When choosing a 3PL providers to work with, there are two options: asset-based 3PL companies and non-asset-based companies. By working with an asset-based 3PL company, it will be easier to access the assets that are available in-house. When considering the better return on investments, flexibility, and more reliable freight costs, it is best to look at what the shipper will need. Selecting an asset-based 3PL company will bring less hassle to the company and allow for a better solid foundation.
Better Return on Assets
Return on assets is the ratio between the net profit and the cost of investment in equipment or other assets. According to Business2Community, utilizing asset-lite, companies showed a higher return on assets over their competitors. Another significant advantage to asset-based 3PL companies is the positive increase in the price of ratio (market value of equity) to operating assets. Non-asset-based 3PL companies are free from vested interests and avoid bias in the case of claiming damages per se to protect the business.
More Flexibility in Scheduling
With any business or company, flexibility is a key component. With asset-based 3PL companies, it will be simpler for the logistics to be established depending on the infrastructure. In addition, there is more flexibility in cost structure, which will allow additional room to design a custom plan that is more beneficial for all involved. An asset-based 3PL has the same flexibility as non-asset 3PLs do to reach out to the network or partners and select services to meet the best requirements needed.
Less Hassle Over Managing In-House Assets
One problem that no business wants to handle is hassle over equipment or other essential needs for the company. A benefit of asset-based 3PL companies is that the company usually owns some of the equipment and will have it more easily accessible. Having the equipment on hand and more available will allow for more time and money to be saved rather than wasting time trying to set up the physical assets.
More Reliable Freight Costs
Going with asset-based 3PL companies will allow companies to achieve scale without having to invest capital. In addition, asset-based 3PL companies also can help large companies avoid the diseconomies of scale that arise from owning smaller businesses.
More Supply Chain Continuity to Help Your Business
As explained by Industry Week, it’s always best to choose a 3PL that is a true partner to the business if the goal is to achieve the positive outcomes of success and improvement. Every company wants an increase in overall efficiency, fewer errors in delivery, cut costs, and most importantly, accomplishing all these goals on time. The most significant difference between asset-based 3PL companies and non-asset-based companies is the technique and how the goals are achieved. Depending on the nature of the business, the company may help with all forms of transport, as in an asset-based company. At the same time, others may struggle to find help with drayage or specialized forms of transportation too. Or, with the combo of drayage services and warehouse assets, a 3PL provider can not only dray from port to inland, but store the goods until a truckload can be secured. This brings options for the shipper to decrease demurrage and detention or other per-diem fees all while having continuity to keep goods moving while the 3PL uses their freight brokerage division to book inland transportation.
Leverage the Value of an Asset-Based 3PL Company
To improve business and make successful improvements, choosing the right asset-based 3PL companies or non-asset-based 3PL for the company is essential. When looking at the positives to growing a successful business, the best way to do it is with asset-based 3PL companies. The improvements that can be achieved include cost reductions, service improvements resulting from 3PL provider focus and efficiency, and core competencies that focus on the buyer. Connect with Port City Logistics to learn more today.