Choosing the right logistics provider can feel overwhelming, especially when you consider how much a new relationship can impact your business – for better or worse. (Sounds like a marriage, doesn’t it?)
If you’re looking to outsource your logistics needs, keep in mind that a good logistics partner will provide the perfect amount of supply chain management support you need along with the reliable transportation you expect – and all of it at a reasonable price that’s worth the value.
So which kind of logistics relationship is right for your operation? Let’s explore the pros and cons of each one to help you determine which one might best suit your needs.
Third-Party Logistics (3PL)
Third-party logistics service is ideal for businesses that need help with only one link in the supply chain, making this a good option for small to midsize businesses.
With a third-party logistics partner, your business takes care of the supply chain management while the third party does all the transportation – picking up your liquid freight and delivering it to its destination.
Pro
Straightforward, cost-effective, transactional service
Con
No management of overall logistics
Fourth-Party Logistics (4PL)
A fourth-party logistics partner (4PL), sometimes referred to as lead logistics partners (LLP), provides your business with freight transportation and the added convenience of supply chain management.
4PL partners handle many of the same duties as 3PL but with a wider range of responsibilities. With fourth-party logistics, you’re choosing a partner that assumes more accountability, overseeing the entire process, coordinating pickups, deliveries and invoicing your customers.
Pro
Complete supply chain expertise and management
Con
Pricier than 3PL service, but takes on a larger role
Lead Logistics Provider (LLP)
As mentioned earlier, LLP and 4PL are basically synonymous. The only difference being that an LLP may offer asset-based services whereas a 4PL provides management services only. Lead logistics providers are a coordinator that delivers top-tier transportation services with complete supply chain management. A lead logistics partner is in the driver’s seat, navigating the complexities of freight transportation, so you can stay focused on the business side of your operation.
Pro
Increased efficiency with additional time to prioritize business strategy
Con
Often a long-term agreement
Once you identify the type of service that meets your business needs, then it’s time to choose a logistics provider that shares your business philosophies and has a proven track record for delivering the level of excellence you expect.
For nearly a century, we’ve been living up to our reputation of building trusting relationships with our customers by transporting their goods safely, in full and on time – with our peace of mind service.
At GOCO Transports, our experienced dispatch team, liquid freight delivery specialists and fleet of specialized trucks fully equipped with industry-leading technology can provide you with the expert-level supply chain management and streamlined freight transportation you need.
Whether you’re looking for a third-party, fourth-party or lead logistics provider, we’re the partner you can count on to drive your business forward.
To learn more about GOCO Transports services, visit gocotransports.com.
For information on our parent company, visit gaubertoil.com.