4 Things that Shippers Want from Third Party Logistics Service Providers

Third party logistics service providers are independent companies that provide outsource services to customers engage in shipping, delivery, or stocking. These companies specialize in integrated operations and offer warehousing and transportation solutions to businesses which can be customized based on consumer demands. Oftentimes, the service extends to building great relationships with partners in order to achieve customer satisfaction and fulfill supply chain success.

When it comes to leveraging party service providers, shippers become extra careful with its decision-making. As much as possible, consumers would want to find a reliable and service-oriented logistics company to take care of their stocking needs. As the competition rises in the logistics market, the demand from consumers for outstanding logistics service has posed a huge challenge for third party service providers to even invest more and strive in their own areas of specialty.

So how could logistics service providers effectively engage with their customers and build a long-term relationship with business partners? As you see, logistics business does not just involve measurable results. Customer loyalty and long-term partnership also play an imperative role to stay on top of the business market. In this article, you will learn the four key elements that customers would fundamentally look for in a logistics company. When you have them, you can assure yourself that you are way above your competitors.

    • Knowledge about the customer’s business – Logistics companies are experts of their own areas of specializations but do you know what your customer wants? Understanding the customer’s products and what you can offer to them so they can reap good benefits, is a key to business success. When customers realize the logistics company they are dealing with is willing to know more about their products, they are confident that the company can cater to their needs. It starts with assessment, gathering information, and educating oneself about the customer’s business.


    • An offer for a better price – This is more than just about the freight rate or cost per services. Some companies can offer really cheap price, but you can’t expect the warehouse location to be high above the minimum standards. What you need to show is a cost differentiator. A customer can pay expensive cost when the quality of service is also worth the price. Your cost differentiator should include having a high standard facility for warehousing in exchange for a good price. But for customers who are looking for some ways to save on cost, you should also have a certain cost reduction mechanism to cater to the marginalized sector without impairing the quality of service.


    • Honesty is the best policy – The next of kin to quality is honesty. Don’t assume customers would want to listen to your preaching about your company. Avoid upselling or overselling, especially if you know that the endorsed service might not be necessary for the customer at all. Instead, you ask the customer what they need and give them an honest recommendation of what you can do. Give them a list of price and the corresponding service that you can offer. Include accounting and auditing in your service and assure the customer that you have a good team of customer service in case of disputes and emergency situations.


  • Innovative solutions. Show customers a unique way to solve a particular problems. Third party logistics service providers know a lot of events that can occur anytime in the middle of the business cycle. And companies that have better solutions, other than traditional ones are often place in higher positions than those who don’t. So aside from the well-known solutions, it is also great that you have your own innovative solutions to possible problems. Leverage technology whenever possible and be able to cater to both online and offline customers.