What Is The Difference Between CFA And 3PL?
Whether it is a 3PL or a CFA, their same function is to ship the final product to the customer’s doorstep. Although they are different. Do you also want to devote more time and energy to the core part of your eCommerce business without being bothered by other things? Then you need a helping hand to help you manage your business’ logistics operations.
Follow this page to help you understand the difference between CFA and 3PL, and choose the best logistics solution for your dropshipping business.
What is CFA?
CFA (Clearing and Forwarding Agent) is mainly responsible for providing third-party product clearing and freight forwarding agency services for e-commerce companies.
Actually, CFA is an intermediary between the shipper and the transportation service. They coordinate all parties to transport the customer’s goods at the best price.
It is equivalent to that CFA only undertakes the part of “helping you find”, and it is the third-party logistics company that actually handles your goods. CFA also does not provide order fulfillment services.
Services Provided By A CFA
You better be too, unless you have the time to figure out the complex rules and regulations of shipping goods across borders. Or you can guarantee that you can avoid misclassifying the goods, otherwise, the huge fine is far more than the price you can find a customs broker.
Many e-commerce companies choose to outsource all freight transport elements related to their supply chains to a freight forwarder. But there is also the option to use a freight forwarder for part of the journey. It all depends on your needs.
What is 3PL?
3PL (Third-party logistics) provides customers with a range of services. Including transportation, warehousing, inventory management, order management, information integration, and value-added services.
Third-party logistics companies provide all the services you need to outsource your logistics operations. Easy to understand, 3pl takes all the hassle out of order fulfillment for you, leaving you with only the “product sold”.
When 3pl provides these services, they can also be expanded and customized according to market conditions to help you meet customers’ product needs and delivery service requirements.
What is the Difference Between CFA and 3PL?
Obviously comparison, the third-party logistics company is more convenient and efficient, saves time, and is more cost-effective.
Your 3pl company may provide you with additional services, which include services provided by CFA. But CFA firms do not provide 3PL services.
Probably you feel it too, your focus should be on finding a reliable 3pl company. So should you need to choose CFA or 3pl? Continue.
CFA VS. 3PL Explained: Which one should you Choose?
No matter which one you choose, it should start with your business needs. CFAs and 3PLs have many similarities in business, and the lines between the two can sometimes be blurry.
CFAs get your company the best shipping rates and the most convenient shipping methods. Then help you find the best carrier for your needs.
3PL provides you with a full range of services, from warehousing, picking, and packing to shipping, and will take care of all the processes. It can provide you with more flexible logistics services, saving you a lot of time and effort so that you can focus on your core business.
Don’t worry about finding a top-notch fulfillment partner now. Honest Fulphilment might be the logistics company for you. They can provide you with one-stop logistics services for the whole process of receiving, warehousing, distribution, packaging, and delivery. Have transparent pricing and services.
Managing a business can be difficult. But you can turn to third-party logistics to outsource the entire logistics of operations. In effect, these companies take over your entire supply chain and distribution, allowing you to focus on your core competency of manufacturing.
Honest FulPhilment can provide a competent supply chain, logistics, and distribution unit for your products. Contact us now to help you reduce shipping costs and get efficient order fulfillment services, so as to achieve greater profits for your eCommerce business.
FAQ about CFA and 3PL:
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