How To Choose A Third Party Logistics Company

Choosing the right logistics provider is essential to increase the efficiency and effectiveness of your supply chain management. The logistics company will be involved in a number of operations like transportation, warehousing, distribution, fulfilment. The presence of a number of players makes it difficult for businesses to choose the right 3 PL that matches with their requirement.

Here are some easy tips to help you choose a third party transportation logistics specialist and logistics provider for your business.

Freight costs

The freight costs charged by the logistics company are essential metrics to track. Track the cost per shipment, location, modes of shipment and delivery and all other important parameters, before you choose a logistics firm.

Timely deliveries

Delivery of goods on time is an important factor to consider. Delivering goods to customers’ on-time is an important step to enhance your brand value. The logistics provider should have a good track record of timely deliveries and must have systems in place to monitor the delivery process.

Percentage of loads

The percentage of loads that can be carried by the logistics company plays an important role on your costs and customer satisfaction. Choose a logistics provider, who provides fleets with different load carrying capacities.

Use of technology

The logistics company should use latest technological innovations to provide efficient services to the clients. Advanced technological innovations like, warehouse automation, cloud computing, robotics and autonomous vehicles, Blockchain mechanisms, etc. help logistics companies to provide error free and consistent services to the clients.

Expertise

Consider the expertise of the logistics provider. All logistics providers are not equal, when it comes to expertise. Choose a logistics company that specializes in your industry. Expertise plays a long role in determining how the company deals with emergencies.

Experience

Consider the experience of the logistics provider. The longer the experience, the more reliable the services. Experienced companies have necessary resources and systems in place to improve the efficiency of services and deal with unexpected circumstances.

Safety

Choose a transportation logistics specialist company with a good record of safety. They should have efficient fleet with professional drivers. The trucks and other carriers must be fitted with safety equipment to protect the goods.