How 3PL logistics creates new work for hauliers

Learn how haulage companies can profit from 3PL logistics through added services and partnerships, opening new revenue streams and client bases.

3PL logistics for haulage companies

As the logistics sector grows and customer expectations rise, haulage companies are increasingly looking at 3PL logistics (third-party logistics) as a new way to expand their services.

While traditional haulage mainly involves point-to-point deliveries, adding 3PL capabilities allows companies to offer a range of logistics solutions or partner directly with 3PL providers for long-term haulage contracts.

For haulage businesses, the 3PL model offers access to larger contracts, broader markets, and opportunities for building a steady stream of new clients.

In this guide, we’ll cover what 3PL logistics is, how it differs from 4PL, and how haulage companies can benefit from adopting 3PL services or partnering with 3PL providers.

Understanding 3PL logistics

3PL logistics involves contracting a third-party provider to handle a company’s supply chain or logistics needs.

For haulage companies, this could mean either offering additional logistics services like warehousing and order fulfilment or partnering with a 3PL provider to help handle large-scale distribution, such as moving goods between warehouses, fulfilling e-commerce orders, or handling distribution for retail chains.

How third-party logistics works

In a 3PL arrangement, a provider manages logistics on behalf of clients, often covering everything from storage and inventory to distribution and order fulfilment. Many 3PL companies use a network of hauliers, storage locations, and inventory systems to meet client needs.

Haulage companies that offer 3PL logistics might take on some of these services themselves, or they might partner with an established 3PL provider to support them with the transport aspect.

Typical 3PL services include:

  • Warehousing: Storing goods for clients, sometimes across multiple locations, with inventory tracking and stock management.
  • Distribution and A-to-B transport: Managing transportation from storage to end destination, often using a network of haulage providers.
  • Order fulfilment: Handling order processing, packaging, and dispatch to customers.
  • Freight forwarding services: Managing international logistics and customs.

How 3PL differs from traditional haulage

While traditional haulage focuses on A-to-B transport, 3PL logistics covers a broader range of logistics needs, with services extending beyond simple transport.

For haulage companies, adding 3PL services means the opportunity to work on long-term contracts, support a client’s entire supply chain, and offer integrated logistics.

Haulage companies without warehousing or fulfilment operations can still benefit by partnering with established 3PL providers to provide A-to-B haulage services.

3PL vs 4PL: understanding the differences

3PL and 4PL logistics both provide outsourced logistics services, but 4PL focuses on total supply chain management rather than only warehousing, transport, and distribution.

For haulage companies, understanding the difference helps clarify which services best align with their capabilities and goals.

What is fourth-party logistics (4PL)?

4PL logistics providers go beyond managing logistics operations—they offer strategic oversight for a company’s entire supply chain.

Acting as a single point of contact, 4PL providers manage multiple 3PL partners, oversee logistics, and look for efficiency improvements. Large companies often turn to 4PL when they need strategic control over logistics without handling the operations directly.

While most haulage companies might focus on 3PL logistics, some larger operators could expand into 4PL by offering logistics consulting and working with other logistics providers to manage client needs.

However, most hauliers see more immediate potential by starting with 3PL logistics and focusing on warehousing, distribution, and transport.

Comparing 3PL and 4PL services

The difference between 3PL and 4PL lies in their approach.

3PL focuses on operational logistics—warehousing, transport, and order fulfilment—while 4PL involves strategic supply chain management.

For haulage companies, a 3PL model offers better commercial opportunities as it allows for expansion into warehousing, client-based order fulfilment, or partnership with 3PL providers needing regular transport services.

This structure lets hauliers provide value through transport and logistics services without requiring the complex oversight seen in 4PL models.

Why haulage companies should be interested in 3PL logistics

For haulage companies, adding 3PL services or partnering with 3PL providers opens the door to new contracts, higher revenue, and access to emerging markets, such as e-commerce and retail.

Expanding services to attract new customers

By offering 3PL services, haulage companies can provide end-to-end logistics support to clients, making them a one-stop logistics solution. Businesses often prefer working with a 3PL provider to avoid the costs and logistical challenges of managing their own warehousing and transport operations.

