Delivering The Goods

Leo Tortorici, marketing manager of Pack & Send, believes this is where his company can help. The company already has relationships with a range of carriers, and with its industry knowledge should be able to find the best solution for your distribution needs. "From our stores you can get sea freight services, international mail services, international and domestic courier services, point-to-point services, and so on. We’re not as bound as other carriers are by their own capabilities, because we work very closely with a number of carriers right across the market.

"From our knowledge of the industry, we know that some carriers are good in certain areas and other carriers aren’t. And if you’ve got a number of service providers, you’re probably not going to be sending too much volume through any particular one, so you’re probably not going to be able to negotiate very good rates, and that’s where we can help."

He admits, though, for businesses sending high volumes of pre-packaged freight going direct could be better. If you go down this path, Backman says a carrier’s reputation for reliability is crucial.

And recommendation is everything, so ask your industry association and business network which service providers other businesses, similar to yours, have used.

Budget is also important, so calling for competitive quotations or expressions of interest from carriers is essential. Ask what process they’ll go through to effectively manage your freight task. "Obviously service and reliability are essential but the ability to service a business’ ongoing growth, and the ability to meet the technological demands, are vital in this modern world," says Backman.

Bear in mind that some service providers (mainly the larger ones) will have their own vehicles, and regional and interstate distribution centres, while others may use third parties or working partners. Backman says many in the industry are aggregating so together they can offer the full suite of transport and freight services to compete with the big global transport companies.

"The provider needs to have either a wide infrastructure of depots around Australia, or alternatively a very strong agent network," advises Carson. So ask potential service providers key questions about their distribution network, and request references as well.

The carrier’s adoption of technology should also be a key consideration. "Today, because of ‘just in time’, the need to control costs, and from an inventory and control point of view, there is a need to know at any stage where that delivery is in the supply chain sequence," says Backman.

Being able to track and trace your delivery at every stage in the process has become standard, but if your job requires an integrated effort from a number of transport service suppliers, it’s important that they have an integrated software system that still allows you total transparency throughout the delivery.

The freight industry is also moving towards paperless communications, adds Backman. Consignment orders, quotations and invoicing can all be done online via the service provider’s website or via email, so your carrier should offer these services.

 Outsource Option

If the idea of analysing and fulfilling your distribution needs seems beyond the scope of your time and capabilities, engaging the help of a logistics consultant may be the way to go.

A consultant can help with just one aspect of the logistics process or the whole thing, depending on your requirements. "Businesses can look to engage a consultant to do an informal assessment for them, and try and obtain a service and rate from a service provider that will suit their needs," explains Carson. "But for people who are moving regular quantities of freight, we can take them through an RFP (request for proposal) or a tender process." The consultant will handle the whole process and come up with a recommendation. This could be to retain the existing provider (on a new service or rates), suggest a new supplier, or even suggest a number of service suppliers.