If you are looking for global logistics services that can meet your supply chain needs, it can seem like you are drowning in options on every possible level. Are there differences between trucking, air freight, and sea freight? Which one will fit my business better? What concrete steps should I take to choose the right service provider for me? The following are tips on choosing which global logistics service fits your supply chain needs.
Partner with a Provider that is Right for Your Business Needs
It is essential to select a solution that helps your company complete a multi-modal supply chain strategy to compete in today’s global economy. A partner should help you define your needs and package services based on those needs. They should also offer global visibility and provide you with the best possible customer service. Large companies may have many suppliers that handle their logistics. Smaller businesses rely on one or two providers. The right choice of partners makes your business more efficient, less risky, and lowers costs.
Find the Right Logistics Service Provider
A logistics service provider is a third-party organization that you work with to move your goods from one place to another. It can be beneficial to obtain several competitive proposals from logistics companies before selecting a provider. Usually, the more competitive bids you get, the lower the overall costs become. Ask questions regarding how much it will cost per container, shipping lane, and additional services such as customs brokerage.
Review Your Business’ Needs for Logistics Services
The next step in selecting a logistics provider is to understand what your current business needs are or will be for the next few years. It can be helpful to create a detailed analysis of your business through an internal SWOT, strengths, weaknesses, opportunities, and threat analysis. This analysis can help you understand where your strengths and weaknesses lie about your competition, what opportunities are there for growth and what dangers you face from competitors. You will also want to consider any growth plans or strategies. This might change how you currently conduct business or the type of shipping services you use.
Consider the Logistics Services Available
Once you know the types of global logistics services you need, you must decide which one is most appropriate. For example, if your company primarily handles bulk goods, you might need to request a quote for ocean container shipping services. You might also want to select a service provider specializing in handling packaging and perishables, such as rice or flowers. Specific business sectors may also require adequate storage and distribution facilities. Others require packing materials.
Create a Logistics Dashboard
Once you have selected a service provider and have evaluated its performance, it is highly recommended that each business owner creates an internal logistics dashboard. The dashboard helps track the performance of each provider and provides visibility of overall costs. This will help keep all parties on the same page. It will also ensure that everyone involved in your company’s supply chain is working toward a single goal.
Be Selective with Your Business’ Logistics Needs
Many suppliers offer similar services. Be careful when selecting vendors for your business needs. For example, it is best to choose a company with a reputation for high-quality services that are competitive in the market. It should also have a reputation for honesty and transparency. Other essential factors to consider include the quality of service, staff responsiveness, availability, reliability, and cost.
Today’s businesses need to be more competitive to survive today’s global economy. Global logistics companies can help companies compete by lowering costs and helping them reduce transportation risk due to insurance. Along with the security, reliability, and efficiency of global logistics providers come the safety and comfort of their employees.