Logistics: How To Choose The Best Providers?


What are the elements to watch out for when choosing your logistics providers? Here’s a guide to making the right choice and saving money.

·Ensure you compare the offers of logistics providers

To craft a tailored and profitable outsourcing strategy, also look at growth plans. Once the specifications have been drawn up, you will be able to determine which service provider best meets your needs and what the associated costs will be. In addition, this will allow you to plan the flow of goods upstream, as well as transit times.

Evaluating your logistics network is also important, in order to be able to determine if there are warehousing centers available in your logistics network. The location of your storage space should depend on the characteristics of the products and their durability. Your external distribution network must be positioned on strategic sites and guarantee a good establishment of the distribution network. 

·Achieve economies of scale on pre-routing

In supply chains, the role of the goods distribution center occurs after production. Your storage center offers the possibility of placing your buffer stocks, that is to say, your safety production kept for replenishment, near your distribution areas before delivery.

By focusing on a strategy of massification of your logistics organizations, you will be able to group your goods in order to ship them in batches, and thus achieve significant economies of scale. To rationalize distribution costs, the barycenter method should be used.

·The barycenter method in logistics

The barycenter method is a widely used calculation in the logistics sector. This method aims to choose the right geographical location, which will contribute to the success of your project. For this, the barycenter (also called the center of gravity) is a concept of physics that calculates an average of the coordinates.

·The transport plan and massification

Sooner Express 3pl Los Angeles helps you group your goods to optimize your transport plan. By using the massification strategy, goods from several producers can be delivered to a single logistics platform.

This method is also appreciated because it makes it possible to transport goods in cross-docking, that is to say from the arrival docks to the departure docks, without having to go through the storage phase of the products in the warehouse. As a general rule, the consolidation and massification of goods are managed by external service providers.

·Location of distribution centers and choice of service providers

Some logistics providers opt for a single distribution center, which links production sites with consumer markets with higher purchasing powers.

However, storage standards must be taken into account, as they vary between different states in America, especially for perishable foodstuffs and dangerous goods.

·Traceability depends on the power of the logistician’s information system

Once you have defined your scope of delivery, drawn up your specifications, and assessed your needs for optimal storage, other criteria must be taken into account in order to choose your logistics providers The power of the information system is essential because a powerful system will allow you to monitor the traceability of the goods.