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What Are The Differences Between 3PL And Freight Brokers?

ShipHack | 3PL Warehouse & Fulfillment Center in New Jersey > Third Party Logistics > What Are The Differences Between 3PL And Freight Brokers?

You should know that you have a lot of options when it comes to transporting products while trading. Carriers, freight brokers, 3PL, carrier pigeons. Etc. Shiphack.co is a 3PL company and works as a third-party logistics firm for you. 

As we said, you have other options than working with the 3PL company. You can deliver your orders or arrange with a carrier. Working with a freight broker is another solution. Today, we will compare freight brokers and firms like us.

What Is 3PL, And What Does It Do?

3PL companies are mostly preferred by customers dealing with e-commerce. 3PL companies wholly carry out storage, packaging, and shipping processes. 

In this way, you save extra time, and you can take steps to grow your company. All you have to do is sell your products in various markets, and we at Shiphack.co will take care of the rest.

What Are Freight Brokers And What Do They Do?

Freight brokers act as an intermediary linking you and the company that will transport your product. Often these companies do not have their trucks or facility, and they never really touch your product. For this reason, they do not accept any responsibility in case of any damage to the product. 

Which One Should You Choose? 3PL Vs. Freight Brokers

There are positive and negative sides to both options. Which one you choose depends entirely on your needs. It is impossible to answer this question directly, but we can look at both options’ positive and negative sides.

What Does 3PL Companies Offer?

There are many benefits to working with a 3PL company.

  • You can establish long-term relationships with 3PL companies: This brings many benefits to your company. They become able to predict your potential customers and the possible number of orders. They will do whatever it takes for your logistics needs.
  • 3PL companies are highly specialized in logistics: they learn a lot about it, as their only job is to deliver products to customers, and that is their only focus. This minimizes the margin of error.
  • They know a lot about the inputs and outputs of freight carriers: 3PL companies are very knowledgeable about their business, as well as a lot of information about your company.
  • They also offer you effective solutions for storage and warehousing: You can believe that they will be much better at storage than you, as economies of scale help 3PL companies.
  • They take over the whole process in logistics: the service 3PL companies provide to you is holistic. They take care of the storage, packaging, and transportation process. In this way, you will save time to grow your business and gain more customers.

Let’s Take A Look At The Opposing Sides Of 3PL Companies

As in every company, you may encounter some problems in such companies.

  • It can be a bit costly to set up: Until a system is set up and companies get used to each other, the process can be complex. You may need to make changes to your company, and it will cost you money.
  • You can choose the wrong company: Having too many 3PL companies makes it a little challenging to choose. Sometimes customers may have problems with customer satisfaction by making wrong choices.
  • Shiphack.co aims to save you from potential problems thanks to its effective packages and experience in this field. If you work with us, you will never regret it.

What Benefits Can Freight Brokers Bring You?

Of course, these companies also have positive and negative sides. You will see these in the rest of our article, and you will be able to make a final decision.

  • They’re cheap: They can do the research and get things done for you when it comes to freight transport.
  • They know the Carriers well and can make the right choice: Brokers who are experienced and professional in this field are highly skilled at choosing the suitable carrier.

Downsides Of Freight Brokers

Brokers who do their job well do not cause you a problem, but they do not provide a solution to all your problems. While 3PL companies offer you many solutions from storage to shipping, freight brokers only act as intermediaries.

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