The ‘goods’ or ‘cargo’ produced by the business unit is either transported via the business’s own freight services or is outsourced to the logistics companies. The latter, however, is a more convenient and widely used option. As is it is practically not feasible for any business (due to immense resource allocation) to set up specialized divisions to perform varied business activities. Therefore, outsourcing to the specialized concerns is the best resort.
The logistic companies are generally quite humongous in terms of size and investments and house a fleet of covered vans, flat bed and step deck trucks to facilitate flawless transportation of priced goods. These companies even offer efficient transportation of liquid and gaseous products like oil and gases. However, not all logistic companies are equipped to tender these varied services, therefore, it is important for the shipper to first understand the nature of his goods, budget, and then single out the freight services that proffer the best of the shipment at affordable prices.
There are a few points that should be mulled over before taking to the services of any logistic company. Picking an apt freight service is certainly a judicious act and calls for careful consideration of several factors. Like -
- Long the company is into the transportation business?
- What is the fleet size of the company?
- Whether the company is into subcontracting the services further to other logistic company?
- What all goods are shipped by the companies and by what means?
- Check the damage claim history and safety records of the company.
- What is the emergency response plan or spill response plan of the company?
- Check whether the company is charging competitive prices.
- What would be the mode of communication while the goods are in transit?
- Check whether the company is offering the risk minimizing plan in the form of insurance.