Guide to Choosing a Logistics Service Provider
You know that Singapore’s reliable logistics service provider is vital to your F&B business’ success if you’re a manufacturer. This is because the very last leg of your product’s journey can ultimately determine its success or failure. For example, the speed with which you get the product from the factory/storage to the consumer can differ between generating additional revenue and incurring losses.
Logistics Can Make or Break your Business
Product development has evolved immensely over the past couple of years. From crowdfunding trends to lean methodologies, product development has seen its ups and downs in growth. However, one of the most critical aspects of this development has been how retail food distributor companies choose their distribution channels.
A single logistics partner can make or break a product. This is especially true in the startup world, where offering top-tier customer service can be the key differentiator between keeping and losing customers. While it is common knowledge that logistics plays a vital role in a product’s lifecycle, it tends to get overlooked in the grand scheme of things. For example, if you choose your shipping partner poorly, you could face delivery delays. In the retail world, speed is critical, and even a few extra days’ delays can cause you to lose thousands in sales. In any business scenario, on-time delivery is crucial to maintaining customer satisfaction.
There are many ways a logistics provider can impact the success or failure of F&B suppliers in Singapore. Let’s discuss some critical criteria to consider so you feel more confident of your choice.
Evaluate the viability of managing some aspects internally and outsourcing others.
One of the first considerations in choosing a logistics partner is how much of the process you want to manage internally versus outsourcing. The following are some of the critical questions you should be asking yourself:
- Do you have the necessary internal resources and expertise to manage all aspects of your supply chain effectively?
- What value can an external partner add that you cannot provide internally?
- Is your team capable of handling multiple service providers, and is it worth the added complexity?
Determining which aspects of your supply chain management (SCM) should be managed internally versus outsourced is critical for reducing execution risk, improving cost-effectiveness, and ultimately, providing a better customer experience.
Look for a dedicated partner who has experience working with companies like yours.
A logistics partner who understands your industry will often be best suited to understand your company’s needs. A provider who works in your specific sector can also offer valuable insight into market trends and even help you identify cost savings and growth areas.
For example, if you sell perishables, a logistics provider that has worked with other food and beverage companies is a good fit. Companies that sell food products may need to work with a provider specialising in cold chain logistics solutions and fast delivery. A provider that understands your industry’s requirements can help ensure the safe delivery of your products within a reasonable time frame. They can also advise on regulatory compliance issues, labelling requirements, and product packaging best practices.
It would help if you also considered the bigger picture. Your business will likely evolve, and you’ll need to be able to scale into new markets as you grow. If your product is well received, will your logistics partner be able to scale their services alongside you?
Your preferred logistics partner should offer a full suite of services, from sourcing and transport to warehousing and delivery. This can help simplify the process and reduce execution risks by dealing with one point of contact instead of several.
Decide if you require a one-stop shop or multiple providers.
Doing business with one partner may offer more simplicity, but it can also mean less flexibility. For example, a single logistics provider will coordinate all supply chain elements, from sourcing to fulfilment and delivery. However, if that provider doesn’t meet your needs in any area, you might be forced to accept their limited services.
If you need specialised services, such as warehousing for hazardous materials or perishable products, a single provider may not be able to accommodate those needs. In this case, it’s best to work with a partner with those capabilities.
There will be cost advantages in using a single vendor over multiple partners — especially when they provide good services to handle all aspects of your supply chain. On the other hand, if a one-stop vendor doesn’t offer competitive pricing or quality of service in certain areas or specific geographical locations, it might make sense to split up responsibilities among multiple logistics providers.
If you choose the right logistics provider, you can rest easy knowing that your product will be well cared for at every stage of the shipment process.
There are dozens of logistic companies, given that food manufacturers cannot hope to survive without them. If you’re still looking for a reliable logistics service provider, you might want to consider TreeLogs. With a fleet of vehicles outfitted with refrigeration systems, experienced drivers, and dedicated food-management teams, we have been delivering both quality and safety since 2018. We offer multiple options to fit your needs, so fill up our contact form to get started.