What is a Logistics Trucking Company?

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 goods. Logistics companies can manage some or all of these steps for you.

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 logistics trucking companies and how to choose one that meets your needs. 

Types of Logistics Trucking Companies

There are several common types of logistics trucking companies, including third-party logistics providers (3PLs), fourth-party logistics providers (4PLs) and freight brokers.

• 3PL: 3PLs 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. They’re more inclined to develop long-term relationships with customers, which can help ensure capacity and cost-efficiency.
   
• 4PL: A 4PL provider manages your entire supply chain, supervising 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. Outsourcing your whole supply chain can free up more time and personnel to focus on product development, but you’ll have little control of the logistics 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 and have the technology to trace and track shipments every step of the way.

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. Learn more about Classic Warehousing storage in Ohio. 

• Streamlined process

A customer that utilizes a logistics service should expect smooth coordination of supply chain management, leaving the details to the experienced 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 know what you’re looking for and research your options thoroughly. 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?

Related: How to Choose the Right Logistics Partner

Your Logistics Management Partner

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