So far 2014 has seen the highest tonnage shipped in over 7 years. Many carriers face the problem of too much freight, and trying to maintain performance efficiencies. Often this results in GRIs (general rate increases). These GRIs create unwanted challenges for carriers – increased price management, and their customers – the need to pay more.
Third Party Logistics firms (3PLs) offer a solution for both carriers and customers. Here are the top 5 advantages of a 3PL that everyone can benefit from.
1 – Multiple Carriers
On the surface, this might seem only a benefit for the customer. After all, the customer gets to choose from a variety of carriers to find the best price and delivery time. Carriers do benefit as well.
A 3PL eliminates the back-and-forth of negotiations which can occur between a customer trying to ship for a low price and the carrier trying to get it on the right truck. For carriers, it also allows for the best allocation of freight, maximizing space, and makes the most of every run. The apparent ‘competition’ of a 3PL actually gets the best possible freight for the carrier, and the best possible price for a customer.