Factors to Consider When Choosing a Logistics Partner

Ridelink Series

Written by Henry Senkungu on March 21, 2023

5 Factors to Consider When Choosing a Logistics Partner

A matching logistics partner is vital because it is pivotal to ensuring that your customer receives their product safely. A good relationship with your logistics partner cuts costs improves supply chain efficiency, and enhances overall customer service.

Choosing the best logistics company can be tricky because of the many options available, and there is hardly one that will check off all your boxes. Here are a few key factors to consider while choosing your suitable logistics partner.

 

1. Company Reputation

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If many people use a product or service, it does something right. The same goes for a logistics service. If the company has established a reputation in the freight forwarding business and is used by many people, they are getting results for its customers. 

You should also care a lot about a "bad reputation" since your reputation will be affected by your supply chain's competence or lack thereof. A good reputation is a better marketer than any salaried marketing professional, and it’s free. 

Here are some key questions you should ask;

  1. How do they treat employees and suppliers?
  2. What type of reviews do they have online?
  3. Are they an active force within their community?
  4. What type of reviews do they have online?
  5. How long have they been in business?

 

The answers to those questions will help you determine how the service provider will be as a partner.

Market reputation is a crucial factor to keep in mind when choosing a logistics company because a good reputation is achieved when customer service is excellent and up to standard.

 

2. Safety 

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The safety of your goods should be a concern. Always check the safety rules and regulations to ensure your goods reach their destination without damage during transit. You must select a service provider with a strong safety record. A good logistics company regularly provides safety training to employees to ensure your goods' safety during transit.

 

3. Customer Service and Reliability

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A company that provides good customer service will have no issue providing reviews and references from its customers. They will provide a list of their clients and customer quotes about their work. Check what their customers say to get an idea of how they could help your business and if what they do suits you.

 

4. Technology

Photo smart warehouse management system with innovative internet of things technology

Technology is the key to improving your business, so you must choose a logistics partner who knows technology's importance. The technology used by the service provider should simplify the tiresome tasks.

It is essential to ask these questions:

  1. Do they invest in technology? 
  2. Are they always looking for ways to make it better? 
  3. Do they have a backup system that means servers are always available?
  4. How does their software use your data to its maximum advantage?

Your logistics partner should also have a cloud-based management system to help with automation, processing orders, inventory management, tracking orders, etc. Find one that is committed to staying on the cutting edge of technology.

 

5. Location and Coverage

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If your company makes deliveries all over the country, crosses borders, or both, you need to choose a logistics partner that can cover all those parts. Your business expansion also depends on the distribution network of your logistics partner.  

A logistics company should be able to provide a strategic approach to meet all your distribution needs in and out of the country. With the right logistics partner, you get the best experience, and you can expand your business. 

 

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