For example, a haulage company could begin offering warehousing services through a bonded warehouse, providing secure storage for goods that are awaiting customs clearance or final delivery. This is attractive to companies that need secure, compliant storage.

Alternatively, by offering transport within the 3PL framework, haulage companies can support distribution between warehouses or fulfilment centres, bringing new work and long-term contracts with major clients.

Opportunities to enter new markets

The growth in e-commerce has driven demand for 3PL services, as more online retailers need rapid and reliable logistics support.

Haulage companies entering the 3PL market can find opportunities to support e-commerce clients by offering distribution, fulfilment, and warehousing, or by serving as the transport link in a 3PL partner’s logistics network.

Working with 3PL providers also provides flexibility to manage seasonal demand by increasing or decreasing capacity based on client needs. For instance, a haulage company working with an e-commerce-focused 3PL provider might be asked to add more vehicles to cover peak holiday seasons. This way, the company keeps its drivers busy without having to invest heavily in additional infrastructure.

Reducing operational costs

For haulage companies offering 3PL services, outsourcing storage, order management, and distribution can significantly lower costs.

For example, rather than investing in their own warehousing, companies can partner with 3PL providers who handle these facilities. By providing transport support to established 3PL providers, haulage companies avoid infrastructure expenses while still capturing long-term contracts.

By using a 3PL provider’s logistics infrastructure, haulage companies can operate more efficiently, increasing fleet use and reducing wasted journeys. Using TMS integrations also enables efficient scheduling and load management, optimising transport for fewer empty journeys and maximising profit per mile.

Improving customer satisfaction

3PL logistics helps haulage companies provide faster, more reliable deliveries, leading to better customer service. Partnering with 3PL providers that specialise in fast fulfilment, warehousing, and client support allows a haulage company to offer clients a full logistics service, improving their service quality and reputation.

For example, when partnering with a 3PL company, hauliers often receive access to advanced logistics systems that help with tracking, scheduling, and planning return haulage loads. By filling trucks on return journeys, haulage companies save costs and improve delivery speeds for clients. This capability builds loyalty and can lead to repeat contracts with satisfied customers.

Practical considerations for haulage companies

While offering 3PL logistics services or partnering with 3PL providers presents commercial opportunities, haulage companies need to carefully plan for this expansion.

Technology and software requirements

For efficient 3PL logistics, reliable technology and software are essential. Platforms like Haulage Exchange enable real-time tracking of vehicles and carrier management, load management, and streamlined communication with 3PL partners. This technology improves efficiency by allowing haulage companies to monitor routes, loads, and delivery status in real-time.

For haulage companies providing warehousing, systems that manage inventory, coordinate order fulfilment, and track shipments add value to their services.

Managing the driver workforce for expanded services

As 3PL logistics often means higher volumes and varied routes, haulage companies need to consider their driver workforce and operational management. Expanding into 3PL often requires more drivers or additional training for existing drivers to handle diverse routes, new cargo types, or faster turnarounds.

Investing in driver safety and certification programs, such as FORS accreditation, can improve safety and prepare drivers for the demands of 3PL work. Ensuring drivers are equipped to handle new requirements helps build a reliable workforce and reinforces client trust. Additionally, effective haulage driver management, like creating incentives and training on new delivery expectations, can help drivers adapt smoothly to expanded services.

Conclusion

3PL logistics offers haulage companies an exciting opportunity to diversify services, access new markets, and grow their client base. By offering end-to-end logistics support or partnering with 3PL providers to provide efficient A-to-B transport, haulage businesses can increase their appeal and build long-term client relationships.

As the demand for third-party logistics grows, investing in 3PL services or establishing partnerships allows haulage companies to deliver high-quality service, improve efficiency, and grow their business in a rapidly changing market.

Find reliable carriers and cut your costs with Haulage Exchange

The article was published on . It was updated on 28 October 2024 to make it more relevant and comprehensive.


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