You want to be effective and increase your operational productivity when you invest in an efficient logistics management process. From shipping to delivery of ordered items, your logistics partner determines the level of trust, loyalty and confidence in your services.
A reliable logistics partner helps you to operate within your budget, improve your relationship with customers and sustain your business. That said, you need a logistics partner that cares about your customers as much as you do.
But how do you know it’s time to look for a logistics partner? This article discusses what tells you that you need a new logistics partner and the factors to consider before partnering with a logistics service provider.
When Is The Time To Look For A Logistics Partner?
The cost of losing your customers or your entire business is too high to leave it at the mercies of your logistics partner. You should be looking for a logistics partner if you are experiencing the following with your current logistics service provider:
- High damage rate
- Outdated technology
- Staff withdrawal
- Difficult scaling with them
- Financial instability
- Poor communication
- Bad image
- Customer dissatisfaction
- Price
- Lack of visibility
- Security issues
Let’s dive into the details to understand why it’s time to act
The damage rate for customers goods is unbearable
Returned goods are a part of day to day businesses whether doing internal or international shipping. Some of the reasons for returned goods include customer dissatisfaction or damaged goods.
What happens when customers keep returning goods due to damage? It takes away customer loyalty and confidence in your business.
An increasing rate of damaged goods is a sign of untrained staff, poor inventory management and responsibility neglect. So, if you can’t tolerate the damage rate for your customer’s goods, it’s time to look for a new logistics partner.
There is no end-to-end logistics technology
For the interest of scalability and staying at the top of the competition, most logistics companies have adopted AI-based systems to complement their services.
Tracking automation, smart routes and real-time monitoring are some of the ways logistics processes have improved.A logistics partner who is not staying up to date with such technologies is behind the competition and customers may opt to buy from their competitors.
While logistics process automation improves transparency, it also saves on time and improves customer experience. But how will your logistics partner account for delayed deliveries and returned goods without logistics automation?
Increasing staff turnover
It could be the case that your logistics partner is doing so well such that more established companies are poaching them for their professional sentiment.
On the contrary, it could be that your partner’s staff are dissatisfied and therefore keep looking for better opportunities to practice their professionalism.
Your logistics partner staff turnover may be interpreted negatively or positively. But it is questionable if you keep meeting a different staff every other time. With a well trained staff, professional companies find it prudent to establish a relationship with their staff.
Establishing a healthy relationship with your staff through more training, addressing their concerns and listening to them improves staff retention. Hence, you want a logistics partner who can retain their staff for improved service delivery and business growth.
It is difficult scaling your business with them
One of your goals is to scale your business. Whether you want to increase your products or services coverage, you need a logistics partner that can grow your business with you.
But if your logistics partner has limited resources and finds it difficult scaling your business with you, then you will soon replace him to fulfill the rising demands of your business.
You don’t want to miss out on sales opportunities if your logistics partner is unable to cope with sudden increases in supply demands, which is the case on holidays or special events that rely on your products.
They have a track record of financial instability
You want a reliable logistics partner whose service you have full confidence in. Imagine waking up to the news that your logistics partner is no longer operational or one of the warehouses with the largest number of customers has been closed.
Financial challenges are common in business but a dependable company quickly picks itself up, ensuring a seamless flow of everyday activities. Hence, financial instability poses a threat to your business continuity and is associated with a loss of revenue.
They are poor in communication
Excellent communication is significant as it improves your customer’s loyalty and makes them feel respected. It takes a long time to establish a relationship with your customers and retain them. What if your logistics partner fails to respect that fact?
Whether it is an explanation for a delayed delivery or helping in the process of returning goods, your customers appreciate every concern geared toward improving their experience. But if your logistics partner is poor in communication, it is to the gain of your competitors.
In addition, your logistics partner should help you build bridges throughout your supply chain and you will be in the dark if it takes ages to respond to your emails or respond to your concerns.
They have a bad reputation
Customers express their dissatisfaction to find justice for their disappointment. While customer satisfaction is at the core of every business, sometimes you may fail to hit your 100% customer satisfaction goals and that depends on a variety of dynamics.
However, you instill trust and confidence in your customers when you show concern for their issues and admit you didn’t measure up to their expectations but are doing everything within your power to improve.
If your logistics partner has a history of poor customer satisfaction, your customers may not understand the root cause for their dissatisfaction and if they can get satisfaction from your competitors, then why not buy from them?
There is no reward to show for their services
Whether it is a positive review for your logistics partner or a shout out on social media from a satisfied customer, it drives a sense of motivation for your target audience. You want your customers to know that you are taking care of their orders.
For instance, when buying a product from an online store, you want to know what customers are saying about that product before checking out. But why? Because you want value for your money.
Such is the case with your business. If customers are satisfied with your logistics partner services or the partner has received awards in recognition for their customer service, then that’s a source of motivation for your target audience.
They are expensive
If your logistics partner only pushes you to little or no return for your investment, then it is time you start looking for a new one. The goal is to drive more revenue for your business. But if more revenue only goes to your logistics partner, there is no gain for your business.
From damaged goods tracking to shipping fees, you expect a high level of transparency and accountability for every penny. But if you are unable to understand the source of some of the expenses incurred, then you are risking your business growth.
A logistics partner that helps you to find value for your customers and your investment cuts down on expenses and helps you to grow your business.
They are invisible
It is risky to work with a logistics partner that you haven’t met and have no idea where to find them in case you need to meet them. Every business owner strives to establish meaningful relationships through the supply chain process for your business continuity.
You want to discuss ways of improving customer experience and business related ideas with your logistics partner oftentimes. If you can’t meet virtually or at the office, then it is time to look for a new logistics partner.
Also, your logistics partner needs an established online presence. Remember, if you are confident in your business, you would want to show it to the world.
There is no sense of security for order fulfillment
Can your customers patiently wait for their order delivery without the fear of damaged goods or poor quality product? What policies does your logistics partner apply to ensure the safety of customer’s goods?
From the warehouse to the destination, customers want an assurance that their inventory is in safe hands. Warehouses have invested in insurance covers and physical security to ensure inventory safety.
Similarly, fragile goods require special packaging to ensure that they reach their destination in good condition and avoid a continuous return of goods due to damage. If you are doubting the safety of your customer goods, then you should be looking for a new logistics partner.
What To Look For In A Logistics Partner
So you have realized that you need a new logistics partner but are unsure of your ideal logistics partner? In a nutshell, here is what to look for in a logistics partner
- Excellent customer satisfaction for business continuity
- A reputation that drives motivation to your target audience
- Security of customer goods to avoid damage and increased costs
- Automations for improved customer experience
- Financial stability to avoid inconveniences
- Scalability support for your growing business
- Excellent communication for a healthy relationship throughout your supply chain process
Generally, you need a logistics partner who is willing to grow your business with you through all the stages of your supply chain management. A logistics partner who understands the requirements for your business growth prioritizes customer satisfaction.
If you are looking for an order fulfillment company with established logistics partners to grow your business world-wide, then NextSmartShip is your go to solution. With over seventy courier service providers, customer satisfaction remains a top priority for your business.
