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Asset Based, Non-Asset Based Logistics, or BOTH?

Posted by Jordan Wilson on Jul 19, 2017 3:13:04 PM

Asset based, non-asset based logistics or both

In the logistics world, there are several options in the way of carriers.

Asset based and non-asset based logistics seem to be the main focus of the supply chain. But, why can’t we have both?

There are benefits of both asset based and 3PL services. So, why not choose a company that utilizes both of these aspects?

 

So, what exactly are asset based and non-asset based logistics?

Asset based logistics refer to companies that own some or all of the components involved in supply chain management (i.e. trucks, warehouses, or distribution centers). They own their own equipment and work directly with customers to move freight.

Non-asset based providers do not own the equipment but are blessed with the flexibility that comes with that. These providers can customize each shipment to the needs of the customers using industry expertise.

 

Benefits

 

     Asset based:
  • They own drop trailers that can be delivered and loaded at the convinience of the customer.
  • Generally, they are going to have lower cost per mile compared to 3PL who deal with middle men.

 

     Non-asset based:
  • increased capacity

Issues

 

     Asset based:
  • General capacity issues. They don't have unlimited trucking capacity like brokers.

     Non-asset:
  • Brokers are at the mercy of the market, meaning if there is a capacity crunch brokers might struggle to get your load covered.

 

So, what happens when you combine the two? You get the stability of an asset based carrier and the ability to customize with additional non-asset based logistics backup.

Companies can have their choice of service depending on their specific needs. So, why not try experiencing all-encompassing service?

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