Shipping goods is complicated, and managing logistics takes a lot of skill.

Think about it. Warehousing, transportation, order fulfilment… There’s so much at play that getting it right takes time and expertise. 

Partnering with a third-party logistics provider means handing it all over to someone else – someone who knows exactly what they’re doing. Suddenly, you’ve got loads more time on your hands to focus on core business operations, but that’s not all!

Working with a 3PL provider delivers much more than just time savings. Read on to find out more. 

3PL vs Freight Forwarder vs Freight Broker

In this complicated world of freight and logistics, 3PL providers, freight forwarders and freight brokers each play important roles in making sure shipments get where they need to be safely and on time.

Here’s an overview of the role each plays and a breakdown of the differences between them. 

3PL Provider

A third-party logistics provider is a business you hire to handle your logistics operations. The services a 3PL provider might cover include managing transportation, warehousing and distribution, and optimising order fulfilment. 

Many 3PL providers use advanced logistics software to aid in streamlining packaging, labelling, delivery and returns management. 

Freight Forwarder

Freight forwarders help businesses transport goods, both domestically and internationally. They handle all of the complexities of getting shipments from A to B, including booking transport, dealing with customs, and coordinating with different carriers for multimodal shipments. 

Freight Broker

Freight brokers connect companies that need to ship goods with carriers that can get the job done. The freight broker doesn’t physically move the goods; they simply organise the transportation to ensure the goods can get to their destination.

Whilst all three of these providers have things in common, the easiest way to differentiate between them is this…

• A 3PL provider is a full-service logistics centre,
• A freight forwarder works like a travel agent for the shipping world, booking your journey from A to B and taking the stress out of the details, and
• A freight broker acts as a matchmaker for shippers and carriers, negotiating the best rates to get your shipment to its destination.

And the good news? Millennium Cargo is the ideal logistics partner because we offer freight forwarding services as well as being a gold standard 3PL provider, giving businesses a one-stop solution for all their logistics needs. 

So what advantages can you expect when you work with a 3PL?

Cost Savings

Working with a 3PL provider can lead to significant savings in several areas…

Reduced Overhead Costs

Warehousing helps you to manage your stock efficiently and safely until it’s ready to be sent to customers, retailers or distributors. But warehousing, along with many other background overheads, can be costly.

3PL providers have got you covered in this area; you won’t need to rent space in a warehouse or buy your own, nor will you need to purchase a fleet or invest in technology infrastructure. 3PL providers remove the need for hiring a dedicated logistics team and ensure you remain compliant with rules and regs – saving you money at every stage. 

Economies Of Scale

3PL providers work with so many clients that they can use these large volumes as leverage when negotiating better rates with carriers and suppliers. These savings, which you wouldn’t be able to achieve as a sole business, get passed onto you for maximum cost savings.

Efficiency & Expertise

3PL providers are experts who take on your logistics needs so that you can focus on core competencies and remain competitive in your market. Here’s what you can expect when you partner with one.

Streamlined Operations

3PLs have insane amounts of knowledge and experience in logistics and supply chain management, and they use high-tech systems to streamline operations. 

Because 3PLs are committed to remaining up-to-date with rules, regulations and best practices, they can manage any issues that come at them so that you don’t have to lift a finger. Customs regulations? Not on your to-do list anymore! Understanding different countries’ shipping rules? Your 3PL provider has got it covered. Pairing carriers with routes and freight modes? Leave it with us.

3PL providers also run far more efficiently organised warehouses because they have more staff and impressive tech to do it. Picking, packing and fulfilment is faster, with a heavily reduced error rate. 

Overall, a 3PL provider’s expertise means that your logistics operations work beautifully, remain compliant and don’t break the budget. 

Technology Advantage

3PL providers use high-tech systems like Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to help them take charge of everything logistics and satisfy their client’s needs. 

This huge tech investment means fewer mistakes, more efficient deliveries, and accurate inventory management. Handing your logistics needs over to a 3PL allows you to focus on your business rather than suffer the headache of complex logistics processes! 

Scalability & Flexibility

Shipping needs can fluctuate due to seasonal demands, rapid growth or world events. 3PL providers can scale up or down to meet these needs. They can also simplify the expansion of your business into new areas if you’re looking to grow by utilising their global network. 

Not only do 3PL providers offer a fully scalable service, but their solutions can be tailored to meet your exact business requirements, giving you peace of mind that your cargo is safe 24/7. 

Reliability

3PL providers, like Millennium, have access to a vast network of carriers and other logistics partners. This provides huge flexibility when it comes to routes, freight modes and storage options. It also means that your 3PL provider has everything they need, like technology and personnel, to resolve any challenges that arise and keep your goods on the move. 

3PL Providers Work Hard So You Don’t Have To

There are so many benefits to partnering with a 3PL provider. From huge cost savings to smart scalability in the face of increased demand or business growth, 3PL providers have the capacity, personnel and expertise to boost your logistics operations from good to great.

Millennium Cargo is a 3PL provider with freight forwarding expertise to boot, giving you the best of both worlds and completely transforming your logistics operations. Get in touch today to find out how we can help you.