Axle Gives Veteran-Owned Startup a Competitive Advantage
Toby Guidry founded freight brokerage Cajun Logistics LLC in 2020 so he could offer carriers an easier and more profitable experience. Toby worked in supply logistics in the Marine Corps for nearly a decade before joining a freight forwarder, and later also worked at a carrier. These experiences inspired him to do things differently in his own business.
For example, while many freight brokers have a 15% to 20% margin, Cajun Logistics operates with a 10% margin. Toby isn’t shy about letting carriers know that, either. “You just have to be straight up and honest with them. It helps build that trust,” he says.
The Problem: Inconsistent Cash Flow and a Time-Strapped Solopreneur
Maintaining cash flow was important to his young business, but Toby soon saw that it was difficult to do without help. Shippers typically take 30 to 60 days to pay brokers like Cajun Logistics, but carriers expect to be paid far sooner. What’s more, as a one-person operation while growing, Toby didn’t have a lot of time for administrative tasks, either.
He knew he needed to work with a factoring company, but soon hit walls. “I tried connecting with a couple, but they either wouldn’t work with me or didn’t respond,” he says.
But, when he refined his generic “freight brokerage factoring companies” Google search to include “that work with new brokers,” Axle was at the top of the search results.
How Axle Helps
As a new-broker-friendly provider, Axle responded to Toby’s inquiry quickly. That impressed the freight broker, but so did Axle’s technology. Not only does it help Cajun Logistics get paid quicker and with less effort, it lets Toby treat his carriers well by paying them sooner, too.
He can offer carriers a quick-pay option without charging a fee for it – something they appreciate. Toby uses that as a selling point, too. “Paying in just two to three days saves carriers money on the back end,” he says.
Axle’s system is an administrative time-saver, too. That has become even more important as Cajun Logistics grows. The firm is on track to broker nearly $1 million in sales in its second year. Toby focuses on shipping lumber and flatbed loads, but future plans include creating two divisions, one for flatbed and one for drive van.
The easy-to-use portal facilitates that growth – Toby can quickly set up carriers in the system or make changes. Customers can easily upload paperwork, too.
He especially appreciates how he’s immediately alerted to problems or discrepancies. “If I accidentally upload the wrong paperwork for an order, for example, I’m notified so I can fix it right away. It’s not being held up for a week or two like it was with other factoring companies I’ve encountered during my career,” he says.
The Benefits of Partnering with Axle
With three decades of experience in the logistics industry, Toby knows a good thing when he sees it. Earlier in his career, the now-entrepreneur told us he literally spent months trying to get an invoice he needed. When email and telephone messages didn’t work, Toby got results only when he mailed a handwritten note. “It took three months to resolve one invoice that could have been handled with a single phone call. I don’t have problems like that with Axle,” he says.
This is just one reason he’s recommended Axle to carriers and other freight brokers. Axle has also helped Cajun Logistics maintain a perfect DTP rating on Ansonia, with a consistent 30-day payment schedule and desirable low-risk rating. This is particularly important for a younger, growing freight broker that’s bringing on new shippers and carriers regularly.
Using the system to pay carriers quickly without a fee gives Toby that competitive advantage he leverages while building the business, too.
Then there’s Axle’s friendly, prompt, customer service.
“I have yet to run across anyone at Axle that I didn’t enjoy working with,” he says.