How To Choose A Freight Forwarder To Work With
There are basically 2 kinds of freight forwarding providers.
1) Asset based
2) Non asset based
Asset Based Logistics Companies
These fright forwarders may own their own trucking fleets, warehouses and distribution equipment. Much of their money and time is tied up in their own assets. Of course when you work with them you will be using their company own resources.
Non Asset Based Logistics Companies
These logistics providers do not have have their resources tied up into trucking fleets, equipment and warehouse space. Instead their energy has been put into technology to manage your freight as well as relationships with the carriers. Since they do not have an agenda to push ( using their own distribution fleet) they can interview your business, analyze your current shipping process and make recommendations accordingly.
They will put your freight out to bid to only the most reputable carriers. When the bids come back they will lay all the cards on the table and you get to make the final call.
This type of freight forwarder is also known as a 3pl or third party logistics company.
The Non asset based 3pl is a business model that ensures that your service or quality does not suffer.
