Choosing a logistics partner is important. As you well know, your products need to be transported and distributed quickly and efficiently. However, making the right choice about who your logistics partner will be can require a superhuman amount of time and analysis.
If you should choose the wrong logistics partner you could end up overpaying a company that doesn’t do their job. Therefore, we list here five things you need to keep in mind for making sure the logistics partner you choose is the best partner for you.
You don’t want a logistics partner whose company is a jack of all trades. For example, the cargo of a textile company has different handling requirements than the products of the petroleum industry. If yours were a textile company, would you hire a logistics partner that claims to know both of these industries well? Or would you be better off with a partner that specializes in serving only textile companies? Each sector has distinct, unique procedures and bureaucratic distribution.
2. Customer Service and Operations
It is a good sign when a company monitors and responds to communications within 24 hours. This is an important point to keep in mind when you’re considering the cost of one company over that of another. That’s because it stands to reason that companies with higher standards of operations tend to be more expensive. Therefore, while you’re looking at price, consider whether or not that price justifies the quality of service your customers receive.
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Successful partnerships in any area of business depend on compatibility and a shared interest. Therefore, consider the company culture of your potential logistics partner. Also, what goods and products do they transport most often? Do they rely on green-conscious vehicles for their services? Moreover, does their mission statement mesh with yours?
Be sure to look for any hidden surcharges. Also, check into the company’s minimum charges.
Regardless of the details, however, remember that the important thing is that your product reaches your customers on time via your logistics partner. Therefore, consider that if you go with a company that offers cheaper rates, you risk having your goods reach your customers later than expected. You could lose business if that should happen. In that case, the cheaper option would be an expensive choice.
Unfortunately, a lot of transport companies subcontract loads to other carriers. This could hike the initial cost. Additionally, it jeopardizes your relationships with your paying customers.
When a logistics company turns your products over to a subcontracted company for delivery, that’s another place where things can go wrong. Therefore, make it a practice to avoid companies that use subcontractors, no matter how good they look on paper.
Some other questions for your potential logistics partner:
- How confident is the carrier of their own service?
- Do they subcontract to other carriers?
- Is there a money-back guarantee for delivery failure?
- How far away is the carrier depot from their warehouse?
- Are they punctual and professional?
- Can they collect your products at your requested times?
Choose Your Logistics Partner Carefully
Fortunately, the logistics and transportation industry is expanding at an ever-increasing rate. For the most part, this is due to Amazon and other e-commerce stores. What it means for you, however, is that there are a lot of quality transportation options for you to choose from.
Nonetheless, no matter which company you choose, remember that who you take on as a logistics partner will be your business partner for a long time to come. That’s because switching companies can be incredibly expensive.