What Distinguishes a Freight Forwarding Company from a 3PL?
Third party logistics providers, also known as 3PLs, are essentially outsourced logistics firms that handle all or a portion of a company’s logistical needs, particularly supply chain management. These specialised partners are concentrated on managing several activities like warehouse and transportation services, which are often tailored for each customer.
In order to assist clients in growing, maximising their resources, and increasing their profitability, third party logistics businesses are skilled at optimising a company’s logistical framework. Although 3PLs move commodities, that does not necessarily mean that they just transport such items. Additionally, they are able to add additional supply chain and logistics services, such as inventory management, shipment processing, invoicing, and a variety of others much more concerning giving visibility into several distribution methods
The freight forwarding company then arrives. A freight forwarder, also known as a forwarding company or forwarding agency, is a service provider who organises transportation for small- and large-scale businesses to pick up cargo from an origin location and deliver it to the destination.
To obtain the services of a shipping line, frequently numerous enterprises, a freight forwarding company has direct contact with them. They are regarded as the supply chain link gurus. For a single consignment, a freight forwarding company’s services sometimes encompass airfreight, sea freight, inland transport, and other intermodal techniques.
Typically, a freight forwarding business focuses on a particular than the majority of third-party logistics companies. Therefore, the primary distinction between freight forwarding businesses and 3PLs is their limited concentration on the supply chain’s side of the transport services.
Is it a good idea to use a freight forwarding company to handle your transport needs?
It can be challenging to find and evaluate the best transport service provider. Whether a freight forwarding firm works or a third-party logistics will make a significant difference comes down to the needs of the clients. To make the best decision about logistics, it is advisable to examine the present state of the company, carry out a cost-benefit analysis, assess the required level of service, and take other factors into account
