When a company has truckload (TL) shipping needs, it has three basic logistics options for arriving at the best TL shipping arrangement: having its own logistics department, outsourcing its logistics needs to a third party logistics (3PL) provider, or implementing TL transportation logistics software. Over the years, companies that haven’t had their own logistics department have outsourced to 3PL providers, partly because no other logistics-services existed. Today, however, logistics software is often favored to 3PL, and even to hiring a logistics department. But before a shipper chooses one of these options, it helps to understand exactly what they offer. Below, we give an overview of in house logistics, 3PL providers, and logistics software concerning what they bring to the shipping process.
In House Logistics
A commonality among the largest shippers is that they all have in house logistics departments that preside over company owned shipping fleets. But until a company makes it big, creating an in house logistics department can be cost prohibitive. To accurately assess the cost of in house logistics, consider that experienced logistics experts can earn $90,000 a year, not including benefits. Instead of dramatically increasing pay roll, a company could instead implement TL transportation logistics software for less than it costs to hire one logistics expert. Logistics-software performs the work of a logistics expert and does not require logistics expertise to operate. After determining the best TL shipping options, it presents them through a user-friendly customer interface.
Third Party Logistics
3PL is impressive for the range logistics options it offers: standard 3PL providers offer basic logistical services; service developers offer more specific services, often on an on-demand transportation basis; customer adapters offer management of a company’s existing shipping process; and customer developers manage a company’s shipping process and propose innovative solutions. However, what sounds like a range of logistics options that has something for everyone is seldom worth the money that companies pay for 3PL, as 3PLs narrow a company’s range of shipping options by offering solutions that most benefit their own financial interest.