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7 Things You've Got to Know...

when searching for a logistics company

Is the company a “Carrier’s Agent” or a “Shipper’s Agent”?
This is important to know when selecting a logistics company. The first responsibility of a “carrier’s agent” is to fill their own trucks, or those of their associates. On the other hand, the responsibility - first and foremost - of a “shipper’s agent” is to ensure YOUR COMPANY receives the lowest transportation cost for the goods you ship. TSG is a shipper’s agent.

If they are a Shipper’s Agent”, are they “non-asset” or “asset” based”?
An “asset” based” shipper’s agent owns a trucking business. Their priority is to operate with their own trucks above all others. A “non-asset” based shipper’s agent has obligations to fulfill YOUR needs only. YOU come first.

Interestingly, you will find many logistics firms are owned by larger transportation and trucking companies. As a result, the conflict of interest will erode the shipper’s ability to gain the price advantage for transportation. TSG is a privately held corporation and DOES NOT OWN a trucking business.

Are there advantages of using a 3PL (Third Party Logistics) firm that does not own a trucking company?
YES there are advantages, because:

  • There are no transportation assets working as obstacles and no dependencies on an individual carrier that may hinder service.
  • The company will negotiate contracts on YOUR behalf. It’s YOUR tariff, and YOUR true costs that matter – not theirs.
  • There is complete freedom to operate in the customer’s best interest. Whether it is to act as a consulting service or offer value-added services, the goal is to improve YOUR BOTTOM LINE, not the trucking company’s.

Because TSG is a “non-asset” based 3PL, many obstacles are removed. We are well positioned to manage your transportation needs.

Does the logistics company collect fees or commissions from carriers?
There is no question that many logistics companies do. However, as a “shipper’s agent”, TSG will NEVER accept fees or commissions from carriers. That would certainly not be in your best interest. Nor would it be healthy for our relationship, which we intend to build and maintain for years to come.

In case of a trucking strike, will my freight remain unshipped?
If you are committed to a logistics company that is tied to an individual carrier, this can be a paralyzing situation. However, TSG has a network of over 1000 carriers in North America to call upon. The carriers include both union and non-union. In the case of a strike, it’s not a problem. We simply ship your freight with an alternate non-union carrier to meet the challenge for you.

Does the company “float” payments while earning interest on your money?
There are logistics companies that will “float” your payments in a money market sweep account for a few days to earn interest on YOUR MONEY! Let us be clear … that WILL NOT happen with TSG.

We demand that our carriers perform their services at a high standard. We reciprocate by paying them accordingly. There is no waiting, or “floating” of payments. At TSG, we believe this mutual respect is the foundation of partnering, whether it is with our vendors or with you.

Is the logistics company too large? Or is it too small?
At one time or another, everyone has felt the frustration of dealing with a company that is too large to give you the service you deserve. Large logistics companies rarely give adequate attention to small and medium sized operations once the ”honeymoon” is over.

Conversely, many small logistics firms may lack the full range of service solutions or the expertise to apply them. At TSG, our staff is comprised of a combined 200 years of real industry experience. Through professionalism and proven logistical systems we are prepared to exceed your expectations regardless of your company’s size or complexity of operation.