When it comes to third-party logistics companies, there are two main types, asset based and non-asset based. When choosing a transportation and logistics partner that’ll best serve your individual needs, it’s important to understand exactly what this means and how it impacts you.
Asset Based Companies
These companies are third-party logistic companies that own all parts or assets needed to implement and manage a customer’s supply chain. Assets can include trucks, warehouses, distribution centers and much more. These kinds of companies can be ideal for customers that are looking to have one company take over all aspects of their supply chain management from production all the way to store front.
According to Industry Week, asset based third-party logistics providers can occasionally encounter a conflict of interest. This is largely due to the complexities of developing solutions for supply chains and their often sizable investments in physical assets. By having their own trucks or means of moving assets, these companies often try to utilize their own network to move products even at the cost of a higher price or lower efficiency to customers.
Non-Asset Based Companies
Non-asset based third-party logistics companies are very different from their asset based counterparts. These companies do not own the assets needed to move supplies and products through a company’s supply chain. Instead these companies focus their energy on more personalized ways to move the product from location to location.
Due to not owning their own means of transportation, non-asset based 3PL firms aid customers by negotiating contracts with warehouses, trucking companies and various other distribution centers in order to manage supply chains.
As a non-asset based third-party logistics provider, SmartWay Transportation works diligently to prioritize the needs of shippers and carriers alike. We understand that every client has different priorities and needs for their logistics operations.
To receive a quote for any of your shipping needs, we encourage you to visit our website and fill out one of our quick quote forms.