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3 Advantages of Asset-Based 3PL Providers

Posted on: June 3, 2024
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You need to get multiple pallets from your dock in Indiana to a warehouse for a month before delivery to your customer two states away. Is an asset-based third-party logistics company (3PL) or freight brokerage the better choice?

The answer depends on your priorities.

Asset-based logistics providers own their equipment, including trucks and warehouses. This gives asset-based 3PLs control of their processes, operations and quality. Freight brokers, on the other hand, orchestrate shipments between clients and other carriers. Brokers don’t have as much control over the shipping process, but can offer increased flexibility.

For shippers that need control, reliability and consistent pricing, asset-based logistics providers offer several advantages.

1. End-to-End Control of Shipping

From the moment you book a load with an asset-based 3PL provider, that company takes ownership of guiding your load from dock to warehouse to final destination. This end-to-end logistics control is ideal when shipping reliability is a top priority.

At Classic Carriers, we have our own tools that monitor your shipment in real-time and more than 2.3 million cubic feet of climate-controlled warehousing for short- or long-term storage at our Greenville, Ohio facility. 

3PLs that own their fleet and equipment can also offer customized and scalable services to meet the needs of individual clients, especially for long-term partnerships. 

2. Quality and Reliability

Asset-based 3PLs hire their own drivers, making them more inclined to provide thorough training, safety incentives and timely equipment maintenance. For 3PL customers, this means you can expect consistently great service and reliable deliveries.                                                                     
Your name is tied to your quality of service as an asset-based logistics provider – keeping drivers and shipments safe is an essential investment. That’s why we offer extensive paid driver training at Classic Carriers, which ensures every driver feels comfortable and confident behind the wheel. Taking care of our team is an important part of how we do business as a family-owned and operated company. Our team is always available for our drivers, and we offer safety and longevity bonuses.

3. Competitive Pricing

Owning your own fleet and equipment often means costs are more predictable, both for the asset-based logistics provider on the maintenance side and customers with price per load. This makes asset-based 3PLs a good choice for companies with regular shipments along similar routes looking for consistent pricing. 

Developing strong relationships with our customers allows us to offer competitive pricing in situations other carriers couldn’t. For example, a frequent customer might come to us with a slightly lower quote from a provider they’re less comfortable with and ask us to match the price to win the bid. 

The 3PL You Can Count On

With Classic Logistics, you don’t have to choose between asset-based and brokerage logistics companies – we offer both services! The level of detail and exceptional service we provide with asset-based logistics extends to our freight brokerage. All of our partner carriers are evaluated with a 10+ point vetting process and must have their authority for an entire year before working with us. 

If you’re not sure whether asset-based or brokerage 3PL services are better for your situation, contact the Classic Logistics team

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