What is Non-Asset Based Freight Brokerage?
Most logistics providers can be broken up into one of two categories: asset-based, or non-asset based logistics providers. The goal of a non-asset based logistics provider is to manage their client’s supply chain requirements and achieving the following:
- Increased efficiency
- Lower overall costs of freight management
- Lower occurrence rate of errors
- Ensure timely asset brokerage
A non-asset based logistics service provider does not own the assets required to manage a supply chain. Instead, this provider works as an expert consultant to negotiate all of the contracts required with other providers in order to get the best rate and structure for their clients.
Because the non-asset based logistics provider does not need to utilize their own equipment, they have a broad range of services available to them – and are better equipped to negotiate the best pricing. This type of logistics supplier tends to have a more flexible approach to finding the perfect logistics solution.
Working with a non-asset based logistics provider means that you will get a custom plan that works very well for your business’ needs – but do prepare that you may have to give up some control on how exactly the supply chain will be managed. By putting that responsibility on the provider, your time can be freed up to allow you more time run your company.
Additionally, some non-asset based logistics providers may be able to provide you with a soft asset – such as a supply chain management software system to help you track and set up your ideal supply chain.
