5 Off-Beat tips when selecting a Freight provider

by Nigel Lewis on 2011-10-27

It’s interesting, as you would expect the recession has had a significant impact on small to medium sized freight companies.  The lucky ones either survive or get snapped up by larger Corporates and the not so lucky ones fade away never to be seen again.

We have also seen large multi-nationals operate budget brands where their business model is based on small margins, they do not promise the earth but offer non urgent delivery options.

Let’s use an example from my home country New Zealand.

Mainfreight is one of New Zealand’s largest freight companies, based in Auckland they have expanded operations offshore and now operate in Australia, Asia and the US.

In New Zealand they operate four freight companies, three of which cross over in terms of service offering.  A smart business model as it may seem, you would be hard pressed to find their various brands on the Mainfreight website.  Why?  It is because their competitive advantage is based on clear brand separation.

Companies that adopt this business model can leverage their brands to increase market share and in most cases increased resources can benefit their clients.

Globally, we see acquisitions all the time, just check the Global Logistics Media website, you will see plenty of press releases from freight companies acquiring small niche freight businesses to increase market share.

The recession is the perfect storm for acquisitions.

My concern is not for the small to medium sized freight company but the unsuspecting business owner who utilize freight companies.  When choosing to engage a freight company, do your due diligence because let’s be honest, the sales rep doesn’t give a stuff about you, they just want to close the deal and reach their budget.

So here are 5 Off-Beat tips about selecting a freight provider.

1) Ask them if they have a Facebook or Twitter page, if they don’t ask why not. Companies that do not engage in social media usually have something to hide.

2) Try and find out what other companies they operate, then talk to their subsidiaries and the customers of those subsidiaries, if you discover negative feedback then you will most probably discover a trend throughout their whole operation.  (Hint:  Talk to the budget brand).

3) Talk to more than one Sales Rep from the same freight company, and ask them the same questions.  You might find three sales reps giving two or three different answers, this is not good.

4) If you have a freight company in mind, try and find a sales rep that used to work for that company, I can guarantee they will be more truthful about their previous employer. Beware though; take their feedback with a pinch of salt.

5) If you get the opportunity talk to the decision makers of the Freight Company and I’m not talking about the Executives, I’m talking about their Warehouse workers.  Get a feel for their working conditions, morale, pay rates, productivity, enthusiasm and punctuality. Company culture is fostered at the top and works its way down to the shop floor.