The Importance of Relationships in Logistics

Throughout our lives, we develop relationships in all facets of our lives. This is a vital part of humanity. From our first friendship in kindergarten, or our senior prom date, to our colleagues at work. In our industry developing trusting relationships is a critical key to building a successful business.

As the transportation industry continues to grow, brokers are becoming a dime a dozen. Shippers and Carriers have an abundance of 3PLs they can choose to work with or choose to avoid. Best pricing, best service, and best technology are common promises made, but how can we differentiate ourselves amongst the pack? Building a level of trust with a client or carrier can open up new opportunities.

Once a shipper gets to know you and trusts you with their freight, you will start to see new lanes. Pricing will become a second thought because a good rapport has been established. Referrals will start to come in, and shipments will be tendered without hesitation. A good sales rep will be able to relay any issues involved with a shipment effectively. Fighting for a TONU or detention will be a lot easier when you have a valued relationship with the client.

Good carriers want to work with brokers with whom they’ve developed strong relationships. The good trucks do not get posted on the load boards. They are booked in advance with carrier reps who have reached out and learned about the carrier’s needs. Carriers want to have their trucks booked out in advance and by building their rapport with brokers they can get their trucks covered more efficiently. Having a strong relationship will increase communications with carriers as well. They will call you right away when there's an issue and work hard to rectify any situation. Pricing again will become less of an issue, as you are not just another broker calling in on a truck posting. You’ve become a valued partner to the carrier.

Shipper and carrier relationships are very important, but the most important relationships to increase success are amongst the team. Get to know who you are working with, and understand what their job entails. Respond to your teammates promptly. Do not be afraid to ask questions. We are all working together and have the same goals.

The 1996 Chicago Bulls became the best sports team ever because they all worked together, understood each other's roles, and communicated effectively on the court…..Oh, and they had Michael Jordan too...