You’re leaning toward working with a third-party logistics (3PL) provider for your supply chain transportation logistics needs. Now what? Is it better to go with a non-asset-based provider that works exclusively with a network of partners? Or maybe it would be more beneficial to go with an asset-based provider that will move your shipments with at least some of its own equipment. When deciding, there are multiple factors to consider.
Does the 3PL You’re Considering Have a Solid Foundation?
Since a non-asset-based third-party logistics company must negotiate on a client’s behalf with carriers based all over the map, building a strong reputation based on a solid network takes considerably more time. In some ways it has more to prove, having no equipment or other physical assets, such as storage facilities, of its own. Lower investment in such assets can translate to a shakier foundation, and potentially less chance the company will be around in the future.
An asset-based 3PL provider, on the other hand, owns at least some of the equipment it has readily available. Such tangible investments in trucks, distribution centers and warehouses can be important indicators of an asset-based 3PL company’s strong financial picture as well as its longevity i.e., its commitment to being around for the long haul.
Consistency and Efficiency
Another benefit of asset-based 3PLs is, as the saying goes, there are fewer cooks in the kitchen. And with fewer cooks there tends to be less potential for error, a more streamlined process, and optimal results. There is also increased consistency when you choose an asset-based third-party provider that can manage your supply chain process from start to finish.
Flexibility and the Bottom Line
Can a non-asset-based 3PL provider offer competitive rates to move your goods? Sometimes. But as already discussed, cost is just one part of the complex transportation logistics picture.
Asset-based 3PLs often have more flexibility in their cost structure, offering additional room to design a custom plan or system that is satisfactory for all involved. Transportation logistics experts collaborate with you to determine the best price based on their capacity and rates, and your specific needs. As a frequent bonus, thanks to a limited number of parties in transactions with asset-based 3PLs, clients tend to see fewer additional costs.
Whichever type of 3PL company you choose to partner with, it should:
- Save your company money with the best rates (and no add-on costs)
- Streamline your operations, so that rather than dealing with quoting, scheduling and invoicing, your team can enjoy greater productivity as they focus more fully on customer service and growth
- Offer your company peace of mind, knowing that its freight is being delivered in a timely manner with supply chain management by seasoned experts who consider your success, their own
Amware is an asset-based 3PL. Contact us today to learn how you can enjoy flexibility, tangible cost savings on freight to your managers and clients, and peace of mind! Or request a free trial of our newly updated TMS, Amrate, below, and see how much you could be saving on LTL today.