Your business is undoubtedly dependent on logistics. If you have a product that needs to be delivered, you need to ensure that you have the right service. This critical part of the supply chain process is imperative to your success, as an entrepreneur. When you are sourcing the right logistics company, you need to ensure that you are getting beyond the sales pitch. It’s all about asking the right questions. These questions can ensure that your business is successful and that your clients are happy.
Getting the logistics of your company right is imperative to your longevity and overall success. After all, timeliness and client satisfaction is a fundamental part of your supply chain management processes.
But, when you outsource this all-important function (after all, you cannot do everything yourself!) there are some critical questions that you need to ask.
Question 1: How Many Modes of Transport Do You Have?
This may not be necessary for the start-up business. But, for an SME or corporation may need to ensure that there are multiple modes of transportation for delivery. For a company with global reach, bulk-carriers are fundamental to successful deliveries. As such, a company that has ships, Lorries and vans may be more beneficial for those that have a global network of clients. Smaller businesses may benefit from trucks and vans carrying their load. Think about the reach of your business and determine whether your logistics company can handle your load.
Question 2: Who Are Your Previous Clients? (Hint: We’re looking for Big Names)
Everyone has a sales pitch. Your chosen logistics company is no different. But, when people are handling your stock, you need to ensure that they are trustworthy. You cannot afford to lose out. So, make sure that you check out their previous clients. And, ask for references. Reputable companies will be happy to oblige. Think about their previous clientele too. Are there are noteworthy or big businesses that have used them previously? If so, this could be an indication that they are reputable.
Question 3: Do You Offer Discounts for Larger Volumes?
Let’s face it; no one wants to quibble over a couple of pence. But, you need to make sure that you are maximising your cash flow. If a discount is over for a particular volume that is delivered, you can arrange customer deadlines and expectations around this shipping requirement. After all, you need to save cash to ensure the prosperity of your venture.
Question 4: Do You Provide Service Guarantees?
We all make mistakes. But, when someone makes a mistake on behalf of your business, you don’t want to be left out of pocket for these actions. Always ask your proffered logistics company if they offer service guarantees. Service guarantees can ensure partial discounts or paying out to customers when things go wrong. If a company doesn’t offer this, it may be best to avoid them. After all, you shouldn’t have to pick up the tab if someone else has messed up.
Logistics are important. Ask the right questions and see your business boom.