Four Factors to Consider When Choosing a Logistics Company
Choosing your third-party logistics (3PL) service provider is never easy. Hiring the wrong 3PL could mean financial loss for your business, especially when freight is at the heart of your operations.
To make sure that you partner with the right 3PL for your company, please consider these four factors:
Your logistics provider must have the resources to execute your needs. Your partner should have the carriers, the warehouses, and the paperwork to deliver your goods to where you need them to be.
Consider your needs not just for today but for the coming years. Of course, if things go well, your business will demand more carriers. If the logistics company you’re working with can only provide you with less-than-truckload freight (LTL) as that is their core focus, what happens when you need a dedicated fleet?
Always think about future possibilities to make the most out of your business growth. Limiting yourself to what works today can hinder your success in the future.
Find a logistics company that offers all these services if you feel like your business will have a complicated logistics operation once it expands:
- Less-Than-Truckload Freight (LTL)
- Dry Van Transport
- Flatbed Transport
- Refrigerated Transport (Reefer Freight)
- Cross Border (Canada)
- Expedite Freight
- Dedicated Freight
The next thing that you want to focus on is the 3PL accident history. Have the company had any accidents in the past five years? If so, how did they manage the situation?
Of course, accidents can happen, especially since it’s an industry that relies on roads and motor vehicles. However, how a 3PL manages the accident is what you should scrutinize.
If the logistics provider failed to deliver their goods because of hiring incompetent drivers or that it has an unpolished system, it’s best to just walk away.
One of the few things that a lot of business owners fail to consider is customer service. Even though the 3PL of your choice will become your partner, it’s still likely that you will be communicating with their representatives.
Every company out there, regardless of their industry, claims to have excellent customer service. To know for sure, you need to give them a call and get a good feel of how they communicate with you.
Although there’s nothing wrong with partnering with a new business, there are risks. New logistics companies will not yet have a refined system. They do, however, have lower prices to compensate.
It’s ideal to find a balance of both years of service and pricing. Find a company, if possible, that has over three years of experience but is still capable of having lower rates. One of which is UTX Logistics.