Full truckload services are central to the success of logistics and supply chain operations that must transport large volumes of freight or shipments swiftly and efficiently.
However, ensuring optimal full truckload services largely depends on the carrier or third-party service provider the supply chain leverages. That is why evaluating and hiring the right logistics provider goes a long way to determining the success of the full truckload service. The only problem is that in a volatile logistics industry awash with several FTL providers, finding the right partner can be daunting. So, how can more businesses and their supply chains find, evaluate, and hire the right provider?
This article will provide a comprehensive guide on the critical criteria supply chains can adapt for evaluating and hiring full-truckload service providers, giving you the confidence to make informed decisions.
Essential Criteria for Evaluating FTL Service Providers
FTL trucking entails transporting and shipping larger volumes, fragile freight, and unique shipments from origin to destination. Some of these may include petrochemicals and products in the food and beverage supply chain. Because of the size and volume of these shipments, and the necessity for security and faster shipping, such freight would need an entire container. In this situation, partnering with the right provider cannot be overemphasized, and these criteria will help choose one:
1. Proven Track Record and Reputation
The biggest determinant of future success is past success, and this is especially true of the logistics industry.
Ensuring the trucking firm providing the FTL services has a good record of doing so is critical. If it is a new provider, it is essential to ensure that the leadership has successfully run trucking operations over the years. A track record tells a lot about any company’s reputation and reliability. Looking beyond this critical metric can sabotage supply chain operations. Preferably, ensure the trucking business has been around for a long time and has served notable clients in the past.
2. Comprehensive Service Offerings
You want a provider that can cater to every trucking need of the supply chain, including specialized equipment and value-added service.
This means the provider must offer trucking solutions that ensure the supply chain doesn’t have to seek the services of another provider to complement. Comprehensive service offerings also allow shippers to improve their scalability and flexibility because of the robust resources the provider makes available.
3. Technological Capabilities
Technology has become an integral part of any supply chain operation, including trucking.
With technology solutions like route planning, telematics, GPS, Internet of Things, and many more, third-party logistics providers have optimized the entire logistics process for businesses, shippers, and supply chains. When evaluating a provider, it is essential to understand the company's investment in technology solutions and the extent to which they can be leveraged to facilitate tracking, visibility, and the efficient management of shipments.
In the modern logistics landscape, real-time monitoring is critical because it allows for more secure transportation, risk mitigation, proactive communication, and control over the shipment.
4. Safety and Compliance Standards
Logistics and transportation are some of the most regulated industries in the United States and globally. And with good reason.
A trucking business that takes safety and compliance seriously will ensure the safety of your goods, guaranteeing the shipper will have no problems or delays getting the goods to the required destination on time. In a world where regulators are increasingly on the lookout for defaulters, finding a 3PL that takes safety and compliance seriously can be the game changer for supply chain management. Safety and compliance are paramount in reefer transportation.
Evaluating the Cost-Effectiveness of FTL Providers
Although partnering with 3PLs allows the supply chain to leverage the FTL providers' expertise, experience, and resources, evaluating the cost-effectiveness of working with one before jumping into the partnership is essential.
For instance, if a trucking firm meets all the criteria, it doesn’t necessarily mean the partnership will be worth it. The following will provide a guide for effectively evaluating the cost-effectiveness.
Transparent Pricing Structures
Evaluation is primarily around pricing and negotiation, which is crucial as it determines the cost of the FTL service to the business. It is important to push for transparent and clear pricing structures to avoid hidden fees and unexpected costs to operations.
Efficiency and Optimization
Ensure the trucking firm runs an effective operation and leverages technology solutions, such as route optimization and planning solutions, to ensure that the shipments reach their destination in the shortest time possible. An efficient operation also means less exposure and risk for the shipment.
The Partnership Advantage: Collaborating With The Right FTL Provider
Considering how critical and strategic truck transportation is to the supply chain, the answer is to have a strategic partnership with a third-party logistics provider that allows for long-term and interconnected operations.
Strategic Partnership Benefits
Entering a strategic partnership with the third-party logistics provider allows the supply chain to explore the benefits of a long-term collaborative effort. These could include cost reductions, priority treatment, improved efficiency, and enhanced reliability and predictability. Collaborative planning can also enhance communication, resilience, and overall logistical success.
Customized Solutions For Unique Needs
Through strategic partnerships, the trucking firm can dedicate resources to the shipper, allowing for much more capacity and tailored solutions. These may include purpose-built trucks for specialized transportation.
Leveraging Continental Logistics for FTL Services
Bringing in the volume that justifies shipping in full truckload is half the battle. The other part is finding a reliable carrier that will ship your freight to your customers intact and on time. That’s where we come in.
At Continental Logistics, we handle the legwork of sourcing carriers, scrutinizing retailer routing guidelines, and scheduling and tracking shipments. We designed a network of carriers to ensure we have nationwide coverage for your shipments at all times. Regardless of origin or destination, we have local, regional, and national full truckload transportation (FTL) for your products. Talk to an expert at Continental Logistics.
