To Remember When Selecting a Cold Logistics Company

Transcription

1 To Remember When Selecting a Cold Logistics Company

2 hile all cold logistics companies offer cold air, storage, distribution, trucks, etc., we feel there are several things you should consider before signing that multi-year contract. How long has your logistics company been in business? If the company you are thinking about doing business with hasn t been in business for at least 10 years, they may not have the experience or financial stability to handle the demands of your account, and those of your customers. Is your logistics company family-owned, shareholder-owned or REIT-owned? The main reason to ask this question is that not all owners are created equal. Family and shareholder owners are looking for the same results: they want to grow their investment, receive a fair return on their money and help make the company successful. REIT owners are in it for the property value, the land the warehouse sits on. REIT owners are excellent property managers, but they have no idea how to manage people or the everyday demands of the food industry.

3 Can you talk to the local warehouse staff where your product is stored? When a problem comes up or you need to verify something regarding your product, having the local warehouse staff available to answer your questions is key. Does local management have decision-making authority about services, rates or new customers? Some logistics providers have completely taken decision-making responsibilities away from the local management where your product is stored. You may wait two or three days before you get an answer to your question. What if your customer wants to store their products at the warehouse you are storing at? They may wait up to a month before their account is opened! Do you have to talk to a call center 2,000 miles away from where your product is stored? Call centers are great, when they are operated correctly and you are assigned a dedicated customer service representative who knows you and your business. Nothing is more frustrating than having to introduce yourself and your company every time you call.

4 When you make a site visit to where your product is stored, are you introduced to the office staff? You should feel comfortable with the people you and your customers are working with on a daily basis. Ask, Who will be working on my account? If no one in the room answers, Me, then how can you know what you are getting? Do the rates seem too low? Buyer beware! You get what you pay for, and the same holds true for logistics providers. The lowest price is not necessarily the best value. And, watch out for the 30 percent increase when the contract renews. Look out for driver load and count facilities. No one loads a truck better than an experienced warehouseman. Driver load and count facilities cost you and your customers money. You have already paid for handling; why pay again?

5 How are drivers treated at the warehouse? Truck drivers are some of the most important people to your business; they are the final link between you and your customer. Is there coffee, a smile upon check-in and a way to track how drivers feel about their visit? Make sure you can call the company president! You shouldn t have to ask. It should be part of the deal. If a big issue comes up, or a weighty decision needs to be made, you want to be able to reach for the red phone. Questions to ask: How long has the company been in business? Who owns the company? Can you talk to the staff where your product is stored? Does local staff have decision-making authority? Do you have to talk to a call center thousands of miles from your product? Are you introduced to the office staff where your product is stored? Do the rates seem too good to be true? Do your truck drivers have to load their own trucks? How are drivers treated at the warehouse? Can you call the company president?

6 NW Cherry Lane Hillsboro, Oregon Henningsen Cold Storage Co.