As the journey to find a logistics provider begins there are many things to consider; whether looking for the first time or considering making a switch from your current 3PL. How do you narrow the decision of what third party logistics provider to select? Well, when you walk into a car dealership, you don’t instantly sign an agreement for the first car you see – right? If you have, that’s okay… we’ve all had an impulse purchase at some point, but typically, you test drive a few different models, get some information on the vehicles and later return with your decision. In this scenario, what are you evaluating? It is critical to analyze the key components that matter to you, perhaps… price, safety, age and accessory package. Well when comparing logistics providers there is a similar process. If you are having a hard time comparing and deciding what provider to go with – let us help you out.
We want to make sure you select the provider best suited for your needs. Here are four critical components to analyze when selecting a logistics provider.
Location – Where is your provider located and in what other locations are they active? You want someone that knows the area they are servicing as different countries and regions have specific rules and regulations. Location is also key as it will impact price. Evaluate the different costs associated with different locations to maximize savings. A lower warehouse cost may be worth the extra miles of transportation. A provider that has knowledge of the market will be able to save you money in the long run.
Personal – Take a good look at the executive and operations team within the company. The ability to establish trust with these individuals is critical. It is important you can develop trust with the individuals. Look for specialists.it is much more efficient and effective to have “specialists” rather than a one-man show. As the supply chain contains so many moving parts; it is best served when different specialists come together. Having a diverse team of experts can be extremely beneficial.
Communication – Every strong partnership requires excellent communication skills. Just as all relationships are unique, so are the communication styles used. What works for one company, may not work for yours. Make sure you discuss a plan and set expectations of how and when you will be in contact. Outlining key components of the work and developing goals will increase the rate of success for both parties.
Experience – By human nature it is much easier for people to believe something they can see, rather than the words of an idea or promise that comes out of one’s mouth. Therefore, look for a provider that has experience servicing your needs or works directly with someone else who has the experience. It will help reduce any insecurities and increase the trust that your product is in good hands.
By focusing on these areas when looking for a logistics provider, you will increase your chances of finding the right match.
RAK Logistics offers complete supply chain solutions across the globe.
Contact us today to learn more about RAK Logistics and how we can support your business.
