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Freight Broker TMS – Benefits, Types, Costs, and More

A freight broker is an important part of the trucking industry, typically serving as an intermediary between shippers and carriers. It ensures that adequate and professional conversation is maintained so that the transportation process goes smoothly and on time. However, traditional freight management can be time-consuming, and mistakes can occur. To avoid human errors, freight brokers are increasingly opting for broker transportation management systems (TMS) to carry out multiple duties while ensuring efficiency.

Broker transportation management system
The software enables companies to move freight more efficiently. The logistics platform simplifies and optimizes the movement of goods and offers better insights into transportation operations and compliance, irrespective of whether it is by land, air, or sea, shippers and carriers, too, use TMS software.

Benefits
Transportation management software for freight brokers comes with a range of benefits.

1. Carrier selection
TMS software can help brokers collect information to find the ideal carrier for a shipment. It can also integrate with other tools that make connecting to qualified carriers faster and simpler. For instance, the TMS might locate carriers that have previously moved similar loads or may integrate with a load board service.

2. Tracking
Carriers and shippers can quickly input current locations into the system with the TMS. This allows brokers and shippers to track the shipment’s precise location in real-time. The software can also be integrated with tracking services so that location updates will be automatic and current.

3. Carrier qualification and confirmation
Before a broker dispatches a load, they must qualify carriers by inspecting if they have insurance, relevant authority, and exceptional safety ratings. TMS can automate these inspections, which can help the freight broker focus on other aspects of shipping. The software could also help arrange the paperwork after a carrier agrees to a load and rate. The TMS generates and sends a rate confirmation to the carrier. This ensures each associated party has the details in writing before the load is shipped.

4. Carrier payments
A TMS should be capable of offering various payment methods to all concerned parties, including checks and ACH transactions. It may also be useful for auditing each invoice and analyzing costs, which can ultimately help save time and energy.

5. Analysis
Various TMS systems offer insights into freight history, including access to help individuals examine records and devise methods to maximize profits from future shipping. The insights also help cut costs where necessary, forecast transportation demand, and assist freight brokers in making a well-informed decision every time.

6. Customer invoicing
Maintaining invoices manually could be time-consuming and lead to multiple human errors. Freight brokers can use the transportation management system to address such limitations. The system usually has integrated accounting software and may work with commonly used systems. Invoicing can become faster because the templates and other documentation, including Proof of Deliveries (PODs) and BOLs (Bill of Ladings), are already saved in the TMS.

Types
The most common freight broke TMS systems come in two types.

Cloud-based TMS
This is accessible from one location with an internet connection and allows freight teams to log in from any place that has a wireless connection through remote servers. Data, security, and hosting are stored online in the cloud.
On-premise TMS
Also known as hosted or licensed TMS, on-premise options are set up on the company’s server at a specific location, such as an office. The freight, IT, and other teams can access the software on computers only from these central locations and get complete control of the system. While an on-premise option may not grant remote access, it can offer reliable security standards.

Cost
The cost of TMS software may vary based on its two different pricing models.

Cloud-based pricing
A cloud-based TMS software might be based on a variable cost for each load or an annual subscription. In the first scenario, the more the team books, the more one pays each month. The average price may be as much as $2 to $5 per load. On the contrary, an annual (or monthly) subscription may cost tens of thousands of dollars. The freight broker usually pays based on the number of integrations, users, and other size-based attributes to get the maximum benefit from cloud-based TMS.
On-premise pricing
A licensed or on-premise TMS model usually comes with a one-time fixed rate, which organizations pay upfront. There may also be annual maintenance charges involved in the purchase, which range from 15% to 20% of the license costs. A business interested in freight broker software may find licensed options ranging from $50,000 to about $400,000 or higher. The price may differ based on the TMS category, broker needs, capabilities, integrations, and features.

Top picks
Different types of transportation management systems are available for freight brokers. Companies can choose from quite a few popular options.

Aljex Software
LoadPilot
ITS Dispatch by Internet Truckstop
DAT Broker TMS
Strategy Live
BrokerWare by 3PL Systems
PowerBroker by McLeod Software
Rose Rocket
Tailwind Systems

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