THINGS TO CONSIDER BEFORE CHOOSING A LOGISTICS COMPANY
Want to transfer your finished goods from one place to another? It may sound easy but believe me; it is not. Handling the logistics and supply chain operations is difficult than we expect. There are a lot of stages involved. For example, transportation, warehousing, and distribution to the destination. Some of the external factors should also be counted. These include licensing, taxes, regulations, and heavy trucker fees. Do you know the shipping costs are so high? I bet you do not know. You cannot do all these stuff all alone. For that, you must seek for outsourcing. Subcontracting the logistics movement to a third-party logistic (3Pl) partner will give you utter convenience and comfort.
In the recent era, the transport logistics service companies have upgraded their operations. They have converted their plain traditional way of services to a more productive procedure. Moving your finished goods from point A to B is like a piece of cake for them. The economic worth of the outsourcing company must not be underestimated. Selecting your logistics service provider is a tough decision to make. The company should be someone that you can trust blindly that it will move your goods with zero defects. Transferring the goods in good condition also maintain the reputation of your personal business too. In this modern world, there are a lot of options to consider. But how you will choose the perfect logistics company? Will you be able to get the desired HGV trailer hire? What are the key elements to keep in mind? Below are the useful six factors that you must know before selecting a 3PL:
1. Area of Expertise
You may have heard that businesses consider multiple 3PL firms to outsource their transportations and logistics. They do not go for one logistics service provider for their different finished goods. The reason behind choosing more than one 3PL is because each service provider has expertise in one specific area. A particular logistics firm has expertise in a particular district or particular transport mode.
Before selecting your preferred logistics company, determine their core expertise in specific areas. Also, first, determine what you require. Try to identify your firm’s strengths and weaknesses and choose the 3PL who can relate with them. Are you emphasizing on the Pacific Northwest or East Coast? Or are you finding a logistics company who can transfer your goods to foreign countries? Is there a need for refrigeration for your cargo? Or do you want the fast movement of your goods to remote warehouses? These are the types of queries you should think about and then choose the best 3PL wisely.
2. Service and reliability
There is no doubt that before selecting a logistics firm, you are concerned about its reliability. You are concerned whether your shipment will arrive late or to the wrong location. If that happens, not only you will have additional work, but the reputation of your company may also decline. I will recommend choosing that logistics partner who can also predict correct weather conditions. They will take the best precautionary steps to prevent your enormous cargo from getting obsolete.
Moreover, along with reliability comes good services. The logistics partners that handle your cargo well is often preferable. They have a vast knowledge of what external factors can fluctuate the demand and supply. They are ready to respond well when things do not go as expected. Choose those 3PL who are in contact on a regular basis. Besides, try to look for those service providers who have solutions to your cargo problems. They can eliminate any hurdle, barrier, and offer updated information about the movement of your finished goods. Rather putting fire and waiting for your HGV truck, get a 3PL who will arrive at your warehouse at the right time.
Using perfect technology can assist in enhancing service and cutting down unnecessary expenses. Technology systems can make procedures automatic, offer contact to a database of carriers, and identify issues in the logistics.
If you are listing down the best logistics partner, look for that company who possess the skill of scalability. Can they respond rapidly to your modifying requirements? If your operations grow and change, can the logistics partner scale with you in the long-term?
Indeed, money is the first thing that comes in our mind whether we buy anything or outsource our services. The huge trucks of cargo mean we certainly need to think about our budget and cash resources. The prices of the huge shipment movement can sometimes be way above our expectations. Mind you; it is not always a good option to go for less price. There is a huge competition going on in the logistics industry. Those 3PL who have cut their cost down, to beat their competitors, are mostly less reliable. They often provide less visibility and does not provide the finest consumer service. These two are the prominent factors that you often want to get the most of. So, in short, the low price often means low quality and less reliability. Ignore the price and try focusing on the overall quality of the logistics service provider.
The factor of reliability does not come alone. There is one more thing you need to develop with your logistics partner before deciding to move your cargo through them. It is a strong bond and relationship with the 3PL. Connections are established over time. It is built with consistent interactions and regular business dealings. Once the connection is made strong with the 3PL, you know their strengths, and they know yours. You both should be in a position to agree on a project deal quickly, without thinking about any fraud or other concern. Do not sort out which service company to select, go with the one you have been in business for years. When the old logistics company understands the nature of your business, you can trust them in every means. From rapid turnaround to crucial logistics projects.
There are numerous logistics services partners out there in the industry. They all possess individual skills to get the work done in their own way. You are not only seeking for a logistics company but more than that. You are seeking for timely delivery, compliance, strong relationship, values, as well as flawless transportation of your cargo; therefore careful consideration is required in this case.