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Why The Cheapest Logistics Provider Isn’t Always The Cheapest Solution

Cheap Logistic Rates vs Cheap Logistic Solution

It can be tempting to select the lowest quote when bidding out a project. After all, no organization wants to pay more than necessary when hiring a logistics provider.

Choosing the cheapest logistics provider is not always the cheapest solution. There are many pitfalls you should be aware of when choosing warehouse services companies and a logistics warehouse management vendor. Let’s address some of them.

California Warehousing

A “cheap” quote may not include clean, secure, and well organized storage and handling facilities that will provide the proper care for your products. You’ll want to have continuous monitoring or systems that provide 24/7 real-time online visibility to inventory.  A fire sprinkler system is a must to minimize any potential fire damage.  Asking the right questions will help you choose a warehouse logistics provider that knows how to streamline inventory and reduce customer loss.

When it comes to public warehouses, be sure to find out details about the condition of the facility. The best public warehouses keep their facilities modern and up to date.  They invest into advanced security for the facility and secure vulnerable areas of the building.   Depending on your needs, you may want to verify if they are AIB certified or ABC licensed for alcoholic beverage and food handling. Are they ISO certified?

Distribution & Logistics

Warehouse distribution management is a key area of warehousing logistics. Before you accept that cheap quote, get the answers to some more questions.

  • Do they provide on time shipping and delivery?
  • Do they employ lot code tracking and inventory recall?
  • What about freight savings?
  • What are their LTL and TL programs?
  • Do they offer pick and pack services
  • Does this vendor offer intermodal drayage service?
  • Can they provide real time access to order status?

Knowing the right questions to ask will help you better understand the maze of options that are presented when you go looking for a logistics provider.  It is always best to do a little critical thinking about your needs, so that you know what you can live without in terms of logistics and warehousing.

Fulfillment and Value Added Services

Do you need fulfillment services, display assembly, special packaging, repackaging, shrink wrapping?  You may want to find a vendor that offers fulfillment and value added services tailored for your needs.  Sometimes the combined costs vs savings needs to be examined to before you decide on a logistics provider.

Take the time to look a little deeper into the services they offer, weigh the pros and cons of going with an expensive options versus the low budget option. When you make an informed decision you will save your company time, make more money, and generate more customers in the long run.

If you are looking for a public warehouse or California distribution center, we invite you to look into our modern, secure facilities and cutting edge systems and logistic services. We provide an array of fulfillment and value added services as well. We are Prism Logistics, and Prism Distribution Center California…where business moves at the speed of trust.

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