Before the advent of artificial intelligence, the freight brokerage industry, like nearly every other type of business on the planet, relied on human labor, manual processes, and decisions often based on gut feelings.
“Data was recorded and processed manually using spreadsheets and other recording systems. This made processing large amounts of data slow and error-prone. Customers communicated with companies primarily through phone calls, postal mailings and in-person visits,” a Customer Experience Services article says. “In other words, before artificial intelligence everything was slower, more human errors were made in the different processes, and extensive data studies and analysis were needed to make decisions to carry out different business strategies.”
And scaling a freight brokerage — adding revenue without taking on piles of additional cost — before AI? That too mostly relied on C-suite hunches — often with unimpressive results.
Freight brokerages today struggle to differentiate themselves in a crowded field. AI has emerged as that differentiator.
Traditional Challenges in Freight Brokerage
Freight brokers face a wealth of challenges, from leadership’s pushes to book and cover more freight to customers’ demands for real-time visibility.
An article titled “Will My Business Fail without AI? (How to Future-Proof Your Business)” says common challenges companies without AI face include:
- Inefficiencies and Higher Operational Costs. “Without AI, businesses may struggle with time-consuming processes that competitors have streamlined,” it says. “This can lead to higher operational costs as businesses need more manpower to accomplish the same tasks.”
- Lack of Data-Driven Decision-Making. “Companies leveraging AI can analyze vast amounts of data in real time, enabling smarter decision-making. Businesses that rely solely on traditional methods may find themselves making slower, less informed choices. This can result in missed opportunities and less effective strategies,” the article says.
- Competitive Disadvantages. “Without AI, businesses risk falling behind, losing customers to competitors who offer faster, smarter, and more personalized services.”
- Higher Risk of Errors. “Businesses relying on manual processes face greater risks of costly mistakes. These errors can impact the bottom line and damage a company’s reputation,” the article says. In freight brokerage, these errors can range from bad rate quotes to missed load updates to lost freight.
The article concludes that “AI is not a business requirement, but it is a powerful tool that separates thriving companies from struggling ones. While your business won’t necessarily fail without AI, it will face increasing challenges, inefficiencies, and competitive disadvantages.
“To remain relevant and successful, businesses must embrace AI-driven solutions to optimize operations, improve customer experiences, and drive growth.”
The Power of AI in Freight Brokerage
In an industry fraught with manual inefficiencies and fragmented communications, AI has become integral in winning more business — and scaling it.
Logistics giant RXO says it uses AI for such tasks as:
- Smart Load Matching.
- Predictive Analytics.
- Dynamic Pricing.
- Automated Routing and Optimization.
“By embracing responsible AI development and fostering a culture of innovation, brokers can leverage the power of AI to improve efficiency, optimize operations, and create new opportunities for growth,” RXO says.
World Transportation Services agrees that AI has emerged to become a powerful tool in freight brokerage, “because in a world where speed and accuracy are everything, the brokers who embrace AI today are the ones who will lead the industry tomorrow.”
Scaling Without Sacrificing: Drumkit’s Competitive Edge
More and more freight brokerages looking to embrace AI and scale their businesses are accomplishing that with the help of Drumkit.
Our innovative AI-powered freight broker software enables:
- Scalability. Your freight brokerage can grow with minimal expense.
- Increased Efficiency. Freight brokerages implementing Drumkit’s software can easily streamline operations and handle more transactions.
- Faster Response Times. Real-time updates and smart communication tools enable nearly instant responses.
- Enhanced Customer Satisfaction. Delivering transparency and reliability to shippers and carriers can help retain customers for life.
Experience the Power of AI with Drumkit
Drumkit plugs directly into email inboxes and TMSs to empower freight brokers to scale up seamlessly, slash costs per load, boost customer relationships, and improve back-office efficiency.
Our industry-leading AI-powered features include:
- Intelligent Sidebar. Freight brokers can see all load information across platforms in one place. AI enables the integration of Drumkit’s solutions with freight brokers’ existing tools like email and TMS.
- Smart Auto-Replies. AI responds to queries in real time, reducing delays and improving customer service.
- Load Building. AI automates the creation of loads in TMSs, eliminating human error and helping improve on-time performance.
- Track and Trace Automation. AI monitors shipments’ progress and provides proactive updates in real time.
- Quick Quotes. AI calculates rates and generates quotes instantly using tools like Greenscreens.
- Appointment Scheduling. AI-driven tools optimize scheduling, saving time and reducing inefficiencies.
Tap into the power of AI. Book a demo with Drumkit today.
