3 Things to consider when looking for a 3PA
What is a 3PA?
A third-party administrator (3PA) is an organization that manages various administrative responsibilities for other businesses. For the logistics industry specifically, a 3PA can also assist with contractor relationships. A logistics company can efficiently outsource many of its back-office and administrative needs for one consolidated payment to a 3PA.
Why should your company use a 3PA?
When you hire a 3PA, your company gains a partner with additional resources to assist in the agreed upon processes, usually for a consolidated price. A 3PA in the logistics industry is hired to provide commission or settlement processing. A 3PA may also be used to access additional benefits that may not be available for owner operators on their own, such as additional opt-in insurances, discounts through strategic partnerships and access to industry-related associations.
A reputable 3PA should provide programs and benefits geared towards supporting owner operators and their businesses. A 3PA, like SCI, may use their buying power to secure the lowest and most stable rates for Occupational Accident Insurance programs in the industry. Since customer support is so important, SCI provides access to experienced and knowledgeable staff with hours to accommodate businesses nationwide.