The points listed below are not the only ones you should pay attention to. It would help if you always considered the reality of your operation, such as the characteristics of your products, volume, and stock turnover. However, we believe that, by analyzing these factors, your choice of the ideal logistics company will be more assertive.
Check The Infrastructure Of The Logistics Operator
According to the service you want to hire, analyze the infrastructure of the logistics provider. After all, your company’s products will be under their responsibility. This is primary care, and it becomes even more indispensable for segments where the integrity of the products puts consumers’ health at risk. Such as the production of food, pharmaceuticals, and cosmetics.
The logistics company such as infinity transportation for example must have the necessary equipment to perform operations with the highest safety and quality. This involves the building structure, vehicle fleet, forklifts, refrigeration systems and temperature controls, communication, and security.
Check Certifications And Licensing
Mainly for the logistical operations of sensitive loads, such as chemical and food products. In addition to the infrastructure, the logistics company must be appropriately certified and have the Operating Authorization up to date.
The Technologies That The Logistics Company Uses
When they are in transit or stored in the warehouse, the cargo control and monitoring systems are included in the contracting of the logistics operator’s services. Knowing which systems and software are used is another way to ensure the ability of the contracted company to meet your needs. Good logistics technology is essential to maintain good communication and progress in logistics processes.
Security And Competence
As previously mentioned, the logistics operator becomes responsible for the products that his company has entrusted to him to store, handle, control and transport. Therefore, make sure it is a company that cares about cargo security and has competent teams to carry out the entire process.
As much as technology helps control processes, without a qualified team, there are still risks of failures that can damage products. Also, make sure about the fire fighting and theft protection structure. In this context, it is also essential to check the history of the logistics company to know its level of experience and stability in the market. That way, you avoid hiring a company that can suddenly abandon you.
Know Service Levels
It is impossible to provide logistics services efficiently without tracking performance indicators. As logistical efficiency is one of the main reasons for outsourcing, certify the service levels of the future supplier, especially those related to the contracted services. Metrics such as “Ship to Door” (S2D) and “On-Time In-Full” (OTIF), for example, are essential for transport and distribution operations. As well as the precision of Inventory Level controls, they are essential to indicate replacement points and avoid shortages in the production chain. For warehousing services.
Avoid superficial assessments and, if possible, visit the logistics company you intend to hire in person. Learn 10 Best Museums in Chicago for Group Trip here.