Questions To Ask Freight Logistics Companies Before Signing
September 2nd, 2010 by Chris Channing
Moving products via freight is inexpensive and quick. It’s the standard transportation for the bulk of most business in the United States, and freight companies have sprung up all over the nation to take advantage of it. Weed out the masses with killer interview questions to form good business relationships.
The freight companies you wish to interview likely have different experiences with what they ship. One company might have more experience with dangerous freight such as chemicals, while others are solely for food products. The key here is to find which company has most experience in your area of business. Willing to get experience and actually having it are two different things.
Some things are mandatory: such as cargo insurance. The cargo insurance offered by the freight service shouldn’t be overpriced, and should be able to cover the majority of the costs of products if they are damaged. Full coverage insurance is nice for expensive products such as electronics. Ultimately, insurance is about breaking even or even making a profit from products even when they are in an accident.
The amount of money the freight operation costs isn’t always in black and white. There are some gray areas, and variable fees, that many companies employ. That means that getting a direct quote won’t always be possible, but you will certainly be able to get an accurate estimate. Don’t leave the meeting without first getting a print out of the rates and an expected estimate of the services proposed.
Outsourcing an operation to another company requires trust. This trust can mean many things, but primarily the company outsourcing the business trusts that the logistics service will stay in business and handle the logistics until otherwise needed. That’s why new freight companies aren’t trusted so much among large businesses. If the service were to disband, it would put the business using them into chaos while they scramble to find new solutions.
A familiar route is one with few surprised. Find a company that knows the general route you need to get products from one location to another. This might conflict with your determination to get a cost effective solution. When faced with an expensive local service or a cheap distant service, it can be more beneficial to pay extra. You could be saving money with less accidents and confusion.
Closing Comments
Always ask to see references before closing the meeting. Do follow up on them to make sure that the references check out. If none can be given, ask for a case study or proof of success with past clients of the freight logistics service.
Learn more on new bridge between US and Canada and truck freight levels.
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