What’s the Difference Between Asset-Based Logistics and Non-Asset Based Logistics?

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OptiVia.  What’s in a name?  In our case, it’s about Optimizing logistics Via transportation & warehousing, or helping you achieve optimal logistics solutions via our services.  The best solution for you can come from an asset based logistics partner or a non-asset based partner, but what is the difference between the two?  Let’s start by exploring the definitions of each, and we will discuss advantages and disadvantages in an upcoming post.

Asset Based Logistics

Simply put, asset based suppliers own the assets used throughout the shipping process, from trucks to warehouses, and from pallets to distribution centers.  This means that you will be working directly with the company responsible from getting your goods from point A to point B and utilizing their owned assets to fulfill your requirements.  This type of solution – working directly with the carrier – may provide you with quick and seamless communication when you want an update on where your freight is at any given time.

It is important to keep in mind, however, that the carrier remains constrained by their assets available to them at any given time.  Be sure to ask the appropriate questions that are important to your needs – regarding availability, regional/national presence, filing a freight claim, or more.

Non-Asset Based Logistics

A non-asset based logistics partner does not own the actual assets used to transport or warehouse freight, but works to broker these services on your behalf.  They leverage relationships with a variety of carriers, warehouses and distribution/fulfillment centers to negotiate the best solutions for your needs.  This gives non-asset based logistics service providers the opportunity to meet a variety of needs and offer custom solutions for each client.  They are not constrained by a certain number of trucks or routes, and they can hold their suppliers accountable for delivering on time and within budget.

Asset Based Logistics Provider Non-Asset Based Logistics Provider
   Owns their own equipment    Does not own equipment
   Works directly with customers     Negotiates between asset-based carriers & customers

How to choose?

When considering which type of partner is right for you, it’s important to keep in mind your need for flexibility and level of involvement you wish to invest in the day-to-day operations of logistics.  Choose a partner you can trust; one that allows you to focus on what you do best – running your business.