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Third Party Logistics

In: Business and Management

Submitted By thaassassyn
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Slide 7: Asset Based 3PL
An asset based service holds many supply chain management "assets". These assets may include anything that is pertaining with supply chain management, including technology systems, truck fleets, vehicles, aircraft, warehouses, warehousing equipment, forklifts etc. As you can see you would be restricted to using the assets that this third party logistics company suggests. There is no doubt you will be better off then before, but here is the real question to ask yourself: How do I ultimately know I am getting the best value available out there?
Can you also see how this conflict of interests could pose a problem when it comes to handling claims resolution if they are using their own trucks and equipment. Pretend for a moment that if you had a claim on damaged freight, would you feel at ease with the idea that your claim would be handled in the shortest time and reimbursed for the highest value possible?

Slide: 7 Non Asset Based 3PL
This 3PL performs all of the services of a third party logistics service such as quoting freight, scheduling pickups and deliveries, routing, and auditing, but doesn't need to own all of the transportation assets that an asset based 3PL would own. Instead, this type of 3PL usually possesses only desks, computers, and freight industry expertise. Now you can see why they are referred to as "transportation consultants".
Now this is an important point to dwell on, since a non asset based 3pl is not restricted to using any particular warehouse or carrier and generally have no ties to carriers, they are now able to use their ability to negotiate the best deal for you. Negotiations will be done with the recognized value oriented carriers that meet your criteria and then you get to decide which carriers to work with.
Since there is no conflict of interests here, there is also no anxiety about resolving any claims

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