Is the vessel half-empty or half-full?
Criteria for choosing a logistics provider in an inquiry of members of the Supply Chain Professionals Community, which includes more than 1.4 thousand specialists in this field.
Companies and retailers’ representatives should evaluate the significance of the criterion from 1 to 5 on a five-point scale, where 1 - is not important, 5 - is important. In the course of simple manipulations, according to the criteria we obtained a weighted average result. So, look through the points from 1 to 5.
The brand awareness, the widest range of related services that the company offers and the presence of an extensive network of offices and representatives are criteria with a result of 2.58 out of 5.00. It means that if the company’s name sounds similar, it has an extensive branch network and a diversified package of services, a halfway to success to be chosen as a potential partner are passed and 50% of the chances are in your pocket.
The chances grow by another quarter with stable financial reporting and stability (result: 3.33 out of 5.00), which the cargo owner will pay attention to, as well as using modern technologies and the presence of qualified professionals for specific tasks (Result: 3.42).
The availability of recommendations and own assets increase the potential candidate’s chances in 3PL with a result of 3.58. So recommendation letters and assets will be important for the provider.
But the most decisive factor that will allow the scales to bow to the choice of this particular company is a flexible pricing policy and the confirmation of competencies by living examples of completed projects (Result 4.0 and 4.08).
The participants of the Professionals Community proposed to underline the next criteria that were not involved in the inquiry:
- Carefulness, clarity in the work, employees’ competence (for example, the ability to check and fill the CMR)
- Deferred payment, FCPA Compliance, tariffs’ fixation for a certain period (1 year), IT capabilities
- Quality of business processes
Together or separately they will add the weights to the bowl and add the vessel to 5.0 when they will sign the contract with the logistics provider.
The method of weighted average indicator was used in estimating. It is constructed as dependence, the arguments of which are relative quality indicators (criteria) and parameters of their weight (the importance of the criterion).
The statistics demonstrate to us that with all the richness of the choice the client will stop at a company that will offer him the optimal price and a big choice of service, while the logoperators should not forget to take care of their competitiveness and not be ashamed to talk about their real achievements.
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