How To Choose A Logistics Service Provider?

If you do not select a logistics service provider well, you can waste the market because you do not have an efficient supply chain, from your suppliers to the production plants and from these to the markets where they are selling their articles.

Excess cost may be incurred for failure to deliver timely and in good condition; in addition to the risk of losing the merchandise due to not following up properly to avoid damages or not having the insurance of conventional cargo handling and other mechanisms that protect the capital. Likewise, traumatism are generated in the operation of the companies.

To avoid these disadvantages, the criteria to be taken into account when selecting a logistics service provider is very important:

1st: carry out an evaluation that helps to identify the characteristics of the current logistics process, such as service levels, technology and information systems, to better understand how the logistics operator will support business work.

2nd: identify the advantages and disadvantages of carrying out this outsourcing process, what risks are exposed and under what parameters you want to assume them or invest in action plans to mitigate them.

3rd: must take into account and evaluate in the most conscientious way possible what are the needs that are intended to be covered when starting a new employment relationship with an operator. Deciding what is required to contract and what should be required from the operator is what, will allow choosing the most suitable service provider for the company.

4th: It is also important that the logistics operator not only knows about his business, logistics and supply chain, but also that he cares about understanding the business of his clients and their particular characteristics and needs.

5th: Reputation is a fundamental criterion to determine if it is worth working with a specific logistics provider. During the presentation of your services, a supplier will present some favourable or unfavourable references for our company.

Finally, when hiring a logistics service provider, it must be borne in mind that this can and should be a long-term relationship, avoiding switching between them frequently due to multiple factors such as cost reduction, one of the main benefits of outsourcing, It can be affected as well as other processes such as the consolidation and development of the company.