Don't Book Third Party Logistics (3PL) Freight: 3 Reasons Why
Updated: Dec 21, 2020
3PL Software seeks to change the freight process for the better. MyCarrierTMS seeks to change the 3PL process for the better.
3 Reasons To Not Book Freight With A 3PL
While there are many good aspects of 3PLs, there's some bad to them, too. If you'd like to read more about what a 3PL is, click here.
1. Outdated, Inconsistent Information
3PLs store carrier information manually for shippers to access; these third parties go out and manually get information like your quote and tracking information and type it into their systems. If the 3PL doesn't keep the information in their database up to date, the information you search for is not up to date. Your quote price and tracking accuracy is at the hands of likely a few people, and people are prone to making mistakes and being inconsistent. Even different 3PLs can have different data because of these inconsistencies, so customers can never be sure they're getting the best deals (or even accurate ones).
2. Pricier Rates
With manual labor in keeping 3PL databases updated comes additional costs for said labor. This additional cost is charged to the customer in the form of extra margin on quote rates.
3. Incomplete Shipment Information
Line haul is the largest cost for most shippers. Only having visibility to tonnage makes it harder to allocate equipment to drivers as tonnage doesn't necessarily equal the amount of space that needs to be taken up; Even though trailers can fit many tons, that doesn't mean that your weight can fit in one trailer.
If you know complete shipment information including DIMS you can better plan shipments for efficiency, but 3PLs don't provide this data. Visibility to complete shipment information can improve efficiency and reduce costs by optimizing your manpower and equipment utilizations. You would be working less on average-based data and instead on direct marketplace data. Better data and planning means freight will get touched less, and less touching means less opportunity for items to be broken.
What To Do Instead
As we have discovered, booking with a 3PL can cause some issues; outdated information, pricier rates, and incomplete shipping information can be frustrating. While these problems have been highlighted, there are even more specifically for carriers and shippers.
MyCarrierTMS sees these issues with 3PLs and provides a fast, complimentary solution for both shippers and carriers. Our data is gathered by APIs, not humans, and always gathers and provides the most recent and accurate information. Because these APIs do the work for us, we don't put extra margin on quote rates. MyCarrierTMS offers complete shipping information with DIMS so shipments can be better planned.
Don't settle for less; sign up with MyCarrierTMS today.