- 1.The damage rate of customers’ goods is high
- Returns are part of the daily business, whether it is internal transportation or international transportation. The reasons for returns include customer dissatisfaction or damage to the goods. If customers keep returning goods due to damage, it will weaken their loyalty and confidence in the business. The increase in the rate of goods damage may be a sign of untrained employees, poor inventory management and negligence of responsibility. If you cannot tolerate the damage rate of your customers’ goods, it’s time to look for a new logistics partner.
- Lack of end-to-end logistics technology
To achieve scalability and stay ahead in the competition, most logistics companies have adopted AI-based systems to complement their services. Tracking automation, intelligent routes and real-time monitoring are some ways to improve logistics processes. Logistics partners without these technologies may fall behind their competitors, and customers may choose to purchase from them. Logistics process automation can not only enhance transparency, but also save time and improve the customer experience. If your logistics partners do not have these automation technologies, they will have difficulty dealing with delayed deliveries and returns. - The staff turnover rate is high
If the staff turnover rate of your logistics partner is high, it might be due to dissatisfaction with the employees or their being poached by more established companies. A high staff turnover rate may affect service quality and business continuity. Establishing healthy relationships with employees can enhance employee retention rates, thereby improving service delivery and business growth. Therefore, you need a logistics partner that can retain employees. - Difficulty in expanding business
One of your goals is to expand your business, whether it is to increase the coverage of your products or services. You need a logistics partner who can develop together with you. If your logistics partner resources are limited and it is difficult for them to expand the business with you, you may need to look for new partners to meet the growing business demands. Especially during holidays or special events, if your logistics partner is unable to cope with the sudden increase in supply demand, you may miss sales opportunities. - Financial instability
You need a reliable logistics partner to ensure the stability of its service. Financial challenges are common in business, but a reliable company will quickly pick itself up and ensure the seamless operation of daily activities. Financial instability poses a threat to your business continuity and may lead to revenue loss. - Poor communication
Excellent communication is crucial for enhancing customer loyalty and making them feel respected. It takes a long time to build relationships with customers and retain them. If your logistics partner has poor communication, it may lead to the loss of customers. In addition, logistics partners should help you build Bridges throughout the entire supply chain. If it takes a long time to reply to your messages or concerns, you will not be able to keep abreast of business developments in a timely manner. - Bad reputation
The customer expressed dissatisfaction to uphold justice. Customer satisfaction is at the core of every business, but sometimes you may not be able to achieve the goal of 100% customer satisfaction. If you care about your customers’ problems and strive to improve, you can instill trust and confidence in them. If your logistics partner has a history of poor customer satisfaction, your customers may choose your competitors. - There is no reward for the service
Customers’ evaluations of the services provided by logistics partners can affect your business. Positive reviews from satisfied customers on social media can motivate your target audience. If customers are satisfied with the services of your logistics partner, it will have a positive impact on your business. - Excessively high cost
If your logistics partner is merely pushing your investment towards little or no return, it’s time to look for a new one. The goal is to bring more revenue to your business. From the tracking of damaged goods to freight charges, you expect every penny to be highly transparent and accountable. If you cannot understand the sources of certain expenses, you will be at risk of business growth. - Lack of visibility
There are risks in working with logistics partners you haven’t met and don’t know where to find them. You hope to establish meaningful relationships through the supply chain process to achieve business continuity. If it’s impossible to meet virtually or in the office, it’s time to look for a new logistics partner. In addition, logistics partners need to establish an online image. - Lack of security in order fulfillment
Customers hope that they won’t have to worry about damaged goods or poor product quality when the order is delivered. Your logistics partner should have policies to ensure the safety of customers’ goods. The warehouse has made investments in insurance and physical security to ensure inventory safety. Fragile goods require special packaging to ensure they arrive at their destination intact and to avoid consecutive returns due to damage. If you doubt the safety of your customers’ goods, it’s time to look for a new logistics partner. - Traits sought in logistics partners
You need a logistics partner who is willing to develop with you at all stages of supply chain management. The following are the contents to be sought among logistics partners:
Outstanding business continuity and customer satisfaction.
A reputation that can stimulate the enthusiasm of the target audience.
Ensure the safety of customers’ goods to avoid damage and increased costs.
- Improve the customer experience through automation.
- Financial stability to avoid inconvenience.
Provide scalability support for the continuously growing business.
Good communication helps build healthy relationships throughout the supply chain process.
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