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In the digital age and always with a constant concern for improving costs, the logistics part is increasingly outsourced. Despite constant pressure to reduce deadlines, it is essential to correctly choose the logistics provider who will support you in the development of your business.
To do this, the logistician will take care of reception, storage, shipping and delivery operations to allow you to refocus on your core business.
In this artcle, discover the role of the logistician and the essential elements for choosing the right logistics provider.
The role of the external logistics provider
Having recourse to an outsourcing of its logistics makes it possible to achieve significant savings, in particular on major items of expenditure such as:
Costs generated by storage;
Inventory management;
Packaging management;
The last mile
Etc…
The role of the logistics service provider is to be able to offer alternatives that are more profitable. Indeed, the logistician often has discounts and preferential rates thanks to the volume handled across all of its customers and its vast network of external partners.
Writing logistics specifications: at the heart of your strategy
First of all, before any subcontracting and in particular logistics, it is advisable to define your needs and list them in specifications which will serve as a framework and guide for your future logistics provider.
Indeed, the first factor to take into account is the specificity of your needs. Some need a large storage area due to their bulky products, while others have specific needs such as storage in a bonded or certified warehouse (BIO for example).
Therefore, clearly defining your needs upstream will allow you to better identify the appropriate offers with your project.
How to write your specifications?
Here is an example of questions to guide you in drafting your specifications and thus allow you to find the right service provider:
- What are your needs ? (Import or export flow?, Is your delivery scope national, international, etc.?
- What is the typology of your products? For what type of packaging? (Carton, pallet, bags, big bag…)
- What is the associated volume in reception at the logistician but also in shipment to your end customers (in the case of an import flow)?
- Are your customers individuals (B2C) and/or professionals (B2B)?
Etc…
Why write a logistics specification?
Writing your specifications allows you to define your needs and the particularities (if any) of your flow upstream. These needs are assessed on 3 criteria, namely: your quality requirements, your objectives and your performance.
Precise and complete specifications will allow the various logistics providers consulted to establish an estimate adapted to your expectations. It is therefore important to provide all the elements concerning your flow so that they can adapt and/or be proactive thanks to their experience acquired in the logistics field.
Compare offers from logistics providers
Once your specifications have been written, you will be able to more easily determine which logistics provider best meets the needs expressed and what the associated costs will be. To help you in your choice, you can rely on the following essential elements:
- Area of expertise
It is essential to find out about the areas of expertise of your future logistics provider. Each logistician has expertise in one or more specific areas of activity.
For example, XP LOG has expertise in the management of dry agri-food flows at ambient temperature, while other logisticians will be specialized in the management of refrigerated agri-food flows using temperature-controlled warehouses.
After defining these needs, it is therefore essential to target only service providers with expertise that can meet your requirements and specific requirements.
- Costs
Also, it is important to take into account the costs when choosing your service provider:
By optimizing its customer experience;
By reducing costs without reducing margins.
Thus, selecting a service provider that is transparent in its pricing policy will avoid any hidden cost surprises.
Be careful however, although the price is one of the elements of decision, the latter should not take precedence at the expense of the quality of service. It is therefore important to select the offer of the logistician offering the best quality/price ratio.
- Growth
The capacity of the logistics provider to be able to support you over the long term in your growth must be one of the elements to take into account in your choice.
Indeed, the search for a logistician turns out to be a task requiring a lot of time and energy. In order to avoid having to restart this process several times, it is necessary to plan for the long term and thus select a flexible service provider who can support you in the event of significant growth.
- Technology
Each order shipped includes the information feed that accompanies it. Thus, whether for the customer, the end buyer and/or the logistician, it is essential to have a robust software/information system.
Today, everyone is fond of being able to access a large amount of data in real time.
As a result, having a computer traceability tool will allow you to obtain, for example, the details of your stock at time T or to obtain an alert from your logistics provider when your stock reaches a sufficiently high limit. low and this in order to avoid stock shortages and thus generate customer frustration. This is one of the challenges of logistics 4.0.
- Reliability
You must be able to analyze the performance indicators of the future logistics provider. For example: OTIF (On Time In Full), error rate, breakage rate, etc.
Of course, further research is possible by getting closer to the provider's current customers in order to obtain their views on the collaboration.
In conclusion
To conclude, choosing a good logistics provider is essential for the sustainability of your activity and your company. By entrusting the management of your Supply Chain, you entrust the responsibility of your brand image to your customers. It is therefore necessary to ensure the quality of the services of the logistician and that he shares certain strong values with you.