Choosing the right shipping company is not just about a reasonable freight rate and a carrier to collect and deliver the products. It should be a healthy balance of respectable freight rate, functionality, quality service, and security. Here are some factors to consider when select the right shipping and logistics company.
1. Technology offerings: The right shipping company specializes in technology offerings like the TMS, which helps in optimizing cost savings and increase efficiency. It helps to centralize freight-related data to access them easily for reporting purposes. Make sure whether they use technologies like online booking system and tracking, allow you to view freight shipping rates online, have warehouse automation, and use cloud computing. These services help to deliver consistent error-free services. The company should integrate their business system with ERP of your business so that you can track the time and place where the order is being processed, packed, collected, and dispatched.
2. The network of locations: A logistic service provider should offer a network of located facilities and able to open new places as well to meet your specific needs and business expansion plans. Make sure that the company has an extensive network of reputed and skilled carriers for distribution.
3. Freight rate: When you decide on a shipping company, the first and foremost thing you enquire about is the freight rate. Make sure to analyze your business needs, compare freight rates of reputed service providers online, and also consider delivery time and quality of service.
4. Insurance, registration, and licensing: The Company you choose should protect the goods they are carrying so that if anything goes wrong, you get compensated. They should possess a valid registration number and license.
5. Freight management: A reasonable shipping and logistics company should respond to fluctuating market needs and offer a quick and effective solution to customer’s specific situations. They should offer low freight cost without compromising on quality, consider the speed at which delivery is required and the size of the shipment. Based on their client’s requirements, they may provide customized solutions and tools.
6. Security: When selecting a logistics service provider, it is essential to check their safety awareness, safety management, and the facilities related to safety. A reputed service provider would provide regular safety training to their staff, enforce safety warnings, check their warehouses regularly, maintain a company-wide safety standard, and comply with the industry safety rules and regulations of the country.
7. Subcontractors: Do not forget to ask whether the logistic service provider will do the job on their own. Some companies outsource the job to subcontractors, and it goes the wrong way. However, a reliable shipping company operates the distribution network in its entirety.
8. Customer service: Try and find out whether the logistics provider prioritizes customer service. Some of the critical factors in determining the level of customer service are responsiveness, effective communication, consistency, and quick resolution of issues. Though all of them will claim that they provide excellent customer service, the best way to judge is to ask for a reference, especially customers from a similar industry.
It is crucial to choose the right shipping and logistics company so that you can manage your logistics operations smoothly and enable you to focus more on your business.