Due to the increasing trade between countries in the world today, transportation of commodities has now become a very lucrative venture. As time goes by, more transportation companies are sprouting in the industry, and this means more competition among businesses out there. Therefore, if you are starting your first freight transportation company, you will need to stand out from the rest of the firms so as to secure a bigger market share. Below are a few useful tips on how to get started in the transportation business.
Make Use of the Latest Technology
Generally, most customers like to feel like they are using the most modern and cutting edge technology out there. You can use this to your advantage. Technology here refers to your freight brokerage software, website interface and cargo monitoring systems among others. For instance, always make sure you have the latest smartphone integrated tracking systems for clients to view their cargo during transportation. Let your technology be your company marketer.
Start as a Forwarder
Since you are just starting, it is better to begin your transportation business as a freight forwarder rather than a freight broker. This is because you may not be having very many connections at first, and it could be stressful if you choose to be a broker. Other than that, being a forwarder means directly dealing with clients and shipping lines. This involves direct negotiation of prices and freight rates, and it would give you better leverage for your business.
It is important to have your clients feel like they are part of your business. The best way to do this is by being innovative and dynamic at all times. Instead of just packing and delivering, you could offer your customers routing advice. For example, which route will take the shortest time and how much can they save from it?
Other than that, issue great compensation policies. For instance, you can compensate your client when there is a delay. Remember, your customer is sovereign. Therefore, it is your duty to offer as many options as possible to ensure they are never frustrated.
Network with Carriers
Your network plays a major role in determining your net worth. So, you need to create one as soon as you jump into this industry. Establish connections with carriers and have them know how excited you are to do business with them. This will help make a name for yourself and even land you a few jobs.