Double Brokering Explained (Spot and stop it in Logistics) скачать в хорошем качестве

Double Brokering Explained (Spot and stop it in Logistics)

Get a FREE Logistics Invoice Audit to see if you can save money with Laura and her company ➡️ https://www.lcinnovativelogistics.com/ Double brokering in logistics refers to a situation where a freight broker, who is an intermediary responsible for arranging the transportation of goods, contracts with another broker to fulfill a shipment. In essence, the original broker (the first broker) doesn't have the necessary transportation assets, such as trucks, to directly handle the shipment. Instead, they subcontract the job to a second broker who, in turn, may also subcontract it further. This practice can create a series of intermediaries in the transportation process, each taking a portion of the payment, potentially leading to various problems and inefficiencies. TABLE OF CONTENTS 0:00 Double Brokering 0:29 What is Double Brokering? 1:38 Costs of Double Brokering 2:19 Personal Experience 3:48 How to Avoid it? 5:45 Extra Cost for Double Brokering Here's why double brokering is often considered problematic in the logistics industry: Reduced accountability: With multiple brokers involved, it can be challenging to determine who is ultimately responsible for the shipment. This lack of clarity can result in disputes and finger-pointing in case of issues or delays. Increased risk of fraud: Double brokering opens the door to fraudulent activities, as some brokers may misrepresent their capabilities or manipulate the system to extract higher profits from a shipment. Less transparency: Each broker involved may not have a complete picture of the shipment's progress, leading to a lack of transparency in tracking and ensuring the goods' safety and timely delivery. Diminished service quality: Multiple intermediaries can complicate communication and coordination between parties involved in the transportation process. This can lead to confusion and lower the overall quality of service, potentially affecting the customer's satisfaction. Higher costs: The multiple layers of brokerage can lead to higher costs for the shipper and lower earnings for the carrier, as each broker takes a cut of the payment. These additional costs can be burdensome for all parties involved. Inefficiency and delays: Double brokering can lead to inefficiencies in the supply chain, as it adds extra steps and complexities to the transportation process. These inefficiencies can result in delays and missed delivery deadlines. Legal and compliance issues: Double brokering can also raise legal and regulatory concerns. In some cases, it may be against the law, or it may involve brokers who are not properly licensed or authorized to operate in a particular jurisdiction. In summary, double brokering in logistics can lead to problems related to accountability, transparency, costs, and service quality. It is generally considered a practice to be avoided or tightly regulated in the industry to ensure smoother and more reliable transportation of goods. Shippers and carriers are often advised to work with reputable, well-established brokers who have a clear and transparent approach to their services to minimize the risks associated with double brokering. #logistics #logisticsindustry #lcinnovativelogistics