You’ve finally decided it’s time to get some help with your logistics. You’ve heard about third-party logistics (3PL) companies and the services they offer having many benefits to those who use them. According to a report by Ibisworld, there are over 20,000 3PL companies in the U.S. alone. 

When looking to choose the right 3PL for your company, it all comes down to what you’re looking for. Whether you’re looking for one with advanced technology, great customer service, an extensive carrier relationship network, or perhaps an expert in your commodity, there’s sure to be one that makes sense for your business. 

Choosing the right 3PL is essential to ensure your company gets exactly what it needs for its logistics. With so many different 3PL companies out there, we wanted to offer you some information so you can choose the right one for your needs. In this blog, we take some of our competitors and compare them, as well as ourselves, so you can see how they differ. 

First Steps

First things first, to find the right 3PL for your company, here are some steps you can follow to ensure you choose the right partner:

• Research the different companies around.
• Begin establishing a relationship with these companies.
• Ask about the rates they offer.
• Look for any customizable capabilities the company offers. Is the technology customizable to your company’s needs?
• Keep an eye out for a provider that commits and strives for continuous improvement. Look for a 3PL that has networks of people and locations. 

Logistics Companies Comparison

We chose some well-known 3PLs to analyze for our comparison, including C.H. Robinson, XPO Logistics, Redwood Logistics, and ourselves. We’ll compare the different companies’ backgrounds, technology, and company culture to help you start your search for a 3PL provider. 

Background Information

One thing you should look into when researching 3PLs is their background. It’s important to find out some basic information about your potential provider, such as how long they have been in business, the number of locations they have, and their company’s mission.

C.H. Robinson 

• Founded in 1905 in Grand Forks, North Dakota
• A multi-billion-dollar company in the logistics field
• Headquarters are in Eden Prairie, Minnesota
• Has 297 office locations in 51 different countries
• Has no assets
• Mission Statement: “Our people, processes, and technology improve the world’s transportation and supply chain, delivering exceptional value to our customers and suppliers.”

XPO Logistics

• Founded in 1989
• Headquartered in Greenwich, Connecticut
• Has over 42,000 employees with 756 locations worldwide
• A billion-dollar company
• Has their own assets
• Mission Statement: “People, technology, assets, and expertise that work together around the globe to help our customers succeed.”

Redwood Logistics

• Founded in 2001
• Headquartered in Chicago, Illinois
• A multi-million-dollar company
• Has 225 employees with 15 locations nationwide
• Has no assets
• Mission Statement: “To bring energy and innovation to logistics and help businesses prosper in a high-demand world.”

Trinity Logistics

• Founded in 1979 in Cambridge, Maryland
• Headquartered in Seaford, Delaware, with eight office locations nationwide and over 120 agent offices in North America
• A Burris Logistics Company
• Is a multi-million-dollar company
• Has no assets of its own, but makes use of its parent company assets, Burris Logistics
• Mission Statement: “To deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve.

Technology

Technology is a key aspect of the success of your logistics companies. Many 3PL companies provide different technology perks to help simplify your logistics processes. Let’s look at what these companies offer.

C.H. Robinson

C.H. Robinson offers technology applications for transportation management through their Global Transportation Management System (TMS), freight visibility, pricing, and analytics through Navisphere, planning through PO Management, and procurement through Procure IQ. They also offer carriers technology through their Navisphere Driver App. 

XPO Logistics

XPO Logistics offers a digital transportation platform designed to increase efficiency for their customer, called XPO Connect. This platform gives visibility into shipment status and helps streamline tasks through automation and digital sourcing of capacity. 

Redwood Logistics

Redwood offers their digital logistics platform called LPaaS. This stands for Logistics Platform as a Service and XPO make this the centerpiece of the company. This “open platform for digital solutions” highlights that LPaaS is the connection between logistics and technology to create a network that is efficient, cost-effective, and personalized for your logistics solutions.

Trinity Logistics

Trinity offers best-in-class technology for both shippers and carriers. Shippers can take advantage of Trinity’s Customer Portal to stay updated on their shipments, access or pay invoices online, or request new freight quotes easily. If looking for transportation management, shippers can find their own customized transportation management solution with Trinity, whether that be Integrated Outsourced, Managed, Software-as-a-Service (SaaS), or their own specific TMS solution. For less-than-truckload (LTL) shippers, there’s Banyan LTL to make shipping your LTL freight easier. 

Carriers have just as many technology options as shipper customers through the Carrier Portal, TriumphPay for quick and easy payments, and load booking features through DAT BookNow. 

Carriers and shippers can both take advantage of easy tracking technology options such as MacroPoint, Trucker Tools, and FourKites. 

Company Culture

One final aspect that you should learn about your potential 3PL company is its culture. You want to find a 3PL provider who aligns with your mission, as well as treats their employees right. We all know a happy employee equals great customer service!

C.H. Robinson

C.H. Robinson embraces their value through their E.D.G.E program; evolves constantly, delivers excellence, grows together, and embraces integrity. 

XPO Logistics

XPO’s values are inclusivity, safety, being entrepreneurial, being respectful, and being innovative.

