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How to Choose a Logistics Company in Malaysia

by Clare Louise

 For a business to become successful, you have to properly manage your supply chain. It means getting all the materials needed for production at the right place, and at the right time. If there is a delay in your supply chain, then it could affect your whole business. Customers might start to complain about their orders not being processed yet. Your reputation may also be negatively affected. To achieve an effective supply chain management, you may have to hire a logistics company in Malaysia.

Why Should You Hire a Logistics Company 

If your business just started, then you probably do not have enough connections yet. You have to build a relationship with various couriers, freight forwarding companies, and suppliers from scratch. One way you can start building these relationships is by hiring a logistics company. They have all the connections that you need to properly manage your supply chain.

Here are more reasons why you should hire a logistics service provider:

  • Get significant cost-savings as you get to work with industry experts. With this, you no longer have to hire new employees for your company. It also means that there are fewer people to give salaries to.
  • Another way a logistics companycan help you save money is by providing you with all your warehousing and transportations needs.
  • You get to focus on improving your business core competencies as you do not have to worry about managing your supply chain and logistics.
  • With the help of a logistics company, you can easily enter new markets while minimising the risks.
  • Lastly, you get to use the latest technologies on logistics if you partner with a logistics company. Using this, you would be able to further improve your supply chain processes.

How to Choose the Right Logistics Service Provider

Your logistics partner will be the ones responsible for storing and delivering your goods. Thus, your business success will depend on the capability of your logistics partners. Since it is a crucial aspect, you have to carefully choose the logistics companythat you are going to hire. However, the problem with this is that it is difficult to choose among the many service providers in Malaysia.

To help you decide, here is a simple guide on how you could choose the right one for your company.

  • Determine Your Logistics Needs

Before jumping right into the selection process, make an assessment of your company first. Determine what type of logistics servicesyou need. Do you want to focus more on the transport services, or do you want someone to handle your inventory? Remember that each service provider has its own specialities. So, take some time to review your company’s business processes, and see which type of logistics serviceyou need to prioritise the most. Knowing this will help you easily narrow down your choices.

  • Choose an Experienced One

It would be better if the service provider you choose is an experienced one. They already know the ins and outs of this industry. With this, you can ask them for insights on how to further improve your supply chain and delivery services.

Moreover, if you choose an experienced logistics provider, it only means that they are financially stable. They manage to stay in this industry for years. Choosing them could make you rest assured that you won’t be losing a service provider suddenly. They will continue to operate efficiently and competently.

Another way anexperienced logistics companycan help you is when you decide to expand your business. They have the knowledge about international shipments. From the restrictions and cost-saving opportunities, they can relay all these resources to you.

  • Ask About Their Networks

Since you hired a logistics company, it means you want to broaden your connections. So, ask them about their networks before deciding to hire them. See if they have already partnered up with reputable transport service providers, as well as, with other freight companies. For their transport partners, do they have a fleet of trucks available for handling large, bulky goods? As for their freight partners, do they provide both LCL and FCL shipment services?  If yes, then you could make use of these connections and logistics resources as your business slowly grows in the future.

  • Consider Their Level of Customer Service

Your logistics provider should be someone you can easily reach out to in case of emergencies. Remember that in logistics, delays may happen. It could either be because the goods got held up in the customs, or an accident happened. Whatever the reason is, it is important that you could talk to your logistics provider right away. Know what has happened to the shipment, and discuss what are the alternatives. You have to know so that you immediately inform your customers if there will be a delay in the processing of goods. Doing this will help them feel at ease. It will also help keep a positive business reputation.

  • Ask for Referrals

Before you decide to hire a logistics company, make sure you ask for referrals first. With this, you can find out how they did with their past clients. Was their performance excellent? Did they manage to deliver good customer service? If an emergency situation happens, did they resolve the situation effectively? Is their company someone you can trust when it comes to the transportation of your company goods? Learn all about these by asking a referral from prospect logistics companies.

  • Consider the Price

Lastly, you have to consider the price. Do they allow you to negotiate with them? Do they provide you with discounts every time you decide to hire an extra service?

Just follow this choosing guide above if you are having a hard time choosing a logistics company! Since you are already looking for one, check out Hock Cheong Malaysia now.