Transportation is the most critical activity in logistics management. Transportation becomes more challenging when the logistics is at the global scale. The business should clearly communicate its performance expectations to the transport partner. It should establish clear performance metrics for the transport partner.
Most businesses today outsource the transportation part to external vendors. Even large, multinational corporations like Royal Dutch Shell have outsourced shipping of crude oil to outside shipping companies. Outsourcing of transportation has resulted in cost savings for companies and businesses. Relatively few businesses now have in-house fleet of trucks or ships to transport their goods and services.
However outsourcing of transportation also means that businesses should be more careful when choosing the transportation partner.Those transporters should be chosen who are aware of the area in which most of the customers or suppliers are located. The invoices presented by the transportation partners should be thoroughly checked and audited to ensure that there are no pricing errors or over-charging for services rendered by them. The performance of transporters with respect to timely delivery of goods and services should be continuously monitored.
The trailers, trucks and other equipments that are being used by the transportation partner for transport of the company’s goods and services should be in good condition and maintained properly. When the equipment is not in good condition, the probability of delays in delivery increases. Therefore it is the responsibility of the business to take reasonable steps to ensure that the equipments of transportation partners are in good condition. Those transportation partners should be chosen who maintain their equipment in good condition.
In international logistics, it is necessary that the transporter has a dedicated team of customer service executives. The job of these customer service executives is to address the queries of customers with regard to the status of their shipment.Those transporters should be chosen who have the technological capability to offer real time tracking of shipment facility to customers. Transport partners should be clearly explained the importance of customer satisfaction for the company. When transporters fail in making timely deliveries it results in customer dissatisfaction. Therefore the decision of choosing the transportation partner is of strategic importance. It should be taken after careful consideration and due diligence by the management.