An effective logistics department can completely transform a business. However, many small companies choose to outsource these services. Before committing to a provider, you need to investigate their practices, pricing, and reputation.
Working with the wrong management company could lead to unorganized inventory, wasted spending, and unhappy customers. To avoid complications, ask these questions before choosing a logistics service.
How Diverse Are Their Materials?
A significant part of logistics management includes providing pallets for storing and transporting products. A good logistics service will offer a wide range of pallets featuring different materials. Your potential provider should have plastic, wood, paper, and metal pallets at their disposal.
Also, make sure your provider understands GMA pallet grades and specs; this is especially important if your products involve food or beverages. They should also offer pallet customizations to accommodate materials of all shapes and sizes.
Do They Offer Comprehensive Management Services?
Providing pallets is only part of the job. Your potential logistics service should offer comprehensive management services. From ordering materials to the final bill, your logistics company should take care of every part of the process.
Ask if they offer pallet pickup and recycling services. How easy is their ordering and delivery process? Your third-party contractors should make things easier for business, and having this information will help you make a well-informed decision.
How Large Is Their Network?
Before choosing a logistics service, ask questions about their service network, like:
- How many warehouses do they work with?
- Where are they located?
- How much inventory are they able to handle?
If your logistics provider doesn’t have a wide network, they may be unable to store and deliver your products efficiently. You need to work with a management company that has local warehouses and regional managers; this way, you can cut transportation costs and benefit from quick shipping and delivery times.
Don’t forget to ask how they handle price changes, billing, and complaints. Ask to speak with current customers to see if the provider’s services are satisfactory. Once a company has addressed your questions and concerns, you can feel confident signing contracts and establishing a partnership.