When it comes to outsourcing the business logistics, most business owners stumble upon the confusion between the third-party logistics (3PL) providers and freight brokers. Well, choosing the right option is a strategic business move, and this is why businesses should be well-versed in understanding the differences between these providers. In the following section, you will explore the benefits of choosing a 3PL provider over the regular freight brokers.
1. Understanding the Responsibilities
There are a few differences in terms of responsibilities when you compare a 3PL provider and a regular freight broker. Typically, the third-party logistics providers in Fort Wayne offer an array of services to the businesses. From transportation management to consulting, you will obtain an end-to-end service from such providers. Additionally, the 3PL services offer warehousing, freight bill auditing, technological support, and more.
On the other hand, a freight broker helps businesses find heavy haulers and negotiate the rates between carriers and shippers by acting as a mediator. Additionally, the freight brokers are also responsible for freight tracking, shipment monitoring, etc. So, comparing these roles of the two services, it is clear that 3PL providers offer a more holistic logistics solution to the modern businesses.
2. Supply Chain Management
The 3PL providers leverage expertise to manage supply chains with precision. As a result, the shippers can optimize the shipping time and budget with the help of technologies. The overall aim of the 3PL providers is to reduce the shipping time and budget, while ensuring a faster delivery.
On the other hand, the freight brokers are not responsible for managing the logistics operations for their clients. The job of the brokers is to find the right carriers according to the shipper’s requirements and budget. Therefore, the service of a freight broker has a minimal impact on the overall supply chain management of a business.
3. Cost Optimization with Precision
The 3PL providers help in cost optimization for the clients with precision. They leverage the modern technologies and industry expertise to calculate the overall shipping cost and reduce the cost by optimizing the route planning and other needful operational changes.
The freight brokers have limited control over the cost optimization of a shipping assignment. The brokers can help you find a low-budget or budget-friendly carrier. But, it does not ensure the best result in terms of cost optimization.
4. Setting up Shipping Priorities
The third-party logistics services help their clients to prioritize shipping according to the priorities. As a result, the shippers can ensure better customer relationships by meeting the deadlines with precision.
The freight brokers do not render their services to schedule your shipping consignments according to the priorities. The shipper is solely responsible for managing shipments according to priorities when it chooses a regular freight broker.
Bottom Line
Comparing these aspects clearly indicates that hiring a 3PL service to handle business logistics is a more meaningful and satisfactory choice for the shippers. On the other hand, freight brokers have their own benefits since they help their clients to find the right shipping carriers according to the requirements. The businesses that seek a holistic logistics management service should look for a professional 3PL broker. Pitt Freight Company offers professional 3PL service to the businesses. From heavy hauling to less than truck limit, our service includes everything to make your logistics a breeze.
