What Does a Logistics Company Do?
Direct Drive Logistics plays a crucial role in supply chain management.
Many people are familiar with the term "logistics," but aren't familiar with how it actually affects daily operations. So, what does a logistics company do?
Logistics management is an integral part of the supply chain. Logistics is the flow of goods and information between the source and consumer.
Logistics management involves:
- Selecting reputable owner operators and reliable carrier providers with access to the proper freight containers
- Identifying the most cost-effective routes
- Choosing an appropriate delivery method
- Using advanced technology and competent in-house IT to coordinate and monitor shipping process
Direct Drive Logistics effectively and efficiently organizes and arranges freight transportation solutions for a wide variety of businesses. Our team of logistics brokers will find freight carriers at incredibly affordable prices.
Logistics companies handle their role in a shipper’s supply chain management plan in subtly different ways. 3PL companies and freight brokerage firms, despite close similarity and frequent interchangeable use, play different roles in the logistics industry.
The Difference between a 3PL Company and a Brokerage Firm
There’s often confusion surrounding the difference between a third party logistics company and a freight brokerage firm.
Freight Brokerage Firm
The broker focuses on the execution of an individual shipment—on hitting a goal in terms of cost and service for that particular shipment. Brokers are non-asset bearing intermediaries who bid on individual loads for shippers, working directly with owner operators nationwide to set up individual shipments.
Brokers need to connect with hundreds or even thousands of small to medium sized carriers to provide a large network of options and provide shippers with an alternative to larger carrier providers. Smaller carrier operations often rely more on brokers for business than larger carrier providers, who more often have longstanding relationships with 3PL companies.
3PL companies anticipate the needs of shippers and carriers to provide long-term budget conscious shipping solutions.
Third Party Logistics Company
A third party logistics company is typically an asset-bearing firm who establishes relationships with shippers on a broader scale. Third party logistic companies typically make an investment in physical and human capital including brick-and-mortar locations and wheels on the ground. They think beyond single shipments, and plan earlier in the supply chain process to avoid having to pay the spot market load.
Shippers looking to be involved in a network of collaborative transportation will find that a 3PL fits their needs. However, there is a role for freight brokers for shippers with an established relationship with a 3PL. If a shipper needs more flexibility in their shipping needs, they may add a brokerage firm as a supplemental source of shipping loads.
Long-standing relationships developed by 3PL’s can pose an advantage when shipping capacity is tight; shippers need carriers to take their business as opposed to a competitor’s.
Shippers Need a Healthy Mix of Brokerage and 3PL Service
It’s not necessarily a matter of deciding between 3PL and freight brokers. Shippers establish relationships with 3PL companies and freight brokerages to keep their shipping costs as low as possible. It’s often best to dedicate a certain percentage of the shipping budget to a brokerage for flexible shipping needs.
So, What is Direct Drive Logistics?
We are whatever you need us to be. Whether you’re a shipper looking for an individual carrier and need brokerage services, or a shipper looking to establish a long-term relationship with a 3PL company, Direct Drive Logistics is your partner.
We broker immediate and long-term relationships with a large network of carriers to connect owner operators with high paying loads from shippers nationwide. Direct Drive Logistics brokers expedited domestic shipping and sets up partnerships with shippers and carriers for international shipping as well. We are your one point of contact for full truckload (FTL) and less than truckload (LTL) shipping solutions.
Dedicated Logistics Staff Committed to your Success
Direct Drive Logistics goes above and beyond for our customers. We continuously ensure insurance and safety scores are up to date – your goods are transported by the best carriers, domestically and internationally. Prompt, safe deliveries are our specialty. We guarantee there is no cross docking of freight, eliminating the chance of loss or damage to our client's shipments. Direct Drive Logistics is independently insured, meaning you won't have to go through a third party should you need to make a claim.
We give each customer a personalized level of attention, keeping in constant contact with both our clients and carriers. You’ll know where your freight shipment is at all times, eliminating unwanted surprises and verifying arrival time. From domestic over the road freight transportation to international freight shipping solutions, you can rest easy knowing your freight is in good hands with trusted carriers.