Road - Resized 1000 px-1

Freight News

The Value of Using a "Boutique Brokerage" like Freight Scouts

11 October, 2019 
0 Comments

Large 3PLs, also known as "brokerage farms" often provide the services their customers need on a large scale. That doesn't mean, however, that they are offering their customers the things they really want. Many brokerage farms have alienated thousands of good carriers due to unethical behavior and lack of oversight. They have have been black flagged by the 3PL, or they may have black flagged the 3PL themselves. Unfortunately, many carriers have no choice but to work with them: a few of these 3PLs own a very large percentage of the market, making it difficult for carriers to choose anyone else to work with. Ultimately, this creates a toxic working relationship between the carrier and the broker. Have you been struggling with a brokerage farm? There are a number of advantages to making the transition to a boutique brokerage like Freight Scouts. 

A smaller 3PL, generally known as a boutique brokerage, is a 3PL that consists of 50 people or less. It has a smaller number of employees and, therefore, a smaller number of people to work with -- which can offer a number of advantages. 

Boutique Brokerages Aim to Build Strong and Lasting Relationships 

Employees want the chance to get to know their carriers. Often, they have a chance to interact with them on a personal level, which means they have a better idea of their needs. Each decision is made with the individual carrier in mind, rather than being made on a larger scale for a larger percentage of clients. 

Reps Can't Hide Behind the Company Name 

In many brokerage farms, representatives hide behind the company name or behind 1000+ other employees. This makes it easy for a variety of poor business practices to slip by. Representatives may fail to provide adequate customer service or to offer the services that carriers really expect -- and as a result, customer service suffers. 

Management Can Observe Relationships 

In a large 3PL, managers can't keep track of all of the carrier relationships. In a boutique brokerage, on the other hand, managers can keep a close eye on all of the interactions between brokers and carriers. As a result, carriers are more likely to be treated with respect, and managers have a more personal hand in the process. 

Transparency and Communication Remain a Priority 

If you've used a brokerage farm, you may have found yourself wondering what was really going on behind the scenes. What were their real priorities? What did they really care about? When was the last time you even heard from them? At a boutique brokerage, transparency and communication remain top priority-- which means that you'll always have a better ideas of what's going on. Clients are less likely to fall through the cracks, and you're more likely to get the quality service you count on. 

Boutique Brokerages Don't Compete With Themselves 

In large 3PLs, they often end up competing internally. Large firms take priority over others, which means that smaller firms may fail to get the attention and service they deserve. Where do you feel that your firm would fit on that internal scale? Would your account take priority, or would it be shoved into the background because of its size? With a boutique brokerage, on the other hand, every account matters--and truck availability won't shrink based on the needs of a larger account. 

Are you tired of working with brokerage farms that fail to take your needs into consideration? At Freight Scouts, we are a boutique brokerage that is dedicated to transparency, communication and making our customers our top priority. Contact us today to learn more about how we can transform your experience and create a better environment for all of our carriers.