Providing your user with an excellent delivery experience is just as valuable as your ability to offer a high-quality product. A positive experience can determine whether buyers will trust your product or service in the future. A 2023 study found that only 20% of customers forgive retailers for supply chain issues and delivery delays. Customers view the delivery process as an extension of your business, and they expect you to uphold your commitment to their satisfaction.

Optimizing your delivery processes and choosing the best third-party logistics partner can significantly improve your business and give you a competitive edge. A 3PL provider works as an outsourced partner by taking ownership of your delivery process.

Choosing a 3PL provider is a significant decision — and one you shouldn’t make lightly. You can find asset-based and non-asset-based partners, and this choice will influence your customer satisfaction levels. Here, you can learn more about these partner types to determine how to make the most significant impact on your delivery processes and customer satisfaction.

What Is Asset-Based Logistics?

Asset-based 3PLs are logistics companies that own some or all the aspects required for shipping operations. These providers offer services like transportation, warehouse storage and distribution trucks to run the client’s supply chain.

An asset-based 3PL has consistent access to information, designated drivers to provide transportation and privately-owned warehouses to support operations. These assets assure you and your customers that the products will stay safe during transit and arrive on time.

What Is Non-Asset-Based Logistics?

Non-asset-based 3PLs are logistics providers that work without owning any of the necessary assets. These providers do not invest in vehicles, distribution centers or warehouses. Non-asset-based providers negotiate deals with warehouses and trucking companies to facilitate their clients’ supply chains.

This process allows them to offer their services at a lower cost. Non-asset-based providers bring expertise in managing and facilitating the supply chain rather than their assets. Since these providers do not maintain an inventory, they can provide more flexibility than asset-based 3PLs.

When you choose a non-asset-based provider, you will work closely with their experts, but they will take care of the supply chain execution and maintenance — giving you the freedom to focus on your core business.

How to Choose a 3PL Provider

Choosing an asset-based or non-asset-based 3PL provider is an excellent way to streamline operations, reduce your costs per order, gain visibility and provide scale at your peak seasons. Finding the right provider maximizes these benefits and boosts customer satisfaction.

Any reputable logistics provider should be willing to share documentation of their strengths and weaknesses and testimonials from previous clients. You can verify their resources with the certification they provide and gather all the necessary information you need to decide. Leveraging this information while weighing your business needs can guide you to the right type of provider and a reputable company that helps drive company success. Take a closer look at the ins and outs of asset-based and non-asset-based 3PLs to determine which can best suit your needs.

A Closer Look at Asset-Based Providers

Asset-based 3PLs own the inventory necessary for a smooth supply chain, so they can offer more convenient solutions.

Some of the advantages of an asset-based 3PL include the following:

• Reliability: These 3PL providers can create strong ties to customer supply chains, which can bring comfort and peace of mind. Additionally, working with the same provider for an extended period can empower you to deliver stability to customers.
• Stability: Asset-based 3PLs own the physical assets to handle the supply chain and don’t need to rely on third-party providers. Partnering with an asset-based 3PL can help you overcome supply chain disruptions by ensuring you have access to the drivers, vehicles and storage spaces you need to support product movement.
• Increased visibility: Since asset-based providers utilize their own resources and solutions to help their customers, they often leverage technology to increase visibility. You may be able to access real-time tracking, gain insights to maximize delivery routes and more.

Despite the many advantages of an asset-based provider, there are some drawbacks to keep in mind. Consider these factors:

• Fixed rates: Asset-based 3PL providers use resources they own, so you don’t get the benefit of a reduced cost or room for negotiation.
• Less flexibility: These providers invest in their own resources, which limits their capabilities somewhat. For example, these providers have a finite amount of delivery drivers and vehicles, which means they may not always be able to tackle the demands of a large business.

A Closer Look at Non-Asset-Based 3PLs

Non-asset-based 3PLs don’t own the inventories and means to handle your supply chain. You are essentially hiring them for their expertise. They analyze their client’s needs and suggest opportunities for improving your existing supply chain. You will work closely with the non-asset-based 3PL, and they will help you identify the best approach to reduce costs and optimize your supply chain.

Consider why you might choose a non-asset-based 3PL:

• Personalization: Non-asset-based 3PL providers will design and execute a supply chain tailored to your needs. These providers adhere to your budget and needs while evaluating industry trends to make informed decisions that can save time and money.
• Flexibility: These providers help you find the best carriers, warehouses and distribution channels within your budget and implement cost-saving solutions where possible. The success of these providers depends on your experience and success, so they will put their best foot forward to find optimal routes and the best deals.
• Strong relationships: Non-asset 3PLs rely on relationships to find the services your business needs to succeed. These providers can have strong relationships with a variety of vendors, drivers, warehouse owners and others in the supply chain that can streamline efficiency and help you stand out against competition.

Like asset-based 3PLs, non-asset-based providers also have a few cons. Some disadvantages to be mindful include:

• Reduced stability: Some providers may not have the infrastructure to support businesses at all times. Uncertain periods or major supply chain disruptions could impact a non-asset-based provider’s ability to help you, potentially leaving you with a larger problem.
• Added risk: At times, outsourcing responsibilities to other companies can result in poor supply chain management, which can affect your business if things go wrong. Going this route means more hands will be on your products, and more people can impact movement. If you don’t have enhanced visibility, you could face issues regarding delivery times and locations.

Where Does ExpressIt Land?

The ever-growing need for improvements has inspired some asset-based third-party logistics providers like ExpressIt to adopt non-asset-based components into operations. This flexibility enables us to serve customers with our infrastructure and expertise, letting our clients enjoy their improved solutions with the same trust.

Hybrid models allow us to hold infrastructure for decision-makers looking for a trusted partner while offering versatility and increasing reach by outsourcing some services. That way, you get the benefits of reduced cost without the fear of a provider abandoning you. ExpressIt works on this hybrid model, and we keep some inventory on hand to satisfy typical demands.

We can also handle any spikes in orders by negotiating deals with other owners. One of the crucial benefits of this model is quality. ExpressIt’s asset-based 3PL will arrange agreements with transportation and warehouse owners who work on a similar model while maintaining top-notch services. Hybrid companies like ours are uniquely capable of providing reliable and consistent services.

Choose the Best Service Option for Your Business

An outstanding 3PL provider will handle all your supply chain needs while representing an asset to your business. It is essential to compare service providers to make the best choice. While asset-based and non-asset-based providers can offer unique benefits, assessing your needs and choosing the ideal option can reflect positively on your company. Hybrid models are a blend of both worlds, and they can be the solution you are looking for.

Explore ExpressIt’s logistics solutions today and experience the advantage of a hybrid 3PL for yourself.