Asset-Based 3PL vs. Non-Asset-Based 3PL
If you are looking for third-party logistics (3PL) services, you might want to know the main differences between asset-based and non-asset-based offerings so that you can choose the best option. This guide will cover the basics and pros and cons of these services to help you make the right decision.
What Is an Asset-Based 3PL?
An asset-based 3PL is a provider that owns a part, or all, of the resources necessary to manage a supply chain. They usually have warehouses, distribution centers, trucks and carriers.
Their services often include warehousing, transportation and distribution. An asset-based 3PL will use its own team and resources to deliver your products.
Advantages of Asset-Based 3PLs
Asset-based 3PLs can provide several benefits to businesses. They are their own carrier, meaning they likely have specific lanes and services for a hyperlocal area. An asset-based 3PL can be a reliable choice if you are delivering locally.
Generally, asset-based 3PLs also have more control over their supply chain because they own it. These providers set their prices because there is no negotiation with outside partners.
In addition, they can more readily handle issues with carriers and easily make changes to fix other errors. Asset-based 3PLs can be more secure and less likely to shut down without warning. You should also see consistency in the quality of your services when you choose an asset-based 3PL.
Disadvantages of Asset-Based 3PLs
While asset-based 3PLs offer several benefits, they also have their shortcomings. Potential disadvantages include:
- Fixed rates: The asset-based 3PL decides the cost of services, so there will be little room for negotiation.
- Capacity limits: Depending on how many businesses they work with, an asset-based 3PL may have all of their fleets already occupied when you need to ship products. These providers are more limited in how much service they can provide, so you should ensure they have a good strategy.
- Smaller offerings: An asset-based 3PL may offer fewer services depending on the vehicles, warehouses and other available resources.
What Is a Non-Asset-Based 3PL?
Non-asset-based 3PLs do not own any part of their supply chain. These providers form partnerships with other companies to help move your freight. A non-asset-based 3PL focuses on developing personalized solutions using their expertise.
Since they negotiate with outside trucking and warehousing companies, non-asset-based 3PLs can offer low-cost services.
Advantages of Non-Asset-Based 3PLs
These providers often have connections to an extensive network, allowing them to choose what will work for you. Non-asset-based 3PLs are highly flexible and knowledgeable. Their team will help you determine what portions of your supply chain to fix and suggest how to enhance your operations. They work to find suitable carriers, warehouses and other distribution elements for your needs.
Your supply chain network becomes a part of the non-asset-based 3PL’s overall network, increasing optimization. In this situation, your provider has multiple fleets available instead of a single supply chain network.
Disadvantages of Non-Asset-Based 3PLs
Working with non-asset-based 3PLs has several disadvantages, including:
- Less control: A non-asset-based 3PL does not have much control over its supply chain. It works with several partners, meaning it is not fully controlling what happens throughout the delivery process. If something goes wrong, there is little the company can do to fix it because it is entirely outsourced.
- Lack of familiarity: Working with multiple partners can prohibit the 3PL’s teams from building expertise with your products and requirements.
- More trust necessary: You have to ensure you can trust a non-asset-based 3PL. Since they do not own any part of the supply chain, you are relying on them to make the right call for your company so you can get the services you need. The provider may or may not have the foundation to do this — it’s your responsibility to check and ensure they are transparent with you.
What Are the Benefits of Using a 3PL From Street Fleet?
If you need 3PL services in Minnesota or Western Wisconsin, we are here to help. At Street Fleet, we are a full-service delivery company. We provide same-day courier delivery, overnight distribution, cross-docking and warehousing.
Street Fleet has over 300 drivers and vehicles, ranging from bikes to cars and trucks, enabling us to provide customized solutions. Our popular services include:
- General product delivery.
- Fleet management.
- On-demand couriers.
- Dock truck services.
- Overnight distribution.
We at Street Fleet like to think of ourselves as an extension of your company. Our delivery services make it easier for you to focus on other aspects of your business. We also have IT services and online account management.
Whether you need medical couriers, airport recovery or scheduled deliveries, our team is here to help. We operate 24 hours a day, 365 days a year.
Contact Street Fleet for 3PL Services Today
If you are looking for a 3PL service, choose Street Fleet. Our comprehensive offerings provide numerous benefits and ensure the timely delivery of all your products. Create an account with us, fill out our contact form or call 612-623-999 to get started today.