Is a 3rd Party Transport Company Right for Your Company?

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Making a decision between a third party transport company or operating your own in-house shipping service area can be a difficult to decision to make. There are many things you must consider before you make a final decision with the most important one being the impact your decision will have on your customers. This is especially important if your company is changing from having in-house shipping to contract with a transport company. Your customers have become accustomed to a particular kind of service and will expect to continue receiving the same service.

When you begin looking for a third party transport company, it is essential to find out their delivery schedules and policies. If your customers are used to receiving their orders within just a few days after their orders leave the production line, you must continue to meet those expectations or you will lose customers quickly and lost customers mean decreased revenue for the company. Therefore you must take time to research any transport company you are thinking of hiring to provide shipping to your customers. Even if you have budget constraints you want to choose the transport company that has a good reputation for quality.

One of the most important things to remember is there is no quick and easy way to choose a transport company. What this means essentially is do not wait until the last minute to conduct research in order to choose a transport company. Even if you have an in-house shipping department you should always have a list of companies you can call upon for shipping in the event your staff is unable to handle the load. Having a back up fulfillment company ready to handle overflow orders can make sure you don’t lose potential customers. This will help you not only with overloads but also in the event your company later chooses to eliminate in-house shipping in favor of hiring a 3rd party transport company.

The cost factor is the most important component of the final selection process. Your company needs to assess not only the customers’ needs but also the financial needs of the company. This means you must analyze the difference between having an in-house shipping department and a 3rd party transport company. While it may seem simple, the process is actually quite extensive since you will need to compare paying drivers and operating equipment compared to paying one fee to a 3rd party company. Sometimes it can be a difficult decision, especially if it means eliminating jobs, but it is necessary to make the decision that is in the best interests of your company for the long-term.