4 Reasons to Rethink Your Distribution Carriers

Every year, companies take stock of their performance and try to improve upon one or more areas. One area that often gets overlooked is distribution, in particular, the carriers your company uses to move its goods. If your company has a public warehouse handling its inventory, distribution, and logistics, you’re more than likely getting the best distribution rates. That’s because public warehouses, or third-party logistics (3PL) providers, use volume, frequency, and other factors to get the lowest price from all types of carriers.

But if your company does its own distribution in-house with a particular carrier, you’re probably locked into a set rate under a contract for a certain length of time. But that doesn’t mean the contract can’t be renegotiated, especially if circumstances, such as falling gas prices, warrant it.

In particular, these four conditions should serve as a catalyst to reconsider your distribution carrier.

1. Uncompetitive Market Rates

Each year, your company should do a rate comparison with other carriers to be sure your existing carrier is offering rates competitive with the market.

If the rates are higher, ask the carrier why and discuss renegotiating your company’s contract. Also consider whether the difference in rates is worth switching to another carrier. Some companies are willing to pay a bit more if the carrier provides excellent service, responds quickly to your company’s needs, or exceeds the special needs of your business.

2. Level of Service Declining

When it comes to carriers, they pretty much all provide the same service of moving goods from Point A to Point B. For many, the differentiating factor is customer service.

Think about the service your business is receiving from its carrier. Has it declined over the year? It could mean the carrier is spending more time servicing bigger clients or putting its service resources toward winning new business.

If service ended with the sale with your current carrier, you might want to take your business elsewhere.

3. Not Keeping Up with Technology

Today’s distribution relies heavily on the latest technological advances. Carrier companies should be up-to-date with the latest IT connectivity methods so they can assist you in managing your company’s day-to-day logistics.

Review the technology in use with your carrier. If it hasn’t been updated in a few years, your company may be better served by another carrier that invests in logistics and transportation management technology.

4. A Lot of Internal Changes

Internal changes could occur with either your company, its carrier, or both. If your company is growing, evaluate whether your current carrier is capable of scaling its services to that growth, in particular, handling an increased shipping volume.

If your carrier has had a lot of internal changes over the past year in terms of personnel or service methods, do a bit of investigating. It could be internal strife between management and stockholders, poor financial health, or perhaps the carrier is looking to be acquired by another carrier.

Look at All Your Options

If your company is handling its distribution in-house, consider all available options and compare their pros and cons.

One viable option is a public warehouse that handles your warehousing, distribution, and other logistics. For example, Brendamour Warehousing, Distribution & Services is a 3PL that offers a full range of logistics services to companies of all types and sizes.

You can use some or all of our services as your company requires, and scale up or back as needed. With a public warehouse 3PL, you only pay for the services you use, as you use them.

For example, if you wanted to use only our distribution services and take advantage of our low carrier rates, you can do that.

To compare our carrier service and rates with your existing carrier, simply contact Brendamour Warehousing.

At Brendamour, we are committed to working with businesses to help them stay competitive in the marketplace. After all, when your business succeeds, so do we!