Redwood Logistics

Redwood believes in environmental stewardship, social and workplace culture, and corporate governance. 

Trinity Logistics

At Trinity, culture revolves around a set of Guiding Values. Those are:

Teamwork: We listen. We collaborate. We solve. 

Integrity: We do the right thing!

Legacy: Our journey has a purpose.

Fun: Fun lives here!

Continuous Improvement: We aspire to reach our {untapped, full, greatest} potential.

Excellence: We challenge the status quo. 

Determination: We are persistent and unshakable in overcoming obstacles.

Leaders: We are all leaders committed to serving and empowering others.

Find What Works Best for YOU

Whether large or small, having many years of experience or few, or having multiple platforms of technology or just one, the best 3PL for your company is your decision alone. While we at Trinity would love to work with you, we know that the best relationships are built upon respect, equality, trust, and communication.

We hope this logistics company comparison helped you begin your research into your future 3PL provider. Make sure you find the right provider that aligns with your goals and will help you succeed. And if that provider happens to be us, we’re ready to provide you with our People-Centric Trinity Experience.

By: Turner Lee

All businesses want to grow, but growing a business isn’t an easy task. It is one of the toughest challenges that a company can face. And there are many ways to go about assisting and capturing on that growth. One option that I’d like to talk about today is on improving your logistics.

You may be the best at being the business idea maker, the manufacturer, the seller, but logistics and the supply chain can be confusing and complex. Trust us, we know. Choosing to work with a third-party logistics company (3PL) can help in removing those confusing and complex tasks, as well as aid in your company’s growth.

What is a 3PL?

Depending on the capabilities of your logistics provider, a 3PL is a service company that can handle several or every aspect related to logistics in your supply chain. This can include fulfillment, transportation, supply chain management, transportation tracking and tracing, inventory management, and more. 3PLs can either be asset based or non-asset based.

Not quite sure what that means? Click here to learn more.

3PL’s are a flexible service, meaning you can choose for help in one piece of your logistics puzzle, or have the 3PL assist with the whole enchilada that is your supply chain and logistics. This also makes 3PLs an affordable service because you can choose to get help on only what you need.

You can quickly see how working with a 3PL can help you with any logistics challenges you may be facing. But how can a 3PL improve your logistics overall? And how does that help with your company’s growth?

Lower Costs

This one is easy. Since all 3PLs handle logistics, they have the experience and relationships built within their networks to better run that aspect of your business. They are able to negotiate lower shipping rates and discounts on the services they use. Not to mention, 3PLs offer access to technology that you would otherwise have to pay for yourself. Without a 3PL, it can take you years to find the best shipping providers and services you need to run your logistics smoothly. Working with a 3PL expedites that process while reducing your costs.

Warehousing & Distribution

Need warehousing space? Rather than setting aside money every month on rent for warehousing that you may not always need, take advantage of a 3PLs connections and get warehousing when and where you need it. This means you could have stock warehoused in several locations, expediting your deliveries. Faster distribution means you’ll have happier customers.

Flexibility

3PLs offer flexibility in your logistics by being able to service you on-demand. You can cut costs by removing or reducing transportation and warehousing assets and outsource when demand increases. Companies that have products with a peak season, or increased demands during the holidays can call upon a 3PL as needed during the rollercoaster that is consumer demand.

Additionally, working with a 3PL gives you the flexibility to try different services to see what works best for your company. You can ship your products via truckload, try out intermodal shipping, or have the 3PL help manage your whole logistics operations with a TMS (transportation management system). You get to choose what works best for you company.

Experience

Speaking of what works best for your company, a 3PL will have that experience and insight. They know how to run and manage logistics operations efficiently and help you with that. Looking to expand into a new geographic region or try e-commerce? A 3PL can help by making recommendations on how to best move forward. Regardless of your challenge, a 3PL provider will have the necessary expertise to guide you on the most beneficial path.

Free Up Resources

When growing your business, you need to invest your time and money into where it would make the biggest impact. Logistics can take a lot of capital when doing it all yourself, so outsourcing to a third party can free up your resources. By focusing on what your team and company is best at and outsourcing the logistics, you’ll be able to provide your customers better products and service with your more efficient operations.

3PL Statistics

If you’re still not convinced about outsourcing to a third-party for your logistics, here are some statistics from the 2019 23rd Annual Third-Party Logistics Study. These go to show that improving your logistics can help your business in many ways.

• 75% of shippers said the use of 3PL services has contributed to overall logistics cost reductions.

• 91% of 3PL users report their relationships with 3PL providers are successful and their work has positive results

• 86% of shippers said the use of 3PLs has contributed to improved customer service.

• 58% of shippers indicate they are increasing their use of outsourced logistics services this year.

• 73% of 3PL users agree that 3PLs provide new and innovative ways to improve logistics effectiveness.

These are some of the ways a 3PL can help with improving your logistics and growing your business. Every company is unique and faces its own challenges. The first step in finding out exactly what can your company can improve upon is by having that initial conversation with a 3PL.

With 40 years of experience, a relationship-driven team, and the added benefit of being part of the Burris Logistics family, Trinity Logistics is the 3PL to help your business thrive.