Top 5 Factors to Consider When Choosing a Logistics Service
Is your company currently looking for a way to streamline its logistics? Do you want to find a better way of ensuring your products get to your customers as efficiently as possible? If so, then you need to learn all you can about finding the right logistics service.
Choosing a logistics service is a bigger decision than most small businesses consider. Think of it this way: whoever you hire will be in charge of shipping and delivering your products. See the importance?
See below for an in-depth guide on the several factors you should be considering while you search for a logistics service.
1. Positive Reviews
Are you hiring the right logistics company for the job? That all depends on the customer service that they can offer you and your clients.
For example, if an order goes missing or gets delayed, can they pinpoint exactly where it is in the logistics chain? What can they do to minimize instances like this?
You want to make sure you’re lining your business up with a logistics company. To ensure that you do, take some time to perform a bit of research through:
- Online Reviews
- Customer References
- Customer Testimonials
Start by Googling the logistics service that you’re considering and reading through the online reviews that show up. Ask yourself a few questions while you read them:
- How long has the client used this logistics service?
- Are they satisfied with the service that they’ve received?
- How has the service accommodated late shipments and other setbacks in the past?
- Are a majority of the clients happy with the logistics company?
- What are some of the benefits of this service the clients have listed?
Once you’ve gone through the online reviews, ask the service for a client reference or two. There you can ask them more in-depth questions about the service they’ve received.
2. Their Experience Level
If you’ve been running your business for a while, you know how complicated the logistics industry can be. Needless to say, you want to hire a company that knows the ins and outs of it.
Here’s one thing to keep in mind: look for a company that has an experienced staff, not a company that’s been in service for (enter number here) years.
Hiring a company that’s been “serving clients for over 25 years” doesn’t help you. That could be a marketing ploy. For all you know, that company has switched owners. Plus, the company’s service time doesn’t mean that their entire staff has 25 years of experience, even though that’s what they want you to think.
Instead, be sure to ask about the service individually. Does the logistics company have one specific rep that will oversee your account? If so, who will be your representative that you will work with? What’s their background? How long have they been with the company?
Think of the logistics company you hire as an extension of your business. While you might be outsourcing your logistics to them, your customers will still think of them as part of your brand. It’s important to unite with a company you can count on.
3. Scalability
Does the logistics company that you’re considering have a scalable business model? In other words, can they meet the demand of your company as it continues to grow? What about 5 years from now?
Granted, most logistics companies can. But it’s an important conversation to have. Feel free to share your projections with the logistics service and see if they’re able to accommodate that large of a company.
Even if you want to keep your projections close to the vest, there are still ways to get a feel for their scalability. Ask about some of the other clients they have. What’s the biggest company that they serve? This will gives you an understanding of whether or not they can support your growth.
4. Safety
You won’t leave your products in the hands of just any regular logistics company. You realize the need of hiring a reputable one, it’s the reason you clicked on this article.
Make sure that the company you hire has a reputation for safety. You can look through safety records online to make sure that a logistics company has been practicing safe business tactics.
If a company has a history of safe practice, they’ll flaunt it. During your initial call, ask them more details about how they train their staff and what steps they take to ensure safe business practices throughout their entire business model. If they beat around the bush, it’s time to find someone else.
5. Communication
Communication is key. You want to make sure that the logistics company you hire is always updating you on your company’s shipping and distribution chain.
You can gauge their communicative strategies during the first phone call. When you talk to them, do they seem legitimately interested in answering your questions? Do they take the effort to put it into terms that you understand?
If the company is short-worded or uses logistics jargon when talking to you, then they might not be the right fit.
A reputable logistics company understands its purpose: taking control of your logistics needs so that you have one less thing on your plate as the owner.
Consider These Factors When Choosing a Logistics Service
Now that you have seen all of the different factors that you need to think about when choosing a logistics service, use them to your benefit today.
Start by researching different logistics companies. Which ones receive the highest praise from your peers? How can they help you reach your target market?
Be sure to browse our website for more articles on logistics services, as well as many other helpful topics that you will enjoy.
