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Guest Post: The Benefits of Carrier and 3PL Collaboration

3PL Collaboration

Some may find it odd that a salesperson for a trucking company is sitting here writing to you about the benefits of utilizing a 3PL or broker within your network. However, in today’s competitive environment, collaborative arrangements of all kinds are necessary for survival and if you choose your partners wisely you may experience many side benefits that you had not previously thought of.

Currently we operate a fleet of 200 trucks and utilize 3PLs on a consistent basis. When choosing who to align ourselves with, there are several criteria we use when making this decision.

The first and most important is that the 3PL needs to be member of the Transportation Intermediaries Association (TIA). The TIA promotes and enforces industry best practices of standards and ethics to its members. We know that if the 3PL is a member of the TIA, they are a reputable and professional firm. In turn, we know we will be paid the amount negotiated upon for our services and within the time frame that was agreed upon.

The second criteria we look at, is the length of time a 3PL has been in business. The longer a company has been in business, the more data there is available to review and analyze. With the internet, blogosphere and load boards, there is more data than ever for a company to use to make an informed decision.

Finally, and probably the most obvious is the 3PL needs to have business that fits your network both financially and operationally.

There are many benefits that a carrier can derive from a relationship with a 3PL. If you are a smaller carrier, you can see an improvement in your cash flow as most 3PLs offer quick pay programs for a small fee. In most cases, you can get paid faster than you would directly from the shipper.

A 3PL can also give a smaller carrier access to large shippers’ freight. Most large shippers are reducing their carrier base and a 3PL who has a relationship with a larger shipper can expose you to some of this freight, that you might not otherwise have been able to participate in.

A 3PL can also help a carrier reduce their “empty miles” or dead head. With today’s high fuel prices, it is critical to minimize this expense and find freight for your trucks to re-load as close as possible to your delivering point.

Finally and as much as I may not like to admit it, a 3PL can augment your sales efforts or the potential need to hire additional salespeople.

The days of the broker in a phone booth are long gone, the majority of today’s companies are highly sophisticated and professional organizations. The proper 3PL can assist your sales efforts and operational network very effectively. Take the time to do your homework and investigate your 3PL thoroughly and you will see that you can enjoy a long lasting and mutually beneficial relationship.

Comments

Jon Bowers

Great blog post Mike. So interesting to read how CHRs 3PL capabilities stregthen your business and what a 3PL can bring to the table from a carrier's perspective.

6.11.13

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Rob Martin

Great post Mike. Coming from the asset side to work for C.H. Robinson, it is very easy for me to see the truth in the things you're saying here. When I was working for the trucking company we were very particular about the 3PLs we worked with. It isn't always about the price if you can't count on them to be honest with you or pay in a reasonable amount of time. Now that I'm working for C.H. Robinson, I work with carriers on a daily basis that find us or other brokers in their "Top 5 Customers" lists quarter over quarter, year over year. Some of them see this as a hinderance. Some of them USED to see this as a hinderance until they realized the benefit that certain 3PLs can offer their small, growing, or large successful businesses. Thanks again Mike.

6.12.13

Reply

David Burns

Mike,
I enjoyed your post and found it informative and insightful on the benefits of effective collaboration.

David Burns

7.25.13

Reply

Synchronized

Excellent post…very useful and to the point

4.14.17

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Synchronized

It's in reality, a great and useful piece of information. I?m glad that you simply shared this useful info with us. Please keep us informed like this. Thank you for sharing

6.21.17

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