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How are 3PL providers different that freight forwarders

What’s in a name? Quite a bit of difference if you’re putting 3PL services and freight forwarding services in the same box. Third party logistics companies (3PL) and freight forwarding services are two terms often considered interchangeable but that have many differences when it comes to logistics, shipping and transport. Here’s a few reasons why the two are different from NATS Canada, one of the leading 3PL companies in Canada.

Make The Choice For What You Need In 3PL Services

As far as 3PL companies In Toronto go, NATS Canada is one name that is clearly defined by its service menu, which includes freight forwarding. A freight forwarder does not actually move your freight using its own shipping fleet. Like other freight forwarding organizations, it acts as an intermediary between a shipper and the network of transportation companies with which it does business. Freight forwarding is the organizing and fulfillment of shipping goods from one destination to another using a variety of carriers. Companies tend to use freight forwards rather than shipping freight themselves because freight forwarders often offer better rates; their volume of business allows them to negotiate better shipping rates than a company doing it on an ala carte basis would get. Both 3rd party logistics companies and freight forwarders have similar knowledge of the documents required to ship, international freight shipping rules and regulations, finances and other related elements of shipping.

A major difference between the 3PL companies and freight forwarding companies is that 3PL services are all about outsourcing some or all the elements including in your supply chain and logistics operations. That means a company like NATS Canada can be contracted to administer your entire supply chain and logistics operations, rather than giving it to someone in your company to do off the side of their desk. The coordination of such responsibilities is a skill that requires experience, attention to detail and an ability to organize multiple moving parts. The 3PL companies in Canada providing these services have teams of experts to help facilitate such services professionally and affordably. A 3PL company would provide such services as cross docking, retail scan packaging, inventory management, order processing, reporting, tracking of freight and acquisition of transport partners for shipping. Using 3PL companies also helps reduce transportation costs. Outsourcing shipping makes goods business sense; let the professionals do their job related to logistics management so the staff at your company can focus of the business at hand.

NATS Canada Is A Top 3PL Provider

Freight forwarders act more as a broker of services, helping clients secure the best rates and carriers. ON the other hand, 3PL providers can be full-service, possibly being contracted to take care of your entire supply chain management. NATS Canada is a world-class supply chain management company that can handle transport services to or from Canada and the United States. NATS Canada provides services for companies in a variety of different industries, helping ship cargo for businesses, manufacturers, construction companies, automotive and steel companies and many more. Call them first when trying to determine your best options for freight forwarding or 3PL logistics.

Related Blogs:

  1. How Do Businesses Often Fall in Trouble While Shipping Beyond Canada
  2. What Are The Things To Know Before Shipping Freight Internationally?
  3. Freight Classification According To NMFC Codes
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