Non-Asset based 3PL Companies: Some Common Misconceptions

  • July 19, 2018
  • Blog

Non-asset based 3PL companies are those that do not own a fleet of their own. While some companies maintain their own warehousing facilities, transportation is arranged by them by hiring ideal services. The carriers they hire work independently and provide their service according to a signed contract. Most of such non-asset based 3PL companies have a vast network of shipment transporters that transport goods via land, air, and sea. They also have contacts in other countries.
Therefore, such 3PL companies managers are an ideal choice if you want to send your goods to a national buyer or even to an international location. However, since the working, management, and operations of 3PL providers vary greatly, certain myths and misconceptions have resulted from lack of knowledge.

Most common myths related to non-asset based 3PL companies:

Myth: 3PL services have one size fits all solutions

Many business owners and manufacturers think that all 3PL companies offer similar kinds of solutions that are bound to meet everyone’s requirements. However, since non-asset based 3pl companies have a more flexible process of operation, the services can be chosen according to the specific demands of a business. This will increase logistics efficiency and thus make the distribution part of the supply chain highly coordinated. You can also hire a 3PL provider to take care of the complete transportation and distributing process starting right after manufacturing and factory packaging.

Non-Asset based 3PL companies increase the cost of logistics

There is a common misconception that since non-asset based 3PL companies do not own most of the warehouses, transportation facilities, etc., hiring them for logistics management can be expensive. However, this is completely untrue. Such companies logistics managers have a wide network with independent service providers and have a deep professional relationship with them. They also have expert knowledge about various options and solutions. Hence, hiring them will not only reduce your logistics cost but the process will also be more efficient.

Since a company owns its fleet, it doesn’t need third-party logistics management    

A company may own a fleet of its own but this doesn’t unnecessarily mean that they have all the necessary resources and expertise to manage logistics independently. A professional non-asset based logistics company such as 20Cube Logistics offers a number of value-added services (final packaging, shrink wrapping) and gives you the opportunity to track your shipment at every stage. The costs might be reduced when shipping through a professional and it will be easier to secure carrier space.

Prior to reading this, if you had harbored any of the misconceptions given above, the facts have now been made clear. There are some non-asset 3PL providers such as 20Cube that hire carriers and transportation agents on contract-based deals but own warehousing facility of their own.

Our warehouses are equipped with state of the art technologies that have revolutionized the packing and storing of goods. These warehouses are well-maintained and leased to manufacturers or sellers that require innovative warehouse storage.

In order to hire the best logistics solution, make sure that you find out more about the various types of services being offered and choose the one that suits your needs the best.