The freight shipping industry is constantly changing. With the fluctuations in this complex business, shippers everywhere find it harder to meet their shipping goals and get the right solutions for their supply chains. That’s where partnering with a 3PL can help. From getting expert insight into the freight industry to booking lanes at the most affordable rates available, the benefits of partnering with a 3PL far outweigh going it alone! We’ve mentioned a few of the top benefits below.
The primary goal of most shippers is to find affordable solutions for their freight shipping needs. Partnering with a 3PL gives you access to the best shipping rates possible. By working with large networks of freight carriers, 3PLs can help control costs by leveraging these relationships. Carriers provide discounted rates to 3PLs who then pass them along to shippers who book shipments.
3PLs can also negotiate prices depending on volume and how often you do business, so partnering and shipping regularly with a 3PL pays off in the long run. Plus, 3PLs provide expertise and helpful guidance, such as looking out for easy ways that shippers can waste money when shipping freight. A 3PL can help you get the most value for your shipment.
Access to the Right Technology
3PLs utilize a software known as a transportation management system (TMS). TMS streamlines the search for shipping solutions by centralizing your options all in one place so you can optimize your load. A dedicated 3PL shipping agent can easily compare quotes, which carriers can serve your freight and what lanes are the most efficient for you to optimize capacity. A TMS also has tracking capabilities so shippers and 3PLs can monitor the progress of their cargo.
In the digital age of freight shipping where supply and demand are always shifting, a TMS helps shippers everywhere streamline the booking process to get cargo into transit at the right rates and make their customers happy. Whether your supply chain utilizes this technology internally or by partnering with a 3PL, shippers save copious amounts of time utilizing a TMS.
Flexibility & Scalability
3PLs serve as a prime resource for freight market conditions information. Industry conditions change throughout the four seasons of freight shipping for a number of reasons, namely supply and demand fluctuations, the prices of fuel, or certain markets entering or leaving their busy times of the year. Partnering with a 3PL helps you adapt to changes in your shipping environment both internally and externally. This helps keep operations running smoothly during periods of transition or uncertainty.
And with the tools and resources available by partnering with a 3PL, you can scale your supply chain to your needs more efficiently and grow your business faster.
The Human Touch
In the 2019 Third-Party Logistics Study: State of Logistics Outsourcing Report by Penske, Penn State, Infosys and Korn Ferry, 73% of 3PL users believe that 3PLs offer “new and innovative ways to improve logistics effectiveness” and 89% of shippers believe partnering with a 3PL has “contributed to improving services for the ultimate customer.” Basically, shippers and 3PLs are working together better than ever before. And that can be directly contributed to the level of personal service shippers experience when partnering with a 3PL.
Of course, freight shipping has drifted into the digital age just like almost everything else in the modern economy. Technology is driving the decision of companies on whether or not to partner with a 3PL. Fancy algorithms and data are crucial to finding the right carriers, routes and rates, but business is ultimately about people. Knowing how to network to create business partnerships or how to properly communicate with an owner-operator of a small business are exemplified by the way 3PLs work.
3PLs have to create meaningful business partnerships with carriers to grow their networks. Additionally, 3PLs work alongside shippers in varying industries to understand their supply chain needs and guide them through the shipping process one step at a time. The digital advantages mean nothing without the human touch that truly makes e-commerce operate well.
What Does a Partnership Mean for You?
Partnering with a 3PL like FreightCenter has made it easier for shippers and small businesses everywhere to streamline their supply chains. We help empower supply chains to meet their shipping needs, grow their businesses and make logistics work for them.