You want to have that peace of mind that when it leaves your dock, you know it will arrive safely on time at your customers dock. How important is customer service? Have you ever had a tight deadline with your biggest client and your product arrived late? I used to work for a company who sold many products to Wal-Mart. Wal-Mart has very strict deadlines and if you are late, they do not pay for the product. When it comes to satisfying your own customer’s needs, you want to provide the best customer service you can find. This will not only help your business, but help build trust with you and your customers. Whatever line of business you are in, if you do not satisfy your customers, you will be out of business soon. This is why it is so critical and vital to have LTL freight shipping companies you can trust.
“The strongest group financially among 3PLs includes those with net revenues between $500-1000 million. The net income margin for this group is 8.2%. C.H. Robinson, Kuehne + Nagel, J.B. Hunt Dedicated and Werner are in this group. In general, companies in this group have size of scale and advantages over many smaller competitors while not being so large that they are unwieldy, procedurally rigid or in danger of losing touch with customers.” LQ Magazine did an in depth study to find out if Big 3PL’s or if Medium sized ones served their customers better. They state “The feedback we get from customers indicates more “A” performances from these midsized 3PLs.” Further LQ defines what they consider a midsized 3PL.
No company can afford to increase COGS by throwing money on high shipping prices. Especially with large heavy items, shipping costs can add up quick. A 3PL too small has its disadvantages. A small time logistics shipping company cannot provide you with the advantageous pricing model you need. In these economic times margins are slim.
But there is a fine balance that you do not choose a 3PL so large that you are lost in the shuffle and just become another customer number in their huge database. Since customer service is so important it is also important to choose a logistics partner that is willing to go out of their way for you. Many may think that going directly to a carrier will get you the best customer service. Yes that is true if you are Proctor and Gamble, Kellogg’s, or Target. But if you are a small to medium sized business yourself, it is good to have a larger 3rd Party 3PL working on your behalf. Just like LQ magazine says, these companies that are larger than you have the size of scale advantage that you cannot get with the carriers.
The only successful acquisitions I have seen are those where the original company remains intact and it is only ownership that changes, not function and management. Too big 3PL has disadvantages. LQ magazine talked of huge conglomerate mergers. Basically if the company is so big that it is eating up other companies and trying to combine two huge monsters, studies have shown that customer service is the first thing that goes out the window. If you have ever experienced a take-over or a merger, you know that those companies are in a state of regulation confusion. It takes many years to combine big companies successfully, and even more years to cut all the fat and get to something streamlined and profitable.
Many medium sized online freight quotes systems have the technology to streamline your shipping operations and get you great bulk rate discounted shipping. A small 3PL might have great personal touch and relationship, but another disadvantage is technology. A small mom and pops shop is not going to have the sophisticated technology you need to make shipping fast, easy, and hassle free. Think of your life before wireless internet, microwaves, or email. Without a good tracking, inventory management, and logistics system, shipping is like using a pay phone, inconvenient.
This is the only way you can gain trust and reliability with any LTL freight shipping company. Another disadvantage to a large company is the lack of personal relationship. If you call in and get a different customer service person every time, or feel you are talking to a call center representative, you are not being served well. Many large companies have implemented account managers to develop and manage a specified number of clients and make sure all their needs are met. This has been very successful. If you have a dedicated account manager then that is good. You need to know someone by name in the company and to have access to a real person if you need.
Also, they should only use the best quality companies to make sure every shipment arrives on time damage free. Overall there is a fine line to walk, you want to make sure that you use a company big enough to fulfill your needs for convenience and cost savings, but not too big that you have no personal relationship to resolve problems. Customer service is king when it comes to pleasing customers and your shipping provider should also be a customer service king for you. They should be a liaison with big shipping companies to provide you great pricing and to resolve conflict fast.
Source by Alex Hennefer