Five Signs You Need to Change Your Logistics Partner

Coyote - Five Signs You Need to Change Your Logistics Partner - Coyote Logistics

Change is one of the few constants in life. This is also true for running a business. Being successful as an entrepreneur means being ready for continuous development. Those who do not move forward are not just standing still;they are beginning to fall behind. But being ready for change also means that sometimes you have to decide to stop cooperating with your current partners if the level of services they provide is disproportionate to the pace of your company’s development and can even delay or prevent further growth.

This can apply to virtually any business partner, regardless of the area in which we cooperate with them. Just as there are situations when we have to part ways with an employee who does not fulfill their duties properly, so will there come a time to resign from a supplier of semi-finished products that do not meet our quality standards, from a law firm or an accounting office whose services are too low in relation to the needs of our business. The same goes for logistics service providers.

So when should you consider looking for a new logistics supplier? What signals will tell you that your company should replace its current logistics partner with a new one? Below we will present some of the most glaring examples. Note: if the situations described below are episodic, then they should not be an alarm bell. However, if they occur regularly and, in addition, different types of them occur simultaneously, then it is an unmistakable sign that something is wrong and it’s time for a change.

1. Delivery delays

Logistics is about time. And time is money. If your shipments do not reach their destinations on time, it will be a loss for you, not only financially but also in terms of image. Since you did not receive the parts needed to produce your product on time, you will not deliver it to customers on time. This will not only cost you money, but it will also shake their trust in your company. Of course, individual situations where your logistics provider does not ensure timely delivery may occur, for example, due to an unforeseen situation on the road, etc. However, if deliveries are delayed more and more often and there is no improvement despite your interventions with the partner, then changing the supplier may become necessary if you still want to lead your company to further growth.

2. Not keeping up with your company’s growth

Your business is growing, so the volume of shipments you send is also increasing. Whereas earlier it was, for example, five full truckload (FTL) transports a week, now it is five in a single business day. Previously, you did not need express deliveries, which must reach the most crucial customers within one day, but today they are the core of your business. But your supply chain is jamming because the logistics partner does not have the capabilities to fully meet your logistics needs. You need to start deliveries across the English Channel, but the 3PL company you work with has no experience in handling shipments to the British Isles in post-Brexit realities. What does this all mean? Deterioration in the quality of services provided and delays (see the point above).

3. Inadequate cargo security

Was the truck carrying your shipment stolen? Unfortunately, this can happen. However, if such incidents start to repeat, it may be a signal that it’s time to change your logistics partner. Maybe your shipments are moved along routes in high-risk areas, but the logistics company does not intend to optimize them in this regard? Maybe it uses equipment (trailers) with inappropriate security measures? The reasons can be various. However, when the logistics partner does not provide an adequate level of security for your shipments, the claim handling procedure is prolonged and complicated on their part, and additionally, they do not offer the possibility of purchasing additional cargo insurance, then it’s probably time to look for a new logistics service provider.

4. Technological lag

Modern logistics is an industry where the use of advanced technology is crucial for ensuring the uninterrupted operation of the supply chain. If your logistics service provider does not have technological solutions that allow you to build and manage shipments online, track the status of transports in real-time, and digital document handling, it may be a reason to start looking for a successor. Similarly, if the logistics company does offer you dedicated software, but it is complicated and difficult to use in everyday operations, i.e., it does not contribute to the optimization of the processes carried out.

5. Insufficient customer care

Modern technology is one side of the coin, but there is also another: the human factor. Without experienced experts, no logistics provider can function efficiently. Representatives of your partner should be available for contact and provide full support (also after hours, because it’s not carved in stone that unexpected and unwanted situations can only occur between 9 am and 5 pm). If you have to wait a long time for quotations, or if the quality of service is uneven and sometimes everything is done quickly and smoothly, and the help obtained is comprehensive, while at other times there are delays in communication, and the level of service is insufficient. In both these situations, it’s time to consider choosing a new logistics service provider to handle your transports.

If your company experiences any of these situations and they are not one-off incidents, it may indicate that your logistics partner cannot keep up with your business’s growth.

If you are beginning the process of selecting a new 3PL company and would like to entrust your shipments to Coyote Logistics, we invite you to contact us!