Partnerships can be challenging, with inevitable ups and downs along the way. That’s true in any industry. However, adding the various factors present in a Freight Broker and Freight Agent relationship and the dynamics in the transportation industry make finding and maintaining the right balance for a true partnership massively challenging.
When assessing any relationship, it’s too easy to focus on the dissatisfaction of the moment. That could be a shipment gone wrong, support not present when needed, or technology that crashed at exactly the wrong time. But rather than storming off to find the next great Freight Broker partnership, it’s far better to coldly and dispassionately review all the critical elements that make up a Broker/Agent partnership.
In this article, we address the multiple factors you should carefully consider when assessing the performance of your Freight Broker and Freight Agent partnership. Only then can you make a rational decision on what to improve, change, or ultimately decide to move on to a new Freight Broker.
The Big Six Factors to Consider in Any Freight Agent/Broker Partnership
Our article titled What to Look for in Any Freight Agent Program is a great starting point for assessing your current Freight Broker partnership and any potential future Broker partnership. We identified six key factors.
- Support. Running a small, if not single-person, Freight Agency requires strong support from the Freight Broker partner. That should include round-the-clock phone support, lightning-quick response times, and a back office filled with expertise and resources, from carrier support and human resources to accounts payable/receivable and easily available top management insight and problem-solving.
- Technology. The critical elements are the TMS and Load Board access. But it can’t stop there. It would be best if you saw constant improvement and updates. Seeing your Parent Broker investing in technology and process-improvement platforms proves their desire to provide its Agents with the tools for continuous growth. Plus, any fees need to be considered. And, of course, the systems are only as good as you can leverage them for your business. That means initial and ongoing training and support.
- Commission. Fair, market-level compensation is essential for any Freight Agency program. That includes commission level, structure, payment timing, and the written agreement. It must also consider fees for load boards and TMS subscriptions. D&L pays 70% Commission on all FTL and LTL. Commissions are paid weekly at the time of invoice—there are no fees for TMS or Load Board Access.
- Strength. Freight Broker’s financial stability and strength show up in credit ratings and quick Carrier payments. They also need strong brand recognition and market share that can help you grow your own Agency business. All that also adds up to a solid reputation with Shippers and Carriers. If your Broker is falling behind in these areas, it may be time to seek another partnership or discuss how they plan to turn around the current situation.
- Culture. This begins with building open, honest, and transparent relationships with everyone the Broker deals with. They should also demonstrate a work hard, play hard mentality that celebrates successes and encourages people to do their best. In their daily communication, they should always work hard to find a win-win solution for everyone involved. In short, they should be fun to work with.
- Benefits. Medical and dental insurance coverage can be a great benefit, providing, of course, that it is cost-effective for your needs. As most Agent programs are comprised of 1099 entreprenuers, finding a Broker who provides the opportunity to participate in health benefits through a group health option is an added bonus. In a traditional Agent Program where Agents are running their book of business cradle-to-grave, it can be hard to take time for vacations. A limited number of brokers can cover your business while you’re away from the office. Finding a Broker that provides coverage in these instances is a significant benefit.
Additional Freight Broker Partnership Aspects to Consider
Those top six factors are only the starting point. There’s quite a bit more, as we discussed in our article Why D&L Transport is the Best Freight Agency Program — Hands Down. The D&L Freight Agent Program is a good starting point for considering what to expect from a top-notch partnership. Here’s a quick rundown of the many other factors that must be assessed in a true partnership.
- Agent Support. Several critical factors here include 24/7 support, a response in 60 seconds (or less), dedicated teams for Claims Disputes and LTL shipments, and the Freight Agent’s not being responsible for bad debt.
- Dedicated Carrier Team. Our dedication doesn’t stop with claims disputes and LTL shipments. We also have a dedicated Carrier team focusing on compliance, support, and quick onboarding of new Carriers. This is an essential aspect of any Agent/Broker partnership.
- Non-Threatening Business Relationship. It begins with a series of NOs: no non-competes, no long-term contracts, no red tape, no games, and no gimmicks. It culminates in a simple written agreement that protects the Agent and ensures that you always own your business whether you’re with D&L or move on to someone else. To go further, D&L has a non-compete against themselves in their Agent Agreements. The Agent’s book of business remains with them, always.
- Incentives. Make sure your Broker has an incentive program that genuinely encourages you to stretch to achieve them. For D&L, that includes membership in the President’s Club with a celebration of those who qualify.
- Making Transition Painless. Bringing your business to a new Freight Broker needs to be quick and painless for you and your customers. D&L provides an immediate review of existing contracts and credit requirements, quick training on the TMS and a promise to get new Agents up and running in 24 hours (or less).
- Constant Investment in Technology. Logistics technology is evolving at an ever-increasing pace. That requires investment in adopting new systems and developing existing ones with input from Agents who use the system daily. That’s followed by quick training and support.
- Communication and Transparency. D&L is your Family in Freight for a reason. Our motto is “Honesty. Transparency. Respect.” This is how we operate and have operated since day 1. We’ve worked as Freight Agents, and we know what it’s like to be out on your own. That’s why we started our Freight Agent Program: to provide the tools you need and remove barriers for you to achieve success.
- Growth and Success Stories. When considering any Freight Broker, talk to their current Agents about how it’s working for them. For D&L, you can find out more from our Freight Agents in our BETTERLIFE® video series “Where in the World is D&L?” This should also provide a great view into our culture and how we do business.
Is it Time to Consider a New Freight Broker Partnership?
We hope this thoughtful process of examining your current Freight Agent and Freight Broker partnership has helped you discover what’s working and what’s not. It should also give you a great idea of what needs to be improved. Or, perhaps it’s provided the information you need to seek out a new Freight Broker.
We’re biased. We feel that our Freight Agency Program is the best in the business. To see for yourself, look at our Agent Opportunities page. You can also hear directly from our successful Agents. Then, get in touch, and we can get started.
Call toll-free: 866.559.0203. Or complete the form at D&L Agent Requirements.
D&L Transport. Your Family in Freight.