Nearly 60% of the 168 freight brokers surveyed by financial enablement platform Denim indicated they still pay carriers and shippers with paper checks, despite over two-thirds (68%) saying eliminating paper checks would improve their business operations.
Denim’s inaugural Freight Broker Pulse Report offers insights from freight brokers and highlights the importance of time efficiency in operations and how the industry benefits from digitalization.
According to the report, freight brokers spend too much time on broker operations, including invoicing, collections, and payments. Over half of respondents (52%) report that their organization spends 25% or more of their time working on broker operations, which totals 480 hours a year based on the average 40-hour work week.
Considering this significant time investment — 78% agree that their business would be more successful if they spent less time on broker operations.
“Time is everything in logistics,” said Bharath Krishnamoorthy, CEO and co-founder of Denim, in a press release. “Shippers need goods delivered on time, and carriers need to be paid on time. Because they act as connectors in the supply chain, freight brokers must have a streamlined payments process to avoid errors and delays. Denim’s report showcases the need to invest in smarter tools to optimize back office operations and drive revenue.”
Additional findings from Denim’s report include:
- 84% of freight brokers are optimistic for 2023
- 74% of enterprise freight brokers (average $2 million in monthly revenue) are prioritizing improving overall efficiency in the year ahead.
- Rising gas prices was the top challenge (63%) of freight brokers in 2022
- Over half (58%) of freight brokers use invoice factoring to finance freight and receivables.
- 97% of freight brokers agree that building trust with carriers and shippers improves business.