3 PL and freight forwarding are different from each other-Know how?

If you are entirely new to the arena of logistics, you may easily get confused with different terms associated with the industry. Especially, many novices fail to differentiate between the services offered by freight forwarding professionals and third-party logistics. Thus, with the help of this blog post, we have discussed key aspects related to both terms and the difference at a glance.

Why One Should Know the Difference

Freight forwarding services and third-party logistics are two interchangeable but different terms in the logistics sector. Export and import are key components of these businesses. Because of this, it is essential to know the difference to come up with the best possible choice for the betterment of a company.

Overview of Freight Forwarding

Freight forwarding refers to the shipment and coordination of goods between two different destinations done with the help of a single carrier or multiple numbers of carriers. Carries, in this case, may include different methods or transportation modes, like highway, rail, marine, and air. Freight forwarding thus deals with varieties of services, which include tracking any inland transportation, negotiation of changes in the freight, booking of cargo space, preparation of shipping activities, exporting documents and filing the required insurance claims.

Overview of Third Party Logistics

Third-party logistics or 3PL are outsourcing services used mainly for varieties of logistics operations and supply chains. Accordingly, any third party company takes proper care of the logistics operations and the complete supply chain. 3PLs mainly make you free, so that you may easily focus on other aspects of your business, like marketing, promotion, sales, and business development.

Requirement related to 3PL providers continues to grow with the complications associated with the logistics industry. Primary tasks performed by any 3PL logistics include retail scan packaging, cross-docking, order and inventory management services, order processing, providing reports and distribution of freights.

Difference between 3PL and Freight Forwarding Services

3PL service providers deliver their services on full-time services. This means, they take proper care of the complete supply chain, which consists of packing and picking items, warehouse storage facility, and shipping of goods. Companies thus can reap plenty of benefits from 3PLs as compared to the benefits they can obtain from freight forwarding service providers. Besides this, in case of 3PLs, you will expect to get some flexibility in the offered services, as 3PLs allow you to choose as per your own requirements.

Freight forwarding services are broker types of services, as they allow companies to avail the best possible rates and a combination of different carriers to figure out on behalf of them. They act as intermediaries and coordinate with almost everything, such as booking of specific cargo space and filling of various insurance claims. However, services offered by freight forwarders remain limited to the mentioned ones, i.e. their services end up at the organization of products in a good manner in between two different destinations. Accordingly, you have to organize picking and packing as well as warehouse storage tasks on your own.

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