The Benefits of Asset-Based Carriers

While there are many factors to consider when choosing a logistics company – such as their years of experience, range of service offerings, and approach to employee training – dig a little deeper into the details to discover whether they own their own transportation equipment. This is a detail that you won’t necessarily find at the top of their website, but it can make an overall difference to the level of service you receive, your freight’s journey, and the cost-efficiency of the shipment.

What defines an asset-based carrier and why does it matter? We find out.

What Does Company-Owned Freight Carrier Equipment Mean?

In logistics, company-owned equipment refers to all the assets required for storage and/or transportation, including trucks, trailers, warehouses, and other tools. A transportation company that owns its own equipment is known as an asset-based carrier. We’ll explore the many advantages of choosing an asset-based carrier, including flexibility, cost, service offerings, and customer experience.

The Advantages of Company-Owned Freight Carrier Equipment

Company-owned equipment can offer several benefits to customers, improving the overall logistics and transportation experience. These are the top advantages:

Increased Reliability, Faster Response Times, and Flexibility in Operations

When a company owns its freight carrier equipment, it has greater control over scheduling, equipment maintenance, and operations. This leads to increased flexibility and reliability regarding delivery schedules.

Directly controlling the fleet allows quicker adjustments to schedules and routes in response to customer needs or unexpected events vs. brokered freight, particularly in times of peak demand. Agile responsiveness significantly contributes to increased customer satisfaction, as the asset carrier can provide specific solutions to customers’ problems quickly and efficiently.

An asset-based carrier has a base of operational flexibility, so it can respond and implement changes to customer requirements without relying on external third parties.It is much easier for an asset-based provider to add assets than find assets.

Enhanced Service Quality and Improved Communications

When a company owns its equipment, it is also responsible for ensuring the equipment meets state and national regulatory standards, as well as its customers’ material handling requirements. This added layer of accountability results in better-maintained equipment and higher handling standards to improve the treatment of products, reducing the risk of damage or loss.

Additionally, customers can expect consistently high service levels as their 3PL partner isn’t reliant on a third-party company with varying standards.

Direct communication between the customer and the transportation provider means better coordination, clearer communication, and improved service efficiency.

Customizable Solutions, Cost Efficiency, and Improved Risk Management

Company-owned equipment makes it easier to implement customized logistics solutions. Increased control and flexibility with equipment allows specialized handling of sensitive or high-value goods, tailored delivery schedules, and additional time-saving services, such as cross-docking.

When your 3PL partner owns its equipment, you, the customer, won’t be surprised by unexpected additional expenses arising from brokered freight.

And, with company-owned equipment, risk management practices can be more tightly controlled. The asset-based carrier manages contingency plans, employee training, and maintenance internally, reducing the possibility for accidents, delays, and other issues that can impact deliveries.

Does Your 3PL Provider Use Company-Owned Equipment?

An asset-based carrier is the best solution for ensuring on-time delivery and an enhanced customer experience. Colonial Cartage is Atlanta’s leading asset-based carrier, specializing in direct food-grade dry and temperature-controlled LTL services.