How to Cut Your Transportation Costs With Virtual Transportation Marketplace
The main goal of the online transport exchange is to have transport supply and demand all in one place. Online transportation marketplace is an excellent solution for manufacturing and trading companies looking for solution for their transport needs. The exchange allows companies to find transport providers quickly and reduce their transport costs at the same time. It is also an unlimited source of possible new business for transportation or logistics companies enabling them to find loads quickly.
The process goes as follows: Transportation or logistics companies enter their free capacities and freight services into the database and then wait for cargo owners to contact them or they can give price quotes to the cargo owners which are already entered their transportation needs. Companies looking for transportation can either select the best offer of transportation capacities provided, or make offer of their own and wait for carrier to contact them.
The main reason why this transportation marketplace significantly reduces costs for both sides involved is because the transportation vehicles can fully reduce empty-running. Without freight exchange if freight carrier had delivery from point A to point B he would make a delivery and then have to search for another freight ready to go in opposite direction. Transportation marketplace allows him to find fright he can deliver back to the point A and make some profit in the process. Because he has to return back anyway it is better for him to charge less than to go back with empty vehicle. Because transportation companies are ready to lower their fees, just to avoid empty-running, freight owners can benefit and get better deal. It is a win-win situation.
Further benefits for both sides are:
Financial security – most internet transportation marketplace platforms requires from all their customers (both freight owners and transportation companies) to be in the business at least six months or a year to be admitted to the customer base and granted the use of the program. Unethical users in the business are put on the black list and are forbidden from any further use of the program. Also, all of the other clients are warned about their behavior. Some of the transportation fright exchange companies even have their own legal team which collects legitimate claims.
Reputation building – transportation fright exchange companies have their own system of feedback and website forums, so you can check any of the other users whenever you like and find who is most trustworthy.
New business contacts- as a client you’ll have access to database of companies, so you can negotiate for transportation terms by yourself and get better price and service.
Time saving-Because each day all users have access to thousands of offers of available loads and vehicles, you can find transportation or freight almost immediately
Reduced risk- Most freight exchange platforms allows anyone wanting to become a virtual transportation marketplace customer to test the program in real-time for limited period of time (usually for weeks) free of charge and without obligation prior to signing a contract.