7 Things To Look For When Choosing A Logistics Company To Work With

Is the 3pl a “Carrier’s Agent” or a “Shipper’s Agent”?

You need to understand this before anything else. A “carrier’s agent” has the number one resposibility to fill their own trucks, or those of their associates. On the other hand, a “shipper’s agent” resposibility is to ensure YOUR COMPANY receives the lowest transportation cost and greatest value for the goods you ship. In case you are wondering…TSG is a shipper’s agent.

Assuming they are a “shippers agent” are they “non-asset” or “asset” based”?
This also very important to know. Failure to understand this could severely impact your savings.An “asset” based” shipper’s agent owns a trucking business. Their priority is to operate with their own trucks above all others. A “non-asset” based shipper’s agent has obligations to fulfill YOUR needs only. In other words, YOU come first.

It shouldn’t come as a surprise that many logistics firms are owned by larger transportation and trucking companies. Can you see the huge conflict of interest here? This prejudice will erode the shipper’s ability to gain the price advantage for transportation. TSG is a privately held corporation and DOES NOT OWN a trucking business.

What are the advantages of using a 3PL (Third Party Logistics) firm that does not own a trucking company?
YES there are advantages, because:

  • There are no transportation assets working as obstacles and no dependencies on an individual carrier that may hinder service.
  • The company will negotiate contracts on YOUR behalf. It’s YOUR tariff, and YOUR true costs that matter – not theirs.
  • There is complete freedom to operate in the customer’s best interest. Whether it is to act as a consulting service or offer value-added services, the goal is to improve YOUR BOTTOM LINE, not the trucking company’s.

Because TSG is a “non-asset” based 3PL, many obstacles are removed. We are well positioned to manage your transportation needs.

Does the logistics company collect fees or commissions from carriers?
It wouldn’t really surprise you to hear that this was true, know would it. You can be certain that, as a “shipper’s agent”, TSG will NEVER accept fees or commissions from carriers. That would certainly not be in your best interest. Nor would it be healthy for our relationship, which we intend to build and maintain for many years to come.

What will happen to my freight in case their is a trucking strike?

Now you can understand the danger of partnering with a logistics company that is tied to an individual carrier, can’t you?  A strike could mean that your freight will remain unshipped. On the other hand, TSG has a network of over 1000 carriers in North America that they can work with. The carriers include both union and non-union. In the case of a strike, it’s not a problem. All we have to do is simply ship your freight with an alternate non-union carrier to help you in an emergency like this.

Does the company “float” payments while earning interest on your money?
Believe it or not, there are logistics companies that will “float” your payments in a money market sweep account for a few days to earn interest on YOUR MONEY! Let us be clear … that WILL NOT happen with TSG.We demand that our carriers perform their services at a high standard. We show them that we appreciate their service by reciprocating with prompt payments. There is no waiting, or “floating” of payments. At TSG, we believe this mutual respect is the foundation of partnering, whether it is with our vendors or with you.

Is the logistics company too large? Or is it too small?
At one time or another, everyone has felt the frustration of dealing with a company that is too large to give you the service you deserve. Large logistics companies rarely give adequate attention to small and medium sized operations once the ”honeymoon” is over.

On the other hand, many small logistics firms may lack the full range of service solutions or the expertise to apply them. At TSG, our staff is comprised of a combined 200 years of real industry experience. Through professionalism and proven logistical systems we are prepared to exceed your expectations regardless of your company’s size or complexity of operation.

If you have any questions feel free to contact us.