6 factors to keep in mind while choosing the logistics partner for your business
The success of your overall business including sales efforts, marketing initiatives, new product launches is, to a large extent, dependent on how well linked the various touchpoints of your supply chain are, starting from procuring raw material to delivering the finished product to the right market at the right time.
Apart from improving supply chain efficiency, the right third-party logistics (3PL) player helps you provide a better customer experience, build long-term relationships with the target group and optimize cost. Hence, to bring ease in your selection process of determining the perfect logistics partner that complements your business, the following 5 factors should be considered:
1. Strong Network
As a business owner, you would always aim at greater customer reach and reduced logistics cost. That is where a logistics player having a presence in the remotest corners of India and providing services all across, comes into the picture. Legacy logistics companies like TCI with 1500+ IT-enabled offices along with 25 strategically located hubs in India and a strong network across SAARC – BBIN nations excel at making precise deliveries, anywhere and everywhere.
2. Value-added services
The range of services provided by the player is another important factor that needs consideration before finalizing upon a vendor. They should possess the capabilities to fulfill your current & future business requirements. Renowned logistics players like TCI tend to offer a single-window solution for integrated multimodal logistics, including first & last-mile logistics, warehousing, coastal shipping, trade compliance support, and value-added services like track & trace systems powered with technology that provide value to its customers.
3. Responsiveness to Business Needs and Dependability
Customer service is another key factor that needs to be assessed before partnering with a logistics service provider. One should find out if the customer service team of the vendor is willing to go extra mile to find the most optimum solutions for your business and if they are proactive enough to foresee problems and work on reducing them. Having a dedicated customer service team is an added advantage for ensuring successful management and execution of logistics plans.
Sustainable logistics is not just an advantage now but a necessity. TCI’s strong multimodal network-enabled to save 21,994 Tonnes of CO2 equivalent in terms of GHG emissions in the year 2020-21. Logistics players that are in compliance with environmental protection stay ahead in the competitive market. In addition to contributing to the future, players that are modifying their corporate standards for sustainable models and are adopting measures aimed at reducing environmental impact shall be chosen as your business’ logistics partner.
Digitalisation is rapidly revolutionizing the logistics and supply chain industry. From planning to execution, every element of the logistics process is being reconsidered, repurposed and digitized. The sector has been in-step matching the dynamic requirements of the varied customers both small and large scale; and as digitization takes the hold, new technologies and collaborative business models have helped in changing the business landscape, meeting evolving customer expectations and setting new trends.
One such example is of India’s leading integrated multimodal service provider, TCI. They have been investing in technology on the logistics front, including complete warehouse automation and robust digitization. Today, the company is undergoing a complete digital transformation. TCI already has advanced GPS tracking of the vehicle, real-time tracking system is enabled through mobile application, and Operation Command Center (OCC) where hubs are monitored by team located at the centralized location. They also have a customer application that provides increased visibility to customers, as to the current status of their cargo movements, in real-time, no matter where they are.
6. GDPR (General Data Protection Regulation) Compliant
Logistics companies collect and process a lot of data on an everyday basis. For a sophisticated supply chain, comprised of an extensive network of operators, suppliers, and retailers, there is even higher pressure to ensure compliance with new regulations. Choose a partner that is able to:
Think carefully before sharing their data with external suppliers, vendors and service providers, ensuring these parties are also GDPR compliant.
Map the flow of personal data from how it’s received, stored, processed and where it flows along the supply chain.
Identify and figure out data security weaknesses within their organization and take prudent action to contain them.
If you are in the process of choosing a logistics player for your business, it is essential to keep the above-mentioned five factors in mind. Apart from these, transparency in the processes is another crucial factor that should be considered while looking out for the ideal service provider.
Ensure identifying and investing in the right logistics partner for your end-to-end supply chain management requirements because their apt logistical support can help you focus solely on growing your business.