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3PL Freight Broker

Apr 20, 2023

3PL Freight Broker

Translogistics, an award-winning 3PL logistics solutions provider, offers a variety of 3PL services to businesses that need to manage their supply chain operations effectively. One of the key 3PL solutions offered by Translogistics is third-party logistics brokerage services. In this article, we will explore what a 3PL broker is, and the difference between truckload brokerage services and an LTL broker service.

3pl brokerage

What is a 3PL Broker?

A 3PL broker is a third-party logistics provider that acts as an intermediary between shippers and carriers. The 3PL company arranges transportation for the shipper and works with carriers to ensure that the freight is transported safely and on time. The broker also handles all of the administrative tasks associated with the shipment, such as paperwork, insurance, and payment processing. They offer important services in return to the shipper including cargo claim management, freight bill audits, and carrier RFP management, and they supply shippers with supply chain analytics harvested from a TMS system.

what is a 3pl brokerage

What is a 3PL Brokerage?

Elite shippers gain a competitive edge with the freight brokers software system, a TMS system that holds carriers accountable by transparently showcasing their rates side-by-side, empowering you to select the most cost-effective provider for each shipment. TLI's freight brokerage platform doesn't just streamline logistics; it's a powerhouse of supply chain analytics, offering insights that drive informed decisions and optimize your operations efficiently. Take charge of your supply chain like never before—compare, analyze, and select carriers seamlessly, ensuring optimal cost management and reliability. With our system, harness the power to drive efficiency while maintaining a firm grip on your logistics expenses, maximizing savings without compromising quality.

3PL Brokerage Services

3PL brokers offer a range of services to shippers, including access to a network of carriers, negotiation of rates, and management of transportation operations. This allows shippers to focus on their core business operations while the 3PL company manages the logistics of their supply chain. Additional services TLI offers include RFP management, freight audits, along with cargo claim mitigation.

3pl broker

3PL Brokerage Integration

Integrating your ERP with our TMS system unlocks a new realm of efficiency, allowing seamless data flow between your core operations and logistics management. Experience a unified supply chain ecosystem where your ERP's insights harmonize with our TMS's real-time visibility, empowering smarter decision-making and streamlined operations.


Say goodbye to siloed information—our integration ensures a synchronized workflow, optimizing resource allocation and enhancing overall productivity. Elevate your business's performance by integrating your ERP with our TMS, creating a synergy that maximizes efficiency and drives success.

3pl brokerage

3PL Brokerage FAQ:

3PL Brokerages are essential for shippers seeking to consolidate their transportation spend efficiently. By partnering with a certified freight brokerage, shippers gain access to a network of carriers, negotiating power, and TMS technology expertise in optimizing routes and modes of transportation. This consolidation not only streamlines operations but also unlocks cost savings, improved efficiency, and access to a diverse range of transportation options, ensuring maximum value for the shipper's investment.

  • What Services do 3PLs typically offer?

    3PLs (Third-Party Logistics) providers offer a wide range of logistics services to businesses that need to manage their supply chain operations effectively. Some of the common services offered by 3PL providers include:


    1. Transportation management: 3PLs handle transportation of goods, whether by road, rail, air or sea.


    2. Warehousing and distribution: 3PLs manage storage, inventory control, order picking and packing, and shipping of goods to their final destination.


    3. Freight forwarding: 3PLs handle the movement of goods across borders, including customs clearance, documentation, and compliance with regulations.


    4. Inventory management: 3PLs manage inventory levels to ensure that products are available when needed while minimizing inventory holding costs.


    5. Order fulfillment: 3PLs handle the process of receiving and fulfilling customer orders, including picking, packing, and shipping.


    6. Packaging and labeling: 3PLs can assist with the design, packaging, and labeling of products to ensure they are transport-ready and compliant with regulations.


    7. Returns management: 3PLs handle the process of receiving and processing product returns, including inspection, refurbishment, and resale.


    8. Supply chain consulting: 3PLs can provide expert advice and solutions to help optimize supply chain operations and improve efficiency.


    9. Technology solutions: Many 3PLs offer technology solutions for logistics management, including warehouse management systems, transportation management systems, and supply chain visibility tools.


    By outsourcing logistics operations to a reliable 3PL provider like TLI, shipping businesses can focus on their core operations while reducing costs, improving efficiency, and enhancing customer service.

  • What is the difference between a 3PL and 4PL?

    While both 3PL and 4PL are logistics service providers, the key difference is that a 3PL (Third-Party Logistics) provider typically handles physical logistics tasks like transportation, warehousing, and distribution, whereas a 4PL (Fourth-Party Logistics) provider manages and coordinates the entire supply chain, including the selection of co-3PL providers, to provide end-to-end supply chain solutions. 4PL providers act as the single point of contact and take complete ownership of the logistics operations, providing greater visibility and control over the supply chain.

