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Third-Party Logistics: The Uberization of Trucking

Third-Party Logistics: The Uberization of Trucking

Delivery. For many companies, it's the most expensive part of their operations. Sure, fulfillment and warehouse work may be a pain (or even dangerous), but nothing compares to getting things to customers on time. But when you're saying the phrase "on time" repeatedly, it soon becomes a bit of a joke. Fortunately, 3PLs have been stepping up to the plate lately. The days of delivery being down to chance are gone, and some third-party logistics players are doing a lot of good when it comes to delivery and how you do business.

The Future of Trucking is Here, and It's Called 3PL.

3PLs, or third-party logistics providers, are a new breed of trucking companies that have cropped up over the last decade. Unlike traditional carriers like JB Hunt and Schneider National, 3PLs don't own any trucks or trailers; instead, they provide services to other businesses by managing their freight shipments through warehouses and delivery fleets.

They're essential middlemen who can handle everything from warehousing and freight forwarding to customs clearance and trucking operations.

The Rise of 3PLs

The rise of 3PL (third-party logistics) is a story unfolding for decades. In the early days, retailers mostly used it to manage their supply chains — moving goods from manufacturers to warehouses and eventually to stores. But as consumer demand increased, so did the need for suppliers to have more visibility and control over their transportation partners.

Today, 3PL providers are still handling the same basic functions but much larger scale than ever before. As a result, they've evolved into one-stop shops for just about any type of shipment you can imagine: from short-term storage facilities to long-term warehousing solutions; and reverse logistics services for returns and refurbishment processes.

Uberization of Trucking

The technologies used to transport goods have changed, but transportation has remained largely unchanged. However, with the "Uberization" of every industry, trucking companies are looking for ways to compete with the new competition.

E-commerce has created a need for services previously not needed by small businesses or individuals: delivery companies, couriers, and drivers. This need has allowed new entrants into the trucking industry to offer cheaper rates than traditional carriers by using independent contractors instead of employees.

Why You Should Use 3PL

3PLs allow companies to outsource their supply chain management to focus on what they do best — creating quality products and services for their customers.

By using a third-party logistics provider, companies can gain control over their supply chains by allowing them to focus on their core competencies while outsourcing the rest of their distribution needs. This system allows businesses to reduce costs and improve efficiency without sacrificing quality or customer satisfaction.

Automate Your Business With AMS

At AMS, we understand the challenges that small business owners have in running an efficient business. We provide quality and timely shipments to our clients’ doorsteps while offering you competitive pricing. We realize that time is money for our customers, and we will do everything to help you with your 3PL operations and save you the extra time.

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