Why hire an asset-based logistics company?
Who are Asset-Based Carriers? How do they work? What are the advantages of using such a logistics company? We will explore the answers to these questions in the following sections.
Who are Asset-Based Carriers?
The advantage of asset-based carriers is that they have their own equipment, ranging from trucks to tools, distribution services and warehouses. They also work directly with their customers to move freight. Let’s take a look at some of the key benefits of using an asset-based carrier.
Why use an asset-based logistics company?
Facilities readily available
As these carriers are equipped with their own facilities, finding the right storage space will not be a problem for customers. Also, they are capable of meeting various supply chain management requirements.
Such a logistics company will not be dependent on any type of outsourcing and hence will be able to offer cheaper rates to its customers.
Reputable carriers are sure to take responsibility for any liabilities that may arise during cargo handling. Having the required experience, they will also ensure that there is no negligent management during the cargo shipping procedure.
Facilities for intermodal support
Many asset-based carriers also operate as 3PLs and can provide intermodal support. For a shipper, this becomes a cost-effective option since there is no need to appoint separate companies for cargo handling and trucking.
The deposit and the hook
This type of shipping is also referred to as drop-off or feed-only shipping. The advantage of this type of shipment is to reduce the dwell time and to facilitate the transport of a greater number of loads in a much more efficient way. Traditional freight brokers, as well as carriers that do not operate on an asset basis, do not have the trailer fleet necessary to operate such a direct delivery network. Thus, by designating an asset-based carrier for direct shipments, it becomes possible to better streamline shipping procedures.
Asset-based carriers can better handle additional freight needs as your business grows. They have the facilities and infrastructure to easily accommodate your expansion needs.
A final note
As we can see, there are several advantages to using the services of asset-based carriers and this can mean increased efficiency as well as better profitability.
If you want to know more about asset-based companies in North America, you can contact Elite Logix, a transportation company offering logistics and transportation services.
LTL Transport Consolidation
Distribution of the reserve
Previously, food shippers had to contact a freight forwarding company separately when there was a need to ship products from one location to another. However, the situation changes when recourse is had to the distribution in reserve. In this case, shippers send their products to a consolidation center and, in this center, the loads are consolidated into a single shipment.
Even when shippers ship their goods to separate locations, it becomes possible to share the expenses for the longest part of the transit to achieve significant savings.
It is common for many shippers to ship their goods to the same grocery and retail chains. Recognizing this fact, 3PL agencies specializing in food logistics use transportation software to review all open orders, compare their destination points and arrival dates.
Such analysis helps 3PL providers load a single Nevada Trucking Dispatch Services Agency with orders from multiple vendors, when the retailer is the same. This way, shippers benefit from reduced costs through consolidation and time savings and, at the same time,
retailers receive the same volume freight as before.
Another benefit of third party logistics or 3PL is that it allows shippers to split freight expenses among themselves. Additionally, it is estimated that shippers can achieve
Almost 35% cost savings by using third party logistics compared to shipments that are not consolidated.
The analysis also shows that the most expensive kilometers tend to be the first fifty and the
last fifty and that retai.
LTL transport proves to be expensive since in this type of transport there are multiple stops at the first and
last kilometer. With LTL consolidation, it becomes possible to combine multiple loads to create low-cost, direct shipments.
In conclusion, it can be said that the consolidation of LTL and 3PL has several advantages and
Allows any food transport company to achieve considerable savings in terms of costs and time.