Every logistics company in the Philippines offers a diverse range of services, and it can be challenging to find a reliable partner that meets all your business goals. Selecting a reliable logistics provider doesn’t only require trust, but also a deep understanding of your objectives and what your chosen company can bring to the table.
The ideal logistics partner is highly capable of matching and even optimizing your business strategies. Here is a breakdown of the things you should consider when choosing a logistics company in the Philippines.
A Business Owner’s Useful Guide on Selecting the Best Logistics Company in the Philippines
Types of Logistics Services
It is essential to be familiar with the types of logistics solutions that a provider can offer. To give you an idea, these are the ones that are commonly used by businesses:
- Transportation
Refers to the punctual movement of commodities from one place to another. This logistics service may utilize maritime, land, or air transport to deliver goods
- Warehousing
Involves inventory management, storage, and packaging. It also involves management of storage facilities and preparing products for shipment.
- Cargo Handling
Utilizes various methods to transport or move cargo, such as lifting equipment and conveyor belts.
- Courier Shipping
Items are shipped domestically or globally through a courier service. It is also the fastest way to ship goods and is typically used by ecommerce or small businesses.
- Freight Shipping
Focuses on the transport of high-volume, heavy, or bulky items. It may involve the use of containers (LCL, FCL, reefer), tankers (LNG or LPG carriers, crude oil, chemical tankers), and breakbulk cargo carriers.
- Freight Forwarding
Handles the complete logistics documentation and processes, such as supply chain management, logistics management, customs clearance, and warehousing.
- Second-Party Logistics (2PL)
Takes care of transportation services on behalf of a business. It uses trucking services, sea shipping, or air travel to move commodities efficiently.
- Third-Party Logistics (3PL)
Conducts end-to-end logistics services encompassing transportation, warehousing, fulfillment, and even packaging.
- Fourth-Party Logistics (4PL)
Manages the entire supply chain and complex processes using data-driven methods and technology.
6 Tips on Choosing a Logistics Company in Metro Manila
1. Determine the types of logistics services your business needs.
You must align your business goals with your logistics requirements. This fundamental step is the key to building your criteria for a logistics company in the Philippines. Identify the strengths and weaknesses of your existing operations. If your process is too complex, consider outsourcing a logistics company that can manage specific weak areas for you.
On the other hand, if your goal is to reduce costs, review logistics companies with flexible rates that complement your financial strategy.
The nature of your products can also dictate the kind of service you need. If your cargo needs to be transported in large quantities or require sensitive handling that in-house operations cannot fulfill, find a company that can support this aspect.
2. Identify your domestic or international coverage.
A logistics company in the Philippines can contribute tremendously to growing your presence in various areas. Should you be looking to expand your reach to untapped domestic markets, the right logistics provider will have an existing network it can deliver to.
Businesses that require global logistics coverage must look into companies that possess expertise at simplifying the complex processes of international shipping, such as customs compliance, taxes, tariffs, and trade regulations.
3. Evaluate rates and value for money.
Study and compare pricing structures of different logistics companies and assess how it aligns with your budget. Logistics management in the Philippines can be charged at a flat rate or volume-based discount rates. Assess the costs of value-added and customized services; if this brings value to your business operations, it’s necessary to avoid hidden fees.
4. Verify industry expertise and regulatory compliance.
It is essential to work with a logistics company that has ample experience in the industry. This means they must be knowledgeable about domestic and/or international shipping regulations and can navigate through them. Some specialized companies can expertly manage unique, industry-specific challenges.
For example, shipping companies that transport petroleum products possess the appropriate equipment and qualified personnel to do the job. They can also provide expert solutions to environmental and safety compliance.
5. Research customer satisfaction and reliability.
Look for reviews and testimonials about the company you wish to partner with. It is a crucial indicator of how a logistics company in Metro Manila delivers consistent, high-quality, and customer-driven solutions. It also helps you foster lasting relationships on better terms. A mutually beneficial business partnership can boost both revenue and reputation for both parties.
6. Look for sustainable options.
Environmental impact is another prominent logistics challenge. There is no doubt that the supply chain contributes to an increase in carbon emissions. A recent study on cold chain logistics found that vehicles with transport refrigeration units (TRU) emit 15% more carbon compared to standard trucks. To reduce their carbon footprint, logistics companies are gradually adapting environmentally-friendly practices.
Given this, it is essential to find a logistics company in Metro Manila that innovates sustainable, technologically-advanced solutions to combat the effects of high fuel consumption and carbon emissions.
Characteristics of a Reliable Logistics Company
- Customizable and flexible options: Optimizing costs not only helps a logistics company stay competitive, but it also helps lower the expenditure of business clients and improve loyalty.
- Adaptability and problem-solving: Due to the variety of challenges in logistics such as demand surges, regulatory changes, inclement weather, and more, a good company should be able to adapt quickly.
- Experience and stability: A trusted logistics company in the Philippines is adept at handling demanding scenarios with assurance and high-quality solutions.
- Highly organized and detail-oriented:
- Integrates technology: The use of advanced, smart tools is essential to delivering strategic results in a highly-digitized world, especially for shipment tracking and route optimization.
- Strong customer relations: It is essential that a logistics partner prioritizes good customer experience through various means, such as fast delivery times and clear communication.
- Time-bound: Punctuality is a crucial factor in logistics, especially in delivering sensitive goods and meeting deadlines.
- Responsiveness and transparent communication: Logistics partners must be responsible and proactive, particularly regarding shipment updates, changes, and issues.
- Wide array of services: Reliability can also mean going above and beyond. An established logistics company in the Philippines should have adaptable and smart solutions for different supply chain requirements.
5 Benefits of Outsourcing Logistics Management in the Philippines
1. Cost-efficiency
A logistics company can streamline your processes through their range of solutions. Spending becomes more flexible as you may only pay for outsourced services or the volume of shipments. It also eliminates the need to invest in in-house logistics.
2. Enhanced productivity
By outsourcing your logistics process, you can start focusing on producing more goods and enhancing your operations. This improves accuracy and consistency in delivering your services to your customers.
3. Improved risk management
A logistics company in the Philippines is likely familiar with the risks that come with various services. They can offer expert consultancy and solutions to prevent challenges before they arise.
4. Strengthened customer relationships
A provider that thoroughly understands your objectives can deliver consistent and seamless results, which is essential to maintaining customer trust.
5. Wider market reach
The existing network of logistics providers helps you unlock new markets and achieve a more strategic expansion.
Navigating logistics in an archipelagic country might be difficult, but the industry is abundant in game-changing solutions. At the end of the day, the right logistics company in the Philippines is the one that is committed to understanding your goals and can fulfill them with finesse.
ALSO READ: 12 Essential Reasons Why You Should Partner with a Logistics Company in the Philippines
You’ve got a reliable partner in Chelsea Logistics. We offer a variety of logistics services in Metro Manila, South Luzon, Visayas, and Mindanao. Our catalogue of services includes commercial tankers, cargo, passenger travel, tug services, and land or sea distribution. Connect with us today and get a quote.
