Ten Reasons to Use a Third Party Freight Forwarder

A third-party logistics provider (3PL) is a supplier that specializes in providing logistical support to companies. They are often referred to as "middlemen" because they provide transportation and storage solutions while taking care of the administrative tasks involved in moving cargo around.

In addition, they provide warehousing and distribution services, which include picking up shipments from customers and delivering products to retailers. While most people think of 3PLs as being used solely by large corporations, they serve small businesses too.

Listed below are ten advantages a 3PL can bring to your business.

1) Customer Service

Customers will first get an e-mail notification of their load, including a picture of the truck, driver, and trailer.

During this period, a team member will get in touch with the client to confirm the date and time of the pick-up.

Following this step, third-party logistics providers will deliver the shipment to the customer.

2) Innovation

Innovation is about finding ways to make customers' lives easier and improving the overall experience. Over the years, we've seen it happen in many industries, including retail, travel, banking, healthcare, manufacturing, transportation, education, technology, and much more.

Innovation can occasionally require moving forward by going backward. However, we're committed to ensuring that innovation always serves the interests of our clients.

3PLs are always looking to find innovative solutions to help customers succeed. A 3PL's success depends on how well it serves customers.

While there are many different types of innovations, some of the most common include process improvement, product/service development, cost reduction, efficiency gains, operational excellence, and others.

3) Insurance

When you ship with larger shipping companies or another delivery method, you'll likely receive a bill stating how much the carrier charged you. This bill includes the cost of transportation, handling fees, and taxes, in addition to other things.

However, carriers don't always insure shipments; instead, they use another third-party company, insurers, to protect themselves from losses incurred during transport.

While some carriers provide proof of coverage directly on their bills, others do not. In fact, carriers often make customers sign a waiver agreeing to accept responsibility for loss or damage to their packages. Double-check if the 3PL you are using supplies insurance for your goods, possibly with an external third party.

4) Technology

A 3PL should consider how it can use technology to improve its services, including reducing costs, increasing productivity, and providing better customer service.

Improvement may entail leveraging existing technologies such as cloud computing, mobile applications, and robotics. However, you can use several different types of technology to enhance your logistics operation. Here are some examples:

1. Supply Chain Management Systems. These systems automate processes within your supply chain, allowing you to track inventory, manage shipments, and communicate with suppliers.
2. Robotics. Robots can perform tasks that humans cannot efficiently do. They can lift heavy loads, move items around warehouses, and even pick up objects.
3. Cloud Computing. This technology allows data to be stored and processed remotely rather than locally.
4. Mobile Applications. These apps allow customers to view shipping information, request deliveries, and pay invoices online.
5. Internet of Things. This term refers to devices connecting over networks without human intervention. For example, in warehouses, sensors could monitor temperature, humidity, and light levels and send alerts if something goes wrong.

5) Risk Management

A 3PL can help you deal with the risks of shipping goods. You can cut costs, make things run more smoothly, and make customers happier. Additionally, you can do it without compromising safety.

The global logistics industry is changing rapidly. In fact, it's undergoing a massive transformation. As supply chain management becomes more complex, shippers must rely on third-party logistics providers (3PLs) to handle transportation.

These companies provide specialized services such as warehousing, trucking, customs brokerage, freight forwarding, and international trade compliance. They also offer technology solutions that allow shippers to track shipments, access real-time data, automate processes, and optimize operations.

6) Saving Time

Customers benefit from having access to many different carriers and trucking companies because one carrier often cannot deliver a particular type of shipment.

When you work with a 3PL, you can easily coordinate transportation needs with several carriers and truckers. Coordination allows you to choose the most appropriate option for your shipment.

By automating the scheduling of loads, third-party logistics providers save you time and reduce the risk of making mistakes. You will be able to locate the most effective mode of shipment more quickly if you do this. To guarantee that your shipments reach you promptly and safely, you can also utilize a 3PL.

In the United States, there is never a time when you won't be able to find someone to help you move your belongings. Whether you're looking for information on the best way to ship a car or trying to figure out how to transport a large piece of machinery, a 3PL can offer advice and guidance.

7) Saving Money

A 3PL saves money by contracting carriers and finding other ways to reduce costs, such as reducing inventory levels, improving customer service, and increasing efficiency. These savings make up the bulk of what a 3PL charges clients.

Companies can save money by not having to hire an internal IT department to develop new software, implement new logistics management systems, or train employees to use it. Outsourcing specific tasks, like transportation, might also save money.

8) Flexibility

3PLs are often considered one of the most flexible parts of logistics. They offer solutions ranging from full-service to just-in-time delivery. But what exactly does flexibility mean? And how can macro and micro flexibility be achieved?

Macro flexibility

Macro flexibility refers to delivering goods across multiple locations regionally or globally. This flexibility is achieved through a combination of planning, inventory management, transportation capabilities, and customer relationships.

Planning involves developing a strategy for where to source materials, where to store those materials, and where to distribute products. Inventory management includes managing inventory throughout a supply chain, including physical and digital assets.

Transportation capabilities include understanding the best way to move freight worldwide. Working closely with consumers to ensure they receive exactly what they want and when they want it is a crucial component of building customer connections.

Micro flexibility

Micro flexibility refers to the ability of 3PLs to adapt to unexpected situations. The latest COVID-19 epidemic is a prime example of this.

When the epidemic hit China, many companies had no idea what to do. Some didn't know if they could continue production, while others simply couldn't find raw material suppliers. In response, some companies increased capacity, while others shut down operations entirely.

Another great example is the recent oil price crash. Many companies saw their profits plummet overnight, and they needed to make adjustments to their plans immediately. For example, some companies cut prices, while others stopped taking new orders altogether.

To truly be flexible, you need to combine macro and micro flexibility. You must be able to change your strategy based on current conditions while being prepared to adjust your tactics if things don't go according to plan.

9) Safety Certifications

Customs brokers and shippers must abide by rules set by the US government. In fact, a company can get one of three different types of customs broker licenses. Each type of license offers unique benefits.

The first is known as a "certified customs broker." This license requires a company to complete an extensive application process. There are many requirements, including background checks, criminal record searches, and a review of financial statements. Once certified, a company must renew every five years.

A second option is a "licensed customs agent." A licensed customs agent does not require an application process, but it does require periodic renewal. Companies that want to become licensed agents must pass a test administered by the International Trade Administration.

Lastly, there is a "private freight forwarder," which is used by individuals and businesses that ship items internationally. Unlike the other options, this license does not require an application or licensing fee. However, it does require annual registration.

10) Quality Assurance and Improvement

In addition to following all federal regulations, a 3PL should be able to demonstrate its commitment to quality assurance through various certifications. For example, a company can earn ISO 9001 certification for its manufacturing processes. It can also earn ISO 14000 certification for its environmental practices.

ISO 9001 is widely recognized as a benchmark for quality. The International Organization for Standardization (ISO) created guidelines for establishing quality management systems. The standard covers areas like customer service, product development, production, and distribution.

ISO 14000 is similar to ISO 9001. It focuses more on environmental issues and sustainability. While ISO 9001 applies to any business, ISO 14000 is specific to organizations involved in international trade.

These two certifications show that a company has taken steps to improve its operations and meet industry best practices.

Conclusion

Ultimately, using a third-party freight forwarder will save money, time, and headaches. There are many advantages to doing business with a reputable company like us, including lower rates, better service, and peace of mind.

At A-1 Auto Transport, we make it our business to stay up to date on the latest developments in the shipping industry. Contact us anytime to learn about our comprehensive range of shipping services.