3PL Basics: Saving Money
3PL is an organization that provides a service to move freight with a carrier. A 3PL offers an opportunity to take advantage of their pre-existing relationship. This means their rates and everything else. I can take advantage of their discounts and all that stuff for the volume that they have with the carriers. This saves me money. It can save other customers money and it works well in the long run.
3PL actually stands for Third Party Logistics. It’s an organization that is not the shipper and not the person receiving the shipment. It is an organization that, as I said, has a relationship with the carrier and can offer me better rates.
Carrier Relationship Makes the Difference
They already have a relationship with the carrier. They know what it is that the carrier needs to move a shipment. This firm serves those who are not an expert in moving freight and classifying freight. That includes all these little nuances that go along with moving stuff. The3PL offers the expertise to allow me to move the shipment along and not have to worry about all the details.
As an individual, I have had the opportunity to work with a couple of 3PL’s to move my shipments. the key takeaway is going to be: how is their customer service? That is what matters at the end of the day. If I can save a couple bucks here and there, but have to deal with poor customer service, that’s not going to be worth it to me. If I have to pay a little bit extra to get good service, ok. To be sure that my shipments are getting to where they’re supposed to be, then it’s going to be worth it to keep that in mind.