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Logistics & Warehouse management

 

Do you think Non asset based 3PL are better than Asset based 3PL.

Created by : Shailena Varma, Logistics Manager, Target  | 11 08 2008 06:41:41 +0000
Industry : Retail Chain/LogisticsFunctional Area : Logistics & Supply Chain(Operations)
Keywords : INDIA Market Think Better Financial SCM Asset Logistics Warehouse Non Asset Based 3PL 3PL 4PL
Activity:  777 views;  last activity : 07 06 2010 20:18:09 +0000
As Third party logistics is gaining more and more importance for small and big businesses all over, its not only saving you  money but venturing into unknown territories with your products and making you some good money. But then there are two of a kind 3PL players here, one is asset based 3PL and the other is Non asset based 3PL.so asset based they have their own machineries for the process and non asset based is just like and office with networks allover for the work to be got done, so who is better in this area, this is a debatable topic, so give in your views.
 
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I don't agree with Mr. Akhilesh saying that they provide much better service and all even if there is any freight damage during the course you are not guaranteed that you are getting back the right amount for it, the handling claims will be more, and you don't know how the conditions are at these places whether the equipments are in good condition to take care, so non asset based 3PL are much better than the other.


By Vijay Sharma, Logistics Manager, Reliance retail  | 11 08 2008 06:43:26 +0000
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Yes Non asset based 3PL provides you more choices, this type of 3PL usually possesses only desks, computers, and freight industry expertise. Now you can see why they are referred to as "transportation consultants". But they do all sorts of work like quoting freight, scheduling pickups and deliveries, routing, and auditing. By this you can guarantee that you will get better money and service with non asset based 3PL rather than asset based 3PL.
By Shailena Varma, Logistics Manager, Target  | 11 08 2008 06:41:41 +0000
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I feel that asset based 3PL are always at an advantage

1. Non asset based 3PLs are always tempted to charge premium on the services they perform.

2. Assets are build by organisations which think they can optimize on them & so know the best practices , have a strong back end , thus assure service & quality all the times

3. They are not dependent on other parties for their deliverables .

Non asset based 3PL charge primarily for the jazy front ends that they put up & can act as coordinating agency  between muliple service providers  to give you a feel of single point but with a certain premium.
By Jitender Mohan Lal, Supply Chain & Logistics, Bharti WAL-MART  | 09 27 2009 08:36:11 +0000
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Asset based are better 3PL than non asset based just because you never know when there will be availability of transportation or not or you may not get equipments that are required for operations that are to be handled but in the case of asset based they have their own and you can rest assure that everything is taken care of.
By Rohit Khanna, Project Leader/Managing Consultant, Accenture  | 11 08 2008 06:47:03 +0000
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No the asset based 3PL provider are better because they have their own warehouses and their own trucks and carriers and all other equipmenets which is guaranteed that your products are reached to destination in proper time.
By Akhilesh Majumdar, Logistics Manager, Tesco  | 11 08 2008 06:42:37 +0000
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