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Factors to consider when selecting a logistics service provider

Post 8 of 12
Ocean freight

Selecting the right Logistics service provider is very crucial for every successful business involved with export and import trading. When a company chooses a specific logistics service provider, it depends upon the performance of that particular provider which very much influences the success of the company. Hence, it’s is very important to be careful while selecting a logistics service provider. The following is a list of factors to consider while selecting a logistics service provider:

Pricing

Logistics is a highly competitive industry with many companies offering their services at varying costs. The cost of the logistics services eventually determines the price of the various products in the market. Hence, the fairer the service cost, the fairer will be the product’s price and the more competitive will it be. It is also necessary to know if the service pricing is transparent and if there are any hidden charges. Knowing if there are any minimum usage amounts is also relevant. Therefore, it is advisable to work with a logistics provider that provides services at affordable and customer friendly prices whose pricing strategy is transparent. One of our key policies is to ensure all our rates are above board and on paper, no hidden charges.

Company’s experience in the business

Having been in business for more than 8 decades we advise individuals interested in importing or exporting cargo that it is always better to go for a company that has been in the business long enough. The longer a company has been in the niche, the more likely it has grown and evolved through various ups and down which might still be a challenge to new and upcoming companies. The more it is still likely to have gained immense skills over its operational duration. It is also most likely to have served clients before with similar customer needs. The companies that have stood the test of time also understand the statutory requirements and documentations required in freight industry, hence the client is not compromised or met by unexpected charges due to ignorance of service providers.

Efficiency

The faster a product gets to market, the lower the inventory costs. Speed factor is important part and one of the largest-growing segments of the logistics industry. A good logistics company is time-conscious and responds to customers at a faster rate. It provides reliable transportation services at the requested time with no delays. Clients can reduce transit time of their cargo and in turn save money by using logistics companies that provide all the 3rd party services under one roof. At Mitchell Cotts we ensure our client do not have to move from one provider to the next by ensuring their needs are fully taken care of. The service include warehousing and inventory management, transportation and door to door delivery, clearance and documentation, packaging, airfreight, perishable handling to name a few. (See profile)

Reputation

It is a good idea to research on the reputation of a company before entrusting it with your business. How do clients who have been served by the company before say about it? A good company will always have a good reputation.

Storage and transport capacity

How large is its storage capacity? How much cargo can it be able to transport at a go? Different logistic providers can handle different capacities of cargo and different customers have different cargo requirements. So as a customer, it is good to have knowledge if the company will be able to handle all your logistics needs.

How confident is a company to itself?

Does a company offer a money back guarantee in event of service failure? Does it offer services as stipulated in its service policy?

Safety

Logistics services providers deal with a variety of products, some of which are very expensive and a target by thieves. This is vulnerability and if successfully exploited can lead to great loss to both companies and may raise other issues. Hence, it is wise to put security in mind and select a provider with a well organised security policy and mechanism to ensure your goods are safe and sound at any particular time whether in storage or at transit.

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