The digitization of the logistics industry is in full swing, yet just beginning. Billions of dollars have been poured into various segments across the globe. Our space is so new that there is not even an agreement on what to call it, and there are various products, pricing plans and business models offered by our competitors. Digital load matching (DLM) comes close so we will use it for convenience sake. Surveying the field, we believe we are different–and superior–in three major areas:
- Auction. The most cited problem we hear is that brokers play with margins to maximize their profits, which is what a rational business should do. Most of the other startups or services from established players are effectively glorified load boards and online brokers, or they provide some “quick quote” using pricing databases. We eliminate all that. Carriers and shippers bid and negotiate directly; we don’t get involved at all. This is the most efficient and TRANSPARENT pricing mechanism, and solves the biggest problem.
- Pricing. We use a very simple pricing approach. It’s totally free to join and use for carriers. We charge one transaction fee to shippers on each shipment which is added to the carrier rate. We pay carriers when they submit a clean POD approved by customer, within 24 hours or 2-3 days. We deal with shippers on getting paid. No subscription fees, different pricing levels, charging both sides, nickel diming stuff etc.
- Spot Market Management Platform. DLM products typically have 2 feature sets. The front end is what most people have in various degrees of completeness and usefulness: load matching, tracking, quotes/pricing, and paying carriers. What separates LoadExpress from the rest of the pack is the back-end which allows the parties to complete a transaction on our platform without leaving it and dealing offline in the traditional way. Things like exception handling, of accessorials, detentions, lumpers, dispute resolution etc. We obviously can’t automate everything and take the human element out of it completely, but we try to do what’s practical.
So our definition of DLM is much broader, and not just a glorified load board. The LoadExpress platform can be used by both small-medium carriers, owner operators and shippers to manage their spot freight market.