Logistics is the backbone of any business. An efficient logistics system is very much required for a proper and smooth movement of goods from a source to a destination. The safety of the products, along with the timely delivery, is just as important.
In addition, the company's dealings with the clients & its customers, and their expertise in the business, all of these measures play an essential role in choosing a suitable logistics partner.
The success of your sales efforts is also dependent on how well you’ve linked to the different points of your supply chain – starting from getting raw material to delivering the finished product to the market.
We have compiled a list of many such essential factors that will help you find the right transportation service provider. We will understand each of these factors in detail.
1. Industrial Expertise
Not all logistics companies provide everything. The logistics companies may provide services only for a specific business in a particular region. Most of them will have their own expertise in a specific area. Try to match your needs with the service and expertise of the transportation service provider. Make sure the knowledge of the logistics provider is the best fit for your business.
So, first of all, you need to identify the companies that offer services that satisfy your business needs. Also, decide what type of logistic service you want yourself. Think about how far you can stretch the budget and the delivery period. Ensure that the service provider is capable to safely deliver the products even if they are fragile or breakable.
Once you find these answers, proceed to the next step.
2. The use of Technology
With time, the Supply chain is evolving. One can no longer expect operational efficiencies by following traditional manual methods.
The new logistics technologies play an essential role in timely & successful transportation. Using technology, one can optimize the operational services and bring down the total cost. Know whether the transportation service provider offers multi-modal transport solutions? In the case of road transport, ask if their carriers are equipped with GPS?
Technology systems can automate the processes, provide a database about the clients & customers, and recognize problems in the supply chain. The database retrieved using technology will also give you insights about your strengths and your weaknesses.
Always seek the services from a transport and logistics company who extensively uses the technology for better operational service and who knows how to function in a digital environment. The digital adoption will be beneficial for all- the transportation service provider, you and the customer.
3. Scalability & Safety
It may be possible that your business increases manifold within a few months after you begin. Because of this, inevitably, you will also need to expand as well as improve your services. Is your transportation service provider ready for this? Is he able to meet your demand? Does he have enough resources to scale up? You must consider all of these points too.
For these reasons, it is recommended that you find a transport and logistics company which is capable of scaling with your business expansion. Your transportation service provider must be able to respond to your changing needs.
Besides scalability, safety is an equally important factor. Does the transportation service provider have a sense of security? Due to the dynamic transportation safety regulations, you must select a logistics partner with reliable safety records.
Make sure your products reach the destinations without any damages during transportation or while being stored at their warehouse.
4. Customer Service & Relation
Find a transportation service provider who does not only provide the service but also provide the relationships. It is necessary that you share a good bonding with your logistics service provider. Only a good relationship leads to a good partnership.
Find a transport and logistics company that will provide essential customer service even after the contract gets over. There comes a time when you may need some urgent changes or want to scale up or scale down the service; at such moments, your service provider should be supportive of you.
5. The Network
The network of the transportation service provider also determines your business expansion. A capable and competent logistics partner with enough resources will offer you the necessary support to manage your business distribution needs.
For instance, if you need a cross-border transportation service provider who can deliver your packages to neighbouring countries, For that, you need to identify the transport and logistics company which have established business and connections in those countries too.
There is no doubt that the right transportation service provider will offer the necessary services to help your business expansions.
6. Cost of service
Of course, service cost is a significant concern when choosing a perfect logistics partner. But it is also true that the lowest price doesn't mean the best option. If you’re looking only at the rate column on an RFP (Request For proposal), you could be missing out on some other vital information related to the transportation service provider.
The Logistics partners that always offer less cost compared to their competitors just to beat them are often less reliable, have less visibility, and usually fall short when it comes to providing customer service.
We hope you will keep all these points in mind before finalizing your transportation service provider. Don’t hurry, verify all these checkpoints before making any deal.