When it comes to choosing a logistics provider, many customers are solely focused on one thing: price. It’s understandable – in today’s fast-paced business world, cost-saving measures are often a top priority. However, what may seem like a great deal at first glance can end up costing you much more in the long run.
At RJ Logistics, we understand that pricing is a crucial factor for our clients. That’s why we strive to offer competitive rates without sacrificing quality service. We believe that focusing solely on price can lead to problems down the line, and it’s our job to educate customers on the true cost of bidding wars.
The Problem: The customer received multiple bids from carriers at different price points
As a shipping customer, you can be tempted to choose the lowest-priced logistics bid, possibly giving the job to an inferior service provider. The lowest-priced service provider may not do the necessary vetting or obtain all the correct information, resulting in delays, extra costs, and unnecessary stress to you.
The problem with focusing on the cheapest option
It’s essential to consider all aspects when choosing a logistics provider. This includes their reputation, experience, and reliability.
The lowest-priced logistics price can lead you to unfavorable situations such as:
- Returned shipments due to the service provider’s inability to cover them.
- The service provider does not have the proper understanding based on experience of what goes into executing your shipment.
- Selling you unrealistic expectations just to secure your shipment award. Wouldn’t you rather your shipment arrive how you expect it, rather than underperforming what you were promised?
These problems will cause loss far beyond your expected savings from going with the lowest-priced logistics bid. You are over promised and under delivered.
The Stakes: The lowest-pricest logistics bid ultimately proves to be more of a hassle
Cheaper service providers often neglect proper vetting and fail to gather accurate information. This leads to wasted money, time, and unnecessary hassle for you, the shipper.
A single late shipment, now urgent, needs to have a team driver situation implemented. Now due to not arriving on time the cost surpasses the cost savings that a customer might’ve expected to see from the cheap rates promised in the beginning by the lower bidding service provider.
Shippers will quickly realize that the lowest-priced logistics bid provider either didn’t show up, failed to pick up the shipment, or provided a last-minute excuse involving a driver shortage.
In this industry, excuses often indicate a misjudgment in bidding for the shipment leading to costly insurance claims, double brokered loads, theft, and returning shipments.
The Solution: The shipper returns to RJ Logistics.
In many instances, the shipper initially awarded the job to the lowest-priced logistics bid, only to turn to RJ Logistics a day or two later.
One of the reasons shippers continue to award more freight to RJ Logistics is not because we have the lowest-priced logistics bid rate, but how we handle our customer’s freight with dedicated account managers, real-time tracking, and strict carrier vetting — Avoiding risk factors that could jeopardize your shipment.
RJ Logistics has out-performed multi-billion dollar service providers who had the lowest rates due to our ability to bring a high level of service at a market competitive price.
Don’t let a logistic provider lowest-price shipping war get you burned.
The Outcome:
Together We Can Contribute to the World at Large
You have possibly been burned in the past by a logistics provider and have a distrust towards brokers, that’s why RJ Logistics does our best to provide realistic expectations, pricing, and a reliable plan of action to solve problems.
When selecting a logistics provider, it is crucial to bear in mind that opting for the cheapest option could potentially result in higher costs in the long run. At RJ Logistics, we prioritize fair pricing while ensuring that our customers receive the utmost quality of service. We strive to deliver the best value for your goals and requirements.
