Everything You Need to Know About Third Party Logistic Providers (3PL)

The freight and logistics industry is quite diverse. Companies like Freight Broker Australia provide a wide range of services all of which are designed to help businesses enjoy more affordable, faster, punctual and secure delivery of their shipped and transported goods. But why should you use a third party logistics provider when there are alternative ways to get your goods shipped or when you can handle your own arrangements?

Here is everything you need to know about third party logistics providers so your business can choose the best company and enjoy full benefits and get the most efficiency for all your freight needs.

The benefits of third-party logistics providers

There are a lot of great benefits to using a third-party logistics provider for your freight needs. Here are the top benefits of using this type of freight broker;

  • When you use a freight broker you get a lot of experience in this particular field. Everything with regards to your freight and transportation needs is taken care of professionally without any flaws in the system.
  • Third-party logistics providers can save you a lot of money. They use a great variety of freight services, supply chains, and delivery methods in order to optimise services with regards to cost, delivery time and quality service.

The downside of third-party logistics providers

Third-party logistics providers are not an ideal solution for every type of organisation or business in the world. There are also some downsides that you should be aware of like the following;

  • You have less control over the delivery process because someone else is arranging the delivery service, methods, and dates for you.
  • Third-party logistics can be a lot more affordable in the long run but can be costly in the beginning, especially when there isn’t a particularly large freight infrastructure in your location.
  • Quality control problems can be a nightmare if you don’t choose the right logistics company. You cannot inspect your stock yourself and need to rely on the skill and finesse of the logistics company to ensure safe delivery.

It is important to choose the right logistic companies

With these pros and cons in mind, it is clear to see that choosing the right third party logistics provider is critical. Not all logistics providers are equal. There are some that lack the required experience and skill and cannot provide the smooth transition you need for your products and goods. Inexperienced logistics companies might have the required skills but may not have the required connections that will result in reduced transportation costs. They also don’t have the required methods and infrastructure to provide customers with all of their needs including technology, insurance, documentation, reliability, quick delivery times and more. It is critical to choose a logistic company carefully so your freight can be safe, secure, on time and so you can enjoy the most affordable rates.

How to choose the best third-party logistics provider?

There are a few ways for your company to locate the best third-party logistics company. Enquire about the following aspects when you are considering your options;

Experience – Does the company have the needed experience to handle delicate, costly or dangerous freight?

Contacts – The right contacts within the supply chain can greatly boost delivery rates and efficiency. Does your logistics company have a strong contact base?

Service delivery – Service delivery needs to be off the chart because that is the only thing that ensures that your goods receive the required attention.

Affordability – The ability to get goods transported as quickly and as affordable as possible is a skill that very few logistics companies have.

Security – The best logistics companies are familiar with all of the best and most secure freight delivery services to enhance the safety of your goods.

With these things in mind, you should be able to pick the perfect third-party logistics company that will benefit your business and your shipped goods the most. Freight Brokers also provides healthcare logistical services and ensures that we can deliver sensitive products for some of Australia's most trusted brands across the pharmaceuticals and medical equipment industries.