01 Jan Benefits of Working With A Third-Party Logistics Provider (3PL)
By Howard Smith, Operations Manager
Are you one of many transactional Freight Brokers calling on shippers for available truckloads, or has your sales approach evolved to a consultative, multi-service Third-Party Logistics (3PL) business model?
A Changing Industry
For the foreseeable future, shippers have downsized operations and have been forced to do more with less. Lean shipping customers are finding greater value from the 3PL business model, rather than the one-dimensional, domestic truckload business model that has powered many a Freight Broker’s successes over the years. The industry has changed and adopting the right mindset and the right skill set to offer additional services with cost savings are two primary factors to your continued success.
A New Mindset
There was a time not long ago when mutual trust and loyalty between Freight Brokers and shippers were earned over time building relationships of mutual trust and respect. Because of hard work and reliability, broker freight rates were kept in check and customers did not look outside the relationship to competitors for solutions. While these types of relationships still exist, the industry has changed due to investments in technology. Shippers are looking to benefit from service providers that are subject matter experts for any and all things logistics, providers who also infuse cost savings, expertise, technology and resources that support the shipper’s goals and company vision.
A New Skill Set
The problem with a one-dimensional service offering is that it fails to consider all the shipper’s priorities to manage its supply chain, and in doing so, leaves the Freight Broker vulnerable to the customer seeking a competitor’s advice or other service offerings. If a competitor can offer cost savings for Truckload, LTL, Intermodal, Air Freight, International Container shipping, Mexico/Canada shipping, etc., the shipper will naturally phase out service providers that cannot provide multiple solutions on their first call.
A Reliable 3PL Provider
If you adopt a new mindset and a new skill set to sell multiple services, the next important priority is to partner with a company that can competently perform them through the execution of superior technology. If your current company cannot do this for you, Kopf Logistics Group can. Kopf has adopted this new mindset and has the skill set as an established, trusted, and reliable 3PL provider.