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A brokerage refers to a specific service provided by a transportation intermediary, known as a freight broker or transportation broker. A brokerage acts as an intermediary between shippers (companies or individuals who need to transport goods) and carriers (trucking companies, freight forwarders, or other transportation providers).

The primary role of a brokerage is to facilitate the movement of freight by connecting shippers with carriers. They essentially act as a matchmaker, finding the most suitable carrier for a shipper’s transportation needs. This involves negotiating rates, arranging transportation logistics, and managing the administrative aspects of the shipping process.

Here are some key aspects of a brokerage’s role:

Finding Carriers: Brokers maintain a network of pre-screened carriers and leverage their relationships to identify the most appropriate carrier for a specific shipment. This includes considering factors such as the type of freight, destination, timeline, and pricing.

Negotiating Rates: Brokers negotiate transportation rates with carriers on behalf of the shipper. They strive to secure competitive rates that align with the shipper’s budget and specific requirements.

Coordinating Shipments: Brokers handle the logistics and coordination of shipments. This includes arranging pickup and delivery times, managing documentation and paperwork, and ensuring compliance with relevant regulations.

Tracking and Communication: Throughout the transportation process, brokers provide updates and tracking information to both the shipper and carrier. They act as a point of contact for all parties involved, facilitating smooth communication and addressing any issues that may arise.

Risk Management and Insurance: Brokers often assist with insurance coverage and risk management related to the transportation of goods. They help ensure that appropriate insurance is in place to protect the shipper’s cargo during transit.

Overall, a brokerage plays a crucial role in optimizing transportation operations by matching shippers with carriers, negotiating favorable rates, and managing the logistics and administrative aspects of the shipping process. This allows businesses to focus on their core operations while leveraging the expertise and network of a transportation intermediary.

Not knowing a given cost component in manufacturing is the surest way to move away from precision ROI—and toward lower profitability. Yet when it comes to inbound raw materials, many companies settle for vendor-billed freight, essentially losing control of optimal costs. In an environment where fractions of pennies can make a huge difference in profitability, leaving inbound shipping in a vendor’s hands in no longer acceptable.

What is the benefit of negotiating lower raw materials costs when vendor-billed freight enables them to make up all or part of their cost concessions?
And requiring a vendor to use your routing guide saves you virtually nothing in freight costs. Why? Because routing guides are only a starting point for freight costs, not a static price list that carriers must abide by (now you know why it’s called a routing guide). Read more about “The Truth About Routing Guides” below.


There is now a way to SAVE TIME, CUT COSTS and PRECISELY PINPOINT your RM costs efficiently and easily.

Exact is the only program of its kind that takes the power of inbound cost controls and puts them squarely in the hands of the manufacturer. Through Customodal’s online portal, buyers can set load parameters and receive quotes in seconds that are based on multiple inputs and the most current available information.
By taking control of their inbound freight, manufacturers save from thousands to hundreds of thousands each year on inbound freight, all of which goes directly to their bottom line because there is no infrastructure or setup cost involved.

It’s just doing the same thing a different way. And gaining control, saving money and reaching the end of the day without any headaches. Or at least no more headaches from freight.

Now your purchasing department knows the EXACT cost of shipping, and by taking control, has ensured the company is receiving the absolute lowest cost for incoming freight. No more routing guides. No more vendor markups.

In the age of minimizing inventory costs, it has become critical that manufacturers know in detail the progress of all incoming freight. EXACT enables quick online tracking of every incoming shipment. And if something goes wrong in transit, Customodal’s Customer Service Experts are here to help, and in many cases can make adjustments to your freight mid-stream to help fulfill your manufacturing objectives.
Call or message us to learn how EXACT can make a difference to your bottom line.