiency, allowing your business to take on more work. In turn, it contributes to greater elasticity, as you will be able to allot time as needed, and also adjust your prices. If you need to go lower due to a slower season, higher elasticity means this will do less damage to your business overall. The main issue is finding digital freight brokerage that lets you take advantage of all these situations.
This is where Hwy Haul comes in, a digital freight platform designed to change the way loads are moved across the US, from the largest shipping companies to smaller mom-n-pop shops. Hwy Haul offers a comprehensive solution to address the issues like freight matching, real time load tracking, trip optimization and document management. With auto-match and real-time freight-tracking, you don’t need to waste time trying to communicate back and forth between suppliers and carriers to figure out what’s happening with your freight. In addition, this is essential for reducing empty miles and increasing driver income and job satisfaction. Not being bound to some of the conventional logistical rules and issues is key for helping the shipping industry grow.
Our goal is to Connect Shippers to Truckers – Seamlessly! If you’re interested in learning more about Hwy Haul, contact us.