A strong performing carrier can help companies increase efficiency, control costs, and improve customer service and experience. When selecting the right carrier for your company, many factors need to be considered, especially when it comes to choosing an asset-based or non-asset-based carrier.
Flexible Carrier Options
Through non-asset based 3PLs, no matter where in the United States a customer is expecting a pickup or shipment, there will always be several transportation options. Obviously, not every transportation option will always be in the customer’s price range, but non-asset-based carriers allow the customer to select the best option when they find themselves in a tough situation, giving limitless control to the customer. Asset-based carriers, on the other hand, are another strong option, but are less flexible in the fact that they are limited to work based on where their trucks are located at that moment. Spot load opportunities can often be lost when asset carriers do not have the appropriate trucks within proximity.
Capacity can be unpredictable at times. From holidays, to weather changes, and even natural disasters can affect capacity everywhere. Asset-based carriers allow for capacity only where their fleets are. A nationwide network of thousands of non-asset-based carriers are afforded the ability and flexibility to readily move freight no matter when you call or where you need your products, whereas strictly asset-based business’ can simply not offer the same capabilities.
Less Capital Risk
Asset-based companies are forced to pay for serious overhead that is completely avoided when using a brokerage. They are liable for every single repair, insurance claim, late departures/arrivals – the list goes on and on. If a truck breaks down, an asset-based carrier may not have the ability to find another truck close by, making asset-based carriers a much riskier investment when the stakes are high. When this situation appears while using a non-asset-based carrier, the solution may be as simple as picking up the phone and calling one of the thousands of carriers we have used before, resulting in minimal delays and increased efficiency.
Non-asset-based carriers have extensive relationships that involve everything from first time loads, to year-long dedicated runs. Although, the ability to secure a load even in a moment’s notice is undoubtedly important, being able to rely on brokerage’s relationships can give them the opportunities unavailable to many asset-based carriers. A dispatcher who has been cultivating a relationship with a certain carrier, is usually able to request lower rates in certain situations. Building trust in one another is vital to any business, but when you are specifically dealing with carriers, may times, word is bond. Through these relationships it will be easier to suggest and offer custom solutions that work for the client and carrier.
Different Equipment, No Matter the Product
Customers all over the United States require different types of equipment for their variety of products. Non-asset-based carriers offer the unique ability to find clients a dry van one day, and a refrigerated unit the next is not something many asset-based companies have the ability to do. Unless it’s one of the much larger asset-based carriers, many are restricted by their equipment and its location, while trying to maintain a certain a presence in one portion of the country. No equipment means no boundaries. Non-asset-based carriers can service any lane, with any equipment. This means, no restrictions due to trailers or regions.
Carrier Acceptance Process
Customers can fall victim to using asset-based companies when not properly vetted. On the other hand, non-asset-based carriers are working with their compliance offices every single day to ensure that carriers are insured, compliant with government rules and regulations, and have never been involved in inappropriate or illegal activities. We have departments dedicated to spending the time and resources to vet each trucking company that attempts to work with us. When a trucking company’s credentials are thoroughly vetted and verified, then and only then, are non-asset-based carriers comfortable using their services. Asset-based carriers are not always forthcoming with this vital information, and customers can sometimes overlook certain aspects that would otherwise be caught by brokerages.
When selecting the right carrier for your company, many factors need to be considered, especially choosing an asset-based or non-asset-based carrier. A strong performing non-asset-based carrier can help companies increase efficiency, control costs, and improve customer service and experience.
If you are interested in learning more about what a non-asset-based carrier can do for you, please submit the contact form located below to be put in touch with our team of dedicated logistics experts.
Patrick Woodward Higgins, Business Development at C.L. Services