Looking for a third party logistics to save money and streamline inventory and supply chain management?
It can be strenuous and time-extensive to find a robust 3PL. There is no set of factors that should be looked for when searching for a logistics company, as every organization has their own set of requirements, each implementing a different set of technologies, following different market trends, etc. But we can help you know the tell-tale sign of logistics companies that you must not hire.
Keep reading to know the set of red flags that you should watch out for when looking for a logistics company:
LACK OF EXPERIENCE:
Yes, every business started without experience but if you run your business and partner with service providers on this philosophy, your business will suffer only losses. Transportation is a tricky business, involving rules and regulation, state laws, border issues, etc. Always look for a company that is industry specific like food grade trucking companies, milk hauling, etc and holds vast experience with profound knowledge of the ins and outs of that particular industry.
NO I.T KNOWLEDGE:
Any industry not being abreast with the latest IT developments that could help them operate better is not going to deliver excellent services. Plays a pivotal role in transportation services, which is why every logistics management company should have the proper IT substructure titi ensure efficient supply chain management.
Not that there is any set price tag on how much should a logistics management company charge for dispensing services, but you must be wary of those who charge suspiciously high or low, claiming to provide supreme transportation services. Depending on your company culture, what are your needs, you must cross check with the market rates.
SUSPICIOUS EMPLOYEE TURNOVER:
A quality 3PL will display high workers satisfaction and not high employee turnover. How invested are they in helping their employees grow will be apparent in the ways they manage the transportation concerns.
The logistics company should be able to deliver per your business growing requirements. If they don’t have scalability, they will not be able to keep up with your business’s service demands, which is subjected to escalate or shrink.
LEGALLY BAD SHAPE:
It is your responsibility to do a thorough background check of the prospective logistics management company. Make sure that they are not involved in a legal mess or have accusations still waiting to clear. If the company is in public dispute over their services, you must steer clear of them.
A logistics company should facilitate a platform, for a smooth operation of your business. Whatever you logistics need might be, from general cargo to food grade trucking companies, it is essential that the logistic management company you hire is licensed to transport the particular consignment. Make sure they hold extensive experience in providing logistics support in that specific industry and are acclaimed for enriching their consumer’s experience.
Get in touch with one such proficient logistics management company, today!