What Makes Us Different?
Difference in Transportation Companies
There are basically 4 different type of transportation companies that shippers will use for their logistics needs. Choosing one has been a task for many companies, but understanding what and how they really work would more than help many in making that decision. There is the Broker, Freight Forwarder, Integrator and the Provider and they are all competing for your business, so how do you know which one would best benefit your company’s needs?
Understanding their basic function and how more often than not, most of them are conducting business in the same manner, and it’s just the appearance and the service that they put behind what they offer that make stand apart.
The Integrator
The Integrator are companies such as UPS, Fed Ex and DHL, and they have integrated assets into their transportation services such as aircraft. These companies offer a premium service and generally charge a premium price for their services. The upside in using them is that your product is almost always in their own network and they have almost a seamless traceable record of your product.
The down side to the integrator is that they are generally very large and personal attention is secondary in the event of a problem or providing solutions to fix problems that occur. Unless you have a large volume of shipping you may be paying more than you should be because of the name.
The Freight Forwarder
The Freight Forwarder is generally an asset based company that generally will use a number of methods to transport your product. Normally Freight Forwarders do not own equipment other than at the local office level and contract out the actual transportation portion to providers to perform the work. Because they use their own trucks or contract that portion of the business out to another company, it will raise the your costs to do business with them.
Many Freight Forwarders have multiple offices, yet their offices are independently owned and all ran separately from each other. Offices will generally use an agent rather than their own office because of their own internal service problems which your end customer will notice. Many time the Freight Forwarder will either use a Broker / 3PL or go directly to the Provider exactly like the 3PL which doesn’t change how they charge you.
The Broker or 3rd Party Logistics
The Broker and 3PL are very similar in structure, but generally the 3PL company will provide companies with many more service options than a typical Broker. These companies will use Providers to perform the service for their customers, and the value is that they use their collective revenue from all their customers to buy rates at much lower than most companies can demand from their carrier. The 3PL will also help manage the logistics with the providers from years of knowledge and applicable training. One key element with a 3PL is to make sure that they have the financial stability to pay their carriers in a timely manner.
The key to using a 3PL is finding a true 3PL and not a broker working from home claiming to be a 3PL. The larger well established 3PL will receive better service and has less liability than a non-established broker.
The Provider
The Providers’ are companies such as the asset based airlines and carriers that most companies rely on to supplement their structures in moving product. Providers are the “backbone “of the transportation industry . In the past , carriers were known to have little customer service skills and subscribed to the old fashioned remark of “when it arrives it will be there” attitude. Providers have become specialized in their respective areas of expertise, good van drivers do not make good lumber drivers, today’s equipment requires a level of core competency to make safe and on time deliveries.
There are many more Providers in the transportation field that the 3PL’s and Freight Forwarder’s however different circumstances create different needs for customers nevertheless , in searching for dependable providers first look at their team and management.
