The difference between logistics and freight forwarding

Freight forwarding and logistics are two terms that are often used interchangeably. But are the the same? There are distinctions between freight forwarding and logistics and knowing how to distinguish between third-party logistic and freight forwarding companies.

Freight forwarding and third-party logistics (3PL) providers are two of the most frequent types of companies that assist you in getting your goods to your customers. Each has its price concerns, capabilities, and integration points with your supply chain.

What is a freight forwarder?

Freight forwarding can be described as a service that transports your products from point A to point B. This can be done by a single means of transport such as sea freight, rail freight or road freight, or is a combination thereof. Freight forwarding companies co-ordinate the entire process.

In some instances the freight forwarder may provide warehousing services for a limited time during the transit of goods. But this is short term, only for the duration that your product is in transit.

Freight forwarders will broker and negotiate special rates and services between your business and the shopping service providers. The freight forwarder will handle all paperwork such as customs documents, bill of lading and insurance needed during the shipment of your products.

What is the role of the third-party logistics?

Third-party logistics are companies that help with logistics outsourcing. This includes warehousing, selecting, packaging items, and fulfilling orders. They handle your goods before they’re shipped, ensuring they reach the appropriate buyer at the right time.

A third-party logistics can be considered as an organisation that manages your company’s warehouse needs, fulfillments, and shipping requirements and they are often integrated into your business.

A 3PL are professionals in applying logistical solutions to company issues and can handle various requirements. Order and inventory management, labor cost control, and even company strategy support to decrease returned products are among the services they offer.

So what are the differences and which one is right for me?

1. Freight forwarders are specialists in transporting products from A to B and offer fewer services than 3PLs.
2. A third-party logistics provider is an expert in managing your logistics needs. They will protect and support goods from storage through order fulfilment to carrier delivery and lastly to the end-user, with the possibility of repeating the process if the customer returns the product.
3. A 3PL is closely linked to your company and plays an important part in customer service and satisfaction.

Both 3PL and freight forwarders offer valuable services, but the main distinction between them is that the freight forwarder is primarily concerned with transportation. 3PL providers, on the other hand, will manage all aspects of logistics

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