Logistics Company Basics
A logistics company will likely have their own assets. That is the difference between a logistics company and a forwarding company. A logistics company is going to have assets, and so they’re concerned with where their assets are. That includes how they move those assets around and how they’re servicing their customers otherwise.
We consider the way that the customer feels about the services of the company. That, in turn, depends on whether the company can meet its service level agreements. So these aren’t things that will happen right away. These aren’t things that will happen live with that company. These are things that are pre-negotiated and in their contracts. If the logistics company isn’t able to meet their obligations, they should feel that right away.
Factors in Decision Making
There are a lot of things that go into making that decision. There’s the financial cost. There is also the potential of re-experiencing losses. This is due to the transactions that we have with this particular company. The other thing to take a look at is the availability of that particular carrier. Are they able to meet the agreement that we agreed to in the contract? A logistics company can offer a lot of pieces for that.
A freight forwarder or some other service provider can help that transaction. The logistics company will likely have equipment inside of their vehicles. In particular, the equipment that lets them know where the location of their assets goes with them. They can do this because they own the assets. The driver provides all that information back to us, and we can provide it to our customers. That type of flexibility in information isn’t available on the freight forwarding side.