  • How do 3PLs differ from Freight Forwarders?

    While 3PLs (Third-Party Logistics) providers and freight forwarders are both logistics service providers, there are some key differences in the services they offer:


    1. Scope of services: 3PLs offer a wider range of logistics services, including transportation management, warehousing and distribution, inventory management, order fulfillment, returns management, reverse logistics, supply chain consulting, and technology solutions. In contrast, freight forwarders typically specialize in only international transportation and provide services such as customs clearance, documentation, and compliance with international regulations.


    2. Responsibility: 3PLs take on more responsibility for managing the logistics operations, including selecting and managing carriers, transportation RFPs, warehouse operations, and technology solutions. Freight forwarders primarily focus on arranging strictly international transportation services and ensuring compliance with international regulations.


    3. Control: 3PLs provide greater visibility and control over logistics operations, allowing businesses to manage their supply chain more effectively. Freight forwarders typically have less control over the transportation process, as they rely on third-party carriers and other service providers. A top 3PL like Translogistics provides technology services for shippers while freight forwarders typically do not offer TMS solutions.


    4. Geographic coverage: 3PLs operate both globally & domestically notwithstanding also providing logistics management services, while freight forwarders focus onstrictly international transportation services, and not domestic transportation.

  • What industries commonly use 3PL services?

    Many industries across various sectors use 3PL (Third-Party Logistics) services to manage their logistics operations efficiently. Here are some of the industries that commonly use 3PL services:


    E-commerce: With the growth of online shopping, e-commerce businesses rely heavily on 3PL providers for warehousing, fulfillment, and shipping services.


    Retail: Retailers use 3PL providers to manage their supply chain operations, including transportation, warehousing, and distribution of goods.


    Manufacturing: Manufacturers use 3PL providers for transportation, inventory management, and distribution of raw materials and finished products.


    Healthcare: Healthcare companies use 3PL providers for transportation, warehousing, and distribution of medical equipment, supplies, and drugs.


    Automotive: Automotive companies use 3PL providers for transportation, warehousing, and distribution of automotive parts and components.


    Consumer goods: Consumer goods companies use 3PL providers for transportation, warehousing, and distribution of food, beverages, household goods, and other consumer products.


    Technology: Technology companies use 3PL providers for transportation, warehousing, and distribution of electronics, computers, and other technology products.


    Chemicals: Chemical companies use 3PL providers for transportation, warehousing, and distribution of chemicals, including hazardous materials.


    In summary, any industry that requires logistics services can benefit from partnering with a reliable 3PL provider to streamline their supply chain operations and reduce costs.

3PL Brokerage Differences

There are two types of freight transportation services that 3PL brokers can offer: truckload brokerage services and LTL (less-than-truckload) broker services.


Truckload Brokerage Services

Truckload brokerage services are typically used when a shipper has a large volume of goods to transport. In this case, the 3PL company will arrange for a truckload carrier to transport the entire shipment in one go. The carrier will pick up the shipment from the shipper's location and deliver it directly to the destination. This is a cost-effective option for shippers who have large volumes of freight to transport.


LTL Brokerage Services

On the other hand, LTL broker services are used when a shipper has a smaller volume of goods to transport. In this case, the 3PL company will arrange for an LTL carrier to transport the shipment. LTL carriers combine multiple shipments from different shippers to fill a single truck. This allows shippers to share the cost of transportation and makes it a cost-effective option for those with smaller shipments.


Flatbed Brokerage Services

In addition to these services, some 3PL companies offer specialized brokerage services, such as flatbed brokerage services, along with other equipment types & modes. Flatbed brokers specialize in arranging transportation for oversize or overweight freight that cannot be transported in a standard trailer. This requires specialized equipment and expertise, which is why many shippers turn to flatbed brokers to handle their transportation needs.


In conclusion, 3PL brokerage services are a critical component of the logistics industry. By partnering with a reputable 3PL company like Translogistics, shippers can ensure that their goods are transported safely and efficiently, allowing them to focus on their core business operations. Whether you need truckload brokerage services, LTL broker services, or specialized flatbed brokerage services, a reliable 3PL broker can help you manage your logistics needs effectively.

3pl broker

3PL Brokerage

Choose Translogistics (TLI) as your 3PL brokerage partner for unparalleled expertise cultivated over three decades in the industry. Our team comprises seasoned experts dedicated to surpassing expectations. We're not just a 3PL—we're the best, equipped to handle any mode with ease and an unbeatable attitude. With a 30yr legacy of excellence and a commitment to top-tier brokerage services, partnering with TLI ensures your logistics challenges are met with experience, proficiency, and an unwavering commitment to your success.

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TLI Insights


For the latest insights, tips and commentary surrounding the logistics industry, look no further. Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans. If you have a question we are readily available at insidesales@tli.email 

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