Logistics has become an essential part of a great many businesses, in every sector. Pushed along in particular by the health crisis and the wave of closures, deliveries are now genuine drivers of revenue and play a crucial part in customer satisfaction. Logistics remains a complex trade, though, and running it takes time. Some companies therefore choose a logistics provider to take some or all of that work off their hands.
But how do you find the partner that answers your needs precisely? Here are 8 things to guide your choice.
What is a logistics provider?
A logistics provider is a company that handles some or all of another company’s logistics needs, and those of its customers. It acts as an intermediary between the client company and its end customers. Because the sector has grown so fast, many kinds of logistics provider are now on the market. Warehousing, stock management, deliveries, order picking: all of these supply chain steps can be handed to a partner.
How do you choose the right logistics provider?
1. What are your company’s logistics needs?
Before you choose a logistics provider, it is essential to know your own logistics needs. Every business is different. Some need delivery rounds for pallets or bulky parcels; others need temperature-controlled transport. Defining your needs will tell you which providers can answer them best.
2. Your logistics partner’s field of expertise
Once you have set out your logistics needs, it is important to look into the areas of expertise of the providers you have shortlisted. When it comes to transport and logistics, your external partner will need expertise in the processes your business depends on.
If you are a local producer looking to deliver fresh produce to your distributors, your logistics provider will need real expertise in that delicate kind of transport, so that your products arrive intact.
Whether you are a chocolate maker, a florist or a construction firm, every delivery has to suit the parcels you send and the sector you work in.
Defining your logistics needs lets you target a partner with the expertise your goods require, one that can meet the specific demands of your business or your products.
3. The logistics provider’s technology
Bringing in an external provider gives you the chance to benefit from technology that is not always available in house. So choosing a partner that uses the latest technology matters.
Access to real-time information
Every delivery comes with a flow of information. Choose a provider whose software gives you easy access, at any time, to all of your delivery information.
Access to that volume of real-time data lets you offer a service better matched to what your customers expect. That clear view also lets you answer quickly or react instantly to customer requests.
You can use the data to make sure operations are running properly, but also to anticipate problems. Technology should let you be proactive.
Access to simple integrations
It is also worth checking which integrations are available with your future provider’s software. If you are an online retailer running a Shopify shop, for example, look at whether the provider has a plug-in. That way you can connect it straight to your online shop. A direct integration compatible with the CMS you use is a real asset for greater efficiency in your business.
That is why Shippr has several CMS integrations, such as:
- Shopify,
- Deliverect and
- Prestashop,
- as well as an API.
We integrate where you already are, so that you can offer your customers a full range of delivery options.
> Take a closer look at the Shippr X Shopify integration
Automation
Finally, automation is worth investigating too. Working with an external provider that lets you automate, optimise or set up recurring processes makes you more productive.
4. The external company’s reliability and reputation
After a bad delivery experience, many e-commerce customers will not order from that site again. And the study carried out by SprintProject found that 54% of French respondents had run into a delivery problem in 2020.
As deliveries have grown in importance, this has become decisive in building customer satisfaction. Choosing a reliable, professional external provider matters enormously.
Measuring how reliable a logistics partner is remains difficult, especially before you have worked with them. Several methods can still point you towards their reputation. For example, you can look at:
- their reputation online
- verified reviews left on Trustpilot
- and so on
5. The additional services a logistics partner offers
To stand out from competitors and offer a complete logistics experience, many external partners offer additional services. Those services take several forms.
Branded tracking emails
Branding those emails adds real value for you and for your customers. Tracking emails have an open rate of more than 70%, which makes them a golden opportunity to build your customer relationship.
Thanks to them, you stay in constant contact with your customers and help keep them loyal.
Real-time delivery tracking
Treated as an additional service by some logistics companies, delivery tracking has now become a must. Back in 2015, 85% of French consumers already attached great importance to tracking their parcel, according to one study. It also found that more than 83% check on the progress of their order at least once before it arrives.
Going without that tracking can do real damage to the experience you offer your customers.
- Has my parcel been dispatched?
- Will it arrive on time?
- Will I be there to take delivery?
That lack of communication and transparency creates stress for recipients, and stress feeds dissatisfaction.
To avoid it, choose a provider that can:
- tell your recipients as soon as their order is dispatched, by email or SMS
- give them the chance to track their parcel in real time
When you hand delivery tracking to your logistics partner, make sure they have a professional support team that is actually available. That team will be essential to the quality of service that keeps your customers loyal. Let us look at that last point in more detail.
6. Customer service that is available
Does your logistics partner take customer service seriously? Do they have a support team dedicated to solving problems actively? Ask these questions before you choose a provider.
The hazards of delivery are unfortunately many and frequent. Handing that operational work to an external professional with a team dedicated to it is a considerable advantage.
With their expertise and flexibility, an external provider can deal with the unexpected more easily. Given that most customer calls are about delivery tracking, having a dedicated support team is crucial.
But how do you judge a logistics company’s support before you have worked alongside them? Ask their customers, and look for references from businesses whose logistics needs resemble yours.
7. Flexibility and the ability to grow with you
When you choose a delivery provider, look closely at how flexible and responsive they are. It is one of the most important factors to weigh up.
That flexibility is essential if they are to bring a solution that fits changing needs, whether those come from your customers or from the market. It also decides whether they can support your growth over the long term.
Your logistics partner is your growth partner. They have to answer your needs today and in the future. To make that work, agree the requirements and the quality indicators you expect before the partnership starts.
A good logistics provider will ask you early on about your peak periods, about seasonality, and about what you have coming next. That lets them anticipate those busy delivery periods and bring the right solutions to them.
8. Experience and the range of delivery options
Experience necessarily brings quality of service. Because logistics is their core business, you can count on an external provider to use the best practices and the latest technology, which will make your logistics more efficient. That improves your own processes directly.
Offering several delivery options has also become essential if you want to meet customer expectations. That is why choosing a provider with a wide range of logistics services matters.
- Scheduled or express deliveries
- Multi-drop delivery rounds
- Stock transfers between shops
- Ship from store
- And so on
Each option answers a specific need. Being able to offer the right option for the request and for what your customers expect is how you build genuine satisfaction.
On top of that, many products, such as foodstuffs, fragile items and bulky parcels, need suitable, professional transport. Using a professional provider means their carriers will know how to handle each parcel properly.
Choosing a logistics partner: the final step in a long search
Choosing your external logistics partner is an important process and one that deserves proper preparation. Above all, the choice will be guided by a thorough study of your own needs. Knowing them well is how you find the partner that answers them best. The elements above are the points to watch that will help you choose well.
As you work through it, do go and meet providers. At Shippr, our business experts will listen, and they take pinpointing your logistics needs seriously so that they can answer them properly. Get in touch with one of them and they will identify the delivery options that will improve how you operate. With no commitment, you can use our services to support your peak periods, to reinforce your in-house teams, or to take delivery off your hands entirely.
