7 Reasons To Find A New Logistics Provider
A good third-party logistics (3PL) relationship improves supply chain efficiency, contains costs, and enhances overall customer service.
Why Do You Need A New Logistics Provider?
Every progressive business owner understands how vital the right logistics service can be to their goals of running a successful organization. Logistics contributes a large chunk to any production-based company’s operations. In short, for a company to be profitable, its logistics operations have to be at the top of its game.
Many companies find logistics operations tedious and would rather have 3rd party logistics provider handle this aspect of their business. That’s why they employ their in-house supply chain manager to supervise logistics and link the company and its logistics operations.
Although supply chain managers do work conscientiously towards curbing wasteful contributors in warehousing, inventory management, transport, procurement, as well as delivery, other less notable factors can create unnecessary cost problems overall. When you consider the actual cost of consistent late deliveries or even damaged goods, you’d realize it could lead to items being out-of-stock for customers or even lead to more cost in spending to quickly expedite fresh shipments as an effort at restocking. True, you can always throw in some extra inventory to compensate for potential late deliveries; however, this only leads to more needless spending; it may be time to find a new logistics provider if your company keeps facing these bottlenecks.
Below Are 7 Reasons Why You Need a New Logistics Provider.
- Poor Warehousing Facilities
You should seriously consider changing your logistics provider if you discover that their warehousing facility is not up to standards. It won’t be nice if your products get attacked by a hoard of rodents while being stocked in a 3PL’s warehouse. Try to be sure that the new logistics provider you employ are exactly what you expect in terms of how safe and secure their facilities are.
- Crappy Communication
Positive and timely communication is the backbone of a successful business. Interactions that culminate in disrespect, delayed response, reactive, rather than proactive communication, contribute to the downfall of a business. A fast-moving business like logistics requires proactive and continual communication and if your current provider is not playing ball, then its time to choose a new logistics team.
- Zero Visibility of Information
Technology has made business processes more efficient and interactive. Logistics is not left out as a well-coordinated supply chain system should include transparency at different levels. In essence, customers should be able to access display interfaces in order to view delivery vehicles ETA, warehouse inventory levels as well as track certain services. A proficient logistics provider should have the capacity for automating access to allow relevant parties to keep track of service progress.
- Continuous Late Deliveries
As stated earlier, a successful supply chain operation is one that maintains timeliness across the board. Loading, transport, inbound freight, and delivery are all elements that must be performed timely; a disruption in the process could make a company end up with products out-of-stock, delayed production scheduling or more negative business effects. If a logistics provider is finding it difficult to keep to timing, you won’t be wrong if you pick a new efficient service provider.
- Constantly Damaged Products
There’s no point in delivering products that are already damaged. The most likely points of damage in the logistics process include driving, loading, unloading, warehousing, or a combination of all. The possible recklessness of the employees in charge of the products should not be overlooked. If the incidents become frequent, then it is high time you considered swapping logistics service providers.
- Prioritizing Businesses Over Yours
You may need to start thinking of finding a new logistics provider if the one you have currently takes on so many other businesses while lacking the required capacity to do so. These overzealous 3PLs will not hesitate to keep your delivery needs aside in order to attend to others while coming up with several lame excuses to justify their partial services.
- Customs Clearance Services
If your logistics services provider keeps having issues with getting your products through customs, then you might start considering a change in service providers. Constantly entertaining clearance excuses as a reason for poor service delivery might not only delay your products but also make your customers lose faith in your ability to deliver when it matters.
In conclusion, for the sake of efficiency towards much more productive outcomes, companies must draw a sharp line between the requisite competence and mediocrity or gross incompetence in their quest to engage or find a new logistics provider.