The base of a reliable business stands in its logistics partners, whose responsibilities, among others, are to deliver products. The quality of these providers’ services is crucial because only an efficient transport company can efficiently move products between suppliers, manufacturers and customers.
Proper logistics management ensures that your business improves customer experience and prevents loss. At the same time, such a plan boosts the organization by providing visibility and supporting expansion. Moreover, it can cover several aspects of your business that weren’t prioritized yet, such as risk mitigation and quality control.
An excellent logistics partner helps in the progression of the supply chain so that disruptions don’t occur. But choosing one transport firm that aligns with your company’s culture can be a tough challenge, so we will look into the factors you must consider when selecting this business partner.
What services do they provide?
Knowing your organization’s needs will propel you directly into the services offered by eventual partners. For example, if you’re interested in storage, packaging or transport, you’ll know what to look for. However, if your business is developing more complex logistics sectors, such as sales or recycling, you’ll have to look deeply into what the business needs.
For example, if you need efficient transport & logistics, the company must ensure features like tracking and tracing in real-time and email status updates so you won’t lose sight of the packaging. Seamless services with competitive shipping rates and transport options are also essential.
Or, if you want to approach reverse logistics as a form of recycling, the business should easily walk you through the return process and provide a framework for dealing with returns. They should also know when to repair and recycle products and their components.
It’s also important to consider the company’s coverage and location, depending on the type of transportation you want to achieve. For example, if you wish to go overseas, the organization should be able to fulfill this request and meet expectations (check if they use container drayage in transportation). It’s better to settle things before signing any contracts because this aspect will be vital for your company’s expansion.
What is their reputation with customer service?
In logistics, customer service is even more enhanced and must top-notch inquiries. That’s because a common final aim of customer service in logistics is to bring more value into certain services that customers are satisfied with. An excellent company prioritizes time, is reliable, flexible and has advantageous prices.
Standard features provided by logistics customer service include supply chain management, shipping and warehousing information. But that’s not all ―custom procedures and additional insurance and guidance are frequently required.
Although the preferred 24/7 customer service isn’t longer uncommon, you must look into past clients’ feedback and decide if the logistics company suits your needs. Fortunately, you can find almost anything about a company’s customer service level online. It’s best to take your time and communicate with potential logistic companies to understand what the market in your area offers.
Are they using the latest security and technology methods?
Logistics companies must emphasize the need to mitigate risks and develop management sectors in accordance with the increase in cybersecurity risks. The threat landscape is expanding, so these businesses must use new technology-based products and strategies to provide reliability.
For example, some of the latest trends in logistics include the following:
- IoT helps maintain a constant flow of data, leading to operational efficiency, optimized usage and strengthened operational security;
- Artificial Intelligence is one of the greatest tools for predictions for upcoming fluctuations to prevent shortages;
- Blockchain leverages security by removing complex patterns and introducing transparency, which eventually reduces delays and fraud;
- Robotics and automation help reduce repetitive work, so picking, packing and sorting activities will be less human-made;
How much do they prioritize safety?
Safety is an important factor in a company’s growth in the logistics industry. When choosing who to collaborate with, you must verify the level of security imposed by the logistics business to ensure your organization is safe by working together.
Safety in the supply chain helps reduce costs in case of accidents, injuries and illnesses. In other words, safety management mitigates accident prevention and decreases financial consequences. Reducing unfortunate events can increase productivity and employee morale, eventually increasing brand reputation and customer trust.
But how can you check this factor? Some safety management elements will be easy to identify, from the training employees receive to the overall look of the work environment. If employees know how to use equipment and are willing to report inaccuracies to ensure safety and prioritize their health, you can collaborate with such a logistics business.
3 red flags in a logistics company you must avoid
Sometimes, the business you’ve chosen seems perfect at first sight, but when you dig deeper, things are different. The first red flag to be wary of is the low rates presented on the website. Although these prices are tempting and will make you believe you can cut costs, this is a usual fraudulent practice you must avoid. This shows how imbalanced the business is considering the recent increasing fuel prices, but it’s also a warning sign to stay away.
A website-related issue stands in the lack of negative reviews. No business is perfect, and at some point, some customers may have had a problem with the quality of the services provided by the logistics company, and that’s fine. But when no negative reviews or comments are available, it probably means that the business is trying to hide them.
Another common scam is the fuel advance one when the supposed carrier sells shipping services whose prices change after the agreement. When these fake companies get their hands on the loads, they will fake documents and request a fuel advance that will never reach the vehicle.
Final considerations
A logistics partner is one of the most critical steps for a regular company to expand. Transportation without their services would be more complex, if not almost impossible. However, not all companies might ensure high-end customer support and services, so you must choose your partnerships adequately.
Image source: https://unsplash.com/photos/kGoPcmpPT7c
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