Hi everyone - I'm not a trucker and don't pretend to know this industry well, so I need your advice and experience.
What I do know is software development. In the last couple years my team created what amounted to be a private load board for a company in the steel industry. We didn't really even know at the time that it was a load board - it was just a better way for our client to interact with the group of owner/operator (and some broker) drivers that they worked with.
It has always seemed to me that our little private load board could be rolled out on a larger, more public scale and I've been researching that possibility recently. But the more I learn about load boards, the more I find myself confused, I suppose, for lack of a better term. It seems like there are lots of load boards, but none that are great and they are pretty universally disliked.
At a base level, I'm trying to understand why load boards and brokers exist, what they get right, and what they get wrong. Here is a list of questions that I've been contemplating, do you mind addressing the questions, the topic generally, or even just giving your thoughts on load boards and brokers?
- It seems like load boards have a really bad reputation, is that just because prices are too low, or because there's something wrong with the load board interface?
- Are there features that load boards are missing?
- Why can't you (or maybe you can) just bid on loads through the load board interface? Seems like a huge pain in the ### to pick up the phone and call every load you might want?
- Why does the load poster give the offer price? I don't go into the grocery store and say I'd like two apples and am willing to pay $1.50. Why is this backwards in the load boards world? Would it be better if you could post your offered price, kind of like a reverse auction?
- If you wanted to work directly with the shipper, how big of a problem is the paperwork (licensing/insurance requirements, etc), and getting paid?
- What is required to get paid and why does it take so long? If you were to, say, take a picture of the receiving documents and upload them, it seems like that's all the company needs to pay you, knowing the the load has been delivered. Why can't that be done more quickly?
- Are heavy industry (lumber, steel, etc) loads seen as inferior? Would a load board dedicated to flatbeds be a good idea or a bad idea?
I could go on, but appreciate your thoughts and comments if you've made it this far. Thanks in advance!!
Build a Better Load Board
Discussion in 'Freight Broker Forum' started by skiermike, Nov 16, 2017.
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AsphaltFarmer and Oldironfan Thank this.
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Load boards suck because a bunch of pricks get their broker licenses, get on load boards, scoop up a bunch of loads, take money off of them and then post the same loads for a lower rate. Same loads, just a bunch of greedy desk jockeys with their fingers in the pie. And suddenly, freight that was paying $10/mike gets to the drivers, you know, the people that are actually moving the freight, at $1.20/mile.
If you REEEEEEEEEEAAAAAAAAAALLLLLLLLLLLLLYYYYYYY want to do a program for a load board, do one that prevents double brokering.D.Tibbitt, spindrift, Oldironfan and 8 others Thank this. -
Also - what is the point of making people call on all these loads? Wouldn’t it just be easier to submit a bid price (electronically through the board) and be done with it? Wouldn’t that give you a little more control of the pricing?Lepton1 Thanks this. -
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How are you going to build an interface where only quality carriers and quality customers/brokers are using it? When a quality carrier meets a quality customer they don't use the board anymore, once a business relationship is formed.
I find it hard to see how you would improve what already exists. Simply stating "no brokers" won't do much. Ask why customers hire brokers in the first place. They do not want to coordinate all the trucks for their pickups and deliveries themselves. I'm sure the accounting is easier for them also.
Submitting electronic bids is just for customers or brokers looking for the lowest price carrier. They get the inevitable service screw ups they are paying for. More power to them. I get these emails every day, I just delete. Sometimes I get the 4:45pm phone call looking for me to do whatever work it was. Now I am in ###hole mode. You want me to do it now? Now I know I am going to give you an amount that "you don't have that much in it". That's what you will get from me if you dick me around because you aren't a customer I want. It's all good. Keep F__-ing it up, either the customer will find a decent broker that doesn't dick the carriers around or the customer will find the carrier directly.Oldironfan, Dave_in_AZ and Toomanybikes Thank this. -
don't take any wooden nickles.
You need to actually define what a load board is and what's the real purpose for it. You haven't with the last sentence.
As I would expect any software development house to do, gather up requirements and get those approved by the customer, I would like to see that document's contents to show you what you are doing is wrong and right.
BUT that said ...
There are research features missing but then that's an issue I will get to in a moment.
Why can't it be done quickly?
Because it is on their business AP cycle, not ours.
This is a customer driven industry, we are not the ones who make the demands, they are.
First off there is no real regulations for brokers to control their behavior. We need those in place so a broker can not "buy" a load from a load board and repost it with the intent to fool someone into thinking it is their load, this I think should be illegal.
Second the brokers are not really the problem with the load boards, the load boards themselves are the problem. There are too many of them, all of them are easily accessible for a fee and it is broker driver to the point that it is like other venues where flooding all of them with the same load makes sales.
Third is the lack of historical data, which from what I've seen is absent for real data mining and strategy planning.
Solution #1 - we need to get better regulations for brokers. One such regulation is what I posted, another is vacating their bonds so not to pay. There are good brokers out there, there are a lot of bad one who ruin it for the good ones.
Solution #2 - we need to have one load board, or at least a connection between all of the major ones so that we are dealing with one interface and have the ability to see historical data derived from all of the load boards on sales of loads.
Solution #3 - we need to eliminate bidding on loads. I know many make a good living off of this but this is how we allow cheap owners to exist and that further drags the entire industry.
Solution #4 - means testing of new authorities beyond the basics. We need to make sure the new authority isn't going to be cheap on their business needs.
So there is my opinion.Oldironfan, Lepton1 and SingingWolf Thank this. -
Thanks for the comments so far. My question about the problem of double brokering that I was trying to get at is is there something that’s intrinsically wrong with double brokering, or is it just that the prices get too low by the time they reach the driver? Like, double, triple, quadruple broker it - what you want, just as long as the price stays high enough for the actual goods to get moved?
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@Ridgeline can you explain on your comment that it's not a problem to work with a shipper directly paperwork-wise?
My impression was that shippers would always claim they want to work with more drivers, but when it came down to it and they got a bid from new driver that they wanted to work with, everyone would freak out. What's their tax ID number? What about insurance? Licensing? etc etc. They couldn't get all the boxes checked and the driver set up in their system fast enough to really actually get any value from having new driver contacts. It sounds like your experience is not this at all.
Also, your comment about the human element in picking up the phone. Is that just because it's always been done that way, or because there is usually some detail or nuance that is too difficult to communicate in the typical load posting so its easier to just have a conversation about it over the phone?
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