When it comes to logistics and supply chain management, there are several different types of service providers available to help you stay at the top of your game. Two of the most common are 3PLs and freight brokers.

While both offer valuable services, there are some important differences between the two that you should be aware of when choosing a logistics partner.

Let's define the two and then highlight some of their key differences, so you can ensure you're making the most informed decision for you and your business. 

What is a 3PL?

A 3PL, or third-party logistics provider, is a company that offers a wide range of logistics services to businesses. This might include core services like transportation, warehousing and order fulfilment, as well as value-added services such as kitting, labelling and packaging. A 3PL essentially acts as an outsourced logistics department for businesses, managing all aspects of their supply chain from start to finish.

Stowsafe Fulfilment is one example of a 3PL in the UK. 

We offer a comprehensive range of logistics services to help businesses of all sizes streamline their operations and reduce costs. These services include storage, order fulfilment and picking and packing.

What is a freight broker?

A freight broker, on the other hand, is a company that acts as a middleman between businesses and carriers. Freight brokers specialise in finding the best rates and routes for bulk cargo – and they typically work with a network of carriers to provide shipping solutions to their clients. 

Freight brokers do not typically provide other logistics services such as warehousing or order fulfilment. Their main focus is finding the best shipping options for their clients. This can be useful for businesses that do not have the time or resources to research carrier options themselves.

What are the key differences between 3PLs and freight brokers?

The service offering

The most obvious disparity between 3PLs and freight brokers is the range of services they offer. 

3PLs provide a wide range of logistics services, from transportation to warehousing to order fulfilment. With a good 3PL, you can effectively forget about fulfilment – it's up to the 3PL to deal with storage, picking, packing, shipping, labelling and other time-consuming tasks. Some 3PLs even handle reverse logistics – in other words, handling customer returns.

In contrast, freight brokers focus primarily on finding the best shipping options for their clients and do not typically provide other logistics services. They serve an important function but are more limited in scope.

Expertise

The difference in scope also extends to expertise. 

3PLs are logistics experts with a deep understanding of all aspects of the fulfilment process. This allows them to provide businesses with a comprehensive logistics solution tailored to their specific needs.

Freight brokers, on the other hand, are typically experienced in one area and one area only – bulk carriage. They're likely to know everything there is to know about carriers, transport routes and fees – but probably won't be able to advise on picking methods, say, or marketing.

Which is the better option?

When choosing between a 3PL and a freight broker, there is no clear "better" option. Both offer valuable services that can help businesses improve their logistics operations and reduce costs.

It all depends on how your business operates and what you need from a logistics partner.

It's complicated. But to break it down simply, the choice looks like this:

Go with a 3PL if:



• Your business fulfils orders directly to customers and
• You want a trusted partner to handle all aspects of the supply chain.

Go with a freight broker if:

• Your business doesn't require direct order fulfilment and
• You want a partner to help with the specific job of dealing with bulk freight carriers.

For businesses that fulfil customer orders and require a comprehensive logistics solution that includes transportation, warehousing, order fulfilment and other services, a 3PL will always win out as the better option. 

3PLs provide a single point of contact for all of your logistical needs, making it easier to manage your supply chain and reduce costs.

Ready to get going?

Looking for a reliable logistics partner? Look no further than Stowsafe Fulfilment. As a 3PL, we offer a comprehensive range of logistics services to businesses of all sizes. 

Plus, as logistics experts with a deep understanding of the industry, we can provide you with tailored advice and support that will meet the specific needs of your product and your business.

Don't leave your logistics to chance. Choose Stowsafe Fulfilment as your trusted 3PL logistics partner today. Contact us to learn more about our services and how we can help your business succeed.