Things to Consider When Choosing a Logistics Partner
If you want to make sure your business thrives, then a good logistics partner is an essential requirement.
Having said that, it's not always easy to figure out which logistics business you want to cooperate with. So, we've made a guide on what to consider when choosing a logistics partner to help you!
The willingness to work closely with you
The first thing you need to consider when choosing a logistics partner is their willingness to cooperate with you. Now, note that this doesn't mean you just need to find someone eager to work with you. Even if they want your money and your business, this doesn't mean they'd be great partners. What you need is someone willing to show flexibility and proper communication in their dealings with you. You need to be able to rely on them to customize some of their service to fit your needs if you really want to work with them on a large scale. Otherwise, you might as well hire a different logistics provider for each shipment, because that's what working with inflexible partners will feel like in terms of internal effort. Of course, maintaining a proper carrier relationship on your end is important too! It takes effort from both parties to cooperate smoothly and without issues.
Their use and integration of tech
Let's face it: there is no way forward for anyone in the logistics industry without proper use of tech. Cloud computing alone has seriously enhanced the way logistics companies operate. Soon, developing a solid supply chain strategy might become impossible without specific software and tech that supports its implementation in the real world. As such, when choosing a logistics partner, you don't want to pick someone "stuck" in the past. Sure, such companies are still running relatively fine, if a bit inefficiently. But this almost guarantees they'll struggle when incorporating tech into their business, or you'll need to replace them down the road. Neither option is ideal for you since it also means disruptions in your supply chain.
Their reviews and previous partner testimonies
You never, ever want to go about choosing a logistics partner without properly investigating your options. And one of the most crucial steps in this process is online reviews and the referrals of past customers. Even with a supreme effort on the part of a company, all their reviews can't be faked. It is also relatively easy to spot fake reviews because they typically use generic buzzwords and have only praise for the business in question. Still, as the experts from promoversmiami.com point out, references are the better way to gauge the quality of a logistics-related business- especially if you can get in contact with some of the customers who have canceled their cooperation with the business you are interested in. They will give you invaluable insight into whatever your own relationship may end up looking like, even if only the negative sides.
The ecological awareness of their company
Running an eco-friendly business is becoming a goal that's much more important. Right now, integrating eco-friendly practices is still more of a moral choice rather than a strict requirement. And it still impacts businesses rather strongly since some customers refuse to purchase from or hire companies that refuse to improve their influence on the environment. However, as eco-friendly tech and practices become more accessible and affordable, we can even expect them to become legal obligations. The need to suddenly and quickly implement them can disrupt even the most organized businesses, especially those in logistics where making a commitment to go green is incredibly complicated and difficult. So, ideally, you want to partner with a business already taking action on this front. It is much better for your image and corporate social responsibility, as well as the survivability of your partnership in the future.
Their safety protocols and past record
One of the most important requirements you should have for your logistics partner is, obviously, the safe and reliable delivery of your goods. Beyond that, you should also get some insight into how they respond in an emergency. After all, it is better for your goods to arrive at a destination lightly damaged than to not arrive at all. One of the best ways to gain insight is by looking at their past accident records. You will be able to gauge how often they experience accidents and even learn how they respond to them. Of course, this will also reveal how willing they are to cooperate with you, since they can bar you from getting this information.
The price and quality of their services
Realistically speaking, the price a logistics company attaches to their services is essential for whether or not you'll choose to partner with them. You can rarely afford to partner with someone charging much more than their competitors, after all. Even if their services are of somewhat higher quality, you'd still be losing out and taking a hit to the profitability of your business. Just remember one thing: do not try to go for the cheapest offers, either! The most affordable logistics companies on the market typically have issues with the quality of their services. And you won't be saving much money if the actual price of their services is frequent damage to your goods!
Account for the future plans and potential of your business
When choosing a logistics partner, the final thing to consider is whether you can work with them long-term. And by that, we don't mean you'd break off your relationship because you're dissatisfied with them. Simply put, a great logistics partner needs to either be able to grow alongside you or already have the outreach and resource you'll need when your business grows. Of course, working with a large logistics company often means you are not their priority. But, as long as they are willing to cooperate with you properly, partnering with them could still be worth it. And you might just become their number one customer in the future if your business grows into their capacity!
Choosing a logistics partner for the long haul
By making proper use of the things to consider when choosing a logistics partner, you'll be able to find a logistics company you can cooperate with for a long, successful time. Ideally, you can boost and support eachother's growth, and your cooperation will not need to end even in the far future. Just make sure to occasionally reassess the quality of your logistics partner since deteriorating service quality can also become an issue. Reviewing your options periodically helps you get the most competitive deal, even if you only intend to use the shopping process to gain leverage.