If there’s one thing the freight industry isn’t short of, it’s a steady stream of startup placements.
These mostly small and medium-sized players rushed onto the scene during the pandemic as many sought to capitalize on cargo volatility. Many went well, but not all had it easy.
When the going gets tough, brokers find themselves in a survival game.
Staying competitive in a slowing market continues to pose challenges for smaller brokerage firms as it becomes harder to justify spending more on software solutions while trying to cut costs.
No matter how you slice it, cash flow problems are inevitable.
“Cash flow is pretty much king and really the number one concern when it comes to going out of business,” said Michael Colin, founder and CEO of MVMNT. “Brokers and shippers both suffer from the trifecta of razor-thin margins, high operating costs, and poor access to capital.”
Sure, startup brokerage is arbitrage, but what happens when you have to pay your carriers? How do you deal with being rejected by a factor? These questions stirred Colin’s mind.
With liquidity and technology constraints making smaller brokerages uncompetitive, MVMNT is the freight management software that levels the playing field – without a subscription.
MVMNT’s no-obligation model brings enterprise-level technology downstream to smaller brokers, helping them reduce the capital constraints that come with choosing a quality TMS.
The problem with most TMS setups, aside from cost, is their limitations. Especially with a standard TMS, says Colin, they eventually inhibit the ability to properly manage data and generate additional revenue.
This leads to many brokerage firms building their own TMS when they hit a revenue target. But those with ongoing cash flow problems don’t have time to adopt new technology, especially as capacity changes rapidly.
Colin addresses MVMNT with a two-part conversation: “We help you save money by not spending it on a bunch of SaaS [software-as-a-service]which we can then also convert into additional income.”
“Give it a try,” suggests Colin. “Even if you’re just using our product to activate QuickPay while keeping your existing system, that at least gets the conversation going, then we can show how we can improve their business from there.”
For more FreightWaves content from Jack Glenn, click here.
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