It’s not easy managing a supply chain. You need to keep track of many things at one time. For example, freight charges are a major cost, and 3rd party logistic solutions include freight management services. When you take advantage of professional freight services, you receive many benefits.
What Does Third Party Mean?
A third-party is a “go-between” for you and someone else. For example, a freight broker connects shippers with carriers. It’s hard to find the perfect carrier for each load. In fact, you’d need to check out many companies to see which ones can fill your needs. Also, you have to compare costs. A business providing 3rd party logistic solutions takes care of these things for you. They can save you time, money, resources, and problems.
Network of Resources
A third-party logistic service has many contacts in the freight and warehousing industry. For example, they do business with major carriers in all parts of the US. They also do business with private trucking companies and specialty carriers. Maybe you need less than a trailer load (LTL) shipped from Seattle to Topeka. It could take a long time to find a competent carrier with reasonable shipping rates, but your freight broker can find a company fast. When you contact the right freight services, you have access to a vast network of resources.
3rd party logistic solutions include lower shipping fees. Most people equate third-party or intermediary services with higher prices, but this is not always the case. A large freight brokerage receives volume discounts with some carriers, and they pass the savings on to their customers. You can’t get volume discounts when you do business directly with the carrier unless you run a large operation.
Once you choose the right logistics company, you improve efficiency, raise profits, and improve service to your customers. Everyone benefits from these companies.