How to identify the best logistic partner for your business

Finding the right logistics partner for your business is not a trivial matter. A logistics company can be good but not suitable for your business. Therefore, the selection process should be thorough and deliberate. In this article, you will learn the critical steps you should employ to find a logistics company that’s best suited for your business. 

The need for a logistics specialist for every business cannot be overstated. We live in a fast-paced world, and a company that wishes to keep up must find ways to delegate duties that can be done better by a professional. This frees up your time and helps focus the human resources to grow the business. However, logistics is an integral part of many businesses, and a wrong decision may lead to massive losses of time and money. 

Here is a 4-step strategy for selecting a logistics company that will not disappoint you.

1. Create a Selection Panel

This is different from the procurement team. Select a team with representatives from every department that is affected by logistics, including the procurement specialists. Task every member to list down the ways their department may be affected by bad logistics, i.e, if the shipment is delayed or lost. This will come in handy in the brainstorming session. 

• Revisit your Business Objectives

Next, the panel should write the company’s objectives based on the goals to be achieved for the financial year. It helps to arrange them in descending order, from the highest priority to relatively low priority objectives. 

• Create a Selection Criterion

Now you are ready for the brainstorming. Use the first list to identify the unwanted traits you will not tolerate from a logistics company. Then use the list of objectives to highlight what’s important for the business. This will help your panel to find the best recruitment criteria for selecting a logistics services provider. 

For example, if your operations sorely rely on raw materials getting to the factory on time, then a company with a fast clearing & forwarding process and a fleet of trucks is your best bet. If your efficiency relies on products getting to your client in good time, then a firm with a good network and different types of vehicles will serve your needs better.

• Define your Ideal Logistics Partner

Lastly, you need to develop a profile for your Logistics partner. This is a list of key attributes based on your company’s needs and what the logistics partner will need to achieve to meet and/or exceed your expectations. Use this profile to gather a list of potential logistics companies. Six is a good number, but you can do more. 

Narrowing down on the best logistics company for you

Task your panel to research the prospects and collect as much information about them as possible. Be careful to wait to make formal proposal requests. You can, however, call or send emails informing them of your needs and requesting information on their ability to deliver. 

Make sure you define the time window for submitting their responses. Your panel can then evaluate the responses and narrow them down to the top two or three firms. Now you can send a formal proposal clearly stating your firm’s needs and expectations. Make sure they know exactly what they are agreeing to deliver.

If need be, you can schedule site visits with each. This is to review and visually confirm that they have the capacity to deliver what you have strictly defined for them. If all is satisfactory, have the selection panel vote on the best candidate. The majority vote wins. Award the contract to the one provider the panel selects. If you follow this process, you have the best chance of getting the perfect logistics service provider for your business. Not only that, but you will also have created a foundation for a long-term, mutually beneficial business partnership. For any queries or concerns on logistics matters, feel free to contact us via + 254 700 762 784 or email us at info@flintwoodlogistics.co.ke