Supply chain woes, high prices of fuel, and budget overages have many large retailers, manufacturers, and distributors that rely on shipping facing uncertainty. But not everybody is feeling the squeeze of these problems that have been ongoing since the onset of the pandemic. Popular third-party logistics companies (3PLs) – as well as large freight brokers – have taken advantage of this situation to the tune of record-setting earnings for multiple months in a row, according to Transport Topics. That’s good news for them, but many large shippers are still scrambling to find ways to trim expenses. Innovative shippers have turned to smart technology and automation to help remove waste.
Why 3PLs & Freight Brokers Are Thriving
3PLs help large shippers streamline critical supply chain operations such as distribution, warehousing, and packaging. Similar to freight brokers, most 3PLs also offer brokerage services and act as middlemen to set up shippers with third-party carriers. Unfortunately, as disruption occurs in the freight market, freight middlemen know that shippers are willing to pay an arm and a leg to move goods. And with hidden margins, these middlemen charge upwards of 30% more to pad their own pockets- hence record-setting earnings.
Take Control of Shipping With Technology
Award-winning, AI-powered automation technology helps shippers uncover resilience, sustainability, and cost reduction opportunities by eliminating the need for middlemen. By automating freight procurement, 80+ configured shipper attributes– along with artificial intelligence– dynamically match loads directly to the right carrier, at the right time, location, and price. Logistics can be expensive, but it doesn’t have to be. Automating freight procurement helps shippers overcome freight market volatility by always delivering goods on time, and at a fair market price.