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What is the best way to evaluate a new logistics provider for import/export operations?

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If you are involved in import/export operations, you know how crucial it is to choose a reliable and efficient logistics provider. A good logistics provider can help you save time, money, and hassle, while a bad one can cause delays, damages, and disputes. But how do you evaluate a new logistics provider before entrusting them with your shipments? Here are some tips to help you make an informed decision.

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1 Check their credentials

The first thing you should do is verify the credentials of the logistics provider. This includes checking their licenses, certifications, accreditations, and memberships in relevant associations or networks. For example, you may want to look for a provider that has an International Air Transport Association (IATA) license, a Customs-Trade Partnership Against Terrorism (C-TPAT) certification, or a membership in the World Cargo Alliance (WCA). These credentials indicate that the provider meets certain standards of quality, security, and professionalism in the industry.

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Marwan El Kashef
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Evaluating a new logistics provider for import/export operations is crucial for ensuring smooth and efficient supply chain management. Here are steps you can take to evaluate and select the best logistics provider: a- Check Credentials and Experience: Verify the provider's credentials, certifications, licenses. b- Evaluate Services Offered: Assess the range of services offered including freight forwarding, customs clearance, warehousing & transportation. c- Financial Stability: Financial stability is a must and capable of meeting its obligations. d- Technology and Tracking Capabilities. e- Compliance and Regulatory Knowledge. f- Cost and Pricing Structure. g- Communication and Customer Service. h- Negotiate Contract Terms.

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Jason Haith
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Some credentials mean a person was able to fill out paperwork correctly...... so it's pretty important to ensure you're properly prepared, too. Certifications are important, but they shouldn't absolve you from better understanding who you're vetting.

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2 Assess their capabilities

The next thing you should do is assess the capabilities of the logistics provider. This includes checking their services, facilities, equipment, technology, and staff. For example, you may want to look for a provider that offers a range of services, such as air, sea, road, or rail transport, warehousing, distribution, customs clearance, and insurance. You may also want to look for a provider that has modern and well-maintained facilities, equipment, and technology, such as warehouses, trucks, containers, tracking systems, and software. Additionally, you may want to look for a provider that has experienced and trained staff, such as managers, agents, drivers, and handlers.

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Jason Haith
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A top/bottom survey is always a good idea and I'd recommend speaking with other reps from other teams, too. Technology is pretty crucial these days so be sure you understand what's on offer and how to use it. Training should also be provided, if necessary. Experienced and training staff will make the biggest difference in your day to day so take the time.

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3 Compare their prices

The third thing you should do is compare the prices of the logistics provider. This includes checking their rates, fees, surcharges, and discounts. For example, you may want to look for a provider that offers competitive and transparent rates, based on the weight, volume, distance, and mode of transport of your shipments. You may also want to look for a provider that charges reasonable and clear fees, surcharges, and discounts, based on the service level, fuel cost, exchange rate, and volume of business. Moreover, you may want to look for a provider that provides quotes and invoices in a timely and accurate manner.

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Jason Haith
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Yes, of course, pricing is a thing you should look at. All providers will tell you they provider competitive and transparent rates, based on all sorts of things. If you're actually going to check you should ask to have several of your recent shipments quoted using the same information you'd provided the other company.

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LeahMarie Wren

Experienced Certified U.S. Export Compliance Officer (CUSECO), Paralegal, & Duty Drawback, Knowledge and Familiarity with Import Compliance
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A relationship with a freight forwarder is an entwined one. You, the USPPI, are providing them with a POA to file your EEI on time, completely, and accurately by signing the shipment over to them. Your FF should be trustworthy, knowledgeable, and professional. They should have staff that know and understand the EAR as it applies to them. You want a FF that is reliable and honest (duh!). The FF should be willing to provide you with a copy of any filings they have made on your behalf. (You want the copies for verification of accuracy and your Recordkeeping requirements under the EAR.)

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4 Review their performance

The fourth thing you should do is review the performance of the logistics provider. This includes checking their track record, reputation, and feedback. For example, you may want to look for a provider that has a proven track record of delivering shipments on time, in good condition, and in compliance with the regulations of the origin and destination countries. You may also want to look for a provider that has a good reputation in the market, among their peers, customers, and suppliers. Furthermore, you may want to look for a provider that has positive and consistent feedback from their current and previous clients.

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5 Test their communication

The fifth thing you should do is test the communication of the logistics provider. This includes checking their availability, responsiveness, and professionalism. For example, you may want to look for a provider that is available and reachable through multiple channels, such as phone, email, chat, or social media. You may also want to look for a provider that is responsive and proactive in addressing your queries, concerns, and issues. Additionally, you may want to look for a provider that is professional and courteous in their communication, using clear and respectful language and tone.

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6 Evaluate their fit

The sixth and final thing you should do is evaluate the fit of the logistics provider. This includes checking their alignment, compatibility, and flexibility. For example, you may want to look for a provider that is aligned with your goals, values, and expectations, such as quality, speed, safety, or sustainability. You may also want to look for a provider that is compatible with your culture, style, and preferences, such as formal, informal, collaborative, or independent. Lastly, you may want to look for a provider that is flexible and adaptable to your changing needs, demands, and circumstances, such as volume, frequency, or destination of your shipments.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What is the best way to evaluate a new logistics provider for import/export operations?

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1 Check their credentials

2 Assess their capabilities

3 Compare their prices

4 Review their performance

5 Test their communication

6 Evaluate their fit

7 Here’s what else to consider

Service Operations

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What is the best way to evaluate a new logistics provider for import/export operations?

1

2

3

4

5

6

7

1 Check their credentials

2 Assess their capabilities

3 Compare their prices

4 Review their performance

5 Test their communication

6 Evaluate their fit

7 Here’s what else to consider

Service Operations

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