When considering a third-party logistics partner, it’s important to understand your options. Some 3PLs (including First Call) are asset-based, meaning they own part of the supply chain and allow partners access to company-owned trucks, warehouses and other resources. Others are considered non-asset-based and considered “agnostic” in relation to warehousing and transportation.
Think of an asset-based carrier like a full-service trucking company, with in-house resources prepared to manage packaging, storage, inventory control, shipping and receiving. Often these are the biggest hurdles to establishing a healthy supply chain, so delegating these responsibilities to a single comprehensive logistics servicer eliminates potential hangups and delays.
Here’s more on how choosing an asset-based 3PL saves your business time and money:
How Asset-Based Partners Save You Time
First, there’s the matter of tracking. Asset-based logistics partners manage some or all of their own fleets and warehousing spaces with integrated tracking technologies (TMS and WMS), which makes it simple to pinpoint your freight’s location and status anywhere along the supply chain.
Hybrid 3PLs like First Call also offer a combination of in-house assets and an established network of multi-modal transport options, providing faster resolutions to shipping errors or disruptions. Flexibility and the freedom to act quickly when problems occur are valuable commodities in logistics — instead of countless moving parts contributing to your product’s safe delivery, a good logistics partner streamlines operations by keeping fulfillment and delivery processes under one roof.
How Asset-Based Partners Save You Money
From shipping and freight costs to fulfillment center fees and the latest tracking technology systems, the financial benefits of an asset-based 3PL partnership have proven to be a worthy investment. Here are just some of the ways these full-service 3PLs save businesses money:
- Shipping and freight. The number one reason to choose a 3PL is the cost savings for shipping and freight. With opportunities for volume discounts and real-time rate comparisons, it’s easy to ensure competitive pricing.
- Fulfillment Centers. Between pallet racking, forklifts, conveyor systems, packstations, warehouse labor and more, in-house fulfillment requires a significant investment throughout the life of your business — and little flexibility when it comes to estimating your future storage needs. A 3PL allows your business to expand or contract the storage space it requires through seasonal fluctuations in demand.
- Technology. A good 3PL will have invested in a good warehouse management system (WMS), which often poses an exorbitant cost for small or medium-sized businesses. The latest software needed to optimize supply chains is expensive too; partnering with a 3PL gives your business the benefits of this technology at a fraction of the cost.
- Labor. Labor is one of the biggest expenses for any company. 3PLs provide their own labor, taking care of overhead costs and benefits as well as ensuring they have sufficient people in their workforce depending on the season.
Scaling up or down. A 3PL can help businesses scale as needed without huge overhead or long-term costs every time they do so.
Each of these factors contributes to significant financial savings, both short-term and long-term. Whether you need help with shipping and freight, a more efficient fulfillment center, technology, labor or seasonal flexibility, the aid of a good 3PL can make all the difference.
Create a New Partnership Today
Forging a partnership with an asset-based 3PL is an investment in your company’s long-term success. The more time and money spent managing a growing business’ logistics, the less time remains to focus on your products and customers. Contact a First Call Logistics expert today to learn more about how partnering with an asset-based 3PL can help solidify your business’ supply chain needs.