Spotlight On: Cheaper is Not Always Better

You’ve probably heard of the saying “cheaper is not always better” at least once in your lifetime. Well, this is true when it comes to logistics too! In this blog post we’re putting the spotlight on WHY cheaper isn’t always better, and how you can make sure you still receive good service delivery without breaking the bank. 

Cheaper doesn’t always mean better because:

  • You will likely end up with a service provider who charges low rates because their service isn’t up to scratch, which will mean late deliveries for you. This will have knock-on effects and can lead to unhappy clients or lost sales. You may even have to find alternative means of transport to get deliveries to their destinations on time, which could mean additional costs (and high ones!). 
  • Bad communication is another factor that is usually associated with cheap costs. Nobody wants to be left in the dark, and paying a bit extra gives you that peace of mind because you will know what is going on. 
  • Overall, cheaper rates generally also means that you can expect bad customer service. Businesses who do too many deliveries at a low cost often leave them unable to provide customers with good customer service, and lots of headaches. 

While some transport costs (especially shipping at the moment) can be high and in order to make as much profit as possible you want to opt for as low a cost as possible, going cheaper often means you’ll end up paying more down the line. You also run the risk of damaging your business’s reputation. 

How can you save costs without being cheap?

By accepting that you will need to pay a small premium for good service and on-time deliveries, you’ll avoid all the risks and additional costs that generally occur when you decide to opt for the cheapest service providers. You’ll be able to budget properly and won’t need to find extra funds when things go wrong. 

By investing in technology such as TSI’s Digital Control Tower, you’ll also be able to cut costs more efficiently by streamlining your logistics. Did we mention that we also manage all our clients’ demurrage and detention for free too? Overall, you’ll be putting your business in a much more competitive position and essentially giving it every chance to succeed! 

Find out more [HERE]

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