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How 3PL’s Negotiate Exceptional Rates and Contracts for Their Clients

3PL’s provide multiple supply chain functions for their
valued clients. But with each customer interaction and new service offering
they provide, value is arguably the most important attribute they seek to achieve.
A few of the leading perks of working with an experienced third-party logistics
company are the phenomenal shipping rates and customer-friendly contracts they
can offer. In the next few paragraphs, we’ll explore some of the reasons why
3PL’s are able to negotiate exceptional shipping rates and create shipping
contracts for their clients that are fair, affordable, and always benefit the
shipper.

Understanding How 3PL’s
Create Customized Solutions for their Shipping Clients

In order to provide anyone with value in any service industry, it’s first vital to understand how their business operates. When it comes to how a third party logistics company serves their shipping clients, it all begins with discovery. An experienced 3PL will start the discovery process with a thorough review of your shipping data, analyze the shipping trends, weights & classifications, and supply chain lanes used in transportation of their commodities and supplies. After reviewing all shipping related data, they are able to then compile this data into a full bid package and send it out to their extensive carrier network.

There are five specific steps that help 3PL’s determine the
best rates for your shipping needs:

The key is working with a 3PL that has a proven record of working with multiple regional and national carriers that provide a plethora of shipping solutions from flat-bed, FTL, cold storage and more. It’s also helpful when that 3PL manages over $50mm worth of LTL freight each year.

After those bids for shipping rates have been sent, and estimates
are received from the carriers, the 3PL will scrub through all that data to
find the best savings plan and rates for each individual customer. They’ll also
factor your personal preferences when it comes to the movement of freight. Some
of the common factors they’ll consider include:

Whatever your preferences, the best 3PL’s create a carrier portfolios and gain estimates from companies that fit your required preferences that is best suited for your individual business type. By entrusting a proven 3PL to manage your freight estimation and contract negotiations, you’ll have peace of mind knowing that you’re getting the best shipping rates so you can focus on your people, driving sales, and improving bottom profits.

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