Third-Party Logistics Basics
Third-party logistics companies are also brokers. These are organizations that have relationships with various carriers throughout the country. This lets them provide the best rates for their customers when shipping freight.
The primary service they provide for customers is better shipping rates. They also have the expertise that a customer may not have. They are the experts in the freight industry. Instead of me trying to get up to speed on how to move freight, I can rely on the expertise that the freight broker offers. The broker has this existing relationship with the carriers. This means that I can take advantage of those relationships. Not with only one regional carrier, but with many national carriers. I have the opportunity to ship anywhere in the country at a discounted rate, so I’m saving money.
Third-party logistics companies can often provide the best value for their customers. They provide open lines of communication. They provide the lowest cost with the highest turnover for shipping freight. Oftentimes they have reputations for integrity. That’s what you want to look for in a third-party logistics company.
What to Look For
One of the things that is most important to me is definitely customer service. I’ve worked with many third-party logistics companies or freight brokers. The best interactions are the ones that I want to continue to have. If I’ve experienced poor customer service, there are immediate demerits on their end. This puts them lower on my selection list.
You want a third-party logistics company that can deliver on the standard services. They should also be able to handle issues when they come up. They should make sure that freight is on time. This should happen with little to no damage to the freight. They should be prompt in taking responsibility when damages do occur. Customer service, like reputation and integrity mentioned earlier, is definitely important. This software goes hand in hand with consistent customer service. If I had a lot of good experiences with them, then they’re a little bit more attractive than the others.