Regardless if you are a large or a local company, choosing a good logistics company will be beneficial to your company in the long run. The following are some factors to consider when it comes to forge relationship with a logistics company.
Due diligence: be aware of the person you talk to. Gather your figures and facts before you discuss your services and rates. Don’t try to deal with the company without having accurate information.
Consider their philosophy: do not decide or refuse a company based on just one experience or a problem that happened with their business. Consider the philosophy of the company and the staff they work with. Meet with the staff of the company and see if they are committed to their company. You may also request to visit the facilities, warehouse and office of the company.
Negotiate if you will be a repeated customer: whenever you meet a logistic company, you will be aware of how flexible they can be and the commitment they have towards their business. While learning about their passion and tenacity, you can also get a low rate which will be a win-win situation.
Talk to them about your KPIs: talk to the logistics company about your key performance indicator and other benchmarks. You have to ensure that they relate well with the goals of your company in the way that a service provider will relate with. You should also know about the KPIs of the logistics company and know what you should do so that you are able to support such efforts.
Service and price: there is a danger in considering price alone when it comes to choosing a good logistics company. The cheapest cargo is also the last to board. Make sure that you balanced the service level guarantee and high volume lane.
Look for multi-year agreement: talk to the logistics company and let them understand that you wish to work towards long term relationship. This helps in achieving better pricing, good service guarantee and better assistance if you are in emergency.
Use different carriers: don’t put all your needs within the hands of a one service provider. You should protect yourself against such risks. Make relationship with different carriers. Each service provider has also their strong trade markets and lanes. Ask the logistics company to be clear about any area of poor performing and downfall lane segment.
Price and rates: most of the time, the first factor to consider is a price. However, most of the time, this should not be your first concern. Normally what you have to prioritize with is quality of the services which are offered by a company after that you look for how much you should pay. Do not always think that cheap or lower prices also means inferior service.
Goods that have to be dealt: this is what you have to consider first when it comes to good logistics company. Some companies may decide to consider the price but without taking into consideration the experience of such companies when it comes to dealing with products and goods they have at hand.…