Global Sourcing & Purchasing Post 9/11: New Logistics Compliance Requirements and Best Practices

BASIC OPTIONS

  • Broker A Handles 10 percent of your business. Advantage: The broker can center on one area and become very efficient at it. Disadvantage: The broker does not have an opportunity to share additional tonnage cost savings to you as a result of their relationships with other logistics partners. They also cannot truly show what they are made of if they are just handling one type of business lane (for example, border trucking).

  • Broker B Handles 90 percent of your business. Advantage: They can really show what they can do and have come to know your business well. They are familiar with your needs and can offer suggestions for improvements as a result of their interactions with other importers. Disadvantage: You have placed most of your eggs in one basket. There is no opportunity to see how other brokers conduct business. Fee costs may tend to get higher as the broker may not feel it needs to buck for offered discounts. The broker may get too comfortable.

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