Every online business currently depends on the efficiency of a transport company. If you want to cut costs and avoid failures, follow these steps when hiring the transport of your eCommerce.
Much has been said in the past of the failures that can mean for any company not to choose the modes of transport and the right carriers for a business. Today the problem is even more obvious. Losses or savings in these cases can mean the failure or success of many online stores.
When you choose the way through which your products are going to be transported or when you choose the carrier you are going to work with, there is clearly a lot at stake.
The web specialized in logistics and transports Inbound Logistics, made a report on best practices when choosing the best means of transport and hiring your logistics provider, based on interviews with third-party logistics providers, carriers and shippers.
Follow these tips that we discuss below to ensure you choose your logistics providers well and the means or means of transportation for your products.
Choose the right means of transport
Find out and document as much as possible about what you are going to transport
Know in detail the product you are sending, its capabilities, its characteristics, weight, measurements … The more you know about your products, the better transport decisions you will make. Learn everything you can about logistics, learn and read about the subject. Sometimes documenting can be difficult. With more technical vocabulary, but once the terminology is learned, you will have a much more global vision that will help you make better decisions.
Determine the actual transit time
You cannot rely solely on the transit time of a product. You have to count from the moment the order is available until the moment it reaches its destination. There is always the possibility of time and terminal delays. There may be cases where, for example, a logistics company says that the transit time is 19 days and ends up being 27 days.
Calculate a precise estimate of the total cost (duties and taxes included)
While many electronic stores are based on the cost to dry, the right thing should be to look at all the pros and cons of each means of transport and based on that make a more specific estimate. Sea freight, for example, is the least expensive, but you also have to keep in mind that delivery times are much longer. An estimated transit time of 40 days can be extended to 120 days. They are a series of factors that can make prices increase, for example, a delivery that does not arrive on time, will be a loss.
Diversification in transport modes. The biggest failure is to adopt a unique approach to choose the means of transport. Unforeseen events may arise out of your reach and you should always have second even third options, otherwise, the consequences can be serious.
Select the appropriate transport company
Tips to hire Transport Company
Focus on the value of the product, not the price
The value takes into account the cost, transit time, quality of your provider, customer service and other factors that the price of the product alone would not give us. It is necessary to take into account when looking for a supplier the risk factors, the security that is guaranteed during transport. Not all products are the same and for example, when transporting delicate merchandise such as electronic products, air transport may be better and faster than sea shipping
Today there are all kinds of programs such as transport management systems that can help you streamline processes, the supply chain and give greater transparency. Thanks to technology, digital models can be created that help companies predict the impact of different transport options on the supply chain.
Companies are currently being able to generate a true end-to-end digital model of their supply chain, incorporating all cost factors in all their functional elements. With this type of technology, you can perform an analysis of what would happen if … and tell them what would happen if they chose one option or another in the supply chain or customer service.
The more you wait to make important decisions, the more you’ll be at the mercy of the market. You take the prices instead of imposing them. Proceed to all your competitors and plan as far in advance as possible, something that few suppliers are able to do and what really makes a difference.
Not only do you have to rely on the references that the carrier provides you, go further and seek references and opinions from other customers.
The vast majority of transport experts agree that full knowledge of the products to be transported, needs and capabilities will help logistics professionals make the best transport supply decisions.
The final recommendation is that in case you do not have the experience or the appropriate personnel to manage the logistics in your electronic commerce or business, leave it in the hands of third parties with sufficient experience.