Many businesses outsource logistics services to the logistics companies in Singapore such as PCAMasters Pte Ltd. Some of the businesses do not know much about the logistics company’s operations even after the signing of the service agreement. They rely on the service agreement to ensure that all aspects of the logistics services will be carried out smoothly. The common thinking is that the logistics company will be pressured by the stringent logistical service agreement, and forced to perform satisfactory logistics service. Failure to meet the service standards as specified in the service agreement will result in penalty for the logistics company.
However, we think that businesses should be more concerned about the logistics company’s operations. In fact, businesses should research in depth about the logistics company and how it operates before they sign the logistical service agreement with the logistics company in Singapore.
It will be better to avoid issues rather than to look for solutions when issues arise. When the logistics company cannot fulfill the logistical needs as specified in the service agreement, it will affect your company operations too. You may suffer some intangible consequences such as impact of reputation. These are the things that are difficult to put a figure on, and hence claim in legal cases.
Some of the things to take note about the logistics company are its company size, duration of company operations, and its operations. These will give you hints on whether the logistics company will be reliable to perform the logistics services which will suit your company’s requirements. A larger company with a longer company history is generally more reliable. Moreover, knowing the logistics company’s operations such as the type of vehicles used and whether they are adopting the use of machinery will give you insights on whether they are able to fulfill your requirements. For example, if the logistics company’s fleet of vehicles is all lorries, it may not be suitable to transport light-sensitive, temperature-sensitive or fragile materials. Different logistics companies will be able to meet different customers’ needs. You will have to judge by yourselves whether they will really be able to meet your logistical needs.