Selecting the ideal logistics company is more than just a business decision; it's a strategic move that can significantly impact your operations and supply chain. The logistics service provider you choose will be the bridge between your products and your customers, ensuring timely and safe deliveries. So, how do you make the right choice?
In this article, we will give you a list of things to look out for before deciding.
What is a logistics company?
A logistics company provides services like management and coordination of various activities related to the movement, storage, and transportation of goods and services. It plays a crucial role in helping businesses streamline their supply chain operations and improve overall efficiency.
How to choose a logistics service provider?
1. Understand your business needs
Your first step is to take a snapshot of your current operations. What's working? What's not? Document everything from delivery times, turnaround times, costs, and storage capacities, to any recurring issues.
A good place to start is by talking to your ground team. They are dealing with the day-to-day and have more insights on the issues you are facing. You can get those insights in a quick coffee chat.
Now that you've got your snapshot, where are the gaps? Maybe it's in last-mile delivery, or perhaps it's in inventory management or you have other technological business needs? Pinpoint these areas to streamline the list of things you are looking for in a global logistics partner.
2. Research logistic companies' reputation
Begin your search by exploring the reputation of potential international logistics companies. Visit their official website and social media profiles to get a feel for their brand and services. On their website, you can look at case studies. These are their success stories. If a potential logistics provider has helped a business similar to yours, it's a good sign they might be a fit for you.
Also, pay attention to client testimonials and reviews to get insights into their service level and customer satisfaction rates. What are their clients saying about them in terms of order fulfillment? For this research, you can use reputable review sites like Capterra, G2, and GetApp.
3. Access their services
While the core of logistics is moving goods, the difference in logistics services can significantly differentiate providers. Besides pricing, there are other important questions to ask. For example, can they offer warehouse automation, inventory management, or other value-added services? Do they offer real-time tracking?
Some logistics companies might specialize in specific routes, and clients, or have limited shipping points. Check their procedures and how they will get your supplies to arrive on time. Ensure their warehouse services align with your specific needs. As your business grows, your logistics needs will too. Make sure your chosen partner can handle both your current and future demands.
4. Check their geographic coverage
Geographic coverage and network are important when considering logistics companies, especially if your business has a broad customer base or plans to expand. A partner with strong local knowledge can navigate regional regulations, understand local customs, and often provide faster turnaround times. This is especially crucial if your primary market is within a specific region or country.
But, If your business caters to international markets or plans to, you'll need an international logistics company. This ensures they have the infrastructure, partnerships, and expertise to handle cross-border shipments and understand international regulations.
It's not just about the number of countries or cities they operate in but where their main hubs are located. Strategic hub locations can significantly reduce transit times and costs.
5. Research data security
With increasing cyber threats, ensuring your logistics service provider has robust encryption methods and security protocols to protect your data is crucial. It is also important to ensure they comply with global data protection regulations (GDPR), especially if you're dealing with international shipments or customers. It is also helpful to check if they offer mobile apps or mobile-responsive platforms for easy access on the go.
6. Access their customer service
A great customer experience starts before you become a customer. It's not just about being available; it's about effectively resolving issues. You can try to reach out with an inquiry and see how they handle it. Is their response timely? Are they helpful and clear in their communication?
As a business owner, you know that issues can arise at any time, so you need a transportation and logistics partner with 24/7 customer service.
Conclusion: Increase supply chain efficiency with the right partner in logistics
Choosing the right logistics service provider is like setting the compass for your business's journey. It's not just about finding someone to move goods from point A to B, they'll be an extension of your team. Customer expectations are skyrocketing and the e-commerce market is continuously shifting. So, building a reliable logistics partnership will be your competitive advantage.
If you’re looking to improve your logistics process, book a demo to see how we can help.
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