Manufacturers Partnering with Third-Party Logistics Providers
/Extracted 20JUL2011 from http://mhlnews.com/distribution/lower-ltl-freight-costs-despite-rising-rates-...
While most manufacturers can expect rising shipping rates as the economy improves and carriers regain lost ground, the most proactive are seeking to partner with a third party logistics provider (3PL). This can save manufacturers an extra 18% to 25% off already heavily discounted LTL freight costs, if they routinely make multiple shipments to multiple locations and work with numerous freight carriers.
How can a 3PL lower freight costs beyond a company’s existing discounts? By negotiating additional discounts based on the 3PL’s relationships, reputation and volume business with established carriers.