July 13, 2018

5 things to consider before hiring a logistics company

If you are a business owner who deals with the supply of goods, you will probably need to hire a logistics company at some point.

Depending on your requirement, you’ll find many options to choose from.

How do you decide which one is a perfect fit?

To help you make the right decision, here are 5 tips you can use.

1. Check if they have a license

This is the most important thing. But sadly, also the most overlooked thing.

Just because a logistics company has a nice looking website and an office, doesn’t mean they are licensed. I’m sure you’ve heard of all the cases where a business owner handed his goods to a fake moving company and later discovered that he has been cheated on!

Whether you are partnering with a logistics company for the long term or hiring them for a short-term assignment; make sure you check their license before signing the contract.

2. Ask them how long they’ve been in the business

How do you if the logistics company you are hiring is good at the job? While you can’t count solely on it, but the number of years they’ve been in the business can sure give you an idea of how efficient they might be.

When finalizing the deal, make sure you ask them how long they’ve been in business.

3. Ask them about the kind of work they’ve done in the past

The next important thing to ask is, what kind of work they’ve done.

If you’re a small company and all they’ve handled is big consignments, it could be a problem.

If you’re a big company and they don’t have any experience handling consignments as large as yours, it could be a problem, too.

Before signing the contract, make sure they are capable of handling the kind of work you expect.

4. Find out what past customers have to say about their services

This is a great way to judge their service. If customers who’ve used their services in the past have good things to say about them, it usually means they’re good at the job.

If they have a lot of negative reviews online, it probably isn’t a good idea to hire them.

If you are concerned about a particularly bad review, you can always ask them the story behind that negative review.

The important thing here is to make sure you are totally convinced about their credibility and efficiency before you hire them for your business.

5. Assess if they fit your budget

Once you’ve asked them everything you wanted to, it’s time to assess if they fit your budget.

Now that you know everything you wanted to know, it’ll also be simpler for you to decide if you’d be okay with increasing your budget for the kind of service they offer.

Hiring a logistics company is a difficult task. With so many options to choose from, it gets especially difficult.

As someone who has been in the business long enough, I’ve shared the things I feel are most important when looking for a moving company.

If you have something to add to the list, do share your thoughts with me in the comments below.

If you’d like me to elaborate on any of these points, do let me know.

I hope you found this article useful and this helps you hire a good logistics company for your business.

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