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Freight Forwarders - A Dime a Dozen?
Filed in archive Guest Column by ehsan on February 21, 2006
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This is the first guest column provided by 3plwire.com, Third Party Logistics trends, news, and information blog. For additional information about Third Party Logistics, visit their website at www.3plwire.com.

What really sets one forwarder apart from another? For the most part they all have comparable services, serve the same key lanes, can move a box from point A to point B with relative ease (well at least most of the time), and can do so for approximately the same price. So what is it that truly distinguishes one from another? Well according to a recent report by Logistics Today magazine the answer is:

First, there's always an advantage in bundling capacity, planning capacity and consolidating cargo - the traditional role of the forwarder. Second, greater involvement in the supply chain - the forwarder as supply chain integrator and consultant.

I would also add that the level of service provided by a 3PL plays a crucial role in rising above the competition. For the most part 3PL's are non-asset based and they don't sell a commodity; they are service providers. In looking at service from a 3PL, I tend to look at how pro-active they are in terms of providing information. It's one thing to find out that your shipment is late after the fact and another receiving a call from your provider advising you of a potential delay and what alternate plans are in place if necessary. I'm sure that traditional forwarders (box movers) will always exist in one form or another, however the forwarder that evolves into a company that provides service and added value at every step in the supply chain will be able to thrive and compete in this global economy.


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