Strategic Logistics: Choosing a Partner for Seamless Supply Chain Operations

Choosing the right logistics partner is not merely about cost savings. It's about building a resilient and optimized supply chain. Finding a partner that aligns with your culture and embraces transformative technology is the key to unlocking operational excellence.

The cost of choosing the wrong partner is significant. Disentangling your business from a poorly suited partner can be both operationally disruptive and financially crippling. According to Supply Chain Brain, supply chain disruptions caused businesses financial losses of 15% or more in 2022, with 56% of small and medium businesses changing suppliers due to “costs” and “consistent delays.”

Here are five things to look for when choosing a supply chain partner:

1. Strategic Alignment: Tailoring Solutions to Your Supply Chain Needs

Each supply chain is unique, with its own set of strategic demands based on cargo types, shipping lanes, and business goals. Understanding the specific needs of your supply chain is paramount. Whether it's optimizing expenses, scalability, or communication and reporting preferences, choosing a logistics partner aligned with your priorities will ensure an efficient collaboration.

• Shipping dated materials? Your partner should have an intense focus on punctuality.
• High volumes? You may prefer a partner with a deep supplier network.
• Facing seasonal surges? A small-sized logistics firm that can offer competitive regional and domestic rates may struggle to size up.

2. Technology: A Catalyst for Transformation

In the digital age, a logistics partner's tech stack plays a pivotal role in shaping the efficiency and transparency of supply chain operations. Effective logistics software and integrated warehouse management systems provide real-time tracking data, optimized supply lines, accurate inventory management, and precise reporting. Integration opportunities with your own systems offer a comprehensive view of shipments, enabling informed decision-making and significant cost reductions.

For example, a multi-billion-dollar retail client of ours previously managed all its logistics operations through spreadsheets. While commendable, the reality is that even with the most talented administrators, they never achieved the level of oversight necessary to compete with dedicated logistics software. In the first year of their partnership with us, utilizing our Allink360™ software, this business saved over 30% in logistics costs.

3. Financial Viability: Safeguarding Against Instability

In a world marked by inflation and fluctuating fuel prices, the financial health of logistics partners cannot be overlooked. Financial instability can lead to inconsistent service quality, limited capacity, and, in extreme cases, the risk of bankruptcy. A logistics partner in a precarious financial position may struggle to invest in training, infrastructure, and technology, impacting overall service standards. Understanding the financial stability of your logistics partner is crucial for safeguarding against disruptions and ensuring the sustainability of your supply chain.

4. Culture Matters: The Foundation of Reliable Partnerships

The transactional nature of business partnerships, often prioritizing the lowest cost, has led to a race to the bottom. However, a myopic focus on cost can prove counterproductive in the long run. Look for a logistics partner with a culture that values every shipment (regardless of size). This approach fosters proactive problem-solving, long-term partnerships, and a commitment to continuous improvement.

5. Experience & Expertise: The Pillars of Reliability

Experience and expertise are invaluable assets in logistics. Partners with a proven track record of institutional experience, adaptability, and a deep understanding of industry-specific requirements are paramount. Seasoned logistics providers with experienced employees are better equipped to navigate industry challenges, integrate new technologies, and tailor their services to meet the unique needs of your business. Specialization in handling specific products further ensures the safe and efficient transportation of goods, minimizing losses and preserving customer satisfaction.

At a time when speed, scalability, and cost are critical to a competitive business and a healthy bottom line, consider what makes your supply chain tick and where a potential logistics partner must add value. A highly reliable and functional supply chain has never been more critical than in today’s business landscape.

ABOUT THE AUTHOR

Pat O’Brien is Managing Director of Fulfillment and Logistics for Harte Hanks. Pat's fulfillment team puts clients' brands into customer hands, including print-on-demand literature, sales enablement materials, and promotional items, product samples, and specialty kits.

The logistics division helps retailers compete with the freight industry's largest players on cost and speed. Moving full loads, partial loads, and time-sensitive materials to the tune of more than 1.3 billion pounds of freight per year, Harte Hanks is the master of the middle mile and serves as a true outsourced supply chain partner for companies like Office Depot and American Eagle.