In any business, outsourcing can help you keep your overhead costs low and still be on track as by the company’s bottom line. To maintain a strong supply chain network; it is important to invest in long-term relationships. Changing carriers can be costly but there comes a time when you need that change.
Collaboration with carriers makes businesses profitable. But you have to analyze your vendors periodically to determine whether they are they optimal fit for your business or not. The following are signs that you need a changeover:
• Provision of Substandard Services
It doesn’t matter the number of clients you have, they all expect stellar services from you. The same should apply to the relationship you have with your carrier, as a client. If the quality of services deteriorates over time, it is time to move on.
A relationship that spans over a long time, often results in, better and sometimes discounted rates. You may also gain access to more carrier options which will help your business in mitigating the risks that come with shipping.
• Uncompetitive Rates
From time to time, you need to re-evaluate the financial position you have with your current service provider. The category of competitive or uncompetitive depends on how much you are willing to pay for the service. It may be difficult to bring in a new partner as you have to consider several factors, e.g., knowledge of the company, familiarity, connectivity, etc.
However, their rates should be competitive for the service they offer.
• IT Averse
Supply chain companies need to take advantage of the available technological solutions. It is useful in mitigating risks and gathering intelligence on the market. Your choice of a carrier should be able to embrace the changes in technology.
They should evolve as the consumers do. They shouldn’t be using equipment or technology that negatively affects the speed and quality of operations.
• Repeated Mistakes
No one is perfect, and we are all prone to making mistakes. However, it is frustrating to keep calling a vendor about a particular error. It can be costly to your business to face recurring service issues consistently.
If the carrier refuses to acknowledge the problem or don’t make efforts to improve, it is time to find a service provider that will value your relationship.
• You Outgrow Them
Different carriers provide different services. Some have specialized services while others focus on global partnerships or customized warehousing. As your business grows, so does your needs change or increase. Find a carrier whose services matches your needs.
Both parties in the relationship between you and your carrier should be able to give and take. Find the right match for your business needs.