Moving goods across borders and handling import and export procedures can come with a host of complications. From understanding customs clearance procedures to navigating global events that are affecting supply chains, the landscape of logistics is constantly changing. This requires businesses to stay informed and adapt to these changes or seek help from companies that specialise in logistics and international trade.
There are two types of companies in this industry; freight forwarders and 3PL providers. Both play important roles in moving goods internationally however differ in their functions and services. For businesses looking to optimise their supply chains, it’s important to understand the differences between a freight forwarding company and a 3PL company in order to make the right decision for your logistics needs. We’ve put together a guide to help you understand the difference between both and how they can benefit your business.
A freight forwarder is a company that specialises in organising the transportation of goods from one destination to another. They play no physical role in transporting the shipments themselves and instead act as an intermediary between the shipper and the shipping company, handling all of the documentation, details and logistics that are involved in the process. Thanks to their industry knowledge and experience in air, road and sea freight, freight forwarders allow businesses to expand to international markets and securely move goods across borders. If goods need to be transported via multimodal transport to reach its final destination, then a freight forwarder will arrange and oversee this on behalf of their customers.
Freight forwarders typically have a network of partners worldwide and can negotiate directly with carriers to secure better rates and routes. Additionally, freight forwarders keep up to date with the latest customs and compliance regulations, which can be one of the most complex areas of international trade. Working with a freight forwarding company ensures that shipments aren’t subject to delays or penalties because of incorrect or missing documentation.
A Third Party Logistics Provider (3PL) is an external organisation that manages various logistics processes for businesses. While one of these processes is arranging the transportation of goods, similar to a freight forwarder, they offer a wider range of services including warehousing, order fulfilment and inventory management. This can involve storing goods before distribution, picking, packing and shipping orders and coordinating shipments from both vendors and customers. This service is especially beneficial for ecommerce businesses who receive a lot of orders and require someone to oversee their order fulfilment and shipping.
A 3PL provider is essentially an extension of a business’ logistics operations, handling all of the complex requirements so companies can focus their attention elsewhere. Some 3PL providers also help to optimise global supply chains and offer import, export and customs services.
While both organisations offer very similar services, there are distinct differences between a
freight forwarder and a 3PL company. A freight forwarder’s primary focus is on helping
companies move their goods internationally by using expert knowledge to organise transportation and handle customs regulations.
A 3PL provider however offers more services and is focused on providing end-to-end solutions and improving all aspects of a businesses supply chain, including storage, fulfilment and distribution.
So, when should you use a 3PL provider over a freight forwarder? It all depends on your business’ supply chain requirements. If your primary concern is transporting goods internationally and navigating complex customs regulations, then a freight forwarder is the perfect partner for you. Whether you have a large, bulky shipment or just half a container’s worth of goods, a freight forwarding company has the expertise to move anything internationally using the most secure and cost-effective solution possible.
Alternatively, if you require comprehensive supply chain management and help packing and
shipping multiple orders, then a 3PL provider is the perfect solution. A 3PL provider is the perfect partner especially for businesses that don’t have the space or resource to handle storing and shipping inventory. As your business grows, a 3PL provider will scale with you, continuing to help you make the best decisions for your supply chain to ensure it’s as optimised as possible.
Here at Jenkar, we’re a freight forwarder first and foremost and specialise in international
logistics. While we don’t handle tasks like picking, packing and order processing, we do offer
flexible and reliable warehousing solutions as part of our services. We provide secure storage for your goods, manage your inventory efficiently and arrange collection when it’s time for your goods to move on. Whether you need short-term storage between shipments or a long-term solution, our services are designed to be flexible to meet your needs.
Most importantly though, we’re here to help businesses expand their reach globally, offering
comprehensive freight solutions to move your goods reliably, efficiently and securely. Our
dedicated team of experts are up to date with all of the latest customs regulations to ensure your shipments are fully compliant and avoid unnecessary delays and fines. When you partner with us, you’ll receive a personalised service that’s been tailored to meet your business needs, no matter the complexity of your shipments. Get in touch with a member of our team today to discuss your international shipping needs, or start your journey with us by requesting a free freight quote.
Stay up to date with the latest trends, news and updates in the freight forwarding industry to ensure that your logistics operations are always optimised for efficiency.
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