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What is a Logistics Trucking Company?

Posted on: March 21, 2022
Classic Carriers branded semi truck and trailer.

Acting as a third party, logistics trucking companies offer a variety of services to streamline the process of moving goods to their destination. Logistics refers to the act of coordinating this movement and frequently involves gathering information, managing inventory, warehousing and transporting.

Classic Logistics has been providing logistics management services across the U.S. for more than three decades. Here’s what you need to know about a logistics trucking company and how to choose one. 

Types of Logistics Trucking Companies

There are a few common types of logistics trucking companies that include third-party logistics providers (3PLs), fourth-party logistics providers (4PLs) and freight brokers.

  • 3PL: A 3PL provider may provide a single service such as transportation or offer a bundle of services that includes managing a customer’s supply chain. Most 3PLs have large carrier networks and can negotiate lower rates, reducing costs for the customer.
     
  • 4PL: A 4PL provider supervises your transportation and warehouse 3PLs at an executive level. Most often, 4PLs will serve as a single point of contact for each component of the supply chain process.
  • Freight broker: A freight broker focuses on a single shipment to meet a pre-determined cost and goal between the shipper and the carrier. Freight brokers tend to partner with smaller freight carriers to provide a large number of shipping options for customers.

What are the Benefits of Using Logistics Trucking Companies?

  • Cost-effective services

Logistics trucking companies can often offer reduced rates due to their carrier networks and higher buying power. They can also remove the need for companies to invest in their own warehouses and fleets.

  • Stream-lined process

A customer that utilizes a logistics service should expect smooth coordination of supply chain management, leaving the details to the logistics team.

  • Resourceful operations

Logistics trucking companies save their customers time to focus on their sales and day-to-day operations. At the same time, they utilize their expertise and industry knowledge to manage transportation operations.

  • Knowledge and Expertise

If a logistics company has been in business for many years, it’ll likely be able to foresee issues and quickly resolve problems. With an extensive carrier network and industry connections, a logistics trucking company can be a valuable addition to a company’s team.  

What Services does a 3PL Typically Provide?

Logistics trucking companies, especially 3PLs like Classic Logistics, provide a range of services often integrated into their warehousing and transportation divisions. Customers can usually use a 3PL for a single service or a bundle of services.

Here are some examples of services that a 3PL frequently offers:

  • Track freight payment and insurance documents
  • Work with private fleets
  • TL and LTL management and dispatch
  • Warehouse and inventory management
  • Supply chain management
  • Freight forwarding
  • Technology integration using tools like EDI and API

What Questions Should You Ask in Your Search for a Logistics Company?

Before outsourcing your logistics operations, it’s best to research your options properly. Here are some questions to consider in your search: 

  • Do you have a vast network of dependable carriers?
  • How responsive are you to questions and customer needs?
  • What specific services do you offer as part of your logistics operations?
  • How much experience does your company have in the industry?
  • What is your ratio of on-time versus delayed deliveries?
  • What kind of technology do you use to streamline logistics?
  • What values are important to your company?

Your Logistics Management Partner

Family-owned and operated, Classic Carriers has an experienced logistics division with a strong focus on customized, reliable, efficient on-time service. Learn more about Classic Logistics today!