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Freight Broker Software – A Simple Guide to Choosing the Right Solution

freight broker software magaya

Freight Broker Software – A Simple Guide to Choosing the Right Solution

 

Anytime you’re brokering a shipment, there’s a lot of research that goes into determining the right carrier for each package. Thankfully, brokerage software makes it a breeze with features that determine the optimal path, generate quotes, and track shipments. In this article, we’ll cover how to choose a program that fits your needs.

 

Table of contents

  1. What is Freight Software?
  2. Common Features to Expect of Your Freight Software
  3. Freight Broker or Forwarder: Choosing a Provider Based on Your Business Needs
  4. Affordable Pricing for Freight Broker Software
  5. Why Choose Magaya as Your Freight Broker Software
  6. People Also Ask (FAQs)
  7. Reference

What is Freight Software?

Freight software is a tool that 3PL (third party logistics) businesses and freight brokers rely on to manage the logistics of their operations. 

A freight brokerage software is a resource for strategizing and quickly checking with a network of carriers to determine the best one for a shipper. In addition, good software will offer important features to assist in the management of tracking and the process of transportation, and any information needed afterward.

 

Common Features to Expect of Your Freight Software

There isn’t a definitive list of features every freight software should have, since each company will tailor its software to a particular purpose. However, with freight software meeting a very specific need, many of them will have overlapping features. Here’s what to expect.

 

Quotes with Multiple Carriers

A TMS (transportation management software) will provide shippers quotes from multiple carriers within your network. It will help determine the most cost-effective way to get any package to its destination. 

A good TMS will filter out any shipping preferences to help a customer make the best possible choice for their shipment while looking through the fewest irrelevant results.

 

Invoices

Simplify the purchase of your shipment with a good invoice plug-in. Not all cargo is easy to bill. Shipping between countries and by air can include more paperwork than simple ground shipments. A TMS can offer plug-ins that make billing much easier by sending an invoice online. For complicated shipments like air cargo, Magaya is excited to offer an electronic air waybill (eAWB) plug-in that allows users to save paper and accounting costs with an electronic bill.


Your eAWB can be generated for domestic and international shipments.

In addition to eAWB, Magaya can create invoices through accounting integration. Save time on manually processing invoices when your software can generate this information for your team.

 

Dispatch

TMS software is designed to determine the best possible option to get a package from the shipper’s warehouse to the recipient. Many TMS programs will focus on not only how to get a package through the shipment process easily but how it will begin its journey as well.


Magaya’s solution starts by arranging local pick-up options all the way to arranging local delivery with an integrated app. No more packing up shipments and manually delivering them to the carrier! Thanks to TMS pick-up options, shippers save costs on time and transportation by letting the carrier handle shipments straight from the door. 

 

Tracking

Both the shipper and the recipient need to know where the package is and when it should arrive, especially with large or fragile shipments that need special attention. 


When you need to keep an eye on important cargo, Magaya is ready with live tracking. LiveTrack is a web-based application which doesn’t require your customers to download or set up additional programs. Your customers can rest assured everything is on track once they begin receiving real-time updates on their cargo. 

Inventory Management

For basic inventory needs, a TMS can ensure everything is in stock with simple tracking. This inventory management is aimed at smaller freight being stored during its transportation. For small operations that don’t need a lot of management, this can save costs on programs that only focus on one thing.


For more thorough and complete management, a warehouse management system should be considered. Magaya offers a warehouse management system that can keep track of more complicated needs, even tracking cargo before it arrives and maximizing space within the warehouse. When dealing with a warehouse and a lot of inventory movement, these systems save more than they cost.

Freight Broker or Forwarder: Choosing a Provider Based on Your Business Needs

Freight brokers don’t meet the needs of every shipper. They are agile establishments that never handle your package directly, acting more like a travel planner for your shipments. These intermediary brokers can work between a large network of carriers to connect you with the best one for your needs.


If you don’t have special considerations, the Magaya Cargo Systems for freight forwarders may be a better option for your business. Freight forwarders in the U.S. are required to hold licenses and insurance policies that will allow them to take your packages for you and store them in their own warehouses during the shipment process.

 

What are your typical business functions?

A freight broker and a forwarder each meet nuanced needs. If you’re not sure which to choose, there are a few areas to go over that can help you decide.

 

What is the size of your cargo?

If you are hoping to send smaller shipments, a forwarder takes control of your package and can secure better rates and include your shipments with others. It may be easier to meet the needs of a cargo carrier when your shipment is included in a larger one.


If you have a large load, a freight broker may be all you need for the transportation of your goods.

 

Are your shipments domestic or international?

If your shipping needs are consistently domestic or within a couple of countries, customs can be easy—especially with a good warehouse management system. A freight broker can connect you with the right carrier for your needs and let you handle the customs.


If you’re shipping throughout multiple countries, it may be easier to go through a freight forwarder. A freight forwarder may charge more to handle customs for you, they are experienced with the process and know how to deal with the forms that will be involved. When you are needed, they’ll know exactly how to guide you through the process.

 

Do you have resources to handle your shipments?

If you have space to store your shipments and staffing to handle any logistics of it, a freight broker can be a great choice. They can manage the pick-up and transportation of your packages while they wait in your warehouse.


If you are strapped for space and are hoping to get your package on its way more quickly, a freight forwarder will take ownership of the cargo. They may even have truckers on their staff to load your cargo into and transport it to their own warehouse. For small operations, this is a huge cost saving for space.

 

What to look for in a software platform?

Finding what software platform that’s best suited for your business gets much easier once you know what features will help you the most.

If your business has modest needs including tracking, invoicing, and quoting, a freight broker software may be all you need. For businesses with less space, a cargo management system will be an invaluable tool with basic inventory management that helps you manage shipments even when they’re not in your own warehouse.

 

Why it's important to demo a software app before committing to long term investment

Not all solutions will meet the same needs. Committing before having a chance to demo it can result in getting a product that isn’t what you hoped for and cost extra time and money if you decide to use a different system. A demo helps you choose the right software the first time, so you can save time and move onto your next goal!


Whether you’re only looking for a freight broker or a forwarder software, it can be a large investment. Make sure it’s the right fit with a demo. You will have an opportunity to discuss with your prospective company what your needs are and what products they have available to meet them. With so many plug-ins available, you may be able to run a lighter suite with modest needs or add plug-ins to save on the costs and time of shipping logistics.

Can you begin using this immediately? Or is there a learning curve?

You can use your new system immediately, but any time you introduce a new system, there will be a learning curve.


Magaya aims to make this painless and save your company time with our training programs which can be designed for your exact situation. 

You can decide between self-paced, a live instructor, or a virtual instructor. Once our training program has you and your team up to speed, you can get into the groove of your new system much quicker and take full advantage of the features our software has to offer. 


If you’re a self-learner or want additional resources to reference, don’t worry, we have free resources available for you as well! Apart from the training program, there is a standing knowledge base that allows for users to find guided tutorials or basic function overviews.

 

shipping containers

Affordable Pricing for Freight Broker Software

Magaya offers great pricing on software that is tailored to your needs! By making sure your price focuses on the features you need instead of a one-size-fits-all solution, we can ensure that what you’re paying for is the best solution for what your team needs. 

 

Which is better for you: Web-Based vs. Desktop Solutions?

With web-based solutions, all you need is a browser. Log into your software and your information is stored in the cloud, ready for you to access. You don’t need to install anything or set-up additional hardware to run your program. These systems are great for teams that often work from remote areas or will not be relying as heavily on the desktop solution. 


Using a desktop solution, you’ll need to download the Magaya program onto your computer. You may not be able to access these systems from any computer. These solutions work very well for businesses who may not have reliable internet connections and would still like to use features that don’t require a connection.

 

What are the top 10 providers charging currently?

What the top providers are charging is a complicated answer that really depends on your needs. 


Some systems come in tiered options with a pre-determined list of features. The top 10 providers may charge as little as $100 a month for the most modest needs of a smaller organization. Of course, the more features you need, the more software will cost. For more intensive needs like enterprises, it may be over $1,000 a month.


No matter what price point you’re at, your software should pay for itself with each feature by saving you time on manual tasks, or by keeping your team organized and more efficient. 


If you’re working within a budget and not sure of which features will suit your needs, a demo is a fantastic option these providers are offering. A demo can help you understand what a prospective software offers and what features your business truly needs from it. Get in touch with Magaya to find out what a demo can offer you.

 

Why Choose Magaya As Your Freight Broker Software

In 2018, Magaya was named FCBF Firm of the Year. Not only are we dedicated to continuing to serve our customers as well as we did in 2018, but we are also dedicated to doing so into the future with previous and new customers. 

 

People Also Ask (FAQs)

 

What is the best freight broker software?

The best freight broker software is the option that meets your needs. With each business being so different and having its own unique needs, your software should be a reliable option that emphasizes solutions for your organization.


That said, we’re pretty proud of our product, and we think it does a great job of the above. Schedule a demo with us, and we can show you how we accomplish this!

 

What’s the difference between a freight broker and an agent?

A freight broker is a larger organization that is insured for your load and holds a license to broker your shipments.

An agent is an individual contractor working with a broker. The agent may not have a license or insurance since it is provided through the broker they work with.

 

Do freight brokers need insurance?

Yes!


Freight brokers carry a $75,000 surety bond with liability insurance for the type of shipments they are brokering.

 

Does a freight broker need a DOT number? 

Sometimes. Specifically, a freight broker may need an MC (motor carrier) number.


A freight broker needs to register with USDOT through FMCSA if household goods are being transported across state lines. Within state lines, it may not be necessary.

 

How do I get a freight broker bond?

First, register with the FMCSA to get your MC (motor carrier) number. Once you have your registration completed, you can obtain insurance and choose a processing agent who will handle legal matters for your brokerage. 


Once you’ve finished registering through the FMCA, you can decide whether you want a BMC-84 (a surety bond) or a BMC-85 (trust fund) and apply for one through a bond provider. The better your credit score, the better your rates, so prepare your credit just like you would for a mortgage.

Reference section

3PL freight broker software

3PL (third party logistics) freight broker software assists both 3PL’s and a freight broker in facilitation transactions and collaboration between their shippers and their network of carriers.


Best freight broker TMS software

Best freight broker TMS (transport management system) software is any software that will help a freight broker choose the most economical and strategic path for a shipment. This software manages costs, routes, and inventory for shippers and carriers.


Transportation management software

Transportation management software is a logistics program that keeps track of inventory, tracking and quoting for shipments.

 

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