On-Time Performance (OTP) is not just important for passenger carriers but also for the logistics supporting the import or export of goods. Whether it’s moving goods domestically or internationally, the agility, security, and reliability of logistics affect the trade, traders involved, and the health of both the import and export economies in a big way.
Check 5 parameters of a great logistics service before you choose one for your trade.
1. Market Reputation
The reputation of a brand, i.e., what stakeholders think about a logistics service company, speaks a lot about its delivery service and reputation. Pay attention to the kind of experience a logistics service provider delivers to its customers, suppliers, and employees.
The best way to know about the market reputation of a logistics service provider is to connect with your competitors or peers. Online reviews available with Google, Trustpilot, Yelp, etc. also mirror the reputation of a service provider.
2. Capabilities
Is the service provider capable of transporting goods to your export destination or importing them to your place of interest? If yes, how sure are you about the timeliness of the delivery? Does it have the vehicle of the right capacity to accommodate your goods? Are those vehicles in proper condition? Dig a little deeper to know the capabilities that will best respond to your import or export needs.
3. Customer Service
From getting your goods loaded to unloaded, and in between – knowing the status of your delivery is an important concern. You need certainty in business to work confidently with your stakeholders. Most of the logistics service providers are taking the help of the digital tracking tool to keep customers informed. So, check how easily your partner is accessible in the physical as well as the virtual world.
4. Liability and Indemnification
How is your logistics partner going to compensate for any loss caused to your goods during transportation? Learn what are the liabilities of the logistics partner towards such damage or loss, and the terms and conditions linked with the indemnification. Mind the jurisdiction area for resolving any complaints. Verify all these aspects while signing the letter of indemnity with your logistic partner.
5. Freight Charges
Transportation costs get included in the cost of your import or export items, and the same will impact your profit margin. Most of the logistics companies take into account the dimensional weight of the shipments as well as the distance between the source and destination addresses. Mind the additional taxes or prices like handling fees, insurance fees, etc. before you sign the shipping papers. It’s also important to find a transport partner that operates nearby your source or destination location. It will help you to cut carbon emissions – after all you have to build a sustainable business model. Isn’t it?
From setting up a business unit to ensuring smooth conduct of business, to gaining import-export trade intelligence, to winning the trust of your employees, partners, and other stakeholders – a lot of investment goes into all. So, it’s imperative to choose your logistics partner wisely. It helps you move ahead with a profitable business entity and simultaneously respect the time of your stakeholders.
