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In our global marketplace, a reliable logistics partner is no longer a luxury—its a necessity. The right partner can streamline your supply chain, reduce costs, boost your bottom line and keep your customers happy (and coming back for more). The wrong one can impact your operations, leading to costly delays, damaged goods, unhappy customers and even a tarnished reputation.
Choosing wisely is paramount to your business success. Here are seven qualities to look for as you evaluate logistics providers and choose the right one for your organization:
1. A full suite of capabilities. Some providers go beyond transportation and logistics. If you need more, look for one that assists with navigating complex customs requirements; connects you with key partners; and collaborates closely to understand your business needs and support your company’s growth, DHL’s Greg Hewitt recommends in Forbes.
2. Solutions that will scale with you. Prioritize adaptability over long-term commitments, says SmartOSC’s Thai Son Nguyen, and look for a vendor who understands your short-term needs and thinks like your business. “A partner who offers solutions that evolve with your business can save time and, ultimately, have a greater impact on your bottom line,” he adds.
3. A proven track record. When choosing a transportation and logistics provider, prioritize reliability and flexibility. Look for a company with a proven track record and a commitment to meeting deadlines. “Flexibility is also crucial, as your business needs may change over time,” Novae’s Reco McCambry says. “A provider that can adapt to your evolving requirements will be a valuable partner.”
4. Top-notch service and good problem-solving. “Most anyone would agree that service is needed when you get into stressful logistics problems,” ATS Logistics points out in “What to Look for in a Logistics Company.” Whether you have freight damage, delayed shipments, packaging issues or misclassifications, you need a partner to have your back in those situations. “Choosing the right logistics company can be hard and there are a lot of factors to consider,” the company adds, “but service should be one of the most important.”
5. Access to expansive carrier and supplier networks. Logistics providers with reliable networks can ensure that your cargo gets where it needs to go, when it needs to. “In many cases, finding a third-party logistics (3PL) company that has a massive network of regional and national suppliers and carriers means the difference between success and failure of your shipments,” ATS Logistics says. “As much as companies try to plan for the unexpected, there will always be situations where freight needs to be expedited or recovered (sometimes more often than we would like).”
6. Able to handle your company’s present and future needs. As you go through the evaluation process, be sure to consider your present needs and what you might need in the future. What kind of capabilities do these companies have that can take care of your short-term and long-term requirements? Ask yourself questions like:
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- Do the logistics providers have the kind of trucks and/or vehicles that we need to move our freight?
- Can they offer hazmat, oversized options or maybe a drop trailer?
- Is the provider’s carrier and supplier network big enough to give us the best option to move our shipments?
- Can the company move freight across borders and oceans?
- Do we have extra needs that a 3PL can help with?
- And what sort of technology does the company offer?
7. Ample warehousing space (or, access to the space on demand). One of the first and most common struggles that growing companies encounter is finding the right warehousing space in the right location to store their products. By collaborating with a logistics partner that has ample warehouse space—or at least fast access to the space—you’ll gain access to a network of facilities to meet your needs. “These warehouses often feature high-tech inventory management systems, which in turn reduces your risk of overstocking or facing stockouts, security systems and personnel to safeguard your products,” Sheer Logistics says, “and if needed, temperature-controlled space to ensure the freshness of perishable